Iwatsuka Seika

Basic Information

Stock Code
2221
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Niigata Prefecture
Establishment Year
April 1954
Listing Year
October 1989
Official Website
https://www.iwatsukaseika.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Morinaga, Ezaki Glico, Bourbon, Fujiya, Kanro, Kameda Seika, Kotobuki Spirits, Koikeya, Calbee, B-R 31 Ice Cream, Landix, Beautè HD

Overview

Iwatsuka Seika was founded in 1954 and is a leading company ranking third in the industry for rice cracker manufacturing using 100% domestic rice, based in Niigata Prefecture.

Current Situation

Iwatsuka Seika recorded consolidated sales of approximately 24.9 billion yen and operating profit of approximately 800 million yen for the fiscal year ending March 2025, maintaining a stable business foundation. Its core rice cracker business insists on using 100% domestic rice, differentiating itself with soft-textured products to hold a strong position in the industry. A notable feature is that dividend income from its major stake in China Want Want accounts for the majority of ordinary profit. The company is actively updating equipment and starting operations at the Nagaoka new factory to improve production efficiency, while participating in the Ministry of the Environment's plastic reduction campaign to address sustainability. It is also advancing overseas expansion, such as in the North American market, by establishing its overseas subsidiary IWATSUKA USA Inc. to expand exports. In the medium to long term, it aims for sustainable growth through new product development, agricultural DX support, and technological innovation in collaboration with local communities. Management adheres to family-run operations by the founding family while focusing on employee training and regional contribution activities.

Trivia

Interesting Facts

  • One of the few domestic manufacturers producing rice snacks with 100% domestic rice.
  • Provided technical support to Taiwan Want Want since 1983 and holds 5% of China Want Want stock.
  • Unique structure where dividend income exceeds operating profit and accounts for most ordinary profit.
  • Delivery driver gained attention in 2020 by distributing senbei during heavy snow on Kan-Etsu Expressway.
  • Launched low-sodium senbei 'Kids Senbei' for children in 1966.
  • Pioneer in individually wrapped senbei, strong in packaging technology.
  • Owns headquarters and multiple factories in Nagaoka City, Niigata Prefecture, contributing to local industry.
  • Founder's bronze statue installed at Want Want Shanghai headquarters, called 'Father of Want Want'.
  • Established joint venture Want Want Japan with China Want Want to market Chinese confectionery products.
  • Opened Osaka sales office in 1964, early entry into Kansai market.
  • Relocated headquarters to Iizuka, Nagaoka City, Niigata Prefecture in 2021, consolidating bases.
  • Ongoing reconstruction support for Great East Japan Earthquake and Kumamoto Earthquake as social contribution activities.
  • 'Banzai Sansho' is a youth-targeted product inspired by China Want Want's flavor.
  • High-end gift rice cracker brand 'Zuika' operated through wholly-owned subsidiary.
  • Established local subsidiary IWATSUKA USA Inc. to expand business in North America.

Hidden Connections

  • Deep capital and business ties with China Want Want Group, significantly impacting the balance sheet.
  • Close cooperation with Niigata farmers as raw material suppliers, contributing to agricultural promotion.
  • Covers wide markets from high-end rice snacks to business-use foods through subsidiaries and affiliates.
  • Rare success story where delivery driver's SNS response contributed to improved brand image.
  • Deep ties with Nagaoka City community, long-term contribution to local economic development.
  • Family management system key to management stability and long-term growth.
  • Strategic partner sharing distribution channels in Asian markets due to relationship with China Want Want.
  • Supports raw material procurement and quality assurance technologically by donating agricultural DX materials to the region.

Future Outlook

Growth Drivers

  • Market differentiation through high value-added products using 100% domestic rice.
  • Growth via export expansion to North America etc. utilizing overseas subsidiaries.
  • Stabilization of raw material procurement and cost reduction through agricultural DX support.
  • Gaining consumer support through environmental impact reduction initiatives.
  • Stable business foundation and long-term growth strategy from family management.
  • Strengthened product development to meet diversifying consumer needs.
  • Strengthened sales foundation through expansion of e-commerce and direct sales channels.
  • Enhanced brand value through regionally focused social contribution activities.
  • Establishment of competitive edge through technological innovation in the rice snack industry.
  • Improved production efficiency and cost competitiveness via new factories.

Strategic Goals

  • Maintain and strengthen 100% domestic rice usage across all products.
  • Aim for No. 2 market share in domestic rice snack industry.
  • Achieve overseas sales ratio of over 20%.
  • Reduce plastic usage in packaging materials by over 50%.
  • Expand agricultural DX support business and strengthen collaboration with local agriculture.
  • Enhance information disclosure through issuance of sustainability reports.
  • New product development for new market development and youth customer acquisition.
  • Improve corporate value through community contribution activities.
  • Product differentiation via introduction of advanced quality control technologies.
  • Enhance brand power through strengthened digital marketing.

Business Segments

Business-Use Rice Cracker Supply

Overview
Stable supply of high-quality rice snacks made with domestic rice to a variety of business customers.
Competitiveness
100% domestic rice ingredients and stable supply capability
Customers
  • Restaurants
  • Hotels
  • Retailers
  • Food Service Chains
  • School Lunch Providers
  • Souvenir Shops
  • Supermarkets
Products
  • Senbei
  • Arare
  • Okaki
  • Fried Rice Snacks

Exports for Overseas Markets

Overview
Exports and import sales of rice snacks, mainly to North America.
Competitiveness
Local support via IWATSUKA USA Inc.
Customers
  • Overseas Retailers
  • Local Wholesalers
  • US Snack Market
  • Overseas Japanese Restaurants
Products
  • Rice Snack Products
  • Fried Rice Snacks

Agricultural Materials and Services

Overview
Services to promote DX in local agriculture and support stable raw material procurement.
Competitiveness
Local collaboration and extensive agricultural expertise
Customers
  • Local Farmers
  • Agricultural Corporations
  • Local Governments
Products
  • Agricultural DX Materials
  • Raw Material Supply Support

Competitive Advantage

Strengths

  • High-quality product lineup using 100% domestic rice
  • Long years of manufacturing know-how and technical expertise
  • Strategic capital relationship with China Want Want
  • Wide distribution channels and regionally focused expansion
  • Stable business foundation from family management
  • Active expansion into overseas markets
  • Strong product development capabilities and R&D structure
  • Proactive response to sustainability
  • Diverse lineup of popular brands
  • Equipment investments for improved production efficiency
  • Robust regional contribution activities
  • Product portfolio that meets diverse customer needs

Competitive Advantages

  • Differentiation from competitors possible through 100% domestic rice usage
  • Stable dividend income secured from holdings in China Want Want stock
  • Soft texture and quality of products supported by consumers
  • Strong and stable supply system through collaboration with local agriculture
  • Market share expansion via expanded sales channels domestically and internationally
  • Rapid product development enabled by R&D center attached to production factory
  • Access to growth markets through overseas expansion in North America etc.
  • Consumer trust gained from rich history and brand power
  • Social recognition from participation in Ministry of the Environment's plastic reduction campaign
  • Consistent corporate philosophy and management stability from family operation
  • Diverse product lineup reflecting customer needs
  • Ensured supply stability through developed logistics network

Threats

  • Risk of fluctuations in rice prices
  • Market shrinkage due to declining birthrate and aging population domestically
  • Intensifying intra-industry competition and price wars
  • Impact of exchange rate fluctuations on overseas business profits
  • Rising transportation costs and labor shortages
  • Strengthened regulations on food safety and quality control
  • Asset value risk from China Want Want stock price and exchange rate fluctuations
  • Shifts in consumer demand due to health trends
  • Raw material supply risks from poor weather or natural disasters
  • Rising manufacturing costs from stricter environmental regulations
  • Market encroachment by new entrants and substitute products
  • Information security risks and insufficient disaster preparedness

Innovations

2023: Nagaoka New Factory Operations Start and BEIKA Lab Established

Overview
Completed the latest-equipped Nagaoka new factory and attached R&D base BEIKA Lab.
Impact
Achieved improved production efficiency and strengthened product development capabilities.

2022: Launch of Products with 30% Reduction in Plastic Packaging

Overview
Packaging improvements in response to the Ministry of the Environment's Plastic Smart Campaign.
Impact
Reduced environmental impact and improved social evaluation.

2021: Established North American Subsidiary IWATSUKA USA Inc.

Overview
Strengthened export and sales system for own rice snacks in the US market.
Impact
Contributes to future overseas sales expansion.

2020: Donated Agricultural DX Support Materials to Local Farmers

Overview
Provided materials to support digitalization of local Niigata Prefecture farmers.
Impact
Promotes efficiency in local agriculture and stable raw material procurement.

2024: Texture Innovation via New Rice Cracker Manufacturing Method

Overview
Developed proprietary technology for even softer, easier-to-eat rice crackers.
Impact
Contributes to acquiring new customers and market expansion.

Sustainability

  • 30% reduction in plastic usage through packaging material reductions
  • Stable raw material procurement and agricultural promotion via collaboration with local agriculture
  • Ongoing energy-saving and waste reduction activities at factories
  • Continued operation of regional revitalization project 'Connect to Tomorrow'
  • Introduction of environmental awareness education programs for employees
  • Environmental impact reduction through participation in Plastic Smart Campaign
  • Implementation and enhanced disclosure of sustainable procurement policies
  • Promotion of social contributions through collaboration on local environmental protection activities
  • Consumer health support through health-oriented product development
  • Improvements to manufacturing processes aimed at reducing environmental impact