Premium Water Holdings

Basic Information

Stock Code
2588
Industry
Food Products
Category Detail
Mail Order & Online Shopping
Prefecture
Tokyo
Establishment Year
October 2006
Listing Year
March 2013
Official Website
https://premiumwater-hd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Premium Water Holdings is a pioneering holding company for home delivery and mail-order sales of household drinking water, founded in 2006 with its head office in Shibuya-ku, Tokyo.

Current Situation

In fiscal 2023, Premium Water Holdings operates a mail-order business centered on high-quality household mineral water manufactured at its own factory at the foot of Mt. Fuji, maintaining a stable sales base. Listed on the Tokyo Stock Exchange Standard Market, it benefits from a solid financial foundation as a subsidiary of the Koshu Tsushin Group. Its main subsidiary, Premium Water Co., Ltd., leverages its brand strength and unique delivery network to improve customer satisfaction. It achieves both quality control using ISO9001-certified factories and reduction of environmental impact, with a focus on sustainability. It is expanding sales not only through direct and online mail-order but also to specialty stores and drugstores via diverse channels. Moving forward, it aims to expand market share through new product development and service improvements, while advancing plans for energy-saving technology investments and SDGs-related initiatives. It is also actively working to ensure management transparency and contribute to local communities, building a foundation for long-term growth.

Trivia

Interesting Facts

  • Grown into a leading company in water delivery business within a decade-plus since founding.
  • Exclusively uses natural water from the foot of Mt. Fuji with thorough attention to water quality.
  • Koshu Tsushin Group as major shareholder with strong capital base.
  • Early acquisition of ISO9001 for manufacturing quality management.
  • Nationwide deployment of own delivery network.
  • High reuse rate for delivery bottles with thorough environmental consideration.
  • Multiple lineups of proprietary developed water servers.
  • President Yohei Hagio credited with management reforms and brand building.
  • Exceptionally high customer loyalty within the industry.
  • Sustained stable growth in the mail-order sector.

Hidden Connections

  • Wholly owned subsidiary of Koshu Tsushin Group, leveraging group synergies.
  • Head office in Fujiyoshida City, closely tied to local economy.
  • Maintains high quality through factory operations with ISO9001 certification.
  • Holding company following management integration of Premium Water and FLS Co., Ltd.
  • Pioneer in IT and IoT technology adoption in the home delivery water industry.
  • Competes with mail-order companies in health foods and cosmetics.
  • Efficient customer acquisition utilizing Koshu Tsushin's know-how.
  • Strengthened customer service in rural areas through optimized delivery system.

Future Outlook

Growth Drivers

  • Increasing demand for natural water due to health consciousness.
  • Expansion of mail-order market and digitalization.
  • Financial strength and management support from Koshu Tsushin Group.
  • Growing consumer interest in energy-saving and eco-friendly products.
  • New product development and approaches to diverse customer segments.
  • Improved customer satisfaction through strengthened regional services.
  • Delivery efficiency and convenience improvements via IoT and AI.
  • Enhanced response to sustainability-related regulations.
  • Growing need for household drinking water in aging society.
  • Potential opportunities in overseas markets.
  • Strengthening of B2B commercial drinking water services.
  • New channel development leveraging brand strength.

Strategic Goals

  • Establish as market leader with over 30% domestic share.
  • Reduce environmental impact of all product lineups by 30%.
  • Expand customer touchpoints via digital platforms.
  • Achieve 10 billion yen in new B2B business sales.
  • Strengthen equipment investments for carbon neutrality.
  • Maintain and improve customer satisfaction above 90%.
  • Promote sustainable resource use and environmental conservation.
  • Achieve over 10% profit margin for the entire group.
  • Develop and deploy diverse product portfolios.
  • Establish regionally focused services in both rural and urban areas.

Business Segments

Commercial Drinking Water Supply

Overview
Provides high-quality drinking water and servers to businesses across various industries.
Competitiveness
High customer satisfaction through full-service delivery and collection system.
Customers
  • Offices
  • Restaurants
  • Hotels
  • Nursing Homes
  • Hospitals
  • Schools
  • Event Venues
  • Sports Facilities
  • Government Offices
Products
  • Commercial Water Servers
  • Large Mineral Water Bottles
  • Bottle Collection Service
  • Water Quality Management Service

OEM and Manufacturing Contract

Overview
Conducts OEM contract manufacturing leveraging the Fujiyoshida factory.
Competitiveness
High quality control standards and ISO9001-certified production equipment.
Customers
  • Beverage Manufacturers
  • Health Food Companies
  • Processed Food Manufacturers
Products
  • Mineral Water Manufacturing
  • Beverage Packaging
  • Quality Inspection Service

Logistics and Delivery Services

Overview
Provides prompt and courteous delivery services operated in-house.
Competitiveness
Established delivery network closely tied to local areas.
Customers
  • Own Group Companies
  • External Sales Businesses
Products
  • Water Bottle Delivery
  • Equipment Installation Service
  • Maintenance Service

Competitive Advantage

Strengths

  • Ownership of own factory at the foot of Mt. Fuji
  • Financial support from Koshu Tsushin Group
  • Strong brand presence in the home delivery water market
  • Customer touchpoints via diverse sales channels
  • ISO9001 certification in quality management
  • Comprehensive delivery and collection system
  • High customer satisfaction and repeat rate
  • Environmentally considerate manufacturing processes
  • Management stability and financial strength
  • Efficiency gains through group synergies
  • Advanced water server technology
  • Extensive product lineup
  • Regionally focused service deployment
  • Brand recognition in growth markets
  • Trusted relationships with long-term customers

Competitive Advantages

  • Stable product supply system via own factory
  • Funding support through collaboration with Koshu Tsushin Group
  • Rich product variations and customization capabilities
  • Design and development strength for high-quality water servers
  • Nationwide delivery and collection network
  • Diverse sales channel strategies tailored to customer needs
  • Reliability assured by ISO9001 certification
  • Powerful brand marketing and advertising
  • Introduction of energy-saving equipment mindful of environmental impact
  • Strong community relations
  • Comprehensive dedicated plans for residential users
  • Stable support from investors and shareholder composition
  • Management policy focused on sustainability
  • Strict management system for quality and safety
  • Market superiority as an early entrant in the industry

Threats

  • Intensifying competition in the drinking water market
  • Decline in market share due to new entrants
  • Rising prices of raw materials and packaging
  • Rising delivery costs and labor shortages
  • Rapid changes in consumer preferences
  • Cost increases from stricter environmental regulations
  • Impact of weather fluctuations on water source stability
  • Intensified price competition in online mail order
  • Risk of supply chain disruption during disasters
  • Competitive pressure from major beverage makers' entry
  • Increased burden from resource conservation and recycling laws
  • Overheating of digital marketing competition

Innovations

2024: Development of Next-Generation Energy-Saving Water Server

Overview
Released a new server model with approximately 20% improved energy efficiency.
Impact
Achieves reduction in environmental impact and electricity costs.

2023: Introduction of IoT-Linked Smart Delivery System

Overview
Introduced a system enabling delivery history management and real-time notifications to customers.
Impact
Cost reductions through delivery efficiency and improved customer satisfaction.

2022: Adoption of Environmentally Friendly Packaging Materials

Overview
Actively utilizes recycled PET materials to improve recyclability.
Impact
Reduces plastic usage by 15% annually.

2021: Automation of Quality Control at Fujiyoshida Factory

Overview
Introduced AI inspection system to reduce defect rates.
Impact
Stabilizes product quality and shortens inspection time.

2020: Enhancement of Online Contracts for Home Delivery Water Service

Overview
Revamped digital platform to improve customer convenience.
Impact
Increased customer acquisition rate by 15%.

Sustainability

  • Reduction in water usage in production processes
  • Promotion of renewable energy for electricity usage
  • Activities to promote plastic bottle recycling
  • Active participation in local cleanup volunteer activities
  • Building of sustainable supply chains
  • Strengthening environmental education programs for employees
  • Setting ongoing targets for CO2 emission reductions
  • Reduction in total waste and improvement in recycling rates
  • Promotion of environmental certification acquisition
  • Adoption of ecological packaging
  • Introduction of clean energy equipment in factories
  • Collaborative activities with local nature conservation groups