Ito En

Basic Information

Stock Code
2593
Industry
Food Products
Category Detail
Beverages, Tobacco & Luxury Foods
Prefecture
Tokyo
Establishment Year
August 1966
Listing Year
May 1992
Official Website
https://www.itoen.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yakult, Hokkaido Coca-Cola Bottling, Coca-Cola Bottlers Japan Holdings, Life Drink Company, Fruta Fruta, Suntory Beverage & Food, DyDo Group Holdings, Key Coffee, Kikkoman, Kewpie, Kagome

Overview

Ito En is the industry leader in tea products and beverages, founded in 1966, with strong brand power in the green tea beverage sector.

Current Situation

As of April 2023, Ito En boasts consolidated sales of approximately 504 billion yen, offering a diverse product lineup including green tea, oolong tea, coffee beverages, and more across domestic and international markets. In 2024, it established Hokkaido Ito En to advance regionally focused initiatives. Employing a fabless model without its own factories, it maintains an efficient production system through collaboration with partner factories nationwide. The company promotes sustainable efforts such as tea plantation development and tea leaf recycling systems, with a focus on reducing environmental impact. Its flagship brand 'Oi Ocha' holds Guinness certification as the world's best-selling green tea beverage. Overseas operations are expanding primarily in North America and Asia, with active promotion of diverse health-oriented products. Future growth is anticipated through strengthened sustainability, diversification, and digital initiatives.

Trivia

Interesting Facts

  • First beverage company to sell canned oolong tea worldwide.
  • The name 'Oi Ocha' originates from a TV commercial line.
  • Health Mineral Barley Tea holds No.1 market share in barley tea and Guinness world record.
  • Fabless model partners with 40 factories nationwide to suppress capital investment.
  • Tea leaf residue recycling envelopes have won multiple Environment Minister Prizes.
  • Actively expanding in North American market including supplements business.
  • Features celebrities like Shohei Ohtani and Tsurube Shofukutei as brand characters.
  • First in Japanese tea industry with in-house tea taster certification approved by Ministry of Health.
  • Founder was a former car salesman who started business after quitting.
  • Sponsors Takarazuka Revue, contributing to cultural initiatives.
  • Made Tully's Coffee a wholly owned subsidiary to expand coffee market.
  • As market leader, succeeded in developing high-value-added green tea beverages.
  • 'Two Effects Catechin Tea' series certified as food for specified health uses.
  • Achieves added value enhancement and farmer support through 6th industrialization of tea products.
  • Operates directly owned green tea specialty shops and cafes nationwide.

Hidden Connections

  • Founding Honjo family engages in diversified operations including golf course management and pro golfer support.
  • Joint venture with Itochu Corp. for mineral water business, handling domestic Evian sales.
  • Competes with Suntory and Coca-Cola but also partners in mutual vending machine sales.
  • Handles manufacturing and sales of PB products for Seven & i Group via mail order and e-commerce.
  • Energy drinks with diverse vitamins and amino acids suggest potential collaborations with pharmaceutical firms.
  • High social responsibility, donating per product sold during Great East Japan Earthquake.
  • Direct entry into multiple US and Asian markets via overseas subsidiaries with local production.
  • Multiple famous actors and entertainers featured in CMs to boost brand recognition.

Future Outlook

Growth Drivers

  • Market growth from expanding demand for health-oriented products
  • Strengthened sales in overseas markets, especially North America and Asia
  • Advancement of tea 6th industrialization and sustainable agriculture
  • Expansion of digital sales channels and cashless payments
  • Differentiation through eco-friendly products and recycling technologies
  • Product lineup expansion to meet diversifying customer needs
  • Event and cultural collaborations leveraging brand strength
  • Enhanced flexible market response via fabless production
  • Growth in coffee and supplement markets through subsidiary synergies
  • Operational efficiency via DX (digital transformation)
  • Product quality and functionality improvements through new technologies
  • Strengthened regional sales and limited-edition products

Strategic Goals

  • Achieve consolidated sales over 6,000 billion yen domestically and internationally
  • Improve sustainable certified product ratio to over 50% of all products
  • Reduce CO2 emissions by over 30% through green energy utilization
  • Strengthen lineup of health functional labeled foods in domestic and overseas markets
  • Contribute to regional revitalization via tea plantation development and farmer support
  • Expand sales channels and customer touchpoints through DX promotion
  • New growth businesses (supplements etc.) to exceed 10% of total sales
  • Deepen fabless model efficiency and disaster risk diversification
  • Revenue growth from regional limited products, specialty stores, and e-commerce
  • Ongoing cultural and sports support activities to enhance brand power

Business Segments

Tea Leaf Products Supply

Overview
Supplies high-quality tea leaves as raw materials and builds a trusted supply chain.
Competitiveness
Stable supply system through in-house tea plantation development
Customers
  • Beverage Manufacturers
  • Tea Specialty Shops
  • Department Stores
  • Wholesalers
  • Restaurant Chains
Products
  • Tea Leaf Raw Materials
  • Tea Bags
  • Processed Tea Leaf Products

Beverage Manufacturing Outsourcing

Overview
Fabless model with partner factories in multiple regions for stable production.
Competitiveness
Risk diversification through multi-site production
Customers
  • Beverage Brand Companies
  • Vending Machine Operators
  • Retail Chains
Products
  • Green Tea Beverages
  • Coffee Beverages
  • Vegetable Juices

Sales Channel Services

Overview
Excels in direct sales by its own sales staff with strong customer networks.
Competitiveness
Customer closeness achieved through direct sales approach
Customers
  • Convenience Stores
  • Supermarkets
  • Vending Machine Operators
Products
  • Route Sales
  • Vending Machine Installation Management

Logistics and Packaging Materials

Overview
Provides environmentally considerate packaging technology and efficient logistics services.
Competitiveness
Tea leaf residue recycling technology awarded Environment Minister Prize
Customers
  • Group Companies
  • External Manufacturing Partners
Products
  • Tea Leaf Residue Recycled Packaging
  • Logistics Management
  • Materials Procurement

Overseas Business Support

Overview
Supports sales expansion in North America and Asia markets, addressing local needs.
Competitiveness
Extensive overseas network and brand recognition
Customers
  • Overseas Subsidiaries
  • Local Sales Agents
Products
  • Product Planning Support
  • Quality Control
  • Sales Promotion

Coffee Shop Business

Overview
Nationwide expansion centered on subsidiary Tully's Coffee Japan.
Competitiveness
High-quality service provision and brand strength
Customers
  • General Consumers
  • Franchise Stores
Products
  • Store Operations
  • Product Development
  • Marketing

Competitive Advantage

Strengths

  • Brand power as the largest manufacturer and seller of tea leaf products
  • Diverse product lineup and health-oriented goods
  • Production efficiency optimization via fabless model
  • Raw material procurement stability through tea plantation development
  • Robust direct sales system via route sales
  • Active overseas expansion and broad networks
  • Advanced environmental technologies and recycling systems
  • Diversified beverage business through subsidiaries
  • Long-standing trust and track record domestically and internationally
  • Proven track record in developing health functional labeled foods
  • Flexibility in product development responding to customer needs
  • Operational strength in vendor business with in-house staff
  • Regionally rooted sales system and product development

Competitive Advantages

  • Pioneered world's first canned oolong tea and PET green tea
  • Suppresses capital investment risk through fabless production
  • Promotes 6th industrialization of tea leaves to create added value
  • Strong sales channels and customer closeness via route sales
  • Environmentally friendly packaging technology awarded various prizes
  • Overwhelming sales record and share in green tea beverages
  • Stable production via factories in multiple regions
  • Diverse lineup of health-oriented products
  • Penetration into multinational markets using overseas subsidiaries
  • Enhances brand value through haiku contests and cultural activities
  • Market expansion through strong collaboration with Tully's Coffee
  • Ongoing introduction of new technologies and market creation
  • Improved customer convenience with diverse cashless payments
  • Continuous employee training and tea certification programs
  • Strategic partnerships in domestic vending machine market

Threats

  • Growth slowdown due to maturing domestic beverage market
  • Intense price competition and share battles with major competitors
  • Cost increase risks from strengthened environmental regulations
  • Risks of reduced tea leaf supply and price fluctuations
  • Local competition and regulatory risks in overseas markets
  • Fierce product development competition in health-oriented market
  • Impacts from natural disasters on production and logistics
  • Delays in responding to rapid changes in consumer preferences
  • Decline in competitiveness if unable to keep up with technological innovations
  • Threats from innovative products by new market entrants

Innovations

2024: Establishment of Hokkaido Ito En

Overview
New sales company for Hokkaido region to strengthen regionally focused expansion.
Impact
Enhanced regional product development and sales capabilities

2023: Health Mineral Barley Tea Certified as World's No.1

Overview
Promoting the barley tea brand certified by Guinness World Records.
Impact
Elevated brand value and increased sales

2022: Expansion of Cashless-Compatible Vending Machines

Overview
Introduced support for multiple mobile payments including Rakuten Pay and LINE Pay.
Impact
Improved customer convenience and expanded sales opportunities

2021: Development of Tea Leaf Residue Recycling Envelopes

Overview
Successfully introduced envelopes using tea residue to reduce environmental impact.
Impact
Strengthened eco-friendly image and promoted resource circulation

2020: New Health Functional Food Products

Overview
Launched multiple foods for specified health uses and functional labeled foods.
Impact
Reinforced acquisition of health-conscious consumers

2020: Strengthening North American Supplement Business

Overview
Entered supplement market by acquiring Mason Distributors.
Impact
Diversification and revenue growth in overseas operations

2021: Establishment of ITO EN Asia Pacific Holdings

Overview
Established holding company for Southeast Asia to bolster local expansion.
Impact
Market share growth through region-specific strategies

2023: Introduction of AI Talent in CMs

Overview
New marketing using AI technology in advertising.
Impact
Enhanced appeal to younger demographics

Sustainability

  • Promoting resource reuse through tea leaf residue recycling system
  • Development and adoption of low-environmental-impact packaging technologies
  • Support for tea producing farmers via plantation development projects
  • Strengthened environmental management through ISO14001 certification
  • Setting and implementing CO2 emission reduction targets across operations
  • Advancing resource savings via cashless payment adoption
  • Research and dissemination of sustainable agriculture technologies
  • Product development incorporating environmental impact assessments
  • Environmental conservation activities in collaboration with local communities
  • Active adoption of recyclable materials
  • Workplace environment improvements promoting women's advancement and diversity
  • Enhanced employee support through certification as a superior health management corporation