Fuji Oil Holdings Inc.

Basic Information

Stock Code
2607
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Osaka Prefecture
Establishment Year
October 1950
Listing Year
October 1961
Official Website
https://www.fujioilholdings.com
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nisshin OilliO, Kadoya Oil, J-Oil, Kikkoman, Miyoshi Oil & Fat

Overview

Fuji Oil Holdings Inc. is a major oil and fats manufacturer in the food industry, founded in 1950. Centered on confectionery ingredients, it has bases in Asia and the West and operates as a global company leveraging its strong ties with Itochu Corporation.

Current Situation

Fuji Oil Holdings Inc. recorded consolidated sales of approximately 414.7 billion yen and operating profit of approximately 23.6 billion yen for the fiscal year ended March 2020, maintaining a stable revenue base. In its mainstay edible oils and fats manufacturing, it boasts a high market share in the confectionery sector and is actively expanding into Asian and Western markets. It has strengths in stable raw material supply through its global procurement network and diverse business subsidiaries. In recent years, it has been promoting new businesses such as plant-based ingredients and alternative proteins, expanding investments in growth areas. Along with transitioning to a pure holding company structure, it is strengthening group integration and deepening initiatives for sustainable material procurement and reduced environmental impact. While competing with domestic and international rivals, it differentiates through product development capabilities and marketing strength. Going forward, it aims to capture growing demand for health-oriented and environmentally friendly products to expand its global market share. Key challenges include stable growth, profitability improvement, and optimization of its business portfolio.

Trivia

Interesting Facts

  • Fuji Oil is a pioneering company in utilizing plant-based proteins.
  • Holds top-class domestic share in materials for Japanese and Western sweets.
  • Leading the market through early focus on alternative meat technology.
  • Strong capital ties with major trading house Itochu.
  • Conducts business with local production in North America and Europe.
  • Deeply rooted in the confectionery industry with numerous pro-oriented products.
  • Expanding health-oriented products like plant-based seasonings.
  • Over 60 years of history as a holding company structure.
  • Undergoing group reorganization via spin-off.

Hidden Connections

  • Strong business ties with Itochu Corporation's food-related group.
  • Plant-based broth products bring innovation to Japan's traditional food industry.
  • Alternative meat products advanced through collaboration with environmental groups.
  • Diverse product development enabled by technology exchange with acquired European firms.
  • Serves as a shadowy key supplier of raw materials to Japan's confectionery industry.
  • Soy protein technology applicable to health foods and pharmaceuticals.
  • Cost competitiveness through optimized intra-group logistics.
  • Global management strategy refreshed following CEO change.

Future Outlook

Growth Drivers

  • Expansion of plant-based food demand in global markets
  • Increasing demand for alternative materials from health-conscious consumers
  • New product development through technological innovation
  • Gaining trust via established sustainable supply chains
  • Overseas business expansion and improved local production capacity
  • Competitive edge from adapting to stricter environmental regulations
  • Creating functional foods reflecting consumer needs
  • Manufacturing efficiency improvements via digital technology

Strategic Goals

  • Achieve over 50% overseas sales ratio
  • Alternative protein products sales exceeding 100 billion yen
  • Expansion and penetration of sustainability-certified products
  • 40% reduction in manufacturing process CO2 emissions
  • Annual investment in new technology development over 5 billion yen
  • Strengthen group-wide environmental and social governance
  • Improve brand recognition in emerging markets
  • Stabilize earnings structure through product diversification

Business Segments

Raw Material Supply for Confectionery and Bakery Manufacturers

Overview
Stably supplies a wide range of raw materials and processed products to confectionery and bakery companies.
Competitiveness
High-quality supply through stable global procurement and manufacturing technology
Customers
  • Major confectionery manufacturers
  • Bakery factories
  • Western sweets chain stores
  • Confectionery OEM companies
  • Food processing companies
Products
  • Shortening
  • Butter products
  • Dairy raw materials
  • Confectionery fillings
  • Plant-based protein
  • Edible oils and fats

Industrial Oils and Fats Supply

Overview
Provides oils and fats raw materials tailored to diverse industrial uses, meeting market needs.
Competitiveness
Versatile manufacturing technology and product development capabilities
Customers
  • Food manufacturers
  • Feed manufacturers
  • Cosmetics manufacturers
  • Pharmaceutical raw material manufacturers
  • Industrial customers
Products
  • Edible oils and fats
  • Specialty functional oils and fats
  • Emulsifiers
  • Industrial fatty acids
  • Alternative raw materials

Business Expansion for Overseas Markets

Overview
Deploys products in diverse Asian and Western markets, addressing local needs.
Competitiveness
International sales network and local production systems
Customers
  • Local food processors
  • Retail chains
  • Export companies
  • Local consumers
Products
  • Edible oils and fats products
  • Plant-based meat alternatives
  • Processed food raw materials

Health and Alternative Protein Business

Overview
Supports technology development and commercialization of health-oriented and environmentally friendly products.
Competitiveness
Proprietary material technology and market launch capabilities
Customers
  • Health food manufacturers
  • New business investors
  • Alternative meat producers
Products
  • Soy meat
  • Plant-based chocolate substitutes
  • Functional food materials

Oils and Fats Processing Equipment and Services

Overview
Provides equipment and support services necessary for oil refining and processing.
Competitiveness
Efficiency support through group collaboration
Customers
  • Group manufacturing subsidiaries
  • Partner factories
  • Logistics companies
Products
  • Oils and fats refining equipment
  • Quality control services
  • Logistics and storage management

OEM and Contract Manufacturing Services

Overview
Deploys OEM supply leveraging the group's manufacturing expertise.
Competitiveness
Multi-product対応 and quality assurance
Customers
  • Small food companies
  • New brand developers
  • External manufacturing contractors
Products
  • Processed confectionery materials
  • Edible oil blends
  • Pharmaceutical raw material refining

Raw Material Procurement and Import/Export Agency

Overview
Provides import/export support utilizing the group's procurement strength and trade expertise.
Competitiveness
Global procurement network
Customers
  • Group subsidiaries
  • Related companies
  • Overseas trading partners
Products
  • Raw oils and fats
  • Food materials
  • Export/import procedures

R&D Support Services

Overview
Supports new technologies and product development leveraging the group's technical expertise.
Competitiveness
Abundant technical accumulation and track record
Customers
  • Confectionery manufacturers
  • Food technology labs
  • Raw material developers
Products
  • Technical consulting
  • New material development
  • Functional evaluation

Logistics and Storage Services

Overview
Supports stable product supply through an efficient logistics network.
Competitiveness
Utilization of nationwide logistics bases
Customers
  • Intra-group manufacturing companies
  • External customers
Products
  • Raw material warehouse storage
  • Product delivery
  • Quality-controlled logistics

Promotion of Environmentally Friendly Business

Overview
Promotes introduction of low-environmental-impact technologies and sustainable manufacturing.
Competitiveness
Ongoing environmental improvement activities
Customers
  • Group as a whole
  • Government agencies
  • Local communities
Products
  • Environmentally friendly products
  • Waste reduction technology
  • Sustainability reports

New Market Development for Exports

Overview
Develops new overseas customers and product deployments.
Competitiveness
Flexible market-in approach
Customers
  • Overseas distributors
  • Local food companies
  • Agents
Products
  • Special processed foods
  • Plant-based protein products
  • New product lineup

Health Foods and Functional Materials Development

Overview
Advances development and provision of materials tailored to health-conscious trends.
Competitiveness
Advanced bio-technology utilization
Customers
  • Health food manufacturers
  • Pharmaceutical companies
  • Supplement companies
Products
  • Functional soy protein
  • Plant-derived oils
  • New extracts

Competitive Advantage

Strengths

  • High brand recognition in the Japanese market
  • Global raw material procurement capabilities and network
  • Advanced confectionery oils & fats technology and product development
  • Stable resource procurement through collaboration with Itochu Corporation
  • Diverse product lineup and quality assurance
  • Active expansion into Asia and the West
  • Group-integrated operations under holding company structure

Competitive Advantages

  • Strong market position in confectionery and bakery raw materials
  • Early investments in plant-based alternatives
  • Supply stability and diversification through overseas oils & fats acquisitions
  • Differentiation through product diversity and functionality in the industry
  • Robust R&D foundation supporting technological development
  • Rapid implementation of sustainability measures
  • Optimization of global supply chain

Threats

  • Risk of fluctuations in global raw oils & fats prices
  • Intensifying technological innovation and price competition from rivals
  • Increased manufacturing costs due to stricter environmental regulations
  • Profit impacts from exchange rate fluctuations
  • Rapid changes in consumer preferences such as health trends
  • Advances in competing alternative protein technologies
  • Export/import constraints from international trade friction

Innovations

2024: Development of Plant-Based Chocolate Substitutes

Overview
Developed pea-derived chocolate substitutes, contributing to reduced environmental impact.
Impact
Acquiring new customers and expanding sales in environmentally conscious markets

2023: Launch of Clam-Flavored Plant-Based Broth

Overview
Commercialized a plant-based seasoning with clam flavor using soy protein.
Impact
Creating new markets for health-conscious and plant-based preferences

2023: Acquisition of French Edible Oil Manufacturer

Overview
Acquired to stabilize sunflower oil procurement and expand European sales channels.
Impact
Strengthened production in Europe and stabilized raw material procurement

2022: Full Subsidiary of North American Oils & Fats Business

Overview
Integrated US operations to enhance market competitiveness and management efficiency.
Impact
Strengthened sales and improved earnings in North America

2021: Enhanced R&D on Plant-Based Meat Raw Materials

Overview
Initiated multifaceted research toward commercialization of alternative proteins.
Impact
Aiming to establish position in future growth areas

Sustainability

  • Promoting use of plant-based raw materials to reduce environmental impact
  • Building sustainable raw material procurement networks
  • Energy-saving in manufacturing processes and waste reduction
  • Strengthening green procurement and supply chain management
  • Reducing plastic packaging and adopting alternatives