Itochu Shokuhin

Basic Information

Stock Code
2692
Industry
Wholesale Industry
Category Detail
Food Wholesalers
Prefecture
Osaka Prefecture
Establishment Year
November 1918
Listing Year
March 2001
Official Website
https://www.itochu-shokuhin.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kobe Bussan, Nihon Tunei, Nihon Nohyaku, Yamae Group Holdings, Mitsubishi Foods, Oya Sangyo, G-7 Holdings, Central Forest Group, Yurasa Funashoku, Toho, Kato Sangyo, Sato Shokai

Overview

Itochu Shokuhin, founded in 1918, is a leading domestic food wholesaler and a subsidiary of Itochu Corporation, holding a top-class position in the wholesale of alcoholic beverages and food products.

Current Situation

Itochu Shokuhin recorded consolidated net sales of approximately 661.2 billion yen and operating profit of approximately 4.4 billion yen for the fiscal year ended March 2020, operating seven branches nationwide. Major customers include Seven-Eleven and Ito-Yokado, providing a stable transaction base. In recent years, it has strengthened initiatives in IT and financial areas, such as the introduction of electronic invoices and expansion of financial services for individuals. It has established a nationwide logistics network in the alcoholic beverages and food wholesale business, offering a diverse product lineup. Along with enhanced collaboration within and outside the group, it aims for sustainable business operations, actively contributing to society through activities like hosting food grand prix events for commercial high schools. Moving forward, it will focus on promoting digitalization, strengthening sales capabilities, and advancing sustainability as core strategies to achieve medium- to long-term growth. Its financial foundation is stable, and it continues to focus on enhancing competitiveness in the food wholesale industry.

Trivia

Interesting Facts

  • Itochu Shokuhin has been a trading partner with Seven-Eleven since its inception.
  • Boasts nationwide 5th place in food wholesale sales.
  • Rare dual-headquarters system with bases in Osaka and Tokyo.
  • Founded in 1918 with over a century of history.
  • Pioneered electronic invoice adoption in the industry.
  • Contributes to young talent development by hosting commercial high school food grand prix.
  • Holds the longest history among Itochu Corporation subsidiaries.
  • Major shareholders include Ajinomoto and Asahi Beer.
  • Covers the nation with diverse branches and logistics systems.
  • Handles a wide range of brands in alcoholic beverage wholesaling.
  • Built nationwide sales network centered on native Osaka.
  • Key player in food wholesaling related to Nikkei 225.
  • Contributed to creating standard formats for food distribution standards.
  • Promotes integrated logistics contracting, contributing to industry standardization.
  • Actively building sustainable business systems.

Hidden Connections

  • As a core of the Itochu Corporation Group, it collaborates widely with other industries, enabling multifaceted business development.
  • Deep transactions with Ito-Yokado and Seven-Eleven, exerting significant influence on retail industry trends.
  • Major shareholders include food giants like Ajinomoto and Asahi Beer, forming strong partnerships within the industry.
  • Advanced initiatives in logistics and IT systems have ripple effects on other group companies.
  • Hosting the commercial high school food grand prix has built close cooperative relationships with local educational institutions.
  • Dual-headquarters system strengthens access to both Osaka and Tokyo markets.
  • Expansion of financial services plays a role in supporting cash flow in the food distribution industry.
  • Contributes to food distribution system efficiency through standardization activities in the industry.

Future Outlook

Growth Drivers

  • Stable demand in nationwide food wholesale market
  • Ongoing transaction expansion with Seven-Eleven and Ito-Yokado
  • Promotion of digitalization and electronic invoice systems
  • Increasing demand for health-oriented and high-value-added products
  • Strengthening sustainable logistics and environmental considerations
  • Expansion of financial services for small and medium food businesses
  • Active investment in new business areas
  • Strengthening customer base through community-focused sales
  • Diversification of product lineup
  • Talent development for youth and enhanced human resource competitiveness
  • Advanced food safety and quality management
  • Strategic advancement toward overseas market development

Strategic Goals

  • Full implementation of digital ordering and logistics systems nationwide
  • Entry into top 3 in food wholesale industry and market share expansion
  • Establishment of sustainability-focused business portfolio
  • Achievement of annual sales over 850 billion yen
  • Continuous strengthening of social contributions and regional revitalization
  • 10% increase in new customers via new financial services
  • Achievement of industry-leading sustainability metrics
  • Improvement in employee diversity and work-life balance
  • Development and implementation of innovative logistics services
  • Expansion of health-oriented product portfolio

Business Segments

Food Wholesaling

Overview
Wholesale services stably supplying a wide range of foods to diverse food service operators.
Competitiveness
Powerful procurement capabilities of the Itochu Group and extensive logistics network enabling high-quality stable supply.
Customers
  • Seven-Eleven
  • Ito-Yokado
  • Major Supermarkets
  • Convenience Stores
  • Department Stores
  • Restaurant Chains
  • School Lunch Providers
  • Local Retailers
  • Food Processors
  • Restaurants
Products
  • All Alcoholic Beverages
  • Processed Foods
  • Fresh Foods
  • Frozen Foods
  • Seasonings
  • Dairy Products
  • Confectionery
  • Beverages
  • Livestock Raw Materials
  • Business Foods

Logistics and Delivery Services

Overview
Provides safe and rapid logistics support services specialized in food distribution.
Competitiveness
Network of seven bases nationwide and state-of-the-art IT systems.
Customers
  • Food Wholesalers
  • Restaurant Chains
  • Retailers
  • Mail Order Operators
  • Logistics Companies
Products
  • Temperature-Controlled Logistics
  • Delivery Services
  • Inventory Management
  • Order Management Systems

Food Processing and Manufacturing Collaboration

Overview
Joint development and stable supply of high-quality foods through collaboration with manufacturers and processors.
Competitiveness
Market adaptability through extensive product lines and technical support.
Customers
  • Processed Food Manufacturers
  • Beverage Manufacturers
  • Business Ingredient Manufacturers
Products
  • Processed Meat Products
  • Sugar Products
  • Fish Surimi
  • Seasoning Bases

Food-Related Financial Services

Overview
Supports liquidity with financial products and services tailored to the food industry.
Competitiveness
Flexible financial solutions leveraging the credit of the Itochu Group.
Customers
  • Small and Medium Food Wholesalers
  • Agriculture, Forestry, and Fisheries Operators
  • Food Retailers
  • Restaurants
Products
  • Accounts Receivable Financing
  • Fundraising Support
  • Guarantee Services

IT and E-Commerce Support

Overview
Provides IT solutions to promote efficiency in food distribution operations.
Competitiveness
Thorough follow-up for implementations and flexible function development.
Customers
  • Retailers
  • Trading Partner Wholesalers
  • Logistics Partners
Products
  • Electronic Invoice System
  • Order Platform
  • Inventory Management Software

New Business Development Support

Overview
Support and collaboration to accelerate innovation in the food industry.
Competitiveness
New business creation support utilizing group networks.
Customers
  • Group-related Companies
  • External Partners
  • Startups
Products
  • Alternative Food Development
  • Market Research
  • New Product Planning

Wholesale-Related Education and Training

Overview
Conducts educational activities aimed at developing talent and raising awareness in the wholesale industry.
Competitiveness
Practical program deployment through community collaboration.
Customers
  • Employees
  • Industry Stakeholders
  • Commercial High Schools
Products
  • Food Grand Prix
  • Training Programs
  • Industry Courses

Regional and Social Contribution Business

Overview
Actively engages in community-based social contributions and educational support.
Competitiveness
Effective activities based on extensive industry collaboration and long-term trust relationships.
Customers
  • Local Communities
  • Commercial High Schools
  • Consumer Groups
Products
  • Food Grand Prix
  • Food Education Support
  • Disaster Relief Supplies

Inbound-Related Product Wholesaling

Overview
Expands market with product lineup responding to inbound foreign visitor demand.
Competitiveness
Proposal capabilities linked with local products.
Customers
  • Airport Duty-Free Shops
  • Tourist Information Centers
  • Souvenir Shops
Products
  • Local Specialties
  • Duty-Free Products
  • Japanese Confectionery

Ingredient Supply for Restaurants

Overview
Builds ingredient supply system meeting diverse restaurant needs.
Competitiveness
Rapid and flexible response capabilities.
Customers
  • Restaurants
  • Izakaya
  • Cafes
Products
  • Business Meat Products
  • Vegetables and Seafood
  • Seasonings

Rice Distribution Business

Overview
Stably supplies high-quality rice nationwide.
Competitiveness
Strong producer linkages and logistics network.
Customers
  • Retailers
  • Food Processors
  • Food Service Industry
Products
  • Branded Rice
  • Business Rice
  • Blended Rice

Pet Food Wholesaling

Overview
Supplies high-quality products to the pet market.
Competitiveness
New product provision directly from manufacturers.
Customers
  • Pet Shops
  • Veterinarians
  • E-commerce Operators
Products
  • Pet Foods
  • Nutritional Supplements
  • Supplies

Competitive Advantage

Strengths

  • Itochu Group's resources and networks
  • Stable supply via seven nationwide logistics bases
  • Strong transaction relationships with major customers
  • Diverse product lineup
  • Long-term market trust and brand power
  • Advanced IT system implementation
  • Nationwide 5th in food wholesale sales
  • Improved sales efficiency through dual-headquarters system
  • Abundant industry knowledge and experience
  • Stable financial foundation
  • Collaboration with numerous affiliates
  • Strong ties with local communities
  • Multifaceted logistics services
  • Active social contribution activities
  • Initiatives for sustainable business operations

Competitive Advantages

  • Powerful procurement as part of Itochu Corporation Group
  • Nationwide logistics network and delivery capabilities
  • Long-term transactions with major convenience stores and supermarkets
  • Handling of extensive product categories
  • Efficient operations via IT systems
  • Regional needs response via dual-headquarters system
  • Promotion of sustainability and social contributions
  • Flexible response to diverse customer segments
  • High brand recognition and reliability
  • Long-term strategy advancement via stable finances
  • Market expansion through strong partner relationships
  • Active investment in new businesses and innovation
  • High-specialty training and talent development programs
  • Expansion of consumer financial services
  • Community-focused sales strategy and contributions

Threats

  • Intense price competition in the industry
  • Raw material price fluctuation risks
  • Increased compliance burden from strengthened food safety regulations
  • Rising logistics costs
  • Supply chain disruptions from natural disasters
  • Demand fluctuations from infectious disease outbreaks
  • Increased expenses from soaring energy prices
  • Labor shortages due to declining birthrate and aging population
  • Need to respond to changing consumer health trends
  • IT security risks
  • Impacts from international situation changes
  • New entries or expansions by competitors

Innovations

2024: Nationwide Rollout of Electronic Invoice System

Overview
Switched from paper to electronic invoices, significantly improving operational efficiency and accuracy.
Impact
Achieved improved transaction speed and cost reductions

2023: Expansion of Consumer Financial Services

Overview
Expanded financial support services for small and medium food-related enterprises and individual customers.
Impact
Realized customer base expansion and revenue diversification

2022: Introduction of AI Demand Forecasting System

Overview
Utilized AI analysis to achieve accurate inventory management and order forecasting.
Impact
Successfully reduced stockouts and optimized inventory

2021: Support for Establishing Commercial High School Food Grand Prix

Overview
Sponsored food development contest for commercial high schools to support new product development.
Impact
Contributed to young talent development and regional revitalization

Sustainability

  • Promotion of distribution efficiency to reduce food loss
  • Promotion of EV conversion for logistics vehicles to reduce environmental impact
  • Local sourcing strategy supporting local production for local consumption
  • Expansion of renewable energy use
  • Community-participatory food safety programs
  • Reduction of plastic packaging and promotion of recycling
  • Employee health management and diversity promotion
  • Adoption of sustainable procurement standards
  • Strengthening of ecological office operations
  • In-house awareness activities for waste reduction
  • Continuous improvement of food safety management systems
  • Participation in local environmental conservation activities