House Foods Group Inc.

Basic Information

Stock Code: 2810
Industry: Food Products
Category Detail: Food Manufacturing
Prefecture: Osaka Prefecture
Establishment Year: June 1947
Listing Year: July 1971
Official Website: https://housefoods-group.com/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Kikkoman, Ajinomoto, S&B Foods, Kagome, Sato Food Industries, Ariake Japan, Nissin Foods HD, Taiyo Chemical, Fuso Chemical Industry, Riken Vitamin, Hasegawa Fragrances, Nippi

Overview

House Foods Group Inc. is a leading company in the food industry founded in 1947, with strengths in diverse food manufacturing centered on curry and global expansion.

Current Situation

House Foods Group Inc. recorded consolidated sales of approximately 283.7 billion yen and operating profit of approximately 19.4 billion yen in the fiscal year ended March 2021, achieving steady revenue and profit growth. It boasts the top domestic market share in its mainstay curry products and is promoting diversification into health foods and seasonings. Overseas expansion is active, with plans for a new factory in Indonesia to expand the Asian market. Under the holding company structure, it has strengthened a management system specialized by subsidiaries and is pursuing synergies across the group. In technology development, it focuses on health-oriented products and high-functionality foods, and is actively addressing sustainability. Toward 2030, it positions expansion of overseas sales ratio and sustainable product development as pillars of its growth strategy. Consolidated subsidiaries include Ichibanya and House Wellness Foods, strengthening brand power and channel development. It aims for sustainable growth by enhancing competitiveness in the market and resilience to raw material price fluctuations.

Trivia

Interesting Facts

Boasts overwhelming share in domestic curry roux market
Ichibanya's CoCo Ichibanya is a group-affiliated restaurant brand
Transitioned to holding company structure in 2013 to promote efficient management
Plans to build new curry roux factory in Indonesia
Strong in health foods with famous 'Ukon Power'
Registered head office in Higashiosaka City, with head offices in Tokyo and Osaka
Acquired Gaban to strengthen spice lineup
Entered frozen foods business with Marrony under its umbrella
Many subsidiaries in Asia and North America
Veteran food manufacturer with over 70 years of history since founding
Spice material Gaban holds top-class domestic share
Featured on Nikkei Special Cambria Palace for contribution to curry culture
Also known for health beverage brand 'Halsia'
Ichibanya Co., Ltd. also handles commercial frozen foods
Develops many proprietary seasonings and flavored products

Hidden Connections

Serves as major supplier for convenience store products like Seven-Eleven
Collaborates with pharmaceutical companies to explore medical applications of health food ingredients
Leverages local procurement strength of overseas subsidiaries
High trust in food service industry for commercial ingredients
Founding Urakami family forms part of corporate culture
Strong group collaboration with Ichibanya also handling contract production of curry sauce
Achieved product diversification through acquisition of seasoning Gaban
Remarkable brand expansion aligned with health food market growth

Future Outlook

Growth Drivers

Population growth and food demand expansion in Asia-Pacific region
Growth in functional food market due to rising health consciousness
Efficiency gains from digital transformation
Strategic investments for overseas market expansion
Strengthened product development for aging society
Improved consumer trust through sustainability efforts
Enhanced market competitiveness through diversified products
Logistics innovation and cost reduction
International expansion of brand power
Product differentiation through new technologies
Strengthened group-wide marketing
Product improvements and development capturing customer needs

Strategic Goals

Expand overseas sales ratio to over 30%
Achieve low environmental impact products and operations
Strengthen top-class domestic position in health foods
Optimize efficiency through DX in manufacturing processes
Create annual sales of 50 billion yen scale from new products
Establish sustainable raw material procurement system
Improve transparency across the supply chain
Enhance global brand recognition
Promote employee diversity and talent development
Strengthen CSR activities coexisting with local communities

Business Segments

Commercial Seasonings and Spices

Overview

Providing high-quality seasonings to the food service industry and processed food manufacturers.

Competitiveness

Wide product lineup and stable supply capacity

Customers

Restaurant Chains
Food Processors
Confectionery Makers
Hotels
Hospitals and Nursing Homes

Products

Commercial Curry Roux
Spice Mixes
Liquid Seasonings
Processed Food Ingredients

Health Foods and Functional Products

Overview

Supplying functional foods and beverages to the health-conscious market.

Competitiveness

R&D of proprietary functional ingredients

Customers

Drugstores
Healthcare Companies
Mail Order Businesses

Products

Functional Beverages
Health Supplements
Beauty Products

Food Manufacturing Contract

Overview

Contract manufacturing of frozen and retort foods centered on subsidiary San House.

Competitiveness

High-quality and flexible contract system

Customers

Retailers
Food Service Industry
Frozen Food Industry

Products

Frozen Curry Manufacturing
Retort Food Manufacturing
OEM Production

Raw Material Procurement and Logistics

Overview

Streamlining raw material procurement and logistics for inside and outside the group.

Competitiveness

Efficient operations leveraging group collaboration

Customers

Group Companies
Logistics Providers

Products

Raw Material Procurement
Delivery and Warehouse Services

Overseas Business Expansion

Overview

Expanding local sales and manufacturing in Asia and North America markets.

Competitiveness

Global brands and local subsidiaries

Customers

Local Distributors
Retail Stores
Restaurant Chains

Products

Curry Roux
Seasonings
Health Foods

Competitive Advantage

Strengths

Overwhelming share in domestic curry market
Diverse product lineup and brand strength
Efficient management under holding company structure
Strong product development and marketing capabilities
Global manufacturing and sales network
Sound financial base
Prudent expansion strategy and acquisition experience
High R&D capabilities
Stable raw material procurement system
Risk diversification through diversification
Excellent marketing strategy
Group synergies
Strong presence in health foods
Advanced logistics and supply chain management
Active overseas investments

Competitive Advantages

Strong market position with top share in domestic curry
Multiple leading brands including House Foods and Ichibanya
Rich product lineup addressing wide needs
Specialized management under holding company system
Aggressive factory construction and sales expansion overseas
Proprietary brands and technologies in health foods
Strategic acquisitions via TOB for market expansion
Established diverse sales channels with broad customer base
Enhanced corporate value through CSR including sustainability
Deployment of community-oriented services
Superior flavor adjustment technology and quality control
Brand reliability from accumulated know-how
Utilization of high-efficiency logistics network
Flexible operations adapting to international regulations
High employee technical skills and commitment

Threats

Cost increases from raw material price fluctuations
Intensifying competition in domestic food market
Challenges in cultural adaptation and regulations overseas
Potential tightening of regulations in health food market
Supply chain disruptions from natural disasters or pandemics
Sudden changes in consumer preferences
Exchange rate risks from yen depreciation or appreciation
Market share erosion by new entrants
Impacts from international trade disputes
Increased compliance costs from environmental regulations
IT security risks
Domestic market shrinkage from demographic changes

Innovations

2023: New Curry Roux Factory Construction Starts in Indonesia

Overview: Preparation for new factory operations to strengthen production for Asian market.
Impact: Cost reduction and improved supply capacity through local production

2022: Development of New Materials for Health Functional Foods

Overview: R&D of proprietary health ingredients for functional beverages.
Impact: Contributes to enhanced product competitiveness and market expansion

2021: Promotion of Automation and Efficiency in Food Processing

Overview: Initiatives to improve production efficiency through DX at manufacturing sites.
Impact: Production cost reduction and quality stabilization

2020: Introduction of Sustainable Packaging Materials

Overview: Introduction of new packaging materials to reduce environmental impact.
Impact: Reduction in plastic use and improved brand image

Sustainability

Active adoption of environmentally friendly packaging to reduce plastics
Promotion of renewable energy introduction at factories
Efforts to reduce waste and improve recycling rates
Support for environmental education in local communities
Thorough safety and security standards in health foods
Implementation of food loss reduction projects
Formulation of sustainable agricultural product procurement policies
Employee training to raise environmental awareness
Logistics efficiency for CO2 emission reduction
Regional revitalization through social contribution activities