Kagome

Basic Information

Stock Code
2811
Industry
Food Products
Category Detail
Beverages, Tobacco & Luxury Foods
Prefecture
Aichi Prefecture
Establishment Year
December 1914
Listing Year
November 1976
Official Website
https://www.kagome.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hokkaido Coca-Cola Bottling, Coca-Cola Bottlers Japan Holdings, Life Drink Company, Fruta Fruta, Suntory Beverage & Food, DyDo Group Holdings, Ito En, Key Coffee, Ajinomoto, Kewpie, House Foods Group

Overview

Kagome is a Japanese food manufacturer established in 1914, the leading company in tomato processed products with strengths in the beverage and seasoning sectors.

Current Situation

Kagome recorded consolidated sales of approximately ¥306.8 billion and operating profit of approximately ¥36.2 billion for the fiscal year ending December 2024, establishing a stable earnings structure. It holds top-class share in the domestic market for its core tomato processed products and vegetable juices, and is expanding products leveraging its brand power. It is focusing on vegetable beverages and plant-based lactic acid bacteria drinks in response to rising health consciousness, while creating new markets. Although global expansion is limited, it is advancing overseas market development, including the acquisition of a U.S. subsidiary in 2015. As part of its sustainability efforts, it has obtained certifications for environmentally friendly products and provides agricultural support through its farms. In the medium to long term, it aims for growth centered on health-oriented product development and its strengths in vegetable-related technologies; it constructed a new headquarters building in 2022 to strengthen its management foundation. By participating in the integration of logistics operations, it is improving operational efficiency while promoting food loss reduction and regional contributions. Additionally, it is focusing on productivity improvements through IT utilization and the introduction of new technologies, and has outlined a sustainable growth strategy.

Trivia

Interesting Facts

  • Founded in 1899 (Meiji 32), it is a pioneer in Japan's tomato processed products.
  • Kagome products account for about 30% of domestic tomato consumption.
  • Launched the world's first tube-packed tomato ketchup in 1966.
  • Vegetable juice 'Vegetable Life 100' is well-established with strong brand power.
  • Calls individual investors 'fan shareholders' and holds regular exchange meetings.
  • Has 8 direct farms nationwide and handles its own agricultural product supply.
  • Has a capital and business alliance with Asahi Beverages, transferring some brands.
  • Invests 22% in the integrated logistics business of 5 food manufacturers.
  • Early introduction of plant-based lactic acid bacteria beverage Labre as a health product.
  • Tomatoes from direct farms are also sold at supermarkets, etc.

Hidden Connections

  • Founder Ittaro Kanie was an army veteran, origin of using the hexagram as trademark.
  • Built collaborative relationship in beverage market through capital and business alliance with Asahi Beer.
  • Entered health food sector through absorption merger of subsidiary Kagome Rabio.
  • Participated in establishing F-LINE logistics business, contributing to food logistics efficiency.
  • Collaborates with Calbee and Rohto Pharmaceutical on establishing public interest foundation for social contributions.
  • Contributes to regional agriculture development by setting up farms and memorial halls in various locations.
  • Once handled Pepsi-Cola bottling business.
  • Company president featured multiple times on TV Tokyo's 'Cambria Palace' program.

Future Outlook

Growth Drivers

  • Increase in vegetable beverage demand due to rising health consciousness
  • Development of environmentally responsive products and expanding consumer support
  • Stable raw material supply through strengthened direct farms
  • Efficiency and expansion strategy in logistics services business
  • Improved brand recognition and distribution expansion in overseas markets
  • Productivity and quality improvements through IT and AI utilization
  • Development of new categories such as plant lactic acid bacteria beverages
  • Improved profitability through high value-added products
  • Enhanced investor trust through strengthened ESG evaluations
  • Product development leveraging dialogue with consumers
  • Business building based on sustainability
  • Creation and sales strengthening of product lineup for new markets

Strategic Goals

  • Expansion of vegetable-related business share domestically and internationally
  • Enrichment of plant-based food lineup
  • Increase individual shareholders to over 300,000
  • Reduce environmental impact by 30% by 2030
  • Full application of sustainable farming and manufacturing processes
  • Significant improvement in logistics efficiency and optimization of cost structure
  • Expand sales ratio in global markets to 15%
  • Ongoing innovative product creation through R&D investment
  • Strengthen brand power and advance digital marketing
  • Strengthen presence in health food market

Business Segments

Raw Material Supply for Beverage Manufacturers

Overview
Business providing high-quality raw materials to the beverage and health food industries.
Competitiveness
Stable supply focused on domestically produced tomatoes
Customers
  • Beverage manufacturers
  • Health food manufacturers
  • Food service industry
  • Catering providers
Products
  • Tomato paste
  • Vegetable juice raw materials
  • Plant lactic acid bacteria raw materials

Seasoning Supply for Food Processing Industry

Overview
Provides a wide range of products in the business-use seasoning market.
Competitiveness
High brand power in the seasoning sector
Customers
  • Food processing companies
  • Restaurant chains
  • Prepared food manufacturers
Products
  • Various tomato sauces
  • Ketchup
  • Worcester sauce
  • General seasonings

Agriculture-Related Business and Seedling Supply

Overview
Supports farms through agricultural production technology and seedling development.
Competitiveness
Quality control through 100% own direct farms
Customers
  • Farm operators
  • Direct farms
  • Agricultural research institutions
Products
  • Tomato variety seedlings
  • Baby leaf seedlings
  • Vegetable cultivation technology

Logistics Services

Overview
Supports efficiency in food and beverage logistics through F-LINE.
Competitiveness
Large-scale logistics network through industry collaboration
Customers
  • Food manufacturers
  • Distributors
  • Beverage manufacturers
Products
  • Logistics services
  • Refrigerated and frozen transport
  • Optimal logistics solutions

Overseas Business

Overview
Promotes product rollout in the U.S., China, and Asia markets.
Competitiveness
Utilization of local subsidiaries and joint ventures
Customers
  • Local sales partners
  • Food wholesalers
  • Retail chains
Products
  • Tomato processed products
  • Beverages
  • Fresh vegetables

Competitive Advantage

Strengths

  • Domestic leader in tomato processed products
  • Powerful beverage brand 'Vegetable Life 100'
  • Stable management due to high individual shareholder ratio
  • High technological capabilities from long-term R&D
  • Ownership of 8 direct farms nationwide
  • Diverse sales channels
  • Active response to environmentally friendly products
  • High-quality raw material procurement and production system
  • Abundant product lineup
  • Strengthened collaboration with group companies
  • Collaboration with food logistics industry
  • High brand recognition in domestic market
  • Expansion into healthcare market
  • Multifaceted promotional activities
  • Stable financial base

Competitive Advantages

  • Overwhelming market share in tomatoes and vegetable beverages
  • Possession of proprietary plant-based lactic acid bacteria beverage technology
  • Stable raw material supply system utilizing direct farms
  • Management stability from long-term individual shareholder relationships
  • Expansion of lineup with environmentally certified products
  • Nationwide sales network and channel diversification
  • High product development capabilities and commercialization speed
  • Presence in external food logistics services business
  • Establishment of specialist registered dietitian team in health sector
  • Expansion strategy using joint ventures and subsidiaries in overseas markets
  • Consumer trust through strong brand statement
  • Broad advertising strategy across TV, radio, and other media
  • Thorough food safety and quality management standards
  • Ongoing acquisition of proprietary technologies through R&D investment
  • Enhanced social credibility through regional agriculture support

Threats

  • Risk of fluctuations in raw material prices
  • Diversification of market needs due to changing health trends
  • Aggressive product expansion and market offensives by competitors
  • Rising pressure on logistics costs
  • Cost increases from strengthened environmental regulations
  • Shrinking domestic market due to population decline
  • Impact of exchange rate fluctuations on overseas expansion
  • Changes in consumer trust in health foods
  • Intensified competition from new entrants
  • Brand damage from food poisoning or quality incidents
  • Unstable agricultural production due to climate change
  • Changes in agricultural support systems due to policy shifts

Innovations

2023: Research on Carbonization Technology for Unused Vegetables

Overview
Began joint research with Kewpie on carbonization technology for food waste.
Impact
Contributes to waste reduction and lower environmental impact.

2022: Obtained Plant-Based Food Certification

Overview
17 products from 6 domestic companies obtained plant-based certification.
Impact
Strengthens capture of health-conscious consumer segment.

2021: Introduced Technology to Improve Vegetable Juice Production Quality

Overview
Commercialized new extraction and filling technology to protect nutrients.
Impact
Significantly enhances product freshness and nutrient retention.

2024: Introduced New Logo Mark

Overview
Refreshed brand image by emphasizing tomato motif in current logo.
Impact
Contributes to improved consumer recognition.

Sustainability

  • Development of environmentally friendly tomato cultivation technology
  • Waste reduction and recycling promotion activities
  • Sustainable agriculture practices at direct farms
  • Promotion and certification acquisition for plant-based foods
  • Strengthened promotional activities for food loss reduction
  • Production process improvements to reduce environmental impact
  • Environmental education support through collaboration with local communities
  • CO2 reduction efforts through energy-saving equipment introduction
  • Use of organic vegetables in raw materials for health beverages
  • Measures to improve supply chain transparency
  • Employee environmental awareness training