Seihyo

Basic Information

Stock Code
2872
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Niigata Prefecture
Establishment Year
March 1916
Listing Year
March 2000
Official Website
https://www.seihyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Morinaga & Co., Ezaki Glico, Bourbon, Fujiya, Kanro, Kameda Seika, Kotobuki Spirits, Koikeya, Calbee, B-R 31 Ice Cream, Hokuyu Lucky, Senba Tohka, ZOA

Overview

Seihyo is a long-established food manufacturing company based in Niigata Prefecture, founded in 1916, primarily manufacturing and selling ice confectionery and Japanese sweets.

Current Situation

Seihyo recorded sales of approximately ¥3.9 billion and operating profit of about ¥56.75 million in the fiscal year ended February 2022. It mainly focuses on ice confectionery manufacturing, developing its own brands such as Momotaro and Kintaro, and maintains a strong sales base in Niigata Prefecture through regional proximity. OEM manufacturing is one of its major businesses, with stable product supply ensured through transactions with Morinaga Milk Industry. The company emphasizes quality management systems, including ISO22000 certification, and strives for safe and secure food production. In 2022, it entered a capital alliance with Wealth Brothers Co., Ltd. to secure funding and strengthen management. It aims to improve brand awareness through direct sales stores and antenna shops like Momotaro House, while continuing Japanese sweets production. Manufacturing sites are spread across the Niigata Plant, Sanjo Plant, and Sado Plant within the prefecture, making significant contributions to the local economy. While differentiating from competitors, it plans to strengthen local products and expand diverse sales channels going forward.

Trivia

Interesting Facts

  • Founded in 1916, with over 100 years of history
  • Local Niigata limited brand Momotaro is popular
  • Early adopter of ISO22000 among regional manufacturers
  • Developed unique persimmon-flavored shaved ice bar Urashima Kintaro
  • Features product packaging design inspired by Sado Island
  • Continued frozen food ice production business for over 80 years
  • Focuses on manufacturing desserts for school lunches
  • Rare food manufacturer with multiple factories in the prefecture
  • Long-term contract with Morinaga Milk Industry via proprietary OEM technology
  • Operates regional antenna shop Momotaro House

Hidden Connections

  • Contributes to nationwide product development through OEM with Morinaga Milk Industry
  • Participates in regional activities related to inheritance of Niigata Prefecture's traditional confectionery techniques
  • Capital-allied Wealth Brothers is a key player in management stabilization
  • Momotaro shares a rare product name overlap with Daiichi Shokuhin in the prefecture
  • Sado Plant was once an important base for Japanese sweets and ice confectionery manufacturing
  • Holds unique brand power in Niigata's ice confectionery market
  • Builds strong trust with local governments through school lunch dessert business
  • Supplies ice products to restaurants and small businesses on a local basis

Future Outlook

Growth Drivers

  • Customer support expansion through strengthened regional brands
  • Revenue diversification via expansion of OEM manufacturing clients
  • Development and channel expansion of health-oriented dessert products
  • Response to growing sustainability awareness
  • Nationwide expansion through strengthened online sales channels

Strategic Goals

  • Expand sales to over ¥5 billion with 5% annual growth rate
  • Improve own-brand product sales ratio to 70%
  • Improve ice production business efficiency by 20%
  • Enhance regional evaluation of sustainability activities
  • Strengthen brand via introduction of digital marketing

Business Segments

OEM Manufacturing Business

Overview
Mainly undertakes manufacturing contracts for other companies' brands, operating steadily.
Competitiveness
High-quality manufacturing equipment and long years of know-how
Customers
  • Morinaga Milk Industry
  • Other food manufacturers
  • Local retailers
  • Schools and lunch providers
  • Commercial sales companies
Products
  • Ice cream products
  • Ice confectionery
  • Japanese sweets
  • School lunch desserts

Ice Manufacturing and Sales

Overview
Stably supplies ice products for various uses.
Competitiveness
Provides ice in various sizes with high quality
Customers
  • Restaurants
  • Restaurant chains
  • Retail stores
  • Event operators
  • School lunches
Products
  • Cubed Ice
  • Crushed Ice

Japanese Sweets Manufacturing

Overview
Manufacturing and supply of Japanese sweets rooted in the local area.
Competitiveness
Traditional methods and regional brand power
Customers
  • Subscription catalog sales companies
  • Retail stores
  • Local event organizers
  • Gift trading companies
Products
  • Sasa Dango
  • Seasonal Japanese sweets

School Lunch Dessert Business

Overview
Supplies school desserts with consideration for nutrition and safety.
Competitiveness
Regional proximity stable supply system
Customers
  • School lunch centers
  • Boards of education
  • Local governments
Products
  • Sherbet for school lunches
  • Nutritionally considered desserts

Competitive Advantage

Strengths

  • Long history and regional trust
  • Diverse product lineup
  • Quality management via ISO22000 certification
  • Stable OEM manufacturing track record
  • Multiple production bases in Niigata Prefecture

Competitive Advantages

  • Strong sales base in local market
  • Steady support for own-brand products
  • Advanced ice-making technology and equipment
  • Strengthened financial base through capital alliance
  • Safety guaranteed by ISO certification

Threats

  • Intense competition with major manufacturers
  • Risk of raw material price fluctuations
  • Market shrinkage due to population decline
  • Demand fluctuations due to climate change
  • Burden of responding to stricter food hygiene standards

Innovations

2022: Capital Alliance with Wealth Brothers

Overview
Alliance aimed at funding procurement and strengthening management base.
Impact
Stabilization of management structure and securing growth investment funds

2021: ISO22000 Certification Renewal

Overview
Ongoing maintenance of quality management system and improvement of food safety.
Impact
Realization of high-quality and safe product provision

2020: Expansion of Japanese Sweets Manufacturing Equipment at Sanjo Plant

Overview
Achieved improved production capacity and product diversification.
Impact
Strengthened supply of local Japanese sweets products

2023: Strengthened Planning and Development of New Brand Products

Overview
Promoting product planning tailored to local needs.
Impact
Contributes to sales expansion and customer base growth

Sustainability

  • Waste reduction and recycling promotion
  • Continuous improvement of food safety management
  • Regional revitalization through local agricultural product use
  • Environmental load reduction via energy-saving equipment introduction
  • Strengthened employee safety and health education