Nitto Best

Basic Information

Stock Code
2877
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Yamagata Prefecture
Establishment Year
July 1948
Listing Year
February 1996
Official Website
http://www.nittobest.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hiyoshi Sangyo, Katsumi Japan, Yutaka Foods, Nichirei, Senba Tokka, Kangei

Overview

Nitto Best is a leading food manufacturer founded in 1948, specializing in institutional frozen foods and canned products, particularly as Japan's largest corned beef producer.

Current Situation

Nitto Best achieved consolidated sales of approximately 54.3 billion yen in the fiscal year ending March 2020, establishing a solid position in the industry through institutional frozen foods and corned beef production. Its flagship frozen food products hold a 7th place share in Japan's domestic institutional market, providing stable supply to school lunches and the food service industry. Centered around the Sagae Factory designed by Kisho Kurokawa, the company has strengthened quality control and production technology, building an efficient supply chain from raw material procurement to manufacturing and sales. It is proactive in product innovation and new business development, investing in facilities such as a new factory in Yamagata City. Emphasizing sustainability, it promotes the use of domestic ingredients and reduction of environmental impact. In the medium to long term, it aims to expand institutional demand alongside developing health-oriented products and increasing market share. While enhancing collaboration with related subsidiaries, it differentiates itself from competitors to elevate brand value. With a stable financial base and regionally rooted management, it is positioned for future growth.

Trivia

Interesting Facts

  • Owns the famous Sagae Factory designed by Kisho Kurokawa
  • Pioneer company in domestic corned beef
  • Top brand for cheese crepes in school lunches
  • Listed on JASDAQ (TSE Standard) in 1996
  • Founded on July 16, 1948, with over 70 years of history
  • Industry leader in institutional corned beef manufacturing
  • Factory tour featured on TV program in 2008, gaining attention
  • Subsidiaries include Kyushu Best Foods and Kansai Best Foods
  • Major shareholders include Norinchukin Bank and Yamagata Bank
  • Holds unique high-quality standards in canned food manufacturing
  • Started with agricultural product processing and sales
  • Many products popular in school lunches and food service
  • Expanded nationwide from Tohoku base
  • Contributes to local food culture and industrial promotion
  • Highly evaluated in the institutional frozen food market

Hidden Connections

  • Serves as an important manufacturing consignment partner for Kawasho Foods' 'Nozaki Corned Beef' within the industry
  • Design connection with Kisho Kurokawa, who also designed the Sagae City Hall building in the founding location
  • Major shareholders include local Yamagata Bank and Norinchukin Bank, closely tied to regional finance
  • One of the influential product suppliers in the national school lunch market
  • Achieves wide-area expansion through collaboration with related companies Kyushu Best Foods and Kansai Best Foods
  • Shares certain market segments with industry rivals Nichirei and Kangei but maintains distinction
  • Receives audits from Shin Nihon LLC for food safety
  • Contributes to consumer convenience through introduction of natural thawing technology

Future Outlook

Growth Drivers

  • Stable demand in Japan's domestic institutional frozen food market
  • Expansion of school lunch and elderly food markets
  • Increasing demand for health-oriented product development
  • Growing emphasis on local production for local consumption and domestic ingredients
  • Market expansion for environmentally friendly products and packaging
  • Production efficiency improvements through technological innovation
  • New business creation through regional collaboration
  • Diversification and order expansion in OEM business
  • Strengthened sales channel development domestically and internationally
  • Advancement in food safety demands

Strategic Goals

  • Expansion of market share in institutional frozen foods
  • Strengthened nationwide expansion of school lunch business
  • Achieve over 70% utilization rate of domestic ingredients
  • 50% sales ratio of environmentally friendly products
  • Acceleration of new high-value-added product development
  • Construction of sustainable supply chain
  • Production innovation through digital technology utilization
  • Enhanced regional contributions through strengthened community ties
  • Promotion of food loss and waste reduction
  • Deepening of safe and secure food supply system

Business Segments

School Lunch Center Operations

Overview
Operates the school lunch center entrusted by Sagae City and supplies school lunch ingredients.
Competitiveness
Stable supply system rooted in the region
Customers
  • Local Governments
  • School Lunch Operators
  • Educational Institutions
Products
  • Frozen School Lunch Ingredients
  • Ready-to-Cook Frozen Foods
  • Various Prepared Foods

Institutional Frozen Food Manufacturing

Overview
Provides customized high-quality frozen foods to institutional customers nationwide.
Competitiveness
Long-cultivated manufacturing technology and stable supply system
Customers
  • Food Service Chains
  • Lunch Service Operators
  • Hotels
  • Hospitals and Nursing Facilities
  • Convenience Stores
Products
  • Frozen Prepared Foods
  • Institutional Frozen Bento
  • Ready-to-Cook Frozen Meat Products
  • Corned Beef Cans

Canned Food Manufacturing and Sales

Overview
Provides canned products mainly using high-quality domestic beef to institutional and general markets.
Competitiveness
Japan's leading corned beef manufacturing technology
Customers
  • Food Wholesalers
  • Retailers
  • Preserved Food Manufacturers
Products
  • Domestic Corned Beef Cans
  • Livestock Can Products

Logistics and Delivery Services

Overview
Builds a domestic logistics network emphasizing product quality maintenance.
Competitiveness
Delivery management specialized in frozen technology
Customers
  • Client Companies
  • Direct Sales Customers
Products
  • Frozen Food Delivery
  • Freshness-Controlled Logistics

OEM Production

Overview
Engages in contract manufacturing for other brands.
Competitiveness
High-quality management system and flexible production response
Customers
  • Various Food Manufacturers
  • Brand Owners
Products
  • Frozen Food Manufacturing Contract
  • Canned Food Manufacturing Contract

Raw Material Procurement and Processing

Overview
Achieves stable supply through integrated raw material procurement and processing.
Competitiveness
Reliable raw material supply network
Customers
  • Own Factories
  • Other Food Manufacturers
Products
  • Processed Livestock Products
  • Frozen Vegetables

Product Development Consulting

Overview
Provides consulting services leveraging frozen food development know-how.
Competitiveness
Industry-leading technical experience
Customers
  • Food Companies
  • New Entrants
Products
  • Product Planning Support
  • Cooking Technology Advice

Competitive Advantage

Strengths

  • Japan's leading corned beef manufacturing technology
  • Diverse product lineup of institutional frozen foods
  • Advanced production facilities designed by Kisho Kurokawa
  • Stable local base and regionally rooted management
  • Long-standing client network
  • Established high-quality management system
  • Multi-channel sales expansion
  • Strong brand image
  • Synergies with consolidated subsidiaries
  • Excellent R&D system
  • Stable financial base
  • OEM production technology
  • Strength in school lunch business
  • Diverse product development capabilities
  • Rapid market response capabilities

Competitive Advantages

  • Solid position in Japan's domestic institutional frozen food market
  • High-quality corned beef can manufacturing using domestic beef
  • Advanced manufacturing equipment and technology
  • Strong regional ties centered in Yamagata Prefecture
  • Comprehensive market coverage through diverse sales channels
  • Stable supply capacity and long-term trading relationships
  • Product line expansion through subsidiary collaboration
  • Popularity of unique school lunch product lineup
  • Customer needs response in OEM production
  • Introduction of environmentally considerate manufacturing processes
  • Maintenance of high food safety standards
  • Trust building through regional contributions and CSR activities
  • Accurate grasp of market needs and productization
  • Continuous facility investment and technical development
  • Risk diversification through diversified business operations

Threats

  • Intense price competition in the frozen food market
  • Rising raw material prices and procurement risks
  • Domestic market shrinkage due to population decline
  • Impact from shifts in health consciousness
  • Food safety issue risk management
  • Increasing entries from other industries
  • Rising logistics costs
  • Increased burden from strengthened environmental regulations
  • Production infrastructure damage from natural disasters
  • Product development competition with rivals
  • Expansion of imported overseas products
  • Brand image damage risks

Innovations

2024: Expansion of New Frozen Food Line

Overview
Introduced state-of-the-art freezing technology at the Yamagata factory to enhance production capacity.
Impact
20% productivity improvement, product quality stabilization

2023: Development of High-Protein Frozen Foods

Overview
Launched protein-enhanced foods targeting health-conscious consumers.
Impact
Acquisition of new customer segments and sales growth

2022: Introduction of Environmentally Friendly Packaging

Overview
Adopted low-environmental-impact packaging to reduce plastics.
Impact
Environmental load reduction and improved customer satisfaction

2021: Introduction of Automated Production Lines

Overview
Introduced automation technology to improve efficiency and reduce human errors in institutional frozen food manufacturing.
Impact
Improved work efficiency and reduced production costs

2020: Enhanced Hygiene Management in Manufacturing Processes

Overview
Renewed factory hygiene systems including measures against novel coronavirus.
Impact
Strengthened safe production system and improved customer trust

Sustainability

  • Promotion of plastic usage reduction
  • Active use of local agricultural products
  • Introduction of energy efficiency measures
  • Improved waste recycling rate
  • Cooperation with local communities on environmental conservation activities
  • Setting CO2 emission reduction targets
  • Environmentally considerate product design
  • Workstyle reforms and employee health promotion
  • Thorough provision of safe food