Pickles Holdings

Basic Information

Stock Code: 2935
Industry: Food Products
Category Detail: Food Manufacturing
Prefecture: Saitama Prefecture
Establishment Year: September 2022
Listing Year: September 2022
Official Website: https://www.pickles-hd.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Marusan Ai, Yamami, Kyokumatsu Foods, Kenko Mayo, Semba Tohka, Natori, Shinozakiya

Overview

Pickles Holdings is a leading company in the pickled vegetables and prepared foods industry, established in 1977, with a rich product lineup and robust distribution network, boasting the No. 1 market share in the industry.

Current Situation

Pickles Holdings recorded consolidated sales of approximately 41 billion yen and operating profit of approximately 1.5 billion yen in the fiscal year ended February 2023, maintaining steady business operations. Its mainstay pickled vegetable products hold a high market share in the domestic market, particularly the 'Gohan ga Susumu' brand kimchi, which has earned high praise from customers. In 2022, it established a holding company structure to strengthen its management foundation, while promoting diversification through initiatives such as opening a fermented foods theme park and entering the agriculture business. In product development, it is expanding health-oriented products like lactic acid bacteria amazake and new seasonings to meet health-conscious needs. From a sustainability perspective, it is strengthening regional collaboration and environmental considerations, and actively pursuing organizational reforms and diversification of sales channels to maintain competitiveness. Moving forward, it aims for mid- to long-term growth by expanding its product lineup for a wide range of customers from business to consumer sectors, enhancing brand value, and improving management efficiency.

Trivia

Interesting Facts

Achieved No. 1 industry share from being a subsidiary of Tokai Tsukemono.
The original 'Gohan ga Susumu' kimchi became a mega-hit with annual sales of 4 billion yen.
The only domestic food manufacturer operating a fermented foods theme park.
Capable of meeting a wide range of customer needs from household to commercial use.
Discovered proprietary lactic acid bacteria 'Pīne Lactic Acid Bacteria' and commercialized it for health products.
Has collaborated with artist Koji Aida for corporate characters.
Employs cutting-edge fermentation technology in pickle manufacturing.
Based in Saitama Prefecture with manufacturing sites in 7 locations nationwide.
Close transaction relationships with Mitsubishi UFJ Bank and Seven & i Group.
Has a track record of improving liquidity through stock splits.

Hidden Connections

Has earned high trust as a major supplier to Seven & i Holdings.
The fermented foods theme park is gaining attention as a junction between health-conscious market and tourism business.
The success of the kimchi brand has contributed to strengthening the overall corporate brand power.
Entry into agriculture business is advancing vertical integration of the supply chain.
Actively engaged in media exposure as sponsor of Nippon Broadcasting and TBS Radio.
Achieved cost reductions through product and raw material sharing within the Tokai Tsukemono Group.
Contributes to regional revitalization through development of collaboration products with local specialties.
Proprietary lactic acid bacteria technology is being researched in collaboration with academic institutions.

Future Outlook

Growth Drivers

Growing demand for health-conscious and fermented foods
Improved raw material self-sufficiency rate and quality stability through agriculture business
Strengthened development of diverse sales channels
Acceleration of new product development leveraging brand power
Market share expansion in Japan and exploration of overseas business opportunities
Sustainability-compliant products and manufacturing processes
Expansion into new health care fields using fermentation technology
Strengthened consumer touchpoints through digital marketing

Strategic Goals

Maintain and expand No. 1 share within the industry
Establish market leadership in the fermented foods sector
Expand agriculture division sales to over 20% of total
Achieve environmental load reductions for a decarbonized society
Increase sales ratio of diversified products to 50%

Business Segments

For Wholesalers and Distributors

Overview

Provides product supply and OEM services to various distribution channels.

Competitiveness

Extensive sales network and stable supply capacity

Customers

Food Wholesalers
Supermarket Chains
Convenience Stores
Department Store Buyers
Restaurant Chains

Products

Various Pickles
Prepared Food Products
Bento
Seasonings

For Food Manufacturers

Overview

Provides food ingredients using fermentation bacteria and lactic acid bacteria, along with technical development support.

Competitiveness

Proprietary fermentation technology and material development capabilities

Customers

Food Manufacturers
Processed Food Companies
Health Care Product Manufacturers
Livestock Processing Companies

Products

Lactic Acid Bacteria Product Ingredients
Fermented Food Materials
Seasoning Ingredients

For Retailers and Restaurants

Overview

Proposes bulk commercial products and customizable products.

Competitiveness

Flexibility to meet diverse customer needs

Customers

Supermarket Processed Foods Departments
Convenience Store In-Store Sales
Restaurants and Izakaya
School Lunch and Hospital Meal Providers

Products

Processed Pickle Products
Ready-to-Eat Prepared Foods
Commercial Kimchi

For Agriculture-Related Businesses

Overview

Provides integrated support from vegetable production to processing ingredient supply.

Competitiveness

Quality control through collaboration between agriculture and manufacturing

Customers

Agricultural Corporations
Contract Farmers
Food Ingredient Suppliers

Products

Vegetables for Pickles
Raw Vegetables for Processing
Fermentation and Germination Materials

Competitive Advantage

Strengths

Top market share in pickle brands
Diverse and robust distribution channel network
Proprietary lactic acid bacteria fermentation technology
Business risk diversification through multi-segment operations
Stable financial foundation

Competitive Advantages

Overwhelming brand recognition of 'Gohan ga Susumu'
Enhanced market image through operation of fermented foods specialty theme park
Stable raw material procurement via entry into agriculture business
Strengthened supply capacity with manufacturing bases across wide regions
Strong, long-term transaction relationship with Seven & i Holdings

Threats

Shrinking domestic pickle market
Raw material price fluctuation risks
Demand shifts due to diversifying health trends
Impacts from strengthened food safety regulations
Intensified competition from new entrants

Innovations

2020: Opening of Fermented Foods Theme Park 'OH!!!'

Overview: Opened an experiential fermented foods theme park in Hanno City, Saitama Prefecture.
Impact: Enhanced brand value and expanded recognition in the health-conscious market

2022: Entry into Agriculture Business

Overview: Established Pickles Farm Co., Ltd. and began vegetable production and processing.
Impact: Stabilized raw material supply-demand and strengthened quality control

2023: Adoption of Revenue Recognition Standards

Overview: Improved transparency and accuracy of financial reporting based on new accounting standards.
Impact: Stabilized investor evaluations and enhanced reliability

2021: Development of Health Products Using Proprietary Lactic Acid Bacteria 'Pīne Lactic Acid Bacteria'

Overview: Applied to health-oriented products like amazake and seasonings to expand the lineup.
Impact: Acquired new customer segments and expanded the market

Sustainability

Local production-local consumption promotion through agriculture collaboration
Manufacturing efficiency improvements to reduce food waste
Development of low-environmental-impact packaging materials
Promotion of health-oriented product development
Contributions to local communities and support for educational activities