Base Food

Basic Information

Stock Code
2936
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Tokyo
Establishment Year
April 2016
Listing Year
November 2022
Official Website
https://basefood.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sogo Iken Holdings, INGS, Yomeishu Manufacturing, AFC-HD AMS Life Science, Pharmafoods, Euglena, BASE, Morishita Jintan, BUF

Overview

Base Food is an innovative food manufacturer headquartered in Meguro-ku, Tokyo, established in 2016, specializing in the development and e-commerce sales of complete nutrition foods.

Current Situation

Base Food achieved net sales of approximately 14.8 billion yen in the fiscal year ended February 2024, but recorded operating and net losses of about 800 million yen. Its core business is the development and sales of complete nutrition foods made from ingredients such as whole grains, soybeans, and chia seeds, accounting for 68% of sales, with the majority coming from EC channels. It leverages the online community 'BASE FOOD Labo' to promote customer information sharing and product improvements. In 2023-24, it conducted a voluntary recall due to a manufacturing lot defect but is working to enhance quality. Selected for the Ministry of Agriculture, Forestry and Fisheries' technology demonstration project, it is advancing manufacturing technology innovations and aims to capture health-conscious markets domestically and internationally. In the medium to long term, expansion in the sustainable complete nutrition food market and profitability improvement are the key pillars of its strategy.

Trivia

Interesting Facts

  • Pioneering startup in the complete nutrition food sector.
  • Over 68% sales ratio via EC channels, high industry standard.
  • Hiroyuki Maki (Melco HD President) is a major shareholder with significant influence.
  • Succeeded in improving customer loyalty through online community utilization.
  • Rapid response to large-scale product recall in 2023 drew attention.
  • Products extensively use healthy ingredients like chia seeds and soybeans.
  • Young company headquartered in Nakameguro, Meguro-ku, Tokyo.
  • Listed on Tokyo Stock Exchange Growth Market in 2022, attracting attention.
  • High recognition as an innovative food manufacturer startup.
  • In addition to EC channels, focusing on wholesale sales and joint development.

Hidden Connections

  • Management collaboration between Representative Director Shun Hashimoto and Hiroyuki Maki (Melco HD President) contributes to financial stability.
  • Strengthened technology ties with public institutions through selection for Ministry of Agriculture, Forestry and Fisheries SME innovation support program.
  • Capital relationship with EC platform BASE (stock code 4477), high relevance.
  • Differentiated from competitors by forming online communities with health-conscious youth.
  • Rapid response after product recall incident highly evaluated in the industry.
  • Built extensive product distribution network through broad collaborations with food wholesalers and health food companies.
  • Exploring B2B corporate health support services beyond business wholesale.
  • Proprietary manufacturing technology enables functional food development, maintaining competitive edge.

Future Outlook

Growth Drivers

  • Expansion of health consciousness and complete nutrition food market
  • Accelerated increase in EC user base
  • New product development through strengthened technology collaboration with Ministry of Agriculture, Forestry and Fisheries
  • Deepened customer loyalty via online community
  • Expansion of products accommodating diverse eating habits
  • Brand strengthening from rising sustainability awareness
  • Expansion of subscription models domestically and internationally
  • Technology innovation to differentiate from competitors
  • Increased health interest post-COVID and establishment of remote lifestyles
  • Growth promotion of OEM and joint development businesses
  • Expansion of corporate welfare services
  • Cost reduction through automation and efficiency in product manufacturing

Strategic Goals

  • Achieve top domestic market share in complete nutrition foods
  • Aim for net sales exceeding 30 billion yen
  • Significant manufacturing technology innovation and patent acquisition promotion
  • Full adoption of sustainable packaging materials
  • Achieve over 100,000 online community members
  • Full-scale product rollout to overseas markets
  • Optimal balance of EC and wholesale channels
  • Achieve food loss reduction and lower environmental impact
  • Diversification and revenue enhancement of B2B business
  • Expansion of social contribution activities contributing to health promotion

Business Segments

Wholesale

Overview
Provides stable supply of complete nutrition foods centered on retail stores and restaurants.
Competitiveness
Differentiates from competitors through proprietary complete nutrition technology and high-quality stable supply system.
Customers
  • Retail stores
  • Restaurant chains
  • Restaurants
  • Health food stores
  • Mail-order businesses
  • Sales agents
  • Corporate welfare programs
Products
  • Complete nutrition bread
  • Complete nutrition pasta
  • Nutritional supplements
  • Health functional foods
  • Original OEM products
  • Subscription program provision

Corporate Health Support Services

Overview
Provides nutrition management foods and services to support corporate health management and welfare enhancement.
Competitiveness
Strength in scientifically backed nutrition design and community collaboration.
Customers
  • Corporate welfare officers
  • Companies promoting health management
  • Sports gyms
  • Hospitals
  • Nursing homes
  • Educational institutions
Products
  • Nutrition management foods
  • Health promotion programs
  • Employee cafeteria menu proposals
  • Online nutrition consulting

OEM and Joint Development

Overview
Conducts OEM production and technology provision for other companies' brands.
Competitiveness
Supports high-value product development through manufacturing technology and R&D capabilities.
Customers
  • Food manufacturers
  • Health food companies
  • Medical and nursing-related companies
  • Venture companies
Products
  • Complete nutrition food OEM manufacturing
  • Product concept planning support
  • Technology licensing
  • Joint marketing support

Technology Provision to Research Institutions and Public Organizations

Overview
Promotes industry-academia-government collaboration through health promotion research and technology demonstrations.
Competitiveness
Capable of providing cutting-edge nutrition science and technology expertise.
Customers
  • University research institutions
  • Public health promotion organizations
  • Government agencies
Products
  • Nutrition technology provision
  • Joint research implementation
  • Health education program development

Competitive Advantage

Strengths

  • Proprietary technology specialized in complete nutrition foods
  • Strong sales channels centered on EC
  • Close customer collaboration via online community
  • High-quality management system in food manufacturing
  • Brand strength supported by young and health-conscious demographics

Competitive Advantages

  • Early leader in complete nutrition food development in the domestic market
  • Business model centered on EC subscriptions
  • Active customer community fostering loyalty
  • Diverse lineup of nutrition solution products
  • Technology credibility backed by Ministry of Agriculture, Forestry and Fisheries demonstration project selection

Threats

  • Quality control risks in food manufacturing leading to recalls
  • Emergence of alternative nutrition foods from competitors
  • Cost increase risks from raw material price fluctuations
  • Customer churn risks in subscription model
  • Risks from regulatory tightening or health claim law revisions

Innovations

2023: BASE FOOD Labo Community App Release

Overview
Launched a dedicated app to utilize customer feedback and reflect it in product development.
Impact
Contributes to improved customer satisfaction and halving churn rate

2023: Voluntary Recall Response for Product Manufacturing Lots

Overview
Rapid product recall and refunds in response to mold issue.
Impact
Maintained brand trust and established enhanced quality control system

2024: Selected for Ministry of Agriculture, Forestry and Fisheries Technology Demonstration Project

Overview
Advancing large-scale technology demonstration targeting new grain demand creation technologies.
Impact
Manufacturing technology innovation and strengthened future growth base

2024: Expansion of New Product Lines and Ingredient Enhancement

Overview
Introduced gluten-free and vegan-compatible products in addition to existing lineup.
Impact
Acquires diverse customer needs and improves market share

Sustainability

  • Active adoption of locally produced whole grains
  • Improved energy efficiency in manufacturing processes
  • Optimized manufacturing processes to reduce waste
  • Consideration of sustainable packaging materials
  • Consumer awareness through online community