Sankuzeru

Basic Information

Stock Code
2937
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Nagano Prefecture
Establishment Year
June 1982
Listing Year
December 2022
Official Website
https://www.stcousair.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
W Dish, Okamura Foods, Delica Foods Holdings, ZETA, Shoei Food Industry

Overview

Sankuzeru is a food manufacturing and retail company based in Nagano Prefecture, founded in 1982. It leverages strengths in in-house production and directly operated stores to provide high-quality foods and alcoholic beverages.

Current Situation

Sankuzeru recorded consolidated net sales of 19.162 billion yen and operating profit of 1.289 billion yen for the fiscal year ended March 2024, establishing a sound financial foundation. In addition to in-house produced jams, sauces, and alcoholic beverages, it enhances brand value through over 150 directly operated stores domestically and overseas expansion. It also operates a winery and grape cultivation, strengthening competitiveness through diversified business development. As a manufacturing-retail business, it consistently manages from product planning to sales, pursuing quality and customer satisfaction. Following a 2020 recommendation for violation of the Subcontract Act, it is revising its compliance framework. Moving forward, it will focus on domestic and international market expansion and promotion of the 6th industrialization for sustainable growth. It aims to strengthen its business base through further brand expansion and store development, establishing a presence in the food industry.

Trivia

Interesting Facts

  • Founder Ryuzo Kuise transitioned from pension management to food manufacturing
  • Company name 'Sankuzeru' derives from founder's surname 'Kuise'
  • Headquartered in Iizuna Town, Nagano Prefecture, also operates winery and chapel
  • 'Kuise Fuku Store' is the representative brand expanding food retail nationwide
  • Handled official licensed products for the Nagano Olympics
  • Has a track record of winning numerous Monde Selection Gold Awards
  • Established local subsidiary in Oregon, USA, for overseas sales
  • Promotes 6th industrialization achieving integrated production of processed foods and liquor
  • Received recommendation from Fair Trade Commission in 2020 for Subcontract Act violation
  • Self-cultivates Chardonnay and Merlot at Iizuna Town vineyard
  • Recognized by Ministry of Agriculture, Forestry and Fisheries as 6th industrialization example
  • Featured on TV Tokyo's 'Cambria Palace'
  • Conducts mail-order sales of wide range of products via official online shop
  • Operates over 150 directly managed stores nationwide with local focus
  • Entering U.S. market with 'KUZE FUKU & SONS' brand

Hidden Connections

  • Founding family lineage traces to Kuise Fukumatsu with deep food industry roots
  • Possesses unique logistics network connecting Nagano Prefecture and Oregon, USA
  • Collaborates with local governments to promote regional revitalization and agriculture support
  • Evaluated as success model for Ministry of Agriculture, Forestry and Fisheries' 6th industrialization promotion project
  • Pursues inter-industry collaboration through directly operated restaurants and chapel operations
  • Contributes to global spread of Japanese cuisine through U.S. expansion
  • Implemented corrective measures promptly following Fair Trade Commission recommendation
  • Acquired international standards certifications such as ISO for food safety and quality management

Future Outlook

Growth Drivers

  • High-value-added product development through 6th industrialization promotion
  • Further expansion of directly operated stores domestically and internationally
  • Growth and diversification response in high-quality liquor market
  • Expansion of health-oriented products and food education market
  • Strengthening growth especially in U.S. business among overseas markets
  • Sales channel diversification from increasing EC and mail-order users
  • Differentiation through local production-consumption and sustainability
  • Strengthening vertically integrated model of product planning and manufacturing
  • Creating unique brand value leveraging regional resources
  • Acquiring new customer segments and expanding fan community
  • Enhancing experiential marketing through winery operations
  • Advanced efficient production technology and logistics

Strategic Goals

  • Expand directly operated stores domestically and internationally to over 300
  • Sophisticate and expand winery and liquor production bases
  • Achieve over 50% sales ratio of sustainable products
  • Reach annual net sales of 30 billion yen scale
  • Further promote 6th industrialization and contribute to regional economy
  • Achieve zero food loss and CO2 reduction targets
  • Increase online sales ratio to over 50%
  • Embed CSR and compliance culture throughout the company
  • Sustainable management based on collaboration with regional agriculture
  • Maximize operational efficiency and market development at major overseas bases

Business Segments

Wholesale and Intermediate Distribution

Overview
Stably supplies diverse processed foods to retailers and food service providers.
Competitiveness
Convenience from integrated supply of processed foods and alcoholic beverages
Customers
  • Retail stores
  • Food service chains
  • Hotels
  • Restaurants
  • Commercial food ingredient retailers
Products
  • Jams
  • Seasonings
  • Alcoholic beverages
  • Dry noodles
  • Prepared foods

Own Store Operations

Overview
Enhances brand value through sales and culinary experiences at directly operated stores.
Competitiveness
Quality control and customer experiences unique to farm-direct operations
Customers
  • Local consumers
  • Tourists
  • Gourmets
  • Health-conscious individuals
Products
  • Direct store sales
  • Winery experiences
  • Restaurant menus

Overseas Business Expansion

Overview
Manufacturing and sales business in the local market via U.S. base.
Competitiveness
Rapid supply and market adaptation through local production
Customers
  • U.S. domestic retailers
  • Local Japanese restaurants
  • Importers
Products
  • KUZE FUKU & SONS brand foods
  • Jams
  • Pasta sauces

Online Sales

Overview
Expanding direct sales via own EC site and partner mail-order services.
Competitiveness
Brand recognition and customer data utilization capabilities
Customers
  • General consumers nationwide
  • Gift buyers
  • Food mail-order users
Products
  • EC-exclusive gifts
  • Seasonal limited products
  • Health foods

Competitive Advantage

Strengths

  • Product quality control through in-house integrated production
  • Strengthened customer touchpoints via directly operated stores
  • Broad customer acquisition through diverse brand portfolio
  • Locally rooted management leveraging regional resources
  • Business diversification through winery and liquor production
  • Local adaptation via overseas subsidiaries
  • Brand reliability from extensive award history
  • Improved profitability through manufacturing-retail model
  • Thorough quality control and safety assurance
  • Enhanced corporate value via food education and regional contributions
  • Market share expansion through aggressive store growth

Competitive Advantages

  • Maintains high product quality by handling production to sales in-house
  • Regional brand strength and fresh ingredient sourcing from Iizuna, Nagano Prefecture location
  • Exclusive customer touchpoints with over 150 directly operated stores
  • Capable of addressing wide needs with diverse food categories under one roof
  • Differentiation through 6th industrialization including liquor production
  • Strengthening global expansion with U.S. subsidiary establishment
  • International recognition such as multiple Monde Selection Gold Awards
  • Customer base expansion via food education promotion and small portion products
  • Rigorous internal compliance strengthening for thorough risk management
  • Operation of complex facilities combining unique chapel and restaurant
  • Diversified sales channels through integration of online and physical stores

Threats

  • Risk of strengthened food safety regulations
  • Cost increases from raw material price fluctuations
  • Price competition pressure from intensifying product competition
  • Market share erosion by new entrants
  • Reputation damage risk from Subcontract Act violations
  • Need for rapid response to changing consumer preferences
  • Foreign exchange fluctuation risks in overseas markets
  • Impact of natural disasters on production and logistics
  • Declining productivity from labor shortages
  • Consumption decline due to COVID-19 and other infectious diseases
  • Lag in digitalization of sales channels
  • Market limitations due to local focus

Innovations

2022: Listing on Tokyo Stock Exchange Growth

Overview
New listing on the Tokyo Stock Exchange Growth Market for growth capital procurement.
Impact
Business expansion and improved recognition through capital raising

2021: U.S. Oregon subsidiary name change and production expansion

Overview
Changed local subsidiary name and enhanced manufacturing capacity.
Impact
Strengthened local production and overseas sales expansion

2020: Start of cider and brandy production

Overview
Began production of cider and apple brandy in Iizuna Town, Nagano Prefecture.
Impact
Product diversification and high-value-added liquor expansion

2023: Acquisition of jam sales business

Overview
Acquired existing jam manufacturer's business to strengthen product lineup.
Impact
Expanded product range and increased market share

2023: Customer base expansion through food education and small portion products

Overview
Expanded small portion lineup including child-oriented products supporting food education.
Impact
New customer acquisition and health trend response

Sustainability

  • Promoting local production and consumption of regional agricultural products
  • Advancing food loss reduction programs
  • Reviewing packaging materials to reduce environmental impact
  • Expanding use of renewable energy
  • Fulfilling social responsibility through regional job creation
  • Sustainable management of local grape cultivation
  • Optimizing pesticide and fertilizer use with environmental consideration
  • Promoting fair trade and strict compliance with Subcontract Act
  • Improving waste recycling rate
  • Supporting employee work-life balance
  • Promoting use of local ingredients and consumer education
  • Acquiring environmental certifications and enhancing disclosure