Kohsoku

Basic Information

Stock Code
7504
Industry
Wholesale Industry
Category Detail
Textiles, Chemicals & Paper Wholesalers
Prefecture
Miyagi Prefecture
Establishment Year
February 1966
Listing Year
August 1996
Official Website
http://www.kohsoku.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
cotta, Cresco, Anest Iwata, Nomura Sangyo, Sanjūsan FG, Shimozima, Kyogoku Transportation & Trading

Overview

Kohsoku is Japan's largest wholesaler of food packaging materials, established in 1966, with bases in the Tohoku and Kanto regions, offering a wide range of products and a solid management structure led by the founder's family.

Current Situation

Kohsoku recorded consolidated sales of approximately 88.6 billion yen and ordinary income of about 3.3 billion yen in the fiscal year ended March 2020, boasting the top sales in the industry. With 52 bases centered in the Tohoku region, it is a specialized wholesaler of food packaging materials handling a wide range of products such as food containers, films, and labels. Stable management by the founder's family continues since its founding, with active M&A to strengthen its business foundation. In recent years, it has been expanding into western Japan and considering entry into Kyushu, maintaining a high market share in the domestic market. In 2023, it launched its first TV commercial to enhance brand recognition. It is also working on sustainability, promoting the development of packaging materials to reduce environmental impact. In the medium to long term, it aims for sustainable growth through strengthened nationwide expansion and expanded product variations.

Trivia

Interesting Facts

  • The only listed packaging materials wholesaler in the industry, boasting the top sales.
  • Multi-variety specialist trading company handling approximately 140,000 items.
  • Originally manufactured record paper for cash registers at founding.
  • Aired first TV commercial in 2023 to boost recognition.
  • Founder's family has continued management for over 50 years.
  • Operates 52 bases nationwide centered on Tohoku and Kanto.
  • Handles not only packaging materials but also packaging machines and kitchen materials.
  • Multifaceted expansion with numerous related subsidiaries through active M&A.
  • Specializes in supplying packaging materials supporting food safety and hygiene.
  • Prompt response to customer needs through regionally rooted sales.

Hidden Connections

  • The founder's family maintains corporate control by increasing shareholding through Kohsoku Kōsan.
  • Unique shareholder composition with IT-related companies like Kōtsūshin as major shareholders.
  • The only listed company in packaging materials wholesaling, exerting influence on industry trends.
  • Achieved vertical integration by making multiple packaging materials manufacturers subsidiaries.
  • Challenging to refresh the image of the food packaging industry through innovative advertising.

Future Outlook

Growth Drivers

  • Product development expansion due to diversification of food packaging needs
  • Sales area expansion from eastern Japan to western Japan and Kyushu
  • Increased demand for eco-packaging materials in response to stricter environmental regulations
  • Business foundation strengthening and diversification through M&A utilization
  • Advanced packaging materials driven by health orientation and heightened hygiene awareness
  • Promotion of logistics and sales efficiency via IT/IoT utilization
  • Strengthening of new customer development and deepened sales to existing customers
  • Reopening and growth of restaurants and food service chains
  • Packaging materials demand accompanying stable growth in domestic food industry
  • High-value-added packaging proposals through strengthened design capabilities

Strategic Goals

  • Optimal placement and expansion of sales bases on a nationwide scale
  • 100% environmental compliance for packaging materials lineup
  • Integration and expansion of major packaging-related companies via M&A
  • Achieve annual sales scale exceeding 120 billion yen
  • Promotion of sustainability management and enhanced reputation
  • Construction of joint development platform with food manufacturers
  • 20% reduction in logistics costs through digital technology introduction
  • Market share expansion in packaging design and development business
  • 100% thoroughness of employee environmental and safety awareness
  • Continuous strengthening of contribution activities to local communities

Business Segments

Food Packaging Materials Supply

Overview
Provides comprehensive supply of packaging materials to the food industry, supporting from manufacturing to sales.
Competitiveness
Abundant product lineup and extensive sales network across wide regions
Customers
  • Food Manufacturers
  • Food Processing Plants
  • Food Wholesalers
  • Retailers
  • Food Service Industry
Products
  • Food Containers
  • Packaging Films
  • Paper Packaging Materials
  • Labels
  • Packaging Machines

Logistics and Storage Materials

Overview
Provides packaging and packing materials to support efficiency in logistics operations.
Competitiveness
Diverse material procurement capabilities connecting production areas and stores
Customers
  • Logistics Companies
  • Warehouse Operators
  • Food Distributors
  • Retail Logistics Departments
Products
  • Corrugated Board
  • Packing Materials
  • Logistics Equipment
  • Containers
  • Label Seals

Store and Kitchen Equipment Materials

Overview
Provides comprehensive small equipment and materials necessary for store operations.
Competitiveness
Diversified business covering beyond food packaging
Customers
  • Food Service Chains
  • Deli Shops
  • Retail Stores
  • Restaurants
Products
  • Kitchen Equipment
  • Store Fixtures
  • Sanitary Consumables
  • Disposable Chopsticks
  • Cleaning Supplies

Packaging Machines and Automation Systems

Overview
Provides machines and systems to achieve efficient packaging and packing.
Competitiveness
Machine proposal capabilities leveraging long years of packaging materials know-how
Customers
  • Large Food Processing Plants
  • Manufacturing Line Operators
  • Packaging Design Companies
Products
  • Packaging Machines
  • Automatic Weighing Devices
  • Packing Line Equipment

Eco-Friendly Materials

Overview
Deploys next-generation packaging materials that contribute to reducing environmental impact.
Competitiveness
Early adoption and promotion of sustainable materials
Customers
  • Environmentally Conscious Retailers
  • Eco-Promoting Companies
  • Manufacturers
Products
  • Biodegradable Films
  • Recycled Materials
  • Environmentally Friendly Packaging Materials

Competitive Advantage

Strengths

  • Top market share in the packaging materials wholesale industry
  • Wide product lineup handling approximately 140,000 items
  • Strong sales network centered on Tohoku and Kanto
  • Stable management by the founder's family
  • Business expansion through active M&A
  • Specialization as a food packaging trading company
  • Response to customer needs through handling diverse product categories
  • Prompt service provision through regional closeness
  • Manufacturing and service collaboration via group subsidiaries
  • Enhanced brand recognition through first TV commercial rollout

Competitive Advantages

  • Funding capabilities as the only listed company in the industry
  • Covers diverse food packaging needs with high number of product items
  • Strong regional sales base in Tohoku and Kanto
  • Rapid business area expansion via M&A
  • Customer base built on long transaction history and trust
  • Quick decision-making due to founder family management since inception
  • Differentiation through provision of machinery and equipment materials including packaging machines
  • Early response to environmentally friendly packaging materials
  • Prompt product supply via 52 nationwide bases
  • Product deployment linked with multifaceted manufacturing bases

Threats

  • Market fluctuations in packaging materials due to expanding plastic usage regulations
  • Profit pressure from global surge in raw material prices
  • Intensified competition from new entrants and substitute products
  • Regulatory strengthening and changing consumer awareness due to environmental issues
  • Decline in cost competitiveness from rising logistics expenses
  • Supply chain impacts from natural disasters, etc.
  • Demand decline from population decrease and shrinking domestic market
  • Decline in competitiveness from delayed digitalization
  • Uncertainty in business environment from policy and tax system changes
  • Instabilization of imported product prices due to exchange rate fluctuations

Innovations

2023: First TV Commercial Released

Overview
Launched TV CM featuring professional voice actor Koichi Yamadera and others to enhance brand recognition.
Impact
Contributes to improved awareness and customer base expansion

2021: Made Japan Packaging Industries a Subsidiary

Overview
Acquired Japan Packaging Industries as a subsidiary to strengthen packaging-related business.
Impact
Enhanced market competitiveness through strengthened manufacturing-sales linkage

2020: Expansion of Eco-Friendly Materials

Overview
Increased handling of biodegradable films and recycled material products.
Impact
Product provision meeting customer environmental considerations

2022: Western Japan Business Expansion Plan

Overview
Advancing sales base strengthening and business deployment in Kyushu and western Japan markets.
Impact
Expected sales expansion through new market development

2024: Opened Tokyo Branch of Packaging Design Studio

Overview
Established a branch studio in Tokyo to strengthen design planning and expand customer support.
Impact
Enables support for high-value-added package development

Sustainability

  • Strengthened handling of biodegradable packaging materials to reduce environmental impact
  • Reduction of packaging waste through promotion of recycled resource use
  • Building of energy-saving and resource-saving logistics systems
  • Contribution to SDGs achievement through co-creation with local communities
  • Promotion of improved recycling rate for packaging waste
  • Implementation of employee environmental awareness education
  • Visualization and reduction activities for energy usage
  • Formulation and execution of green procurement policies
  • Participation in local cleanups and environmental protection activities
  • Material proposals and development linked to food waste reduction