Kato Sangyo

Basic Information

Stock Code
9869
Industry
Wholesale
Category Detail
Food Wholesalers
Prefecture
Hyogo Prefecture
Establishment Year
August 1947
Listing Year
June 1990
Official Website
http://www.katosangyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Itochu Foods, Kobe Produce, IDHD, ITFOR, EM Systems, Yamae Group Holdings, Mitsubishi Foods, Oya Sangyo, G-7 Holdings, Central Forest Group, Yuasa Funashoku, Toho, Sato Shokai

Overview

Kato Sangyo is a major Kansai-based trading company founded in 1947, specializing in food and alcoholic beverages wholesale. As an independent firm, it focuses on private brands and boasts high profit margins.

Current Situation

Kato Sangyo achieved consolidated sales of approximately 1.1371 trillion yen and operating profit of 11.6 billion yen in the fiscal year ending September 2021, ranking as a major player in the food wholesale industry behind Mitsubishi Foods and Japan Access. Its core business is food and alcoholic beverages wholesale, with the private brand 'Kampy' serving as a key revenue driver. Centered in Kansai, it has expanded nationwide and established bases in China, Vietnam, Malaysia, and Singapore to pursue international growth. The company has obtained ISO 14001 certification, reduced environmental impact, and promotes CO2 reduction through logistics efficiency. It is expanding its group through aggressive M&A, including making Sanyo Bussan a subsidiary to strengthen its sales base. Moving forward, it plans to maintain and grow sales over 1 trillion yen by focusing on private brand enhancement and overseas expansion. It is strengthening digitalization, logistics efficiency, and environmental management to achieve sustainable growth. With steady performance backed by post-COVID consumption recovery, it differentiates itself through unique products and regional closeness amid intensifying competition.

Trivia

Interesting Facts

  • Continues domestic sales of Italian pasta 'Pazuro' since 1978.
  • PB jam 'Kampy' is widely popular in supermarkets.
  • Has a history of selling 'Kampy Cream Soda' in the 1970s.
  • Family-owned business continued for generations from founder Yasuzo Kato.
  • Holds significant share in Kansai as an independent wholesaler behind majors like Mitsubishi Foods.
  • ISO 14001 environmental certification obtained at all bases.
  • Group deploys diverse businesses including logistics, manufacturing, food service, and real estate.
  • Overseas bases in China, Vietnam, Malaysia, and Singapore.
  • Founded in 1945 as beverage wholesaler 'Kato Shoten'.
  • Previously engaged in canned beverages and juice business but withdrew.
  • Successfully reduced CO2 through joint delivery logistics, contributing to the environment.
  • Maintains high profit margins through strengthened PB product sales.
  • Listed on the Prime Market of the Tokyo Stock Exchange as a major wholesaler.
  • Deploys multiple region-limited food brands.
  • Strong foundation in food wholesale centered on Kansai.

Hidden Connections

  • Kampy's PB products are staple items in the sweets and jam sections of major supermarkets like Aeon.
  • Major trading houses like Mitsui & Co. and Mitsubishi Corporation are among principal shareholders, indicating strong ties with trading companies.
  • Competes with major food wholesalers Mitsubishi Foods and Japan Access, differentiating as an independent player.
  • ISO 14001 certification across all bases in the 2000s represents pioneering environmental management in the industry.
  • Subsidiaries like Sanyo Bussan and Kato Sakehan have region-rooted wholesale networks.
  • The formerly sold 'Kampy Cream Soda' featured famous celebrities as image girls.
  • Logistics subsidiary Kato Logistics plays a key role in food logistics in the Kansai area.
  • Stability from family management forms the foundation of trust from trading partners and employees.

Future Outlook

Growth Drivers

  • Further strengthening and diversification of PB products
  • Expansion of sales channels in Southeast Asia and China
  • Improved cost competitiveness through logistics efficiency
  • Increasing demand for environmentally considerate products and services
  • Business innovation through digital technology utilization
  • 対応 to post-COVID consumption recovery and diversified food lifestyles
  • Growing demand from health and safety consciousness trends
  • Development of products responding to new food trends
  • Maximization of synergies within the group
  • Strengthened societal demand for sustainable management
  • Business expansion through efficient M&A
  • Increasing market needs responding to aging society

Strategic Goals

  • Achieve sales scale of 2 trillion yen
  • PB sales ratio over 50%
  • Grow into market leader in Southeast Asia and China
  • Complete company-wide digital transformation
  • 50% reduction in group-wide logistics CO2 emissions
  • Over 70% of products with environmental certification
  • Build product portfolio responding to diverse customer needs
  • Profit improvement through maximization of group synergies
  • Full compliance with international food safety and quality standards
  • Establish sustainable business model in collaboration with local communities

Business Segments

Food Wholesale Business

Overview
Handles wholesale of diverse foods and beverages, achieving stable supply to various customers.
Competitiveness
Rich PB products and region-rooted sales capabilities
Customers
  • Supermarkets
  • Convenience stores
  • Industrial food wholesalers
  • Restaurants and eateries
  • School lunch providers
  • Hospitals and nursing homes
  • Hotels
  • Food service chains
Products
  • Bottled and canned foods
  • Sugar and flour
  • Oils and fats
  • Alcoholic beverages
  • Seasonings
  • Frozen foods
  • Processed foods
  • Pasta
  • Confectionery
  • Beverages

Logistics Services

Overview
Provides efficient logistics and delivery to the group as a whole and external clients.
Competitiveness
ISO 14001 certified environmentally friendly logistics system
Customers
  • Group companies
  • Trading partner wholesalers
  • Retailers
  • Food service operators
Products
  • Food and beverage logistics
  • Warehouse storage services
  • Delivery and joint delivery services

Manufacturing Business

Overview
Product development and manufacturing through group subsidiaries.
Competitiveness
Differentiation through in-house products
Customers
  • Retailers
  • Food processors
  • Industrial users
Products
  • Confectionery
  • Agricultural processed products

Food Service Business

Overview
Business expansion through group restaurant operations.
Competitiveness
Region-rooted service deployment
Customers
  • General consumers
Products
  • Restaurant operations

Real Estate Management

Overview
Supports stable maintenance of group business infrastructure.
Competitiveness
Efficient management through group collaboration
Customers
  • Group companies
  • External tenants
Products
  • Real estate leasing management

Overseas Business

Overview
Expands food wholesale and distribution business in China and Southeast Asia.
Competitiveness
Rapid response leveraging local subsidiaries
Customers
  • Local retailers
  • Importers
  • Local distributors
Products
  • Food and alcoholic beverages wholesale
  • Local sales and logistics

Competitive Advantage

Strengths

  • Strong sales base rooted in Kansai
  • Robust private brand lineup
  • Broad food and alcoholic beverages portfolio
  • Aggressive overseas market expansion
  • ISO 14001 environmental certification
  • Cost reductions through logistics efficiency
  • Swift decision-making from long-term family management
  • Synergies with diverse group companies
  • Solid financial foundation
  • Trusted history of over 70 years since founding
  • Secured diverse sales channels
  • Strength in region-rooted sales
  • Superior product quality management
  • Abundant industry experience and know-how
  • Business expansion through active M&A

Competitive Advantages

  • High-margin product deployment centered on unique PB brand 'Kampy'
  • Balanced sales network with Kansai base and nationwide reach
  • Ability to tap growth markets through multinational expansion
  • Reliability in environmental and quality management via ISO certification
  • Synergistic effects with in-group logistics, manufacturing, and food service
  • Stable management and culture fostered by long-term family operation
  • One-stop supply covering diverse food categories
  • Advancement in digitalization and efficient logistics systems
  • Unique path amid competition with major food wholesalers
  • Long-term trust relationships with customers via region-rooted sales
  • Local adaptability and speed using overseas subsidiaries
  • Multi-layered consumer touchpoints through broad sales channels
  • Environmentally considerate management and sustainable products
  • Investor trust based on solid financial foundation
  • Scale advantages gained through effective M&A

Threats

  • Growth slowdown due to market maturity in domestic food wholesale
  • Intensifying price competition from major rivals
  • Risk of raw material price fluctuations
  • Risk of failure in new PB product development
  • Rising logistics costs and labor shortages
  • Increased compliance burden from strengthened food safety and regulations
  • Political and economic instability in overseas operations
  • Delays in responding to rapid shifts in consumer preferences
  • Risks from new infectious diseases and environmental changes
  • Uncertainty in import costs from exchange rate fluctuations
  • Unstable agricultural supply due to climate change
  • Increased competitive pressure from rivals' DX initiatives

Innovations

2021: Acquisition of Sanyo Bussan Shares to Make It a Subsidiary

Overview
Acquired shares in Sanyo Bussan to strengthen food wholesale business and make it a subsidiary.
Impact
Achieved business base expansion and sales force enhancement.

2020: ISO 14001 Certification Obtained at All Bases

Overview
Strengthened environmental management system by obtaining ISO 14001 at all bases.
Impact
Contributes to enhanced credibility in environmentally considerate management.

2021: Logistics Efficiency and CO2 Emission Reduction Project

Overview
Implemented labor savings and 30% CO2 reduction through pallet stacking and joint delivery.
Impact
Contributes to logistics cost reduction and lower environmental impact.

2023: Development of New PB Product Lineup

Overview
Advanced development of health-oriented and high-value-added PB products.
Impact
Contributes to customer support expansion and profitability improvement.

2024: Digital Transformation Promotion

Overview
Accelerated efficiency in sales and logistics management using AI.
Impact
Achieved significant business efficiency improvements and cost reductions.

Sustainability

  • Strengthened environmental management with ISO 14001 certification at all bases
  • Over 30% CO2 emission reduction through joint delivery logistics
  • Promotion of environmentally considerate private brand products
  • Enhanced CSR activities including regional contributions
  • Waste reduction and recycling promotion
  • Improved sustainability in supply chain