1. Review of Medium-term Corporate Strategy 2024
①Review of quantitative targets
Financial indicators achieved well above targets; some non-financial indicators missed targets
②Trends in composition of net sales
Gummies as a growth engine driving record-high sales
2. Awareness of business environment
2-1.Market trends
Environmental analysis
The environment surrounding Kanro continues to change at a dizzying pace.
Domestic candy market
Candy market expanded significantly, driven by gummies
Increase in sales volume for gummy is the largest growth driver
Domestic gummy market ① Market size
Gummy market is expected to grow to about JPY150 bn by 2030
Domestic gummy market ② Factors behind market expansion
In addition to the increase in the gummy-eating population due to the generational effect, per capita gummy consumption also increased
Domestic hard candy market
The hard candy market is expected to grow to about JPY120 bn in 2030 due to solid demand for throat drops.
Domestic hard candy market (Throat drops)
Throat drops have been driving the hard candy market since the pandemic.
Demand for throat drops is expected to continue due to rising health consciousness.
2. Awareness of business environment
2-2.Our current situation and challenges
Kanro’s domestic market share
No. 1 share in the candy market and No. 2 share in the gummy market
Growth rate for Kanro’s mainstay brands
Our mainstay brands achieved significant growth in the previous medium-term corporate strategy period, with some exceptions.
Our challenges
Our challenges lie in expanding gummy production capacity to increase domestic market share,
promoting business strategy and implementing HR strategies for further growth
3. Kanro Vision 2.0
Vision
Flexibility in adapting to changes and consistency based on vision is essential to sustain long-term growth.
Values
Four values to achieve our vision
Overview of Kanro Vision 2.0
4. Medium-term Corporate Strategy 2030
4-1. Outline of business strategy
Medium-term Corporate Strategy 2030: Summary of four business strategies
Achieve further growth, primarily in the domestic gummy business, and expand
business domains and business models for sustainable growth
Creating sweet moments | ①
Achieve further growth in the domestic gummy business
Strategic investment to support growth: Construction of new gummy line
(from two lines to three lines: production capacity will increase by about 50%)
Creating sweet moments | ②
Strengthening product development and adding functionality to increase value, expanding the domestic hard candy and gummy business
Continue to create sweet moments for customers based on the brand in four areas of value provision
Transform the business foundation | ③
Global business expansion
Full-scale entry into the US market, which has a large gummy market, and work to expand sales with Puré Gummy
Transform the business foundation | ④
Promotion of multi-channel and shift to DtoC (LTV-enhancing model)
Strengthening customer engagement
Promote CX to build up Kanro fans through comprehensive communication
4. Medium-term Corporate Strategy 2030
4-2. Business strategy
Building a business portfolio
Transform the business foundation by expanding and deepening customer base to achieve Kanro Vision 2.0
Business strategy | Core business
Revitalize the domestic market and achieve solid No. 1 share of domestic sales amount for both hard candy and gummy
Business strategy | Global business
Establish a business foundation for further growth in the U.S. market, and aim for overseas sales to account for 10% of total company sales
Business strategy | HITOTUBU KANRO business
Strengthen customer contact in real-life situations and online, and expand the HITOTUBU KANRO business
by nurturing the next generation of brands and enhancing services
Business strategy | Digital business
Create a new revenue model through the DtoC business by building a platform for brand value enhancement
4. Medium-term Corporate Strategy 2030
4-3. Sustainability and management foundation
Weaving a path to the future | Sustainability (Materiality initiatives)
Contribute to a sustainable future for people and society by raising corporate value while also helping to solve social issues through business
Further evolution of emergent organization | Management foundation (Human capital strategy/DX strategy)
Implement measures to strengthen the management foundation and improve employee engagement to achieve “Kanro Vision 2.0”
Quantitative targets (Sustainability and management foundation)
4. Medium-term Corporate Strategy 2030
4-4. Financial and capital strategies
Quantitative targets (financial targets)
Update 2030 financial targets (upward revisions)
Financial and capital strategy |
Basic policy
Drive growth investments with ROIC management and reduce capital costs through use of leverage and other means
Financial & capital strategies |
Cash allocation (FY25~30)
Maximize cash flow by establishing a new gummy line and taking other measures, and accelerate further growth investment
Financial & capital strategies |
Shareholder returns policy
Grow operating cash flow to enable balance between growth and strategic investments and stable dividends
Growth investment framework
Pursue further growth, including discontinuous growth, to realize Kanro Vision 2.0 through the use of the growth investment framework
Medium-term Corporate Strategy 2030 summary
