Kirin Beverage
May 31, 2024
2023 Review
- Concentrated brand investments on core brands, Kirin Gogo-no-Kocha and Kirin Nama-cha, and Health Science products to improve medium- and long-term profitability. Enhanced product lineup by launching high added-value and high-priced products (Kirin Nama-cha Rich and Kirin Gogo-no-Kocha TEA SELECTION) in core brands and the Lactococcus lactis strain Plasma (LC-Plasma) series (Kirin Oishii Immune Care) and other new Health Science products.
- Increased revenue through price revisions performed in October 2022 and through increased unit prices that resulted from expanding high added-value and high-priced core brand products and Health Science products.
- However, normalized operating profit decreased because price revisions did not make up for the rising costs of raw materials and because of reduced sales volume and enhancing marketing investments for the future.
2024 Plan
- Accelerate the transformation of the product portfolio into one that is sturdy with a strength in Health Science products and continue to aim to nurture brands and increase earning capacity.
- Strive to strengthen the business foundation that supports sustainable growth. In addition to increasing production capabilities by starting the operation of a new manufacturing line at Shonan Plant in spring 2023, we will promote the implementation of area production and sales strategies and change shipping methods in response to the 2024 logistics problem.
- Increase revenue and profits in 2024. Perform marketing investments, mainly in core brands and Health Science products, and aim to achieve market-leading sales volume growth. Moreover, revise the prices of some products, and enhance efforts in high added-value and high-priced products and Health Science products in order to realize unit price increases. Especially in Health Science products, through expanding the LC-Plasma series lineup and creating ongoing needs, the sales volume of Health Science products is expected to grow.
Example
Steady growth of Kirin Oishii Immune Care sales volume
With a focus on the LC-Plasma series, we will release a variety of products that meet consumer needs onto the market and are committed to helping people to develop immune care habits. Kirin Oishii Immune Care, launched in 2023, has a yogurt taste and is easy to drink. The product’s sales volume has been steadily growing due to becoming a series and being available in a six-pack. This increase has significantly grown the total sales volume of the LC-Plasma series by about 40% year-on-year.
In 2024, in addition to helping people develop immune care habits, we will launch new products in beverage categories enjoyed by people daily, such as green tea and sports drinks. We aim to expand the entry and habitual product portfolio for immune care and to further grow the LC-Plasma series.
