Needs relating to good eating habits have been growing and diversifying among customers and within society at large. In the drive to further strengthen its core competencies and proactively resolve social issues, Nichirei will leverage its production technologies and expertise, while drawing on new developments including those in AI, IoT, autonomous driving, and robotics.
The new rice products plant of Kyurei Inc., one of Nichirei Foods Group companies, in Munakata City, Fukuoka Prefecture began operation in April 2023, with a production capacity of approximately 70 tons per day. We have also introduced the latest equipment and ramped up initiatives for eco-friendliness and automation. Environmental measures to reduce CO₂ emissions include using refrigerators that use natural refrigerants instead of CFCs, installing solar panels on the roof and utilizing renewable energy. For automation, the plant has introduced inspection and disposal of burnt items using AI robots and high-performance cameras, in addition to automating unloading of raw materials, product pallet loading and pallet transportation.
Exterior of new plant
Quality control using AI robots and high-performance camerasNichirei Foods has collaborated with Hitachi, Ltd. in creating a system that uses AI to automate and optimize production and personnel planning. In FY2021, the system was introduced at two model factories in Japan. It uses sophisticated AI technology to reproduce and refine plans previously formulated by experts based on complex constraints. In addition to legal and regulatory requirements involved in personnel planning, a variety of other conditions must also be considered, including individual ability, overtime, and paid leave. Until now, experts formulated plans based on such preconditions, often relying on experience-based intuition. The new system uses AI to automate planning and identify optimal solutions from among the various permutations, while also quantifying and incorporating intuition-based criteria. As a result, planning requires one-tenth of the time and can be conducted by non-expert employees. The system is expected to contribute to work style reforms such as by reducing the number of hours worked and encouraging more employees to use paid leave. Given that in recent years food manufacturers have been called upon to make and supply products while responding to fluctuations in demand, the system is contributing to improved customer satisfaction due to its application of advanced digital technologies and the creation of efficient production systems. Nichirei Foods will continue to harness digital technologies to promote further improvements in productivity, reductions in lead time and inventories, as well as work style reforms.
●Production Planning Formulation Image
From a maximum of 16 trillion combinations in one factory, production plans encompassing daily production products and volumes for each line and personnel plans involving shift schedules are formulated automatically.
Following field tests, in FY2021 Nichirei Logistics Group began introducing an AI solution for automatically reading expiration dates from image data at 50 bases nationwide. As part of its efforts to fully digitalize warehouse operations, the Group has adopted tablet devices and is using AI solutions to enhance their functionality. Previously input manually, expiration date input can now be completed hands-free using AI, enabling highly accurate readings of 93% or higher and fast processing speeds of about two seconds. This has further improved quality control as it enables us to capture expiration date images and to then convert those images into data records, simplifying overall operations so that they can be performed by anyone, thus facilitating stress-free work.
In January 2018, Nichirei Logistics Group began conducting field tests of autonomous driving forklifts at refrigerated warehouses. In 2021, they were introduced at the Daikoku Distribution Center of Group company Kyokurei. A distinctive characteristic of autonomous driving forklifts is that they can be given instructions using a tablet device, thereby making safe operation possible for employees who might otherwise lack the physical strength or operating skills to manually operate a forklift. Going forward, we will steadily increase the number of facilities with autonomous driving forklifts and tie that measure into reducing working hours, economizing on manpower for on-site work, and improving occupational health and safety at our warehouses.
An autonomous driving forklift
AGV for transporting roll pallets
AGV for transporting palletsNichirei Logistics Group Inc. collaborated with Telexistence Inc. to conduct a demonstration test in which Telexistence’s remote-controlled robot loaded mixed cargo on basket carts in the refrigerated area of a logistics facility.
The test confirmed the feasibility of creating a remote, stress-free work environment in logistics centers in which an operator in an office remotely controls a robot in a refrigerated area. The work involved the operator visually confirming each piece of cargo and its place of loading, them moving the robot and its arm by remote control.
We will continue to proactively introduce cutting-edge technology and digitalize operations in working to achieve sustainable logistics that support the supply chain.
Robot loading cargo
Robot operator using gogglesFurther refine the Nichirei Group’s core competencies in food processing, production and logistics to resolve social issues and improve profitability through competitive advantages in global markets. Expanding our overseas business is the core of the Company’s growth strategy. Under the new medium-term business plan “Compass x Growth 2027,” we will implement growth strategies by region and business. We aim to increase our overseas sales ratio from 23.6% to 30%, or approximately 1.5 times in terms of the amount from the end of the previous fiscal year.
●Regional Business Strategies
●Net Sales and Operating Profit by Region
In North America, there is growing awareness of Asian culture due to the increasing Asian population. In 2012, the Company acquired InnovAsian Cuisine Enterprises Inc., which plans and sells frozen foods in the United States. Rather than selling Japanese foods such as yakitori and tempura, we have expanded customer support and accelerated business growth by selling Asian foods, as imagined by the targeted local people, with the strategy to sell products using names and flavors familiar to them. By accurately grasping market needs, we increased sales from about ¥4.3 billion before the acquisition to about ¥13 billion in FY2019 and about ¥37.3 billion in FY2025. We believe that this strategy is supported by the Company’s marketing and sales capabilities as well as organizational strength and collaboration with Japan.
●Yield Rate (Period Average) at Nichirei Sacramento Foods, Our Production Base for Rice Products
Nichirei Sacramento Foods Corporation
We are working to expand brand recognition while maximizing cost-effectiveness by implementing marketing and advertising methods and detailed analysis and improvement in accordance with the changing times and markets. For example, in 2012 at the time of the acquisition, the mainstream of advertising was vouchers in newspaper inserts, but now it has changed to SNS such as YouTube, and the Company conducts marketing by catching up with the trends of the times. Digital marketing is also becoming more important because of the increase in e-commerce sales at our clients. We are committed to working on details on a daily basis, such as video advertisements to promote brand awareness and examination of product descriptions to encourage buying decisions. In addition, an approximate sales forecast is made through sales promotion analysis, which is reflected in the product ordering plan.
In order to expand market share in the U.S., it is important to build a network in the industry. Our local management members, who are well-versed in customers, distribution, and business practices, lead the sales team and each division to earn the trust of the industry and consumers and to enhance the brand value. Through these efforts, we have been gradually increasing the range of the Company’s products handled and expanding their introduction.
It is our strength that our core products, such as rice products and processed chicken products, are the same in the businesses of Japan and the Asian Foods Business. In particular, in the field of rice products, we are making use of the knowledge and know-how we have cultivated in Japan to promote initiatives to improve productivity, such as the introduction of production technologies and process improvements, supported by Japanese staff posted overseas on site.
We believe that there is still room for expansion in the Asian food market, and that increasing production capacity will be critical to reap the benefits. We have our own production function for rice products, one of our main products. We are also considering having our own production function for processed chicken products, which are another main product. By combining our marketing and sales capabilities, as well as collaboration with Japan, as described above, we can demonstrate a competitive advantage that cannot be easily imitated by competitors, and we can expect significant business expansion. Specifically, we will utilize our marketing expertise cultivated over many years to raise awareness among new customer segments and utilize our production technologies developed in Japan to differentiate ourselves from competitors in terms of both taste and productivity. In addition, we believe that collaboration with Japan will contribute to improving production management and strengthening development capabilities.
President Takenaga of Nichirei Foods Inc. and CEO Joe of InnovAsian Cuisine Enterprises Inc. address industry stakeholders and business partners at the 25th Anniversary Ceremony of InnovAsian Cuisine.
Rice products
Video advertising●Contributing to Optimal Patient Treatment through Cancer Diagnosis
In 2019, we acquired Pathcom Systems Corporation (Pathcom), a U.S.-based medical device company that mainly sells products for cancer diagnosis in the United States and Europe. The number of cancer patients is increasing worldwide in tandem with the global increase in the elderly population. This in turn is expanding the market for immunohistochemical staining used in diagnosing cancer. Going forward, we will use Pathcom’s fully automated staining devices as a platform for the overseas rollout of a device-specific reagent sales model that integrates the development, production and sales of medical devices and diagnostic agents.
●M&A centered on compatibility with existing businesses
Our business in Europe began in 1988 with the acquisition of a refrigerated warehouse company in Rotterdam, the Netherlands, and expanded through acquisitions in the Netherlands and Germany in the 1980s and 1990s. After entering Poland in 2004, the Company built a new refrigerated warehouse in 2009 and started temperature-controlled logistics services for retail chain stores. We adopted the concept of the retail business that we had been developing in Japan since 2014 and concentrated our management resources, resulting in substantial growth. Since 2010, we have gained a wealth of M&A expertise, and with a view to developing a one-stop service that provides a total solution for such matters as storage, transportation and delivery, and customs clearance that we have cultivated in Japan, and we have started to acquire companies focusing on the functions that are lacking in the entire Europe. When selecting M&A targets, we not only focus on the return on investment based on the customer base etc., but also on the prospect of synergy with existing businesses and the compatibility of the target company’s corporate culture and philosophy with the Nichirei Logistics Group’s commitment to quality and a customer-oriented approach. Prior communication with the management of target companies is an important element to implement smooth PMI (post-merger integration, an integration process following M&A).
● Ramping Up Expansion of Our Competitive One-stop Services and Strengthening Our Business Base in Poland
Our basic strategy for the temperature-controlled logistics business in Europe is to further expand our one-stop crossborder services that combine refrigerated storage functions at ports with services ranging from marine transport, drayage, customs clearance, and distribution processing to transportation and delivery. In January 2024, we reorganized our operations in the Netherlands and the United Kingdom. Objectives of the reorganization included ramping up the provision of one-stop services and sharing know-how across companies through an integration of the transportation and storage businesses, which had previously been run by separate companies. In May 2024, we also acquired a forwarding company in the United Kingdom.
In Poland, we have grown to a dominant position in the refrigerated logistics business for mass retailers. We expanded our warehouse in Znin in July 2024, has opened the Nowy Dwór Mazowiecki Logistics Center near Warsaw in February 2025.
We will leverage this enhanced coordination between functions in our ongoing efforts to expand our one-stop services and strengthen our business base in Poland.
●Leveraging Group Synergies to Increase Profits
●Fostering connections for the next stage
The strength of our European business lies in the ability to provide not only a single function, such as storage, transportation and delivery, and customs clearance, but also a one-stop service that combines all these functions. Going forward, fostering connections among people will support accelerating our growth. In January 2024, we reorganized consolidated subsidiaries in the Netherlands and the United Kingdom, aiming to speed up decision-making, promote cross-selling based on the customer base shared among them, and accelerate one-stop services. In addition, we have begun holding joint conferences for the top management of each operating company and the engineers who are in charge of maintaining facilities at each company, as an opportunity to share issues and technical information. We will continue to provide high-quality services through mutual cooperation by strengthening connections between people.
Expansion of Znin Distribution Center / Frigo Logistics Sp. z o.o.
Frigo Logistics Sp. z o.o. Announces the Opening of the Nowy Dwór Mazowiecki Logistics Center
●Adding More Value to Every Chicken Part and Further Expanding Global Sales Channels
GFPT Nichirei (Thailand) Co., Ltd. in Thailand has established a fully integrated system that takes in live chickens from joint venture poultry farms, slaughters and cuts them up into parts, then handles all steps from processing and cooking to freezing and packaging at directly connected processing plants. The company is able to stably procure and process safe and reliable raw materials, and makes various use of every part of the chicken.
Because preferences for chicken parts vary by country and region, we consider effective uses and sales channels to add value before sale. Sales channels extend worldwide. For example, thigh and breast meat are sent to Japan and Europe, where demand for these parts is high, wings are processed as feed for farmed fish, and feet are popular in China.
Currently, the company processes by-products such as organ meat and blood into poultry meal, and is stepping up sales to pet food manufacturers in Thailand. Because organ meat and other by-products are easily affected by market prices, increasing the level of processing helps to stabilize profits.
GFPT Nichirei (Thailand) Co., Ltd.Nichirei Logistics Group aims to differentiate itself in ASEAN by obtaining halal certification* and conducting freezing and thawing services, accelerate one-stop services combining storage and transportation within each country, and build a cross-border network within ASEAN.
When viewed by country, in Thailand, a new facility started operation in northern Bangkok in March 2025 to store chicken, beverages and ingredients and products from dairy products manufacturers, and to capture demand for transportation by taking advantage of its location near the capital Bangkok. In Malaysia, in July 2025, an affiliated company with strong transportation capabilities became our consolidated subsidiary to promote the provision of one-stop services combining with our existing storage functions. In Vietnam, a new warehouse built in 2024 is fully operational. In response to the country’s thriving three-country business of processing foodstuffs imported from North America and other countries and exporting them to third countries, we will strengthen the storage and transportation business of raw materials for production facilities and processed products for third countries.
We will increase our presence in ASEAN, where the importance of building a cold chain network is increasing, with an eye to non-continuous growth through the consideration of new M&As and future expansion into ASEAN countries where we have yet to enter.
Announcement of New business by establishing a joint venture in Vietnam
New Open of Distribution Center / Nichirei TBA Logistics Vietnam LLC
SCG Nichirei Logistics Co., Ltd. Announces the Opening of the Navanakorn Logistics Center
●Meeting Customer Needs with Advanced Processing Technology
Global per capita consumption of seafood has doubled in the past 50 years, and is expected to continue increasing. In addition, market needs for seafood are diversifying, and we believe that precisely meeting those needs is our role, one that will ultimately lead to business growth.
Established in Phan Thiet, Vietnam in July 2017, Trans Pacific Seafood Co., Ltd. (TPS) has continued to grow by processing raw materials procured using the capabilities we have been cultivating over the years into products that customers want. TPS currently has six production lines on a 20,000 m2 site, processing 2,000 tons of seafood annually with over 500 employees. In June 2024, a new freezer with a 2,000-ton storage capacity was completed to further stabilize quality and supply.
We will expand sales from TPS, the production base of our marine products business, not just to Japan but worldwide.
A processing line at the TPS plant
Expansion of overseas sales
MSC-certified crab products
●A “Clean Label” Business Using Acerola, a Natural Source of Vitamin C
Acerola is rich in natural vitamin C and has a strong antioxidant effect. Nichirei was among the first to notice the potential of this ingredient, launching Acerola Drink in 1987. In 1991, we established Nichirei do Brasil Agricola Ltda. (Niagro) in Brazil, and successfully standardized the natural vitamin C content through independent research. As a result, products that contain Nichirei’s acerola ingredients can display labels with claims such as “One cup contains the recommended daily amount of vitamin C.”
To further expand this business, Niagro began producing Acerola powder in 2023. The “clean label” market, which calls for food prepared using simple raw materials and ingredients with easy-to-understand labeling, is growing worldwide due to environmental concerns and increasing food safety awareness and health consciousness. Acerola is attracting attention in the clean label market as an ingredient that is effective in preventing oxidation and browning. Acerola powder can also be used in bakery products and processed meats, allowing us to propose its use in a variety of business categories. Niagro is working to expand its business by assigning new sales representatives to the high-demand areas of Europe and North America to drive growth centered on Acerola powder. We aim to further develop the acerola business by harvesting raw materials in cooperation with contract growers, building a stable production system and conducting sales activities globally.
