COO Message
Solving the World’s Problems Through New Food for the Health and Happiness of All
Noritaka Ando
Executive Vice President & Representative Director, COO
NISSIN FOODS HOLDINGS CO., LTD.
President & Representative Director
NISSIN FOOD PRODUCTS CO., LTD.
Optimized Nutri-Dense Meals Offer a Balance of Key Nutrients for Human Well-Being
Nineteenth-century science fiction writer Jules Verne said, “Anything one man can imagine, other men can make real.” True to this saying, humans have produced many inventions, making dreams a reality. Even today, things once solely the realm of science fiction are becoming real: Flying cars, humans and AI, human migration to Mars, and much more. One more thing we can make real in the future: A world where anyone can eat whatever they want, as much as they want, whenever they want. One solution toward this future is the Optimized Nutri-Dense Meals from NISSIN FOOD PRODUCTS.
Food tech has been gaining worldwide attention over the past few years. The food tech market is estimated to be approximately ¥700 trillion, and global executives such as Microsoft founder Bill Gates, Amazon founder Jeff Bezos, and Google founder Sergey Brin have invested in this market. Since the beginning of agriculture some 10,000 years ago, humankind has experienced various food-related revolutions. Food tech, or industrial food technology, is another revolution that will change the way we eat.
The future of food, as created by food tech, will develop in two main directions. One is oriented toward Planetary Hearth. The health of the planet, or in other words, reducing the burden of food on the environment. Plant-based foods and cell cultures fall into this category.
The second is oriented toward Human Well-being. My grandfather, Momofuku Ando, founded NISSIN FOODS based on the belief that food is the source of human activity and happiness. Human Well-being through food is a new interpretation of that founding idea from a modern perspective.
In today’s age of food satiety, we see a wide range of new food-related problems. These problems range from damaged health due to excessive calories, low nutrition due to incorrect diets, and frailty among seniors. Meals are supposed to be enjoyed. Restricting food diminishes that enjoyment significantly. I believe that one of the keys to Human Well-being is to enjoy eating what you want, as much as you want, whenever you want. And Optimized Nutri-Dense Meals offering a balance of key nutrients are one specific approach to this end.
Through Research and Development Into Optimized Nutri-Dense Meals, NISSIN Launched the KANZEN MEAL Series, Offering the Perfect Balance Between Taste and Nutrition
The idea of getting all the required nutrients in one food is not in itself new. There are many so-called nutritionally balanced foods. The problem is that none are as satisfying as a meal. Certain nutrients have a harsh or bitter taste. Simply adding these nutrients to a food would taste bad, not even qualifying as food. NISSIN FOOD PRODUCTS has cultivated advanced technological capabilities in the instant noodles business with many developers skilled in the application of these technologies. We not only offer food that masks the harshness and bitterness characteristic of nutrients, but we make foods taste every bit as good as the regular food consumers enjoy.
The KANZEN MEAL came from our research and development into Optimized Nutri-Dense Meals and our pursuit of the perfect balance of 33 vitamins, minerals, and other nutrients included in the Dietary Reference Intakes for Japanese. Beyond cup-type instant noodles and cup-type instant rice, we offer products across a wide range of categories, including cup-type soups, smoothies, and even frozen foods. Cumulative sales exceeded 30 million servings as of August 31, 2024. The NISSIN FOODS online shopping site offers frozen KANZEN MEAL DELI products with an astounding repeat purchase rate of 59% (as of June 2024).
One feature of the core technology behind Optimized Nutri-Dense Meals is the wide range of applications. Taking advantage of this feature, we are expanding into various other categories. These categories include the sale of base ingredients in Optimized Nutri-Dense Meals in box lunches and prepared foods at supermarkets and convenience stores, the development of collaborative products with other food manufacturers, and KANZEN MEAL menu options in employee cafeterias as part of corporate health management.
In January of this year, we provided KANZEN MEAL products as relief supplies to the areas affected by the Noto Peninsula earthquake. The longer evacuees spend in evacuation centers, the more the need for nutritionally balanced meals. KANZEN MEAL products represent a new direction in relief supplies.
We are also looking into marketing Optimized Nutri-Dense Meals overseas, although this initiative is still a little further down the road. Estimates say that 2 billion people in the world are obese. So-called sugar taxes have been imposed in more than 20 countries, and the intake of excess calories is a global problem. At the same time, so-called food deserts exist where no fresh foods are to be had. Optimized Nutri-Dense Meals have the potential to solve these problems as well. It is quite possible that in the future, every NISSIN FOODS Group product will be based on Optimized Nutri-Dense Meal technology.
NISSIN Grows Existing Businesses Consistently and Solidifies Our Foundation Further Toward Enhanced Corporate Value
Of course, new business is not the only topic of management focus. To drive new business requires consistent growth in existing businesses. We must generate cash and solidify the foundation of the company even further.
Generally speaking, brands have a life span of 15 to 30 years. Our aim is to make the NISSIN FOODS brands century brands at the forefront of consumption, loved by consumers for 100 years and more.
NISSIN FOOD PRODUCTS owns many long-selling brands, including CHICKEN RAMEN, which has been on the market for 66 years as of 2024, and CUP NOODLES, which has been on the market for 53 years. The other side of the coin is that our brands are aging. Long-selling brands are brands that the younger generation—the next generation of loyal customers—have been in daily contact with since birth. For this reason, these brands tend to be taken for granted and nothing special. The key to creating century brands is to keep refining and refreshing. How we market the appeal of the brand to young people, in particular, has been a focus of our brand communications.
Marketing is known to consist of two battlegrounds: aerial combat (TV commercials, etc.) and ground combat (in-store promotions, etc.). NISSIN FOOD PRODUCTS has added another battleground, cyber combat, as a way to bridge the two through social media.
As you may know, NISSIN FOOD PRODUCTS has aired edgy TV commercials for the past several years. Let me explain briefly why we run such commercials. First, many people see our edgy TV commercials (aerial combat), which might not be easily understood in one viewing. These people rewatch the commercials using video apps or our website. And since the commercials are so unusual, people tend to repost them on X and other platforms, adding to our reputation for interesting ads. More people watch as the ads become viral, gain exposure as internet news, and enjoy a repeated cycle of posts and shares on social media. This cycle results in an explosive rise in social media exposure, a dramatic increase in views, and an even larger cycle of internet “buzz.” This entire process is our way of conducting cyber warfare. Incredible numbers of people become exposed to our brands, and as the presence of our brand in the mind of the consumer, or mind share, rises, more consumers buy our products. A TV commercial that appears to be silly at first glance is actually a starting point for a marketing frame that leads directly to sales increases. In ground warfare at retail locations, we not only install product displays, but also endeavor to create an entertaining sales floor that conveys the brand’s worldview, fun, and excitement, thereby increasing purchase motivation.
Through consistent and ongoing campaigns, CUP NOODLES and NISSIN NO DONBEI have achieved record sales for a consecutive seven and nine years, respectively. In the monthly CM favorability survey, NISSIN has been the solid No. 1 for almost three years. On an even more prestigious note, Nikkei Business ranked our company as No. 1 among companies that professional marketers want to emulate (October 18, 2021 issue).
Fostering a More Flexible, More Creative Organizational Culture and Human Resources
However, we must not forget that it’s not strategy, planning, or even systems that make things happen. No matter the growth strategy, it is always the people, namely the employees, who do the actual work. Our people are an important way to achieve the future we want.
To put it drastically, the NISSIN FOOD PRODUCTS organization focused nearly exclusively on selling the NISSIN brand of instant noodles in the past. Of course, this approach made sense and paid off in fact. However, times are changing, and we must meet diverse and complex needs while growing new and existing businesses sustainably. These times require a more flexible and creative organizational culture and human resources who can break from the past. To this end, we are updating our organizational culture and implementing reforms to develop our human resources.
For example, we pursue digital transformation (DX) internally through the slogan, DIGITIZE YOUR ARMS. Examples of this initiative include the Kansai Plant and other IoT smart factories, advanced talent management, supply chain restructuring, and paperless processes for internal applications and approvals. By digitizing what can be digitized, we create more time to focus on new and interesting things. Another example is NISSIN AI-chat, an in-house AI we released last year. The sales department uses NISSIN AI-chat to create presentation materials and to plan entertaining in-store promotions. We expect this and other uses of AI to reduce work hours per salesperson by about 400 hours per year.
In 2021, we renamed the Sales Division to the Business Solutions Division, emphasizing a new business mission to be an organization that solves customer issues through our products, rather than just selling products to customers. This change is another example of how we are transforming our organizational culture.
We pursue diversity, mid-career hires, and other initiatives to increase diversity and flexibility as an organization. One case in point is a hybrid work system that allows employees to choose flexible in-office and remote work styles.
We are establishing unique brands on a global level through food tech, innovation, social media, and digital technologies developed as the leading company in our industry and the inventor of instant noodles. We believe we can accelerate growth of our group as a whole by telling this success story on a global scale. In fact, Brazil, where we enjoy the largest market share, leverages the NISSIN FOOD PRODUCTS marketing methods to tremendous effect. We hope to expand on these examples in the future.
The development of technology will continue to change human life in significant ways. Society and values will change dramatically, too. But one thing will always remain the same. And that is the fact that humans will always need food. The NISSIN FOODS Group is committed to making people healthier and happier by solving the world’s problems rapidly through new food.
VALUE REPORT
2024
WHO
is the NISSIN FOODS Group? [3.31MB]
- Group Philosophy
- Social Value Creation History
- NISSIN FOODS Group Today
- Six Capitals of the NISSIN FOODS Group
- Core Strengths of the NISSIN FOODS Group
WHAT
are our goals?[3.49MB]
- Our Materiality
- CEO Message
- COO Message
- Outside Director Dialogue
HOW
will we achieve our goals?[8.89MB]
- Value Creation Process
- CSO Message
- CFO Message
-
Growth Strategy 1: Strengthen Cash Generation Capabilities of Existing Businesses
- Domestic Instant Noodles Business
- Domestic Non-Instant Noodles Business
- Overseas Business
-
Growth Strategy 2: EARTH FOOD CHALLENGE 2030
- Challenge to Climate Change
- Challenge to Effectively Use Resources
- Growth Strategy 3: Pursue New Businesses
- Creating and Expanding Touchpoints for Optimized Nutri-Dense Meals
- Creating New Value in Optimized Nutri-Dense Meals
- CHRO Interview
- Strengthening Human Capital
- IR Event Report
- Corporate Governance
- Board of Directors and Audit & Supervisory
Board Members
Data [554KB]
- Financial Summary
- Non-Financial Summary / Major External Evaluations
- Global Instant Noodle Market Data
- Company and Stock Information