[Company analysis] Nissin Food Products Co.,Ltd. (日清食品)

「Nissin Food Products Co.,Ltd. (日清食品)」is the world's first company that developed instant noodles and cup noodles. It is characterized by implementing a unique marketing strategy that cannot be seen by other companies. This company has similar name with「Nisshin Seifun Group Inc.(日清製粉グループ本社)」,「Nisshinbo Holdings Inc.(日清紡ホールディングス)」and「The Nisshin OilliO Group, Ltd.(日清オイリオグループ)」, but there is no connection. The number of consolidated employees is approximately 12,539.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nissin Food Products Co.,Ltd.
Company name (Japanese)	日清食品
Date of establishment	Wednesday, October 1, 2008
Headquarters location	〒160-8524 東京都新宿区新宿6-28-1
Capital	5,000
Consolidated sales	450,984
Consolidated operating profit	28,967
Consolidated total assets	557,577
Consolidated capital	352,545
Capital adequacy ratio	63.2%
Consolidated number of employees	12,539

 

 

 

2. Summary and Features

 
The origin of「Nissin Food Products」is「Chukou Soja(中交総社)」, which was founded by Ando Momofuku(安藤百福) in 1948 for the purpose of processing seafood business. Then, they started the development of instant noodles aiming at mass production and mass distribution. After many failures for about 10 years, they somehow succeed in developing instant ramen. So, in August 1958, the world's first instant ramen was launched under the name "Chicken Ramen". 

In 1966, Momofuku Ando, ​​who was on a tour of the United States. And he accidentally witnessed that young Americans put chicken ramen in a paper cup with boiled water and got a hint from this action. Soon after, they developed the world's first cup ramen. And in September 1971, they released a number of popular products including "Cup Noodle". At present, the business domain of「Nissin Foods」is roughly divided into four businesses, "Instant noodle business", "Low temperature food business", "Confectionery business" and "Beverage business". Among them "Instant noodle business" accounts 62% of the total sales.

In the instant noodle market,「Nissin Foods」is a market pioneer and a top share company. At first glance, it seems that they have a competitive advantage because they are the leading position in the market. However, the real strength of「Nissin Foods」lies in unusal contribution to its marketing ability. This company has a separate marketing department within the company, and this department was organized and has been operated since April 1976, an extremely early period.

Recently,「Nissin Foods」has been focusing on overseas expansion. As of 2018, overseas sales accounted for more than 23%. Including existing markets, BRICs (Brazil, Russia, India, China) are regarded as priority regions, and this company is trying to infiltrate. Especially in Brazil and other countries, they are aiming to expand sales by making a foray into a wholly owned subsidiary.

 

 

 

3. Major Business

 

■ Instant noodle business
This is the core business of「Nissin Foods」. They own many popular brands, mainly chicken ramen, and maintain the top market share.

■ Low temperature food business

■ Confectionery business

■ Beverage business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		0	440,909	450,984
Consolidated operating profit		0	35,175	28,967
Consolidated total assets		0	528,726	557,577
Consolidated net assets		0	353,128	352,545
Breakdown of sales	Nissin Foods	0	190,967	193,256
	Meisei Foods	0	31,152	32,882
	Low temperature food business	0	54,278	55,424
	America	0	62,533	63,425
	China	0	40,132	41,447
	Others	0	61,844	64,547