Medium and Long-Term
Our New Medium and Long-Term Management Plan, Starting from Fiscal 2017
In FY2017, the first year of the new medium and long - term management plan announced in June 2017, ITO EN will continue its aim to increase sales and profits. Based on its management principle of “Always Putting the Customer First,” and with the aim of achieving its long-term goal of becoming a “Global Tea Company,” the Group will make efforts in the following four key areas.
First, the Group will seek to further enhance its domestic operations. In addition to intensifying its sales visits and working to secure more new customers, ITO EN will also seek to bolster sales of its main brands, focusing primarily on Oi Ocha, with the aim of increasing its market share. It will also aim to increase the number of its brands with sales in excess of 10 million cases from four to six, and continue working to increase profit ratios by improving profitability and increasing productivity.
Second, the Group will ramp up the development and expansion of its overseas business operations. With a central focus on the North American market, ITO EN will seek to achieve double-digit growth by bolstering sales of leaf tea (tea bag) and matcha (powdered green tea) products, centering around the global brand ITO EN MATCHA GREEN TEA. The Groupʼs target is to secure the No. 1 market share for green tea both in Japan and overseas. To accomplish this, the Group will seek to expand and increase group synergies, through initiatives such as personnel exchanges with its overseas businesses.
Third, the Group will seek to enhance the level of its ROEbased corporate management, and aim to achieve a higher total return ratio, by continuing in its efforts to improve profitability.
Fourth, the Group will work to enhance its CSR/CSV * management activities. In addition to conducting CSR activities utilizing its world-standard core business operations, the Group will also create shared value (CSV), with the aim of simultaneously resolving social problems and accomplishing new achievements with its business activities. The Group will remain continuously mindful of both CSR and CSV in its corporate management.
In light of these efforts, and with the significant milestones of the 30th anniversary of the launch of Oi Ocha in 2019 and the hosting of the Tokyo Olympic and Paralympic Games in 2020, the Group will aim to achieve the following numerical targets by the fiscal year ending April 2022: consolidated net sales of 600 billion yen or more, a return on equity (ROE) of 10% or higher, and a total return ratio of 40% or higher.
* CSV: Creating Shared Value
Business Model of Seizing New Chances and Avoiding Risks through Innovation
Globally, there is a movement towards various international frameworks for dealing with environmental and social issues, such as the Sustainable Development Goals (SDGs *) adopted by the United Nations in 2015 (to be achieved by 2030), and the Paris Agreement on Climate Change. Investments giving consideration to all aspects of environmental, social and governance-related (ESG) aspects of business are accelerating.
Environmental and social sustainability are important issues to be tackled in corporate management. Various global sporting events, such as the 2020 Tokyo Olympic and Paralympic Games, are approaching in the near future.
Through the hosting of such sporting competitions based on sustainability, there are expectations for us to create a legacy to pass on to future generations̶as stated in the Olympic Charter̶in terms of not only sports-related aspects but also economic, environmental, social, and particularly cultural aspects. ITO EN considers this to be an excellent opportunity to create shared value (CSV) for simultaneously resolving social problems and accomplishing new achievements with its business activities.
As it moves towards its long-term vision of becoming a “Global Tea Company,” the Group will use the content of the UNʼs SDGs as a reference for securing new business opportunities that leverage the Groupʼs strengths, while at the same time utilizing them in the analysis of business environments and risks from a global perspective.
In 1984, ITO EN created the worldʼs first canned green tea.
It was the result of our passion for innovation, standing in the shoes of our customers and aspiring to change the green tea market as customer lifestyles diversified.
Since then , too, our creation of new markets through technological innovation has led to other breakthroughs, such as in the development of delicious and easily drinkable vegetable drinks made possible by the addition of fruit juices, and the creation of our TULLYʼS COFFEE bottle-type canned coffee brand, which is generating synergies with Tullyʼs Coffee Japan Co., Ltd.
* SDGs (Sustainable Development Goals):
New world sustainability standards consisting of the 17 goals and 169 targets for economies, society, and the environment across the world that are described in the 2030 Agenda for Sustainable Development, which was adopted by the United Nations in September 2015. SDGs have been established as a compass for the sustainability of the international community from 2016 to 2030.