CEO MESSAGE
Towards Sustainable Growth: Innovating Food Culture and Addressing Environmental and Social Challenges as an EARTH FOOD CREATOR
KOKI ANDO
President & Representative Director, CEO
NISSIN FOODS HOLDINGS CO., LTD.
Our Strength Lies in a Resilient Business Structure Capable of Overcoming any Adversity
Since its founding in 1958, the NISSIN FOODS Group has sought to contribute to society by satisfying people's dietary needs. Our founder, Momofuku Ando, was deeply moved upon witnessing people's suffering in the post-war pangs of hunger. He famously said, "Without food, clothing and shelter are useless. Without food, there can be no art or culture.” His conviction led to the invention of the world's first instant noodles and the birth of NISSIN's famous “CHICKEN RAMEN.”
At the heart of our corporate philosophy lies the ethos "EARTH FOOD CREATOR," a commitment to nourishing humanity and bettering both society and our planet through the joy and pleasure of food. It was also founded on another one of our founder's philosophies: Shoku-soku Se-hei, which means that “peace will come to the world when there is enough food.”
The year 2023 marks the 65th anniversary of the launch of CHICKEN RAMEN, and both NISSIN CISCO's CISCORN and KOIKE-YA POTATO CHIPS Salt & Seaweed celebrate their 60th anniversaries. Our Group also boasts several other time-honored brands. The enduring global appeal of our brands is a testament to our Group's collective efforts to enhance their value.
Despite current issues of global inflation and rising costs, which pose major challenges, the Group continues to show strong growth. For the fiscal year ending March 31, 2023, we witnessed record-breaking revenues and profits, significantly surpassing our targets, with our overseas ventures positioned as extremely successful growth drivers.
The driving force behind this momentum is a resilient business structure steeped in our founder's spirit and branding. We believe that resilience is central to who we are and denotes the ability to adapt to dramatic changes in the environment, and the NISSIN FOODS Group's strength lies in a business structure that can respond nimbly to any contingency. We have weathered global upheavals, natural disasters, and even economic standstills due to the COVID-19 pandemic. Indeed, we believe instant noodles prove to be most useful in times of crisis.
FY 3/2023 saw us recalibrate our pricing across all sectors, gradually solidifying our new pricing position. Our analysis revealed a renewed appreciation for the relative affordability and convenience of our products amid tightening household budgets due to inflation. In the instant noodle business, demand is growing worldwide, even in regions unaccustomed to eating noodles, transforming our noodles into something akin to social infrastructure.
Though the climate in which we do business remains uncertain, our mission remains unchanged, irrespective of the era. We are committed to innovating new food culture, addressing environmental and social challenges, and achieving sustainable growth through our unique approach of “Creating Shared Value (CSV).”
Our Stand to Solve Environmental and Social Issues: Two Pillars of Our Mid- to Long-Term Growth Strategy 2030
So, which environmental and social issues should our Group be addressing through CSV management?
Today, nutrition and the environment are gaining worldwide attention. The significance of the 1.5°C goal of the Paris Agreement was reaffirmed at the 27th Conference of the Parties to the Climate Change Convention (COP27) held in November 2022. Moreover, at the Tokyo Nutrition Summit 2021, which convened in December 2021, leaders from national governments, international organizations, corporations, and civic groups gathered to exchange views on various issues related to health and nutrition. We recognize these two themes as areas for our Group to address in line with heightened societal expectations.
Our environmental strategy EARTH FOOD CHALLENGE 2030 (hereinafter “EFC2030”), formulated in 2020, stands as one of the pillars of our mid- to long-term growth strategy. To support the Group's sustainable growth from an environmental perspective, we promote two initiatives aimed at the effective use of resources and combating climate change.
In November 2022, we pledged to achieve carbon neutrality, which means reducing CO2 emissions to virtually zero by 2050. We regard the issue of climate change as a critical business risk that will cause hikes in raw material prices, damage to production and logistic hubs due to natural disasters, and shifts in consumer purchasing behavior. In May 2023, the CO2 emission reduction targets set in EFC 2030 for Scope 1+2 and Scope 3 were revised upward, respectively, and an internal carbon pricing system was introduced to accelerate our efforts.
Going forward, we intend to intensify our efforts towards becoming “Nature Positive,” an approach that seeks not only to halt the degradation of nature and biodiversity caused by human activities such as deforestation but also have a positive impact on the environment. The conservation and restoration of biodiversity is an important management issue for the Group, as is the issue of climate change. Specific initiatives include increasing the proportion of plant-based foods to reduce our environmental footprint, upcycling discarded ingredients in the production process, and forest regeneration activities in palm oil production areas. These endeavors show our commitment to solving environmental challenges and helping create a sustainable society.
When it comes to nutrition, many dietary concerns have been recognized in developed countries, ranging from health risks linked to excessive caloric intake to “hidden hunger,” a form of malnutrition that stems from nutrient imbalances. To address this issue head-on, NISSIN started a new business line focused on providing “Optimized Nutri-Dense Meals.”
In May 2022, we launched KANZEN MEAL as a new series of products that seeks to strike the perfect balance between taste and 33 essential nutrients, marking a clear break from conventional health food products that often compromise the innate joy of eating. In just one year, sales have surpassed 10 million meals, and by the end of FY 3/2025, we hope to grow the line rapidly into a 10 billion yen brand. The KANZEN MEAL series embodies one of the founder's philosophies, Bi-ken Ken-shoku (Eat wisely for beauty and health), and under the leadership of COO Noritaka Ando, we intend to grow this business over time to realize a world where people can enjoy “whatever they want, whenever they want, as much as they want.”
Focusing on Innovative Organizational Development: Curiosity and Tenacity as Fuel for Individual Growth
Momofuku Ando often said, “Growth is a path without a summit.” The NISSIN FOODS Group has always lived up to this saying in its role as a challenger from inception to the present day. Through innovation, we've introduced novel products to the world and, by winning the trust of consumers, sustained our growth. My sole mission as CEO is to efficiently leverage the managerial resources at hand and further refine our company's core business strengths.
Recently, the focus on human capital has grown significantly, and it goes without saying that the professional development of our people is essential if we aim to be an innovative organization. The Group is also promoting a variety of initiatives, including the introduction of a job-based employment system and measures to improve employee engagement. Moreover, digital tools are crucial for streamlining work processes and boosting productivity. In April 2023, we introduced “NISSIN AI-chat powered by GPT-4,” a text generation AI designed specifically for our Group. Our goal is to dedicate more time to creative endeavors, amplifying each individual's potential and accelerating the organization's growth.
Looking back, I have spent over half of my life as a CEO. Momofuku Ando once said, "Inspiration leads to invention. Tenacity is the breeding ground for inspiration. There can be no invention in the absence of tenacity." Curiosity and tenacity are indeed what accelerate personal growth. This means committing to relentless persistence until you achieve success, never surrendering and never settling. We are confident that such passionate individuals will lead the growth of our Group. Together with our employees and other stakeholders, I am committed to leading the NISSIN FOODS Group to new heights.