Food Products
Food Products sales increased 2.3 percent year-on-year to ¥636.2 billion, while operating income fell to ¥21.5 billion. Programs to improve group management, consolidate subsidiaries for greater efficiency and heighten responsiveness to market needs supported sales and enabled Ajinomoto to maintain its market position during a difficult year.
SEASONINGS
• Strategic Initiatives and Results
   Sales in the household market remained strong during fiscal 2001. In particular, the popularity of Cook Do Korea!, a seasoning mix for Korean dishes, resulted in higher revenues from the Cook Do line. Cook Do also benefited from the success of a new ad campaign based on the concept of enjoying Chinese dishes at home, as well as an expanded lineup. These gains helped to offset lower sales of Hon-Dashi due to declining retail prices, although prices began to stabilize during the fiscal year. In addition, Ajinomoto expanded its presence in the field of powdered Japanese seasonings for specific dishes with the introduction of Umai Chanko no Tsukurikata Oshiemasu, a seasoning mix for hot pot.
   Sales also rose in the commercial market. Although sales of AJI-NO-MOTO and Umami Dashi Hi-Me to restaurants were lower compared to the previous fiscal year, overall sales grew, driven by substantial growth in sales of liquid Japanese seasonings for restaurant use, an increase in domestic sales volume of nucleotide seasonings, and growth in sales of savory seasoning products to major customers.
 
•• Outlook
   During fiscal 2002, Ajinomoto will implement its Strong No. 1 Strategy in the seasoning mixes category, expand into the field of powdered Japanese seasonings for specific dishes, and enhance promotional and advertising activities designed to promote the delicious taste of home cooking. Ajinomoto will work to achieve new growth by strengthening existing operations and expanding into new fields, particularly Chinese and Korean seasonings.
 
MAIN PRODUCTS
« AJI-NO-MOTO
« Umami Dashi Hi-Me
« Hon-Dashi Katsuodashi
« Hon-Dashi Katsuo Kiwami
« Hon-Dashi Udon Oden Dashi
« Cook Do series
« Chuka Aji
« Seto no Honjio
« Ajinomoto kk Marutori shiyo Garasoup   
« Cook Do Oyster Sauce
« Cook Do Tobanjan
« Cook Do Korea!
« Gohan Ga Susumu Kun
PRODUCTS SHOT
Fiscal 2001 Highlights
PRODUCTS SHOT Building Product Loyalty in Families with Young Children
  Since its launch in 1999, Gohan Ga Susumu Kun has been popular for the cute and playful cartoon character Susumu-kun, who appears on the product package and in advertisements. The character particularly appeals to families with young children, who are the target audience of this product. Ajinomoto will continue to offer delicious, easy-to-cook rice dishes using the familiar ingredients that children love.
EDIBLE OILS
• Strategic Initiatives and Results
   Sales rose somewhat during the first few months of the fiscal year but declined during the second half due to factors such as the weaker yen and escalating prices in the rapeseed market. In addition, stronger demand for soybean meal was offset by increased imports from China, keeping prices low.
   Market conditions prevented prices from rising, so that the high cost of production was not reflected in oil prices, making fiscal 2001 an extremely difficult year throughout the industry.
   Kenko Sarara has been certified by the Ministry of Health, Labour and Welfare as a Food for Specified Health Use. Products with this certification clearly marked on the label were introduced in February 2002, adding to Kenko Sarara’s competitive edge in the healthy cooking oil market.
 
•• Outlook
   In April 2002, Ajinomoto Oil Mills Co., Inc. and HONEN Corporation established and integrated their management through HONEN AJINOMOTO OIL MILLS, INC., a joint stock holding company. In addition, a strategic alliance with Yoshihara Oil Mill, Ltd. is aimed toward a management integration in April 2003. The three companies and their affiliates will work together to increase production efficiency, quickly establish a distribution network and implement substantial cost reductions under the current sales structure, with the aim of spurring market growth.
 
MAIN PRODUCTS
« Corn Germ Oil
« Safflower Oil
« Pure Light Oil
« Kenko Sarara
« Kenko Canola E
« Canola Oil (standing pouch)
« Salad Oil (standing pouch)
« Olive Oil
« Olive Oil Extra Virgin
« Gomaaburazukino Goma Abura (sesame oil) 
PRODUCTS SHOT
PROCESSED FOODS
• Strategic Initiatives and Results
   Building on the core product values of good taste and nutrition, Ajinomoto worked to strengthen brand equity and enhance marketing activities in order to increase demand, while actively launching new products in the snack category. As a result, sales of soup products grew steadily. Sales of mayonnaise products were largely flat, but sales of consommé fell due to the outbreak of bovine spongiform encephalopathy (BSE). Consequently, overall sales in the processed foods business remained the same as the previous year.
 
•• Outlook
   During fiscal 2002, Ajinomoto will work to enhance brand value throughout its operations and establish strong number-one or number-two products. In addition, Ajinomoto aims to achieve growth by expanding the new Knorr Soup Pasta line, and strengthen profitability by improving cost competitiveness.
 
MAIN PRODUCTS
« Knorr Cup Soup
« Knorr Cup Soup Shin Yasai no Potage series
« Knorr Hokkaido Torori Potage series
« Knorr Funwari Tamago Soup
« Knorr Soup Do
« Knorr Soup Pasta
« Ajinomoto kk Consommé
« Knorr Chicken Consommé
« Pure Select Mayonnaise
« Pure Select Half
« Korezero mayonnaise type
« Pure Select Super Low Calorie 70% Cut
« Pasta Do
« Okayusan
« Kellogg’s Bran Flakes
« Kellogg’s Corn Flakes
PRODUCTS SHOT
PRODUCTS SHOT
Fiscal 2001 Highlights
PRODUCTS SHOT Expanding into the Snack Foods Market
  In fall 2001, Ajinomoto expanded further into the area of snack foods with the launch of Knorr Soup Pasta in Tokyo and the surrounding Kanto area. The area of availability was thereafter expanded to include Osaka and Nagoya, with a full nationwide launch in February 2002. Available in tomato and cream of mushroom flavors, the brand is being built around such new occasions for enjoying soup as an afternoon or late-night snack, in addition to light lunch as the main occasion, and is already the sales leader in the convenience store soup category.
FROZEN FOODS
• Strategic Initiatives and Results
   In the household market, sales of side dishes substantially exceeded the rest of the market. A successful cross-merchandising campaign combining Chinese dumplings with beer and other foods resulted in sales growth. Also contributing significantly to sales were new products launched in fall 2001 such as Obento Arabiki Hamburg, one of Ajinomoto’s new series of frozen foods with a strict focus on safe, reliable ingredients. In the commercial market, sales of homestyle vegetable dishes made with fresh ingredients processed in China, such as Yamaimo Tanzaku Age, rose despite the challenging business environment.
 
•• Outlook
   During fiscal 2002, the first year of the new three-year management plan, the Company as a whole will strive to generate substantial growth and stable earnings by making products more competitive while minimizing costs. To improve competitiveness, Ajinomoto will work to further increase trust in the Ajinomoto brand by emphasizing product quality and reliability in all stages of operations, from raw materials procurement to production and sales. Specifically, while focusing on core areas such as Chinese dumplings, chicken and rice, and growth areas such as functional nutritional foods, Ajinomoto is developing products with high-quality ingredients as well as enhancing communication activities. In addition, Ajinomoto will work to further strengthen its business foundation by building a global network through partnerships with Japanese and foreign companies.
 
MAIN PRODUCTS
« Ajinomoto Reito Shokuhin  
« Obentou-ni series
« Hot! 1
« Yasaioendan series
PRODUCTS SHOT
BEVERAGES AND DAIRY PRODUCTS
• Strategic Initiatives and Results
   In the coffee segment, sales of regular coffee and coffee drinks rose following aggressive promotional campaigns. In the beverages segment, sales of mainstay products CALPIS Water, CALPIS Cultured Milk AMEAL S and Evian were substantially higher than the previous year. In the dairy products segment, higher sales of Fruit Selection yogurt and Petite Danone and Baby Danone cheese-based desserts contributed significantly to results.
 
•• Outlook
   In the coffee segment, Ajinomoto General Foods will continue to strengthen and develop core brands Blendy and Maxim. Efforts to further build brand strength will focus on products in individual servings and sizes suited to smaller households, as well as more environmentally friendly product manufacturing.
   In the beverage segment, competition is expected to intensify with the development of an oligopoly among major manufacturers. In response, Calpis plans to fortify its business foundation by raising the value of the Calpis brand and promoting functional healthy products such as CALPIS Cultured Milk AMEAL S.
   To respond to increased demand for yogurt products, Calpis Ajinomoto Danone Co., Ltd., in cooperation with Calpis Co., Ltd., is building a new yogurt production facility in Tatebayashi, Gunma Prefecture. The facility is scheduled to begin operations in October 2002.
 
MAIN PRODUCTS
« Blendy
« Maxim
« Maxim Handy Drip
« Marim
« CALPIS
« CALPIS Water
« CALPIS Cultured Milk AMEAL S   
« Evian
« Welch’s
« CALPIS Kids
« Petite Danone
« Baby Danone
« Danone Yogurt
« Fruit Selection
« BIO
PRODUCTS SHOT
Fiscal 2001 Highlights
symbol mark Delicious Taste Begins with Ingredients
  In spring 2002, Ajinomoto launched a campaign for its frozen food products entitled “Delicious Taste Begins with Ingredients” to highlight the Company’s use of safe ingredients, including high-quality chicken raised on vegetable feed such as corn and soybeans, potatoes grown in Hokkaido, and specific pathogen-free (SPF) pork. The package design of these products features a standardized, easily recognizable mark. The campaign represents one example of how Ajinomoto’s companywide plan to emphasize product quality and reliability in all stages of operations will be reflected in its frozen foods for the household market.
NTERNATIONAL OPERATIONS
 
ASIA
   In Asia, Ajinomoto’s primary market for food products outside Japan, Ajinomoto markets seasonings (including AJI-NO-MOTO), instant noodles and beverages, as well as processed foods through joint ventures with Unilever Bestfoods. In fiscal 2001, mainstay brands AJI-NO-MOTO, Ros Dee, Masako and Birdy all recorded growth in sales. Ajinomoto is aiming to expand sales of other product lines with stronger marketing strategies in addition to product renewals and variations.
   In October 2001, Ajinomoto and House Foods Corporation established the joint venture SHANGHAI HOUSE AJINOMOTO FOODS CO., LTD. to manufacture curry-based foods in retort pouches. Ajinomoto aims to be one of the first companies to introduce the most up-to-date processed foods from Japan to China’s rapidly expanding processed food market by building a local manufacturing plant.
   Throughout the high-potential Asian region, core themes for fiscal 2002 will be promoting development and sales of new products in the areas of seasonings, instant noodles, beverages and processed foods, as well as expansion into new markets.
 
THE AMERICAS
   In North America, sales of frozen foods at Ajinomoto Frozen Foods U.S.A., Inc. continued to grow, although the terrorist attacks in September and the subsequent economic downturn had a negative impact on total food sales in the region. In South America, new seasonings were launched in Brazil and Peru. In addition, sales were strong in Brazil’s steadily expanding market for instant noodles. During fiscal 2002, Ajinomoto plans to continue building the frozen foods business in North America and the seasonings and instant noodle businesses in South America.
 
EUROPE AND AFRICA
   In Europe, new instant noodle products were launched in Poland during the second half of fiscal 2001. In Africa, sales of umami seasonings rose significantly, primarily in West Africa. During fiscal 2002, Ajinomoto plans to continue building the instant noodles and seasonings businesses in Europe and the seasonings business in Africa, particularly West Africa.
 
MAIN PRODUCTS
« AJI-NO-MOTO
« Ros Dee (Thailand)
« Sazon (Brazil)
« Masako (Indonesia)      
« Birdy (Thailand)
PRODUCTS SHOT
PHOTO
PHOTO
Fiscal 2001 Highlights
PHOTO Ajinomoto’s First Overseas Plant for Nucleotides
  Nucleotides, when combined with monosodium glutamate (MSG), produce a synergistic effect that results in a rich umami flavor. Demand for nucleotides has increased rapidly in recent years in tandem with the expanding processed food market, and continued stable growth is expected. Although Ajinomoto already maintains the leading share of the global markets for both nucleotides and MSG, in order to strengthen cost competitiveness and meet increasing global demand, a manufacturing plant for nucleotides is under construction in Thailand. Ajinomoto will invest ¥6 billion and install its state-of-the-art technology in the plant, which will be its first production facility for nucleotides outside Japan. Completion is scheduled for mid-2003.
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