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Corporate Strategy

This page explains the long-term key strategic initiatives of the Kirin Group.

Key Strategies

INCREASE KIRIN'S BRAND VALUE

Kirin aims to enhance the value of the Kirin brand both as a brand of trust and as a brand of innovation. In Kirin Group Vision 2015 (KV 2015), elevating Kirin brand's value is defined as one of the most important management objectives. We expect the Kirin brand to be the central unifying element for the entire Group.

ENHANCE THE KIRIN GROUP'S STRENGTHS BUILT ON TECHNICAL EXPERTISE AND CUSTOMER RELATIONSHIP EXCELLENCE

In pursuit of customer-focused, quality-driven approaches, Kirin considers its technical expertise and customer relationship excellence its core strengths, and continues to enhance them while encouraging interaction between them. Kirin has gained technical expertise in cutting-edge fermentation and biotechnology; in the manufacturing of high-quality products; and in the research and marketing that transforms customer needs into the right products and services on a timely basis. Kirin's customer relationship excellence refers to its ability to remain customer-focused; it is also intended to build a relationship of trust with customers by engaging them in mutual communication throughout its operations, and by identifying their individual expectations and preferences. With these strengths in place, the Kirin Group continues to offer a distinct value proposition to customers.

ACHIEVE QUANTUM-LEAP GROWTH IN REVENUE

STRENGTHEN KIRIN'S CORE DOMESTIC ALCOHOL BUSINESS
By strengthening its core domestic alcohol business, Kirin aims to build a solid foundation from which to reach a new level of revenue performance. Kirin will pursue a robust comprehensive strategy for the alcohol business by anticipating market changes and introducing new product categories that will create new demand. It will also step up efforts to create value by overhauling its cost structure across the entire value chain; pursue market-development and value-add sales approaches; and lead the alcohol beverage market by revitalizing the industry through streamlined business transactions. In addition to these efforts, Kirin is implementing the following three strategies to seek even greater growth opportunities across the Group.
Becoming an integrated beverage group
Kirin aims to become an integrated beverage group by exploiting the synergy between the alcohol and soft drink businesses in a market where the boundary between alcoholic beverage and soft drink products is increasingly becoming blurry. It will develop a synergy between them across the entire value chain so as to create new values that better meet customers' needs. For instance, development of alcoholic beverages and soft drinks is now consolidated into Kirin Beverage Corporation; soft drinks are produced at beer factories; Kirin Merchandising, a group company, coordinates merchandising across product lines; and international sales of Kirin Chu-hi Hyoketsu is handled through a group company of Kirin Beverage Corporation.
Increasing international businesses
Kirin aims to generate 30% of its sales and profits from markets outside Japan—primarily in the Asia and Oceania countries—by 2015. To achieve this goal, Kirin is establishing the foundation for growth and facilitating greater synergy with group companies outside Japan, such as Lion Nathan National Foods in Australia, Kirin (China) Investment in China and San Miguel Brewery in the Philippines, This also ensures that the Group's two core strengths—technical expertise and customer relationship excellence—are adopted by overseas entities so that they can offer food and health products and services that meet local cultural and consumer needs; this is also expected to bring a better life to local populations.
Entering the health and functional foods sector as a fourth business in addition to alcohol beverages, soft drinks and pharmaceuticals
(Strategy under review since May 2008)
In May 2008, Kirin launched a Group-wide project to establish the health and functional food business as a fourth core business line in addition to alcohol beverages, soft drinks and pharmaceuticals in the food and health market. This is part of our goal of achieving quantum-leap growth in revenue.
Under the direct supervision of the President, this project is tasked with developing Group-wide strategies for the health and functional foods business and overseeing their implementation. Moving forward, Kirin will go a step beyond simply producing foods for specific health purposes and take a broader approach to pursuing a value-added strategy for all food categories.

MAINTAIN THE TRUST OF SOCIETY THROUGH CSR ACTIVITIES

The Kirin Group is committed to the sustainable development of a safe and comfortable society and proactively fulfills its social responsibilities. The CSR & Corporate Communications Division, established in 2005, coordinates Group-wide efforts to adopt and adhere to socially responsible corporate practices to maintain the trust of society. In pursuing KV 2015, Kirin helps all employees fulfill their true potential and makes it a source of competitive advantage, driven by the Basic Action Stance of challenging spirit, commitment and collaboration (3Cs).

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