Arunika Herath

1 Contents 1.Company Overview ................................................................................................................................... 3 (a) Profile............................................................................................................................................ 3 (b) Specialization ................................................................................................................................ 4 (c ) Market Positioning ..................................................................................................................... 4 2.Company History ....................................................................................................................................... 4 3.Business Scale ............................................................................................................................................ 6 ( a) Business Structure ..................................................................................................................... 6 (b) Organizational Structure .............................................................................................................. 6 4.Operating Model ....................................................................................................................................... 7 5. Company’s Market Position ..................................................................................................................... 8 6. Company Philosophy.............................................................................................................................. 10 7. Main Products and Services ................................................................................................................... 10 8. Core Competencies ................................................................................................................................ 12 9. Key Differentiators ................................................................................................................................. 12 2 1.Company Overview Pokka Sapporo Food & Beverage Ltd. is a Japanese company specializing in manufacturing and marketing of a diverse range of food and beverage products. (a) Profile Name POKKA SAPPORO FOOD & BEVERAGE LTD Date of Establishment March 30, 2012 Head Office 3-27-1 Sakae, Naka-ku, Nagoya, Aichi, Japan,- (Tokyo Office) 4-20-1 Ebisu, Shibuya-ku, Tokyo, Japan,- Capital ¥5,431 million Scope of Business Manufacturing and sales of soft drinks and food products Shareholder Composition Sapporo Holdings Ltd. 100% Mission “Create the future food standard by facing up to people and society”. Vision Focusing on plant-based ingredients such as lemons,we will deliver “value beyond deliciousness” and become “a partner who can be close in your daily life”. 3 (b) Specialization The company has established a strong brand name in both commercial and retail markets. Pokka Sapporo Food & Beverage Ltd operates in four core business segments: • • • • Lemon-based products Ready-to-drink (RTD) beverages Soups Business-to-business (B2B) food solutions The established a strong presence in both consumer and commercial markets by leveraging its expertise in lemon processing and beverage innovation. (c ) Market Positioning Pokka Sapporo positions itself as a company that brings "delicious unique taste" to its consumers through innovation, inspiration, and irresistible passion for their food products. The company's corporate identity, encapsulated in its tagline "Pokka Sapporo," reflects its commitment to achieve the targets and providing high-quality products that gives an unforgettable experience to their customers. 2.Company History The company was established as a subsidiary of Sapporo Holdings which is a conglomerate with over 140 years of history, under the name of Nikka Lemon Co. Ltd in 1957. In 2013, Pokka Corporation and Sapporo Beverage Co., Ltd. merged to form Pokka Sapporo Food & Beverage Ltd., consolidating their strengths in the beverage market. Key Milestone of the history are as follows. Year 1909 Milestone Launched the CITRON (later renamed to “Ribbon CITRON”) soft drink from Dai Nippon Beer Company Ltd 4 1957 Founding of former Sapporo Beverage Company> Nippon Breweries, Ltd.established Kokusai Inryo Co., Ltd Founding of former Pokka Corporation> Established Nikka Lemon Co., Ltd.Launched bottled lemon (later renamed POKKA Lemon) 1963 Constructed and started operation of Nagoya Factory 1972 Launched Pokka 100 Lemon 100% lemon fruit juice Launched Pokka coffee 1973 Started sales through our Hot or Cold Vending Machines 1977 Established Pokka Corporation (Singapore) Pte. Ltd. 1980 Started sales of canned soups and entered the soup business 1991 Constructed and started operation of Gunma Factory 1995 Launched Gabunomi milk coffee. 1996 Launched Jikkuri Kotokoto soup 2001 Launched Chelate Lemon. 2012 Entered into a “Comprehensive Agreement” with Kitanagoyashi, Aichi Prefecture 2013 Started business as Pokka Sapporo Food & Beverage Ltd. 2014 Started operation of new lemon plant, the Nagoya Factory Third Factory 2015 Purchased trade rights to soymilk beverages and soymilk yoghurt from Toraku Foods Co., Ltd., and entered the soymilk business. 2016 Started a business alliance with Hiroshima Yutaka Agricultural Cooperative Association, and entered into “Comprehensive Agreement” with Osakikamijima-cho. 5 2017 Entered into a “Collaborative and Cooperative Agreement” with Kure-shi, Hiroshima Prefecture 2019 Constructed and started operation of Sendai Factory 2021 Started business cooperation between Yakult Honsha Co., Ltd. in domestic business activities. 2024 Entered into an “Agreement Concerning Coordination and Cooperation” with Iwatashi, Shizuoka Prefecture and Enshu Central Agricultural Cooperative Association. Transferred plant-based yogurt business to Yakult Honsha Co., Ltd. 3.Business Scale (a) Business Structure Pokka Sapporo Food & Beverage Ltd. operates through a diversified business structure as follows. 1.Retail Products: Including beverages, soups, and lemon-based products. 2.B2B Products: Supplying ingredients and products to the food service industry. 3.Vending Machine Operations: Managing a network of hot/cold vending machines. (b) Organizational Structure Pokka Sapporo Food & Beverage Ltd is fully owned by Sapporo Holdings Limited with a capital of Yen 5,431 million. 6 President/CEO Managing Director Excecutive Director Director Director 4.Operating Model The company has a integrated operating model that combines product development, strategic partnerships and reliable distribution network. The company focus on innovation, high quality, strategic partnerships, customer centric approach to drive growth across its products. Innovation Quality Control Operating Model Customer Centric Approach 7 Stratergic Partnersh ips 5. Company’s Market Position Pokka Sapporo holds a strong position in the Japanese food and beverage market, particularly in the RTD beverage segment. Market Position in Japan In Japan, the company’s local soft drinks sale has decreased slightly in 2024 with sales amounting to 97% of the previous year. However, some product lines performed well; lemon-based "Kireto Lemon" and the "Tochi" and "Craft" series teas, which saw year-on-year sales increases of 14% and 9%, respectively. Additionally, three bottled products of "Pokka Lemon 100" were relaunched with functional additional health benefits, contributing to strong sales growth of 8% over the previous year. Main competitors of the Pokka Sapporo include ito En, Ltd (The fourth-largest soft drink producer in Japan), Suntory Holdings Ltd, Asahi Group Holdings, Ltd, Kirin Holdings Company, Limited, Coca-Cola Bottlers Japan. 8 International Market Position Pokka Sapporo has expanded its operations to international market by operating in approximately 60 countries, including Southeast Asia, the Middle East, and Singapore. In Singapore, the company owns a 57% market share in the RTD tea category, led by its main product, Jasmine Green Tea. The Pokka brand is also growing in juice and coffee categories across this area. The company is actively investing in innovation and sustainability to strengthen its market position. The company has started the lemon cultivation in Hiroshima and invested in artificial intelligence to improve the supply chain and manufacturing process. 9 6. Company Philosophy Pokka Sapporo's corporate philosophy based on the pursuit of "Genuine vitality for life." The company was formed in 2013 through the merger of Pokka Corporation and Sapporo Beverage hence they are committed to leveraging the history and strengths of both companies to continue delivering a good experience to customers. The company intends to enrich people's lives by creating delicious and innovative products that promote health and well-being of the people. Pokka Sapporo will continue to deliver "value beyond just delicious" based on lemons and other plant-based ingredients through H+ESG management that strike a balance between the realization of a sustainable society with corporate growth. This philosophy is reflected in its commitment to quality, sustainability, and community engagements. 7. Main Products and Services Pokka Sapporo's contains 4 types of main products. a) Lemon Products Pokka Lemon: A range of lemon-based beverages and products that promote health benefits. Chelate Lemon: A product line designed to deliver the nutritional benefits of lemons in convenient forms, which contains the juice of one lemon and allow customers to enjoy the value of lemons. The company has recently upgraded the Pokka lemon 100t to a functional food that claims to "lower high blood pressure (systolic blood pressure). 10 b) Ready-to-Drink Beverages Pokka Coffee: Japan's first canned coffee, launched in 1972, offering convenience and quality. Pokka Tea: A variety of teas brewed from specially selected premium ingredients. Fruit Juices: Including products like the Luxury Hoobaru Fruit Juice and Kaga Bou Hojicha, which features pulp-rich beverages. c) Soups Jikkuri Kotokoto: A premium soup brand known for its rich flavors and use of natural ingredients. The company has expanded the range of Western-style soups, and added the more powdered instant soup, while developing unique ideas, creating their own flavors, and researching granulation technology. 11 d) Business Products • • Lemon Ingredients: Supplying lemon juice, powder, and peel products for the food industry. Beverage Solutions: Providing a range of drinks for business use, including both soft and alcoholic options In addition to that company is dealing with many affiliated companies to sell drinking water, vending machine operation and management and food manufacturing, 8. Core Competencies • • • • Lemon Expertise: Deep knowledge and experience in lemon processing and product development. Over the many years company has conducted research on the benefits of the lemon. Innovation: A track record of introducing new products and technologies to the market. Quality Control: Commitment to maintaining high standards across all product lines. The company promised to provide their customers that they can trust and meet their needs. Distribution Network: A robust system for delivering products to consumers and businesses. 9. Key Differentiators • • • • Pioneering Products: The company has Introduced Japan's first canned coffee and the world's first hot/cold vending machine. Health Focus: Emphasis on the health benefits of lemon and other natural ingredients. Sustainability Initiatives: Commitment to environmental responsibility and sustainable practices by planting lemon trees on abandoned land to pass down fertile land and lemons to future generations. Global Reach: Expansion into international markets, leveraging the Sapporo Holdings network. 12 13