Instant Noodles

REVIEW OF PERFORMANCE

In developments related to the mainstay Cup Noodle series, the Group improved its new environment-friendly paper ECO cup. We also introduced a number of new products, notably microwavable Range Style products that can be prepared using tap water and Cup Noodle Light, a low-calorie product that has the same flavor as the regular product. Furthermore, we endeavored to increase brand value by replacing the noodles in Nissin-no-Donbei series with straight noodles that more closely resemble traditional hand-rolled noodles and by reintroducing Nissin Yakisoba U.F.O. with improvements such as increased volume.

MYOJO Kiwamen, a product with superb mouth-feel produced using super non-fry preparation technology, has caught the attention of the public, and sales are steadily increasing. This product has been a success at convenience stores, where sales volumes increased even after the price revision. Nevertheless, overall sales volumes in Japan decreased as a result of factors including the impact of limiting the discount sales of mainstay products, the transferred odor problem and lower unit selling prices attributable to a higher proportion of open price product lines in the sales mix. Meanwhile, revenue from overseas decreased, owing to the impact of exchange rates, notwithstanding favorable sales of existing products in North America.

FUTURE DIRECTION

Amid sweeping change in the market environment, notably slumping consumption and erratic fluctuation in raw materials prices, the Group plans to cope with the fragmentation of consumer needs into distinct purchase behaviors driven by quality, price and novel technologies or concepts. The solution is to divide products into three product categories: Core brands, Price brands and Concept brands. The Group will pursue higher customer satisfaction through new efforts that emphasize the enhancement of noodles and ingredients using new technologies, the expansion of product lines that offer excellent value for money and the development of fun products.

Chilled and Frozen Foods

REVIEW OF PERFORMANCE

The market for chilled foods, chiefly fresh noodles, and easy-to-prepare frozen foods with fresh-cooked flavor continues to show stable growth. Sales of chilled foods increased, in particular, products such as the Tsukemen no Tatsujin series and the Nissin Yakiudon fried-noodle series. Sales of frozen foods also increased, as Nicky Foods Co. Ltd. was newly included in the scope of consolidation during the fiscal year under review.

FUTURE DIRECTION

NISSIN CHILLED FOODS will focus on development of new flavors of Tsukemen, a growth category. NISSIN FROZEN FOODS will strive to reinforce and nurture brands in the frozen food sector, where room for market development remains, by introducing seasonal products for spring and summer, such as Nissin Sharishari Ice Soup Noodles and Frozen Nissin Pirikara Maze Soba, to satisfy continually diversifying consumer needs.

Other Business

REVIEW OF PERFORMANCE

In the Ciscorn breakfast cereal series, the Frost and Mild Chocolate flavors of Ciscorn BIG, introduced in family-size packaging for family consumption, have been highly popular among consumers—ranking first and second, respectively, in unit sales among NISSIN CISCO cereal products from April 2008 to March 2009. In addition, the confection Coconut Sable, and the lactic acid bacterial beverage Pilkul continued to deliver strong sales performance.

Future Direction

NISSIN CISCO plans to further expand its product range and increase sales by offering a diverse product lineup centered on the mainstay Ciscorn series. For instance, it will offer products on a limited-time basis in addition to the three regular Ciscorn BIG items. NISSIN YORK aims to respond to heightened health consciousness and develop new customers with Pilkul Slim, a product that offers the same great taste as long-selling Pilkul with 30% fewer calories.