#Japan #Tokyo #Kakuyasu #Mikureed #Hitomairu

Introduction to the Strategic Partnership

In a significant announcement today, Hitomairu Inc., formerly Kakuyasu Group, has finalized a strategic capital business partnership with Mikureed Inc. This collaboration is aimed at expanding both companies' reach beyond their traditional markets and strengthening their operational efficiencies, particularly in the food service sector.

Context and Purpose of the Partnership

The decision follows a board meeting where the plan, part of the comprehensive mid-term management strategy called "TRANSFORMATION PLAN 2028," was ratified. Hitomairu intends to broaden its business scope beyond alcoholic beverages, creating a diverse sales platform that accommodates a variety of products and services. This diversification is expected to boost both average spending per customer and delivery efficiency while enhancing customer acquisition and satisfaction levels.

As part of this growth strategy, Hitomairu's subsidiary, HitomSmile, will take on a pivotal role in handling a diverse range of non-alcoholic products. To accelerate the development of this sales platform, Hitomairu will leverage not just organic growth but also strategic mergers and acquisitions or alliances with other companies.

Mikureed’s Role and Growth Trajectory

Mikureed was founded as a subsidiary of Hitomairu in 2012, inheriting operations in the food business. Following a reorganization in January 2016, Mikureed's shares were transferred to SKY Group Holdings, Hitomairu's parent company. The company has since developed into a food service wholesale enterprise listed on the Tokyo Stock Exchange's MOTHERS segment. Its core clientele includes restaurants, particularly focusing on small and independently owned establishments. Mikureed is also working on expanding its product lineup to include beverages and alcoholic drinks.

Market Challenges and Customer Needs

The ongoing recovery within the food and beverage industry comes with its challenges. Despite signs of improvement, the landscape has dramatically shifted since the onset of the COVID-19 pandemic. Factors like the logistics issues projected for 2024 and a decline in delivery frequencies of goods have forced restaurants—especially smaller ones with limited storage capacity—to adapt swiftly or face operational disruptions. Rising labor costs and energy prices have compound these challenges, leading to an expectation of increasingly diverse customer needs.

In this climate, Hitomairu’s established, well-connected logistics network is poised to meet these evolving demands. The partnership aims to capitalize on both companies’ strengths, streamline the supply chain from order placement through delivery and billing, and build a solid foundation for future growth by sharing business know-how and resources. This strategic partnership is set to maximize the value of both companies.

Key Areas of Collaboration

To foster the growth of both organizations, the partnership will focus on several strategic initiatives, including:

1. Sales System Enhancement: Implementing a cooperative framework to boost the planned sales platform, alongside the utilization of Hitomairu's robust delivery model, often referred to as the "Kakuyasu Model."

2. Mutual Cooperation on Product Sourcing and Management: Sharing supplier relationships, product management, and sales strategies to create a complementary operational framework.

3. Shared Infrastructure Usage: Collaboratively utilizing systems like order management to improve operational efficiency.

4. Promotional Activities: Enhancing and integrating promotional initiatives to bolster market presence.

5. Talent Exchange: Facilitating knowledge sharing through employee exchanges and secondments.

Acquisition of Mikureed Shares

Additionally, Hitomairu has decided to acquire shares of Mikureed from its controlling shareholder, SKY Group Holdings, via off-market transactions (ToSTNeT-1). Following this acquisition, Mikureed will officially fall under Hitomairu's equity method accounting, further solidifying their strategic alliance.

Conclusion and Future Outlook

This significant partnership, poised to be formalized on August 29, 2025, represents a strategic leap forward for both Hitomairu and Mikureed. The collaboration is not just about merging resources; it's also a promise to adapt in a rapidly changing market to ensure sustainability and satisfaction for their customers. As the food service industry continues to evolve, their partnership is expected to drive innovation and growth that will ultimately benefit both companies and their clients.