#Japan #Tokyo #Food Service #growth #Preco Foods

Preco Group's Remarkable Performance

The food wholesale giant, Preco Foods Co., Ltd., based in Shinagawa, Tokyo, has announced a record-breaking annual revenue of 33.9 billion yen for the fiscal year ending March 2026, reflecting an impressive growth rate of 111.4% compared to the previous year. This achievement marks the fourth consecutive period of record sales since the COVID-19 pandemic began, showcasing the resilience and adaptability of the company in a challenging environment.

Driving Factors Behind the Surge

Expanding Customer Base

One of the key drivers of this remarkable growth is the increasing number of customers served by Preco Group. The company caters primarily to restaurants in the Tokyo metropolitan area and reported a customer count of 35,562 by the end of the fiscal year 2026, representing a growth of 5.5% year-on-year. The growth in clientele spans across all divisions, including meat, vegetables, seafood, and sanitation services. Additionally, a strategic acquisition of Marujou Food Industry Co., Ltd. has allowed Preco to expand its food manufacturing sector, further broadening its customer reach and demographic diversity.

Meeting Industry Labor Shortages

In the context of labor shortages faced by the food service industry, Preco has successfully leveraged its expertise in custom meat and seafood processing to offer valuable pre-prepared products. The demand for these processing services has surged, leading to a 5.5% increase in sales of in-house processed items in the meat division alone, alongside a 3.8% increase in seafood processing. Furthermore, the company has enhanced its offerings of pre-cut vegetables at affordable prices, thus appealing to various clients including those in the school meal sector, which also faces staffing challenges.

Strategic Pricing and Quality Assurance

In light of the recent rapid price hikes, Preco has promoted a series of strategic propositions to mitigate costs for its clients. For instance, in response to rising prices for American beef, the company has bolstered its focus on Australian beef while also exploring new European supply sources that align with Japanese preferences. As a result, there has been an impressive annual sales rise of 123.0% for domestic beef products, including the original brand “Kurobikuni Gyu.”

Moreover, in the rice sector, a consistent demand for budget-friendly options has led Preco to develop its private brand rice in collaboration with local farmers and suppliers, resulting in a remarkable 157.9% growth in rice sales. The company has also adapted to growing needs for chicken products by introducing carefully selected fried chicken items to respond to supply chain disruptions related to avian influenza in Brazil and heat-related growth issues in Thailand.

Furthermore, with presence in both Ota and Toyosu markets, Preco actively disseminates real-time information regarding fluctuating prices of vegetables and seafood, catering to increasing customer demand for high-quality, fresh products at competitive rates.

Future Prospects

Looking ahead, Preco Group is on the brink of its 70th anniversary in fiscal year 2025, a milestone that reiterates the company’s commitment to its customers, partners, and stakeholders who have contributed to its success over the years. As inbound tourism revives, placing the Japanese food industry in the global spotlight, Preco aims to remain a strong partner for restaurants while addressing labor shortages and price inflation challenges.

The company plans to enhance operational efficiency through the expanded use of AI and data, while ensuring personalized service to meet customer requirements. Simultaneously, dedicated efforts towards employee training and a continued focus on improving workplace conditions have been central to the company’s strategy post-COVID-19.

In the mid-to-long term, Preco is evaluating potential expansions beyond the Tokyo metropolitan area and exploring new business ventures to contribute to a richer food culture while reimagining the wholesale food distribution landscape. With a steadfast commitment to delivering joy through food, Preco Group is set to continue its legacy as a leader in the food service industry.

About Preco Group

“Creators of Enjoyment and Smiles through Food,” Preco Group stands as a specialist in fresh produce across categories such as meat, fruits, seafood, and food manufacturing, delivering high-quality, fresh items with a smile. Not only does Preco provide reliable food services, but it also enhances hygiene and cleanliness within the foodservice industry, leveraging its deep understanding of the restaurant business. As it serves around 35,000 establishments, the company continues to play a crucial role in ensuring the culinary experiences across Japan remain vibrant and satisfying.