Redefining the Role of Food Wholesalers: Iwata Sangyo Group Accelerates Evolution to a "Customer Prosperity Support Company" – A New Challenge as a Food Infrastructure Company, From Efficiency to "Sustainability and Co-creation"

Exterior of Iwata Sangyo Co., Ltd. headquartered in Fukuoka City

■ Background: Limits of the Wholesale Business and a New Mission

The environment surrounding the foodservice industry is undergoing significant changes due to labor shortages, soaring raw material prices, and shifts in consumer behavior. In such circumstances, merely procuring and supplying products makes it difficult to support the sustainable growth of customer restaurants.

Akifumi Iwata also states that he felt challenges with the traditional way of wholesale business throughout the COVID-19 pandemic. "During the pandemic, when restaurants couldn't operate, we received harsh feedback that we were trying to sell products for our own convenience, and that 'this is not helping our customers prosper.' This experience prompted us to deeply re-examine our raison d'être." This experience became a turning point, and our group re-centered its philosophy around "helping customers prosper" at the core of its business.

Akifumi Iwata, President and CEO of Iwata Sangyo Co., Ltd.

■ Evolution to a "Customer Prosperity Support Company"

Iwata Sangyo Group has long supported the local food scene in the Kyushu and Yamaguchi areas, serving approximately 25,000 foodservice and prepared meal businesses and handling about 50,000 items as a food wholesaler.

Building upon this foundation, we will now evolve into a company that contributes to the "prosperity" of our customers by combining:

・Product and menu proposals that lead to increased sales

・Support for business efficiency improvement through DX

・Support for addressing labor shortages

・Procurement and logistics systems that ensure stable supply

■ Transformation Driven by Two Sense of Crises

Behind this transformation are two senses of crisis that emerged during the COVID-19 pandemic.

One is the realization of the fundamental principle that "our own growth is impossible without customer prosperity."

The other is the structural risk that "in the future, the food ingredients themselves may no longer be supplied." Issues such as the aging of farmers, the decline in the agricultural population, and the decrease in food self-sufficiency are challenges that affect not only the foodservice industry but also Japan's food system as a whole.

■ From Efficiency to "Sustainability and Co-creation"

Until now, the wholesale industry has primarily been required to focus on "efficiency." However, simply focusing on efficiency will no longer meet societal demands.

Iwata Sangyo Group, as an entity connecting upstream (producers) to downstream (restaurants and consumers), believes it is necessary to optimize and rebuild the entire supply chain into a sustainable form.

As part of this, we are taking steps to solve challenges in production sites, such as introducing the agricultural support app "NouHow," aiming to achieve stable supply and resolve regional issues simultaneously.

With persimmon farmers who operate "Yumi Fruit Orchard," an agricultural support partner

■ Balancing Social Problem Solving and Corporate Growth (CSV Management)

These initiatives are not merely social contributions.

"Increasing corporate competitiveness and sustainability through solving social problems. This is what we consider CSV (Creating Shared Value)." We position agricultural support and supply chain reform as strategic investments that enhance value provision to customers while also leading to corporate growth.

■ Future Developments

Iwata Sangyo Group will actively disseminate specific initiatives and achievements as a "customer prosperity support company" in the future.

Beyond the framework of a food wholesaler, we will continue to create sustainable value with local communities, customers, and producers as a "food infrastructure company."

【Company Overview】

Company Name: Iwata Sangyo Group Holdings Co., Ltd.

Location: Hakata-ku, Fukuoka City, Fukuoka Prefecture

Business Activities: Wholesale food business, alcoholic beverage wholesale business, fruit and vegetable wholesale business, restaurant business, etc.

URL: https://www.iwatasangyo.co.jp/