Calbee to Establish New Corn Snack Production Line at Hiroshima Hatsukaichi Factory, Increasing Production Capacity for Japan Frito-Lay Products by Approximately 1.5 Times

Calbee, Inc. (Headquarters: Chiyoda-ku, Tokyo; Representative Director, President and CEO: Nobu Ehara; hereinafter "Calbee") will begin manufacturing "Mike Popcorn" and "Doritos," the flagship products of its consolidated subsidiary Japan Frito-Lay Ltd. (Headquarters: Koga, Ibaraki; Representative Director, Chairman and President: Hidenori Ishibe; hereinafter "Japan Frito-Lay"), at the Hiroshima Hatsukaichi Factory in Hatsukaichi, Hiroshima Prefecture. Production is scheduled to begin in April 2027, which is expected to increase the domestic production capacity for Japan Frito-Lay products by approximately 1.5 times compared to current levels. [Background and Context] Japan Frito-Lay was established in 1957 as Japan's first popcorn manufacturing and sales company. After operating as a joint venture with PepsiCo, Inc. and later as a wholly-owned subsidiary of PepsiCo, it became a wholly-owned subsidiary of Calbee in July 2009. It currently holds the No. 1 share (*) in the corn snack market with flagship products such as "Mike Popcorn," "Doritos," and "Cheetos." Currently, Japan Frito-Lay products are manufactured at the Koga Factory in Ibaraki Prefecture and distributed nationwide. However, the system of distributing nationwide from a single base in the Kanto region has faced challenges regarding logistics efficiency and costs, making it difficult to fully meet demand. Amid intensifying competition in the domestic snack market, the Calbee Group plans to transfer and integrate Japan Frito-Lay's sales and logistics functions into Calbee in October 2026. In conjunction with this review of business operations, the company has decided to utilize the site of the Hiroshima Hatsukaichi Factory to establish a new corn snack production line. This new production line will not only increase supply capacity but also establish a dual-base system (East and West), aiming to improve logistics efficiency and strengthen backup capabilities. As part of its growth strategy, "Accelerate the Future," the Calbee Group is committed to expanding its range of products and services. This enhancement of the supply system is part of that initiative, as the company works to strengthen its competitiveness and achieve further growth in the domestic snack business. * Source: Intage SRI+ Corn Snack Market (Cumulative sales value from April 2024 to March 2025)