MaterialityReduce food loss and waste and effectively
utilize marine life resources
Achieving Sustainability with Our Procurement Base
In our aim to provide safe and secure food to customers around the world, we recognize that the social issue of the sustainability of marine resources is unavoidable. In order to ensure the stable production and utilization of these resources, we are working to strengthen our procurement base and optimize the entire supply chain, from upstream to downstream.
Working to Transform Supply Chains to Achieve Sustainable Procurement
The Group defines the procurement of ingredients as “upstream,” the processing and transportation of ingredients as “midstream,” and the sales and points of contact with customers as “downstream.” Since our business requires the procurement of a large number of ingredients, one of the important issues is to secure a stable supply of the limited marine resources that are available.
In line with this, we are strengthening our upstream and midstream initiatives, such as establishing a competitive advantage not only in the downstream business but also in terms of procurement, including aquaculture, and extensively cutting food loss and wastes along with costs for procured resources by utilizing DX. Capitalizing on our strengths downstream, with a dominant customer base, we will work to ensure the stable use of fishery resources throughout the supply chain in cooperation with external partners.
Building Out an Upstream Procurement Base
Initiatives in upstream business
Amid concerns about major environmental changes in the future caused by climate change, there are also worries about a decline in wild fish stocks. In addition, soaring feed costs are also an issue, and the importance of procuring fishery resources that do not depend on wild-caught fishing is increasing. As a countermeasure, we are working on the development of new technologies, such as seedling development as well as feed improvement and substitutes, through investment in external companies and cutting-edge technologies and business alliances. By strengthening our upstream procurement base, we aim to ensure stable quality and production volume.
Established Joint Venture with Company to Increase Aquaculture Sourcing Rate to 50%
As of 2021, the Group’s fishery resources procurement ratio was 65% wild and 35% farmed. With the aim of further stable production and utilization of fishery resources, we have set a target to increase the procurement rate of farmed fish to 50%. As a specific initiative, we have established Marineverse Ltd. in cooperation with an aquaculture company, TAKUYO Co., Ltd. We are promoting support for the aquaculture industry through the supply of seedling and feed.
Tackling the Challenge of Next-Generation Aquaculture using Innovation and R&D
As the environment in the aquaculture industry changes drastically, we are investing in and conducting joint research with university-based start-up companies that possess genome editing and cutting-edge genome analysis technologies, which are attracting attention as next-generation technologies. Through this business, we are working to realize a sustainable aquaculture industry by increasing productivity through selective breeding and seedling development in response to the changing environment.
Developing Next-Generation Feed and Aquaculture Facilities
We intend to step up R&D for next-generation feed ingredients and recycling of feed ingredients, aim to break away from dependence on wild fishmeal ingredients, and promote the standardization of feed. In addition to maintaining and managing costs and quality, we will fulfill our social responsibilities for raw materials, such as traceability, and strive to ensure the sustainability of feed ingredients. Due to declining populations and soaring production costs, there is a need to improve productivity and control production costs through labor-saving solutions at aquaculture facilities. We aim to procure sustainable fishery resources by collaborating with aquaculture equipment manufacturers to support the development of next-generation aquaculture equipment.
TOPICS
Supporting Aquaculture Companies for Access to Stable Supplies
OWASEBUSSAN Co., Ltd., our supplier of more than 20 years focusing on the farmed Japanese amberjack, also known as yellowtail, is one of the companies in which we maintain an equity stake. In collaboration with OWASEBUSSAN, we aim to expand the number of farmed fish and ensure access to a stable supply.
Contributing to Producers with Exclusive Rice for Sushiro
With the full cooperation of ZENNOH PEARL RICE Co., Ltd., we have contracted with producers who grow exclusive rice for Sushiro that is suitable for sushi rice, and are working to ensure a stable supply of rice and improve its quality.
Ruducing of food loss through DX utilization Initiatives in midstream business
Reducing food loss and waste not only contributes to the global environment, but also represents an essential initiative for the food service industry when considering the sustainability of its business activities. The Group is working to reduce food loss and waste by controlling the entire supply chain through the use of DX, from forecasting demand to coordinating with and instructing each business partner.
Aiming for Cross-functional Logistics Management with DX
In order to realize lean food procurement, the Group has created an AI-driven demand forecasting system. We aim to manage the supply chain cross-functionally through data linkage with logistics companies, production and processing companies, and to collect and accumulate transaction data with a unified ID. We will also aim to optimize procurement volumes and realize joint transportation across our restaurant brands.
Reducing Food Loss and Waste with DX and AI
In order to continue to deliver high-quality, delicious products at affordable prices, it is important to reduce the amount of discarded food wherever possible. Since 2002, Sushiro has been incorporating IT into its restaurant operations in an effort to reduce food loss and waste. By understanding the needs of customers in numbers, it is possible to purchase products with high demand to ensure that they do not run out of stock, while at the same time increasing the motivation of the management side to reduce the amount of food that is wasted, making it easier for our restaurant to implement specific actions and measures.
In the future, in order to further improve the accuracy of our demand forecasts, we will work to evolve our operations using AI and expand its use to purchasing and inventory management to further reduce food loss and waste.
Fully Utilizing Valuable Fishery Resources
In general, only about 40% of a fish’s body, including belly, can be used for sushi. The Group, which purchases entire fish, finds ways to use the rest of the fish in its products. We find value in the head and bones of a fish after fileting, and we are establishing a scheme that uses up ingredients across the restaurant brands within the Group. For example, the part of the tuna suitable for nigiri is used by Sushiro, and the head is boiled by master chefs at Misaki. There is also the example of serving nakaochi (left-over flesh on the spine of a fish), which can only be removed by hand, as a side dish paired with sake at Sugidama.
At the core is the idea that the value of the “back and belly” parts used in sushi and the highly flavorful head and bones have equal standing. Since our founding, we have passed down the concept of Japanese cuisine of “use the entire fish without exception,” and continue to develop menus that utilize parts not suited to nigiri, such as using fish head and boney parts to flavor the ramen soup served at Sushiro.
