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Our Strength is “Our Proximity to End-Users”—Creating Business Opportunities from Niche Food Sectors

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Our Strength is “Our Proximity to End-Users”—Creating Business Opportunities from Niche Food Sectors
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    CBC celebrated its 100th anniversary in January 2025. The Chemicals & Materials Division (CM Division), which has the longest history in the company, has been involved in the planning, development and sales of various chemical products. Did you know that the division is also working on future-oriented initiatives in the food industry?

    In this article, we will introduce the group within the CM Division that handles food-related businesses. We will cover the group’s initiatives and the market potential of “pea protein” handled by the group, which is expected to grow going forward.

    Providing Foodstuffs, Additives and Packaging Materials to Food Manufacturers

    Group 4 of the CM Division, based in Tokyo, specializes in “foods and packaging.” It purchases foodstuffs, additives and packaging materials, which they sell primarily to domestic food processing manufacturers.

    The products handled by the group can be broadly divided into three sectors: foodstuffs, food additives and food packaging materials.

    In the “foodstuff” sector, the group handles ingredients that are widely used in the food and beverage industry, such as frozen fruits, tomato paste and tea leaves. In addition to the lineup that responds to growing health consciousness, such as functional food ingredients, the group also handles ingredients such as oligosaccharides and dietary fiber. It offers not only ingredients from overseas but also a wide selection of domestically produced products including sugar, fruit juice and tea leaves.

    In the “food additive” sector, the group sells various ingredients used to preserve and process foods, such as preventing food oxidation and adding nutrition to foods. Additives are necessary to stabilize food quality while bringing out its flavor. For instance, citric acid is used to prevent food from deteriorating, and carrageenan is used to give ice cream its smooth texture.

    In the “food packaging material” sector, the group handles containers and films to properly protect and safely distribute food and beverages. It handles materials for various applications, such as plastic containers and paper cartons for lactic acid beverages, or films for plastic containers, all while also focusing on reducing the environmental impact of the packaging.

    Group 4, which specializes in “foods and packaging,” originally consisted of the “Food Group”, the “Packaging Materials Group” and the “Chemicals Group” handling additives, and each group operated as separate departments.

    However, it is often the case with “foodstuffs”, i.e. the food manufactures that are the target of the sales activities of these groups, that both the contents of the products and the “packaging materials” used to wrap them are collectively handled by the same department. Therefore, sales activities to the same company or department were conducted by different groups within CBC. The three groups were integrated about eight years ago to improve this situation.

    Integrating the functions of these groups has made it possible to propose comprehensive solutions from foodstuffs to packaging materials, enabling the group to respond flexibly to customer needs.

    Pea Protein Attracts Attention as a Sustainable Source of Protein

    えんどう豆 This Group 4 is now developing “pea protein” as a food ingredient that is expected to grow in the future.
    Pea protein is a powdered food ingredient made from processed peas. While many people associate peas with the color green, its powder has the same yellowish-white color as ripe peas. It is expected to be used in various applications as a means to consume plant-derived protein.

    Currently, pea protein is commonly used for consuming protein. It is also used as an ingredient in high-protein cookies and alternative meat products in Europe and the U.S.
    In recent years, “vegetable protein” obtained from peas and soybeans has been attracting attention as opposed to “animal protein,” such as milk, eggs and chicken meat. One advantage that vegetable protein has over animal protein is that it is a “sustainable source of protein” that can be produced with a smaller environmental impact.

    Compared to livestock, vegetable protein not only requires less energy for production such as water and feed, but can also yield more protein per area. Because of these advantages, the value of vegetable protein is attracting attention, especially in Europe and the U.S. where environmental awareness is high.
    えんどう豆タンパク3 However, soybeans are probably more familiar than peas as a source of plant-derived protein and ingredient in alternative meat products.

    While both soybeans and peas share similar characteristics, soybeans are produced in larger quantities worldwide and have the advantage of being more cost-effective than peas. Meanwhile , peas are allergen-free and have none of the distinctive smell or odor found in soy milk, which are their key features. A representative of Group 4 says, “While soybeans are certainly more popular in Japan, peas are more widely used globally.”

    “The First Step is to Get People to Use Peas”—A Strategy for Developing New Markets

    CBC has been the sole distributor in the Japanese market of “PISANE™ ”, a pea protein produced by Belgian company Cosucra Groupe Warcoing S.A. since about 20 years ago, and CBC has been promoting sales and PR activities to expand the domestic market.

    Peas are mainly produced in Canada and France, and are more familiar to Western consumers than soybeans. In Japan, the market for pea protein remains small due to differences in daily eating habits.

    In order to sell pea protein more widely, it is necessary to develop the domestic market and generate demand, which calls for the creation of new products utilizing PISANE™.

    CBC has been deepening relationships with various manufacturers and research institutions in parallel with sales activities targeting existing customers. Sales activities of pea protein include participating in trade shows and providing samples of PISANE™ to research institutes interested in the product and manufacturers developing new products. In order to create new hit products and generate new demand, the group is promoting initiatives with an awareness of “getting people to use PISANE™ even in small amounts as a first step.”

    However, sales activities for peas require efforts to “create a market from scratch,” whereas soybeans, which already have a large demand, “do not need to develop a market.” The reason for taking on such difficult and time-consuming sales activities is that “it allows us to take advantage of CBC’s strength,” says the representative of Group 4.

    えんどう豆タンパク2 While large markets with high demand, such as soybeans, have stable supply and established sales channels, they tend to be fixed due to their maturity. Also, main competitors of “commodity” products such as soybeans are major manufacturers and trading companies, making it impossible to avoid price competition. This is a difficult market for CBC to gain a competitive advantage in.

    On the other hand, the market for pea protein is not yet large, but is expected to grow going forward. As a sole distributor, CBC is leveraging its connections with manufacturers and research institutions to develop “flexible” sales activities while providing a stable supply of PISANE™.
    CBC holds the number one share in the current domestic pea protein market. Its current goal is to grow this market and eventually earn greater returns in the expanded market. Looking back, the representative says, “It has been very challenging to expand the sales of a product which had virtually no market.”

    In fact, sales of pea protein have grown significantly over the past few years. In particular, the increase in demand for protein owing to higher health consciousness after the COVID-19 pandemic has been the driving force of its growth. Thanks to the success of its steady sales activities, recognition within the industry has increased as well.

    The sales volume of PISANE™ has expanded by 1.5 times, and opportunities to provide samples have also increased. Group 4 will continue to actively promote sales and PR activities of pea protein going forward.

    Creating New Business by Leveraging Our Proximity to End-Users

    According to the representative, the strength of Group 4, which handles a wide range of products including foodstuffs, additives and packaging materials, is “our proximity to end-users due to the nature of our products.”

    The products handled by other groups in the CM Division are mainly ingredients that undergo multiple processes before they become final products. On the other hand, most products handled by Group 4 are provided directly to food manufacturers. Group 4 is different to other groups in the CM Division in that it is close not only to upstream logistics but also to consumers (end-users) and major food manufacturers that have direct connection with consumers.

    One of the major advantages of this proximity is being able to directly hear the real voices of customers. By being exposed to issues that are unique to food manufactures facing consumers and industry trends, it is sometimes possible to create new initiatives.

    For instance, Group 4 has started selling bioplastic raw materials and reusable composite plastic materials in recent years as part of its initiatives.

    This initiative is in response to the need of domestic food and beverage manufacturers to address environmental issues, combined with the technical information CBC has acquired through its overseas expansion. CBC is also strengthening its own efforts to address environmental issues, such as by investing in companies in the plastic recycling space.

    The future goal of Group 4 is to develop value-added proposal activities rather than simply providing products, by sharing with customers overseas trends obtained through purchasing materials from all over the world. The group will make the most of its strength—being close to end-users—to create markets that go beyond conventional business models and take on new challenges that reflect the times we live in.

    Written by Ai Sugimoto/Interviewed and edited by Shun Ito (Note)

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