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					 The Japanese Market
                      for

Confectionery Products
                 Prepared by:
                  Fintrac Inc.

                 Prepared for:
    US Confectionery Industry Export Program


                  August 2001
                                                       Table of Contents

Executive Summary ......................................................................................................................... 1

1.0 Introduction ............................................................................................................................... 4
  1.1. Market Overview .................................................................................................................. 4
  1.2. Imports ................................................................................................................................. 4
  1.3. Seasonality........................................................................................................................... 5
  1.4. Demographics ...................................................................................................................... 5

2.0 Domestic Production................................................................................................................. 6
  2.1. Production Trends ................................................................................................................ 6
  2.2. Major Producers and Brands ................................................................................................ 6

3.0 Market Situation ........................................................................................................................ 8
  3.1. Chocolate Confectionery ...................................................................................................... 8
    3.1.1. Overview........................................................................................................................ 8
    3.1.2. Imports........................................................................................................................... 9
    3.1.3. Trends ........................................................................................................................... 9
  3.2. Chewing Gum..................................................................................................................... 10
    3.2.1. Overview...................................................................................................................... 10
    3.2.2. Imports......................................................................................................................... 11
    3.2.3. Trends ......................................................................................................................... 11
  3.3. Sugar and Sugar-free Confectionery .................................................................................. 12
    3.3.1. Overview...................................................................................................................... 12
    3.3.2. Imports......................................................................................................................... 12
    3.3.3. Trends ......................................................................................................................... 13

4.0 Distribution System ................................................................................................................. 15
  4.1. Import Distribution .............................................................................................................. 15
  4.2. Wholesale Distribution........................................................................................................ 17
  4.3. Retail Distribution ............................................................................................................... 20
  4.4. Distribution Margins............................................................................................................ 27
  4.5. Product Promotions ............................................................................................................ 28

5.0 Market Entry Requirements..................................................................................................... 29
  5.1. Tariff Rates......................................................................................................................... 29
  5.2. Food safety and labeling requirements ............................................................................... 29
    5.2.1. Food Sanitation Law .................................................................................................... 29
    5.2.2. Labeling Regulations.................................................................................................... 29
  5.3. Other Requirements ........................................................................................................... 30
    5.3.1. Container and Packages Recycling Law ...................................................................... 30
    5.3.2. Product Liability Law .................................................................................................... 30

6.0 Conclusion .............................................................................................................................. 31

7.0 Industry Contact Information ................................................................................................... 32
  7.1. Importing Companies ......................................................................................................... 32
  7.2. Wholesalers........................................................................................................................ 33
  7.3. Retailers ............................................................................................................................. 33
  7.4. Associations ....................................................................................................................... 35
Annex I – Japanese Monthly Confectionery Sales Data: Chocolate ............................................... 36

Annex II – Japanese Monthly Confectionery Sales Data: Chewing Gum........................................ 42

Annex III – Japanese Monthly Confectionery Sales Data: Sugar Confectionery............................. 48
                                              Notes


Most data sources used for this report value in Japanese Yen (¥). In order to maintain consistency,
we have elected to report value primarily in Yen, although in some instances the US dollar
equivalent is also given. For comparison purposes, the average annual Japanese Yen and US
dollar exchange rates for the last five years are provided below:

                     Year                  ¥ per US$1.00

                     1996                  108.83
                     1997                  121.04
                     1998                  130.88
                     1999                  113.81
                     2000                  107.86
                     Jan-Jun 2001          120.45

                     Source: Oanda

                                          Map of Japan




                     Source: CIA World Factbook
                           The Japanese Market for Confectionery Products               August 2001



Executive Summary
1. Despite a large (126 million) and generally affluent population, the Japanese market for
   confectionery has been rather stagnant over the last decade due to a continuing economic
   slowdown and changing demographic trends. While it is hoped that the current weak economic
   situation is only short-term, the aging of the population will have longer-term consequences on
   confectionery demand.

2. Despite the general weakness of the confectionery market, some new products have been
   steadily increasing market share. Most of these new products fall under the “functional”category
   and feature health-related benefits, such as polyphenol chocolate, xylitol chewing gum and
   nutritional candies. The popularity of these items is primarily a result of the aging of the
   population, with the older age groups being more concerned with health and nutrition. At the
   same time, there are relatively fewer children consuming sweets.

3. Imports account for only a small percentage (estimated at 7 percent) of total confectionery
   demand. In 1999, imports of confectionery stood at ¥19.7 billion (US$173.1 million) down 13
   percent from 1997 levels. Chocolate confectionery accounted for ¥14.2 billion (US$124.8
   million), followed by sugar confectionery with ¥5.1 billion (US$44.8 million) and chewing gum
   with ¥0.4 billion (US$3.6 million). The major suppliers of imported confectionery are the US,
   Europe, and Australia. Australian chocolate exports to Japan, however, are primarily of US
   brands produced in Australia.

4. Japanese confectionery tastes differ than those in North America and Europe. Generally,
   Japanese consumers prefer softer and less sweet products to hard, sugary items. There is also
   a growing preference for low-priced, individually packed confectionery items that can be
   consumed as quick snacks. This trend is confirmed by the growing popularity of such products
   as the Kit Kat Mini (a bag containing 17 individually wrapped small Kit Kat bars).

5. Japanese domestic confectionery production has also remained stagnant over the last five
   years. Production value was ¥590 billion in 2000, up only 2 percent from 1996 levels. Chocolate
   production stood at ¥304 billion in 2000, followed by other candy (¥167 billion) and chewing
   gum (¥119 billion). While there are a large number of confectionery manufacturers, the vast
   majority are small operations while a small number of large manufacturers dominate the market.
   The top five producers (Lotte, Meiji Seika Kaisha, Morinaga & Co., Ezaki Glico, and Mary
   Chocolate) accounted for more than 50 percent of 1999 total confectionery sales value.

6. Sales of confectionery products increase significantly around certain holidays, of which
            s
   Valentine’ Day is the most important. About 12 percent of annual chocolate sales occur around
   Valentine’ Day. White Day (March 14th) is also important for chocolate sales (especially white
            s
   chocolate). During the Christmas period, gifts of higher-end confectionery gifts such as
   European chocolates are common.

7. Chocolate products comprise the largest overall sector in the Japanese confectionery market
   accounting for nearly fifty percent of confectionery sales. The four largest companies, Meiji
   Seika Kaisha, Lotte, Morinaga and Ezaki Glico all have well established brand names and
   product lines and account for around fifty percent of total chocolate sales. Imports account for
   less than 10 percent of domestic chocolate sales. Chocolate imports were ¥14.2 billion
   (US$124.8 million) in 1999, a decrease of 17 percent over 1997 levels. The US accounted for
                                                 1
                           The Japanese Market for Confectionery Products                August 2001

   21 percent of import value (major brands were Hershey, Hawaiian Host, Mauna Loa, Snickers),
   followed by Italy (Rocher, Kinder Surprise), Australia (M&Ms, Snickers, Milky Way, Maltesers),
   and Belgium (Godiva). Nestlé produces its own chocolate confectionery in Japan and had about
   2 percent of sales in 1999, due in large part to its popular Kit Kat mini-packs.

8. The Japanese chewing gum market has slowed in recent years and accounted for only 19
   percent of total confectionery sales in 1999. While sales of conventional sugar and sugar-free
   gum have stagnated or decreased, sales of chewing gum containing xylitol have expanded
   significantly. In 1999, xylitol chewing gum accounted for 70 percent of the total sugarless
   chewing gum market. Chewing gums imports fell 21 percent between 1997 and 1999, to just
   ¥411 million (US$ 3.6 million). The US had 53 percent import market share in 1999 (primarily
                     s
   Warner-Lambert’ Trident brand containing xylitol).

9. Total sales of other sugar confectionery rose marginally over the period 1995-1999 to ¥298
   billion. Japanese pharmaceutical companies are now providing serious competition to
   conventional sugar confectionery producers with new “   functional” products. The introduction of
   new products that contain vitamins and polyphenol has stimulated some new sales. Sale of
   mints experienced somewhat strong growth, and yogurt candy products remain popular as do
   throat lozenges, vitamin supplement drops and sugarless candies. Japanese imports of sugar
   confectionery (including hard sugar candies, mints, caramels, etc.) declined 22 percent over the
   period 1997-1999 to ¥5.1 billion (US$ 44.8 million). Notable import brands include Mentos from
   the Netherlands, Chupa Chups lollipops from Spain, and Frisk mints from Belgium. Taiwan
   dominates the Japanese market for caramels, mainly through Taiwanese manufacturing
   subsidiaries of Japanese companies.

10. The Japanese distribution system makes it difficult for new imported brands to enter mass-
    market retail outlets. In general, Japanese confectionery importers tend to focus on upscale
    confectionery products that are typically sold through specialty shops and up-market department
    stores specializing in imported goods. Confectionery wholesalers are experiencing a period of
                                                                                 big
    consolidation. Although no single wholesaler covers the entire country, the “ three”(San-Esu,
    Yamaboshiya, and Ryoshoku) have wide geographic coverage through regional subsidiaries.
    Profiles and contact information for major confectionery imports and wholesalers are provided in
    the body of the report.

11. According to industry estimates, 40 percent of wholesale sales by volume are to supermarkets
    and superstores, 25 percent through convenience stores, 15 percent to secondary wholesalers,
    and 10 percent to confectionery specialty shops. As in the US, market share by supermarkets
    and convenience stores have increased substantially over the last ten years, at the expense of
    small grocery, specialty and “mom and pop” stores. Most large supermarket chains do not buy
    directly from manufacturers, instead using established wholesalers that provide significant
    support to them in market research, promotion and inventory management.

12. Import tariff rates range from 5 percent to 25 percent ad valorem on confectionery products.
    Foreign suppliers must also meet requirements of the Food Sanitation Law, labeling regulations,
    the Container and Packages Recycling Law, and the Product Liability Law.

13. The large size of the Japanese confectionery market bodes well for expanded sales by foreign
    suppliers, provided that they can meet Japanese consumer preferences for taste, packaging,
    and other factors. The aging of the population may require reformulations of some products in
    order to supply a more “ healthy” product to the consumer. Foreign suppliers will need to work

                                                 2
                         The Japanese Market for Confectionery Products                   August 2001

closely with their importer in order to devise a successful marketing strategy, particularly if entry
into the mass market (i.e. supermarkets) is desired.




                                               3
                            The Japanese Market for Confectionery Products                         August 2001



1.0 Introduction
Fintrac Inc. was contracted by the US Confectionery Industry Export Program to undertake a survey
of the Japanese market for chocolate and confectionery products. The report methodology
incorporated the use of primary research, consisting of on-site and telephone interviews with
importers, wholesale distributors and retailers using standardized questionnaires. Additionally,
national statistics and other secondary data were analyzed, and information on import regulations
were collected from the respective national agencies.

Section 2 of this survey covers Japanese domestic confectionery production, including profiles of
the major manufacturers. Section 3 describes the market situation for chocolate, chewing gum and
                                                                                       s
other sugar confectionery products. Section 4 provides a detailed description of Japan’ distribution
system for confectionery products, including key contacts in the import, wholesale distribution, and
retail industries. Section 5 describes entry requirements for imported confectionery. Section 6
provides conclusions and recommends alternative marketing approaches.

       1.1. Market Overview

Japan represents an attractive market for exporters of consumer foods, provided they adopt an
appropriately tailored marketing approach. Several decades of strong economic growth have
                                  s
transformed Japan into the world’ second largest economy with a corresponding standard of living.
Although its economy slowed considerably in the 1990s, personal income remains strong and the
country presents an attractive import market for confectionery products. Japanese consumer
behavior is not without its nuances, however, as personal savings rates remain high and consumer
confidence low in the face of the lingering economic slowdown. Furthermore, the population is
undergoing several significant demographic changes that will affect consumer behavior for years to
come. Finally, Japanese buyers are generally more selective in their purchasing decisions than
western consumers, and more given to following current trends. They are also generally less
trusting of imported food items, although some western food brands are now associated with
premium quality.

       1.2. Imports

Foreign products account for a low proportion of Japanese confectionery sales, approximately 7
percent of the total according to some estimates. Japanese confectionery imports in general have
decreased 6 percent by volume and 11 percent by value from 1997 to 1999. Imports are primarily
comprised of brands produced in Europe, North America and Australia. Australian exports to Japan
include American brands produced in Australia. European confectioneries in particular, especially
chocolates, have a reputation for high quality and are consumed primarily as high-end gift items.

          Table 1.1.: Japanese Imports of Confectionery Products
                                               1997              1998               1999
                                           MTs     ¥ million MTs    ¥ million   MTs    ¥ million
          Chewing gum                         967       525     861      504       785      411
          Sugar confectionery              14,834     6,189 10,554     5,062     9,857    5,077
          Chocolate                        17,413 15,966 14,316 15,358          16,261 14,201
          Total                            33,214 22,680 25,731 20,924          26,903 19,688
          Source: Ministry of Finance


                                                     4
                           The Japanese Market for Confectionery Products                  August 2001

Although 2000 import statistics are not yet available, importers note that shipments have recovered
in 2000 and volumes are up 10-12 percent, primarily for chocolate confectionery and hard candies.

       1.3. Seasonality

                                                                                               s
Holidays factor significantly into Japanese confectionery consumption, especially Valentine’ Day
which is the major chocolate buying period, and White Day, a holiday invented by Japanese
                                                  s
retailers that occurs a month later. On Valentine’ Day, women present their male colleagues with
giri and honmei chocolates. Giri chocolates, which sell for less than ¥500 per item, are given out of
courtesy while honmei chocolates, which sell for ¥1,500-¥3,000 per item, indicate true friendship.

White Day, which occurs on March 14, gives male workers the opportunity to present gifts including
white chocolate, white clothing, etc. to their female colleagues. Although a popular occasion, it has
                                              s
not reached the prominence of Valentine’ Day. Another major confectionery-giving holiday is
Christmas which involves presenting higher-end confectionery gifts like European chocolates, which
are widely regarded as the top end of the market.
                                                                                                      s
                                                                        Table 1.2.: Sales of Valentine’
According to the Chocolate and Cocoa Association of Japan (CCAJ),       Day Chocolates, 1995-99
approximately 12 percent of the country’ chocolate consumption
                                            s                           (¥ billion)
occurs around Valentine’ Day. In 1998, Valentine’ Day chocolate
                          s                         s                   1995            50.9
sales decreased 5 percent from the previous year to ¥50 billion. This   1996            53.4
                             s
was due to the country’ poor economic performance and                   1997            52.1
consequent reduction in consumer spending; economic growth in           1998            50.0
                                              s
1999 led to a 2 percent increase in Valentine’ Day chocolate sales.     1999            50.9
                                                                        Source: CCAJ
       1.4. Demographics

The main demographic trend that will impact on Japanese confectionery spending is the aging of its
                            s
population. Of the country’ total population of 126 million, one in seven Japanese are presently
over the age of 60, according to the Ministry of Health and Welfare, and this figure is expected to
increase to one in four by the year 2025. Also significant is the relative decrease in the number of
children aged 14 and under, which is presently just 15 percent of the population.

This dynamic carries significant marketing implications and has already impacted on the
confectionery industry. Most notably, the popularity of healthy foods among aging consumers has
led to growing consumption of confectionery products with recognizable health benefits, from
“functional” chewing gums that cure bad breath and prevent tooth decay, to the growing popularity
of cocoa-based products containing polyphenol, which has received much media attention due to its
associated health benefits. All of these developments will require exporters to re-consider their
consumer target base and adopt appropriate marketing strategies.




                                                 5
                               The Japanese Market for Confectionery Products                                    August 2001



2.0 Domestic Production
       s
Japan’ confectionery industry has traditionally been dominated by large manufacturers producing a
wide range of products, as well as smaller producers of specialized items. Recently, other food,
beverage and pharmaceutical businesses have entered the industry. The current recession and
deflationary value of the Yen have also contributed to increased competition in the industry.

       2.1. Production Trends

      s
Japan’ overall confectionery production has increased only slightly in recent years, from 392 MTs
in 1996 to 418 MTs in 2000, an increase of 5 percent. The total value of production has likewise
increased only slightly, from ¥579 billion in 1996 to ¥590 billion in 2000, an increase of almost 2
percent.

   Table 2.1: Japanese Domestic Confectionery Production
                           1996                 1997                1998                1999               2000*
                     MTs      ¥ Billion   MTs     ¥ Billion   MTs     ¥ Billion   MTs     ¥ Billion    MTs       ¥ Billion
   Candy                156        169     155         169     154         169     152         166        155         167
   Chocolate            192       294       190        286     191         284     201         299        217         304
   Chewing gum           44       116        46        121      46         121      45         119         46         119
   Total                392       579       391        576     391         574     398         584        418         590
   *Estimate
   Source: All Japan Confectionery Association



       2.2. Major Producers and Brands
                                                                       Table 2.1: Japanese Confectionery
Japan’ major confectionery producers include Lotte,
       s                                                               Market Share by Manufacturer
Meiji Seika Kaisha, Morinaga and Ezaki Glico. These                    (% of Total Sales)
companies manufacture all categories of confectionery                  Company                        1998         1999
and enjoy widespread brand name recognition.                           Lotte                             17.4         17.9
                                                                       Meiji Seika                       13.5         13.6
                       Lotte Company Ltd. is the                       Morinaga & Co.                      8.7         8.9
                       largest            confectionery                Ezaki Glico                         6.7         6.7
                       manufacturer and one of the top                 Mary Chocolate                      3.4         3.4
                       food and drink companies in                     Morozoff                            3.1         3.2
                       Japan.          Lotte’s      1999               Kanro                               2.3         2.4
                       confectionery     sales      were               Warner-Lambert                      1.8         1.8
estimated at ¥192.5 billion, or 17.9 percent of the total              Kasugai Seika                       1.7         1.7
market value. Sales of Lotte brand chewing and                         Frisk International                 1.6         1.7
bubble gum products (about 36 percent of total                         Mikakuto                            1.3         1.3
company sales) were estimated at ¥80 billion in 1999,                  Master Foods                        1.1         1.2
or 66 percent of the total gum market by value. This is                Nestle                              1.1         1.2
down from an estimated 80 percent in 1988. The                         Bourbon                             1.2         1.2
          s
company’ product line includes functional gums that                    Private Label                       2.9         2.8
prevent sleepiness, cure halitosis, and will not adhere                Others                            32.2         31.0
to dentures. Lotte’ most recent success are its gums
                   s                                                   Source: Euromonitor
containing the non-carcinogenic xylitol, including its
Xylitol and Xylish Crystal Mint brand products. The company also manufactures Toppo chocolate
                                                   6
                            The Japanese Market for Confectionery Products                  August 2001

snacks and Lotte Almond Chocolates, and markets a number of chocolate-filled biscuit products. Its
international operations include a company in Korea (with greater turnover than the parent in
Japan), and a subsidiary in the United States which it established in 1979.

                                                               s
                        Meiji Seika Kaisha Ltd., one of Japan’ top food and drink companies, is the
                                 s
                        country’ premier chocolate confectionery producer. Roughly 50 percent of
                                       s
                        the company’ revenues are in confectionery, which in 1999 totaled ¥128.9
                        billion, or 13.6 percent of the total market by value. Meiji Seika Kaisha
                        maintains the largest share (27 percent) in the market for chocolate
confectionery. It is also the fourth largest chewing gum producer with estimated sales of ¥9 billion in
1999 (from ¥7.5 billion in 1998) giving it 7.5 percent of the total market share by value. This
company has innovated a number of popular products, including Chocola Cool that is consumed
chilled in the summer; Melty Kiss which melts in the mouth, and Limit sugar-free chocolate. Its
Chocolate Kouka contains a high content of polyphenols, and is therefore a popular item among
health-conscious consumers. In addition to these, the company also markets several non-
carcinogenic candies and gums with xylitol, which are likewise popular for health reasons.

                                         s
                      Morinaga & Co.’ confectionery sales in 1999 totaled ¥90.1 billion, or 8.9
                      percent of the total market. While company sales had been in decline since
                      1992, Morinaga has re-claimed the number three position. It was the first
                      company to market aerated chocolate in 1987, and, like Meiji Seika Kaisha,
                      has developed a chocolate to be eaten chilled during the summer. Other
                      products include a low-melting point chocolate for the winter, the popular
Koeda chocolate “      ,
                 twigs” and chocolate with a high natural polyphenol content (popular for health
reasons). Morinaga also manufactures a range of sugar confectionery such as Hi-Chew candies,
caramels, gummy candies, and several xylitol candies also popular for health reasons.

                                       s
                        Ezaki Glico’ confectionery sales in 1998 totaled ¥74.9 billion, a 10
                                                                                            s
                        percent decrease from the previous year. In general, the company’ sales
                        have been in decline during the 1990s, and it is now ranked fourth in the
                        confectionery market, with 6.7 percent of total market share by value, and
                        third in the chewing gum market with 1999 sales of ¥9.1 billion. Ezaki
                              s
                        Glico’ chewing gum sales have fallen since their 1994 peak and the
company has lost market share to Warner Lambert. Like Lotte, Ezaki Glico markets a number of
“functional”gums that protect teeth, prevent halitosis and curb drowsiness.

                      s
In addition to Japan’ large manufacturers, smaller producers are also active in the market and tend
to specialize in a single product line. Mary Chocolate and Morozoff are leading manufacturers of
seasonal and boxed/assorted gift chocolates. Other chocolate manufacturers include Bourbon and
Fujiya, and Master Foods, while Kasugai Seika and Mikakuto manufacture sugar confectionery.
Frisk produces mint candies while Kanro licenses brands from other producers.

Private label chocolate products, typically sold in large packs, are also available from supermarket
chains like Daiei and Jusco. Despite their widespread availability and cheaper price, private label
chocolate makes up only 3 percent of sales. This is mainly due to relatively weak marketing efforts
on the part of retailers and the consumer preference for smaller-packaged sweets.




                                                  7
                                The Japanese Market for Confectionery Products                     August 2001



3.0 Market Situation
                 s
Although Japan’ confectionery market has remained largely stagnant in recent years, with static
domestic production and slightly decreasing imports, some items have enjoyed growing market
share in Japan and continue to defy the overall trend. Specifically, products that fall under the
“functional” category and feature health-related benefits, such as polyphenol chocolate, xylitol
chewing gum and nutritional candies, have been well received in recent years.              These
                                                     s
developments are primarily a result of the country’ demographic trend, resulting in an aging
populace concerned with health and nutrition and fewer children consuming sweets.

Despite the success of this new wave of products, Japanese confectionery consumption has not
regained the momentum it enjoyed in the 1980s. Factors limiting the growth of the industry include
uncertain economic forecasts, a general decrease in the number of confectionery shops in Japan,
limited selling space at major retail outlets, and the business practice of “just in time” delivery,
whereby manufacturers limit their marketing scope in order to avoid high storage costs on the one
hand and product under-supply on the other.




      Morinaga Polyphenol Chocolate        Lotte Xylitol Chewing Gum       Novel Vitamin C Candy


Increasingly, Japanese consumers demonstrate a preference for “      low-priced, individually packed”
confectionery items. This has resulted in “smaller and neater” product presentations that can be
consumed as a quick snack. Japanese consumers also prefer softer and less sweet products to
hard, sugary items. The following product profiles (utilizing Japanese retail sales data) reflect these
trends.

       3.1. Chocolate Confectionery

                3.1.1. Overview

The chocolate sector is the largest in the overall confectionery market, with an estimated 49 percent
share of the total market value. From 1995-1999, Japanese chocolate sales increased 5 percent to
212,000 MTs. However, lower prices contributed to a rise in value over the period of just 1 percent,
to ¥446 billion in 1999. 1999 saw an increase in chocolate sales after two years of decline. This was
due to an increase in advertising on the part of the major manufacturers, as well as improvements
in the general economy and growing consumer confidence.

Domestic manufacturers accounted for over 90 percent of chocolate market share by sales value.
The four largest companies, Meiji Seika Kaisha, Lotte, Morinaga and Ezaki Glico, all
benefited from well-established brand names and product lines, and collectively
enjoyed around 50 percent of total sales. Boxed and seasonal chocolate makers
Morozoff and Mary Chocolate also performed well. The top brand in 1999 was Ezaki
     s
Glico’ Pocky, with sales of ¥25.7 billion (24.7 percent of total sales value), followed      s
                                                                                        Glico’ Pocky
        s
by Lotte’ Toppo, with sales of ¥12.0 billion (11.5 percent) and Meiji Seika Kaisha’   s
                                                  8
                              The Japanese Market for Confectionery Products                            August 2001

Fran, with sales of ¥5.8 billion (5.6 percent).

                3.1.2. Imports

Japanese chocolate imports totaled ¥14.2 billion in 1999, a decrease of 11 percent from 1997. The
US enjoyed the greatest market share in 1999 with 21 percent of total import value. Other major
suppliers were Italy, with 17 percent of import value, Australia with 14 percent and Belgium with 11
percent, followed mainly by other European chocolate manufacturing countries.

Table 3.1.a: Japanese Chocolate Confectionery Imports               Figure 3.1.a: Japanese Chocolate
                    1997          1998            1999                Import Market Share, 1999 (¥)
                MTs ¥million MTs ¥million MTs ¥million
USA             4,096 4,033 3,850 3,726 3,612 3,054                          Australia       Belgium
Italy             776      821 1,069 1,498 1,801 2,438                         14%            11%
Australia       2,923 2,002 2,584 1,845 2,757 1,959
                                                                                                       Italy
Belgium         1,888 2,071 1,761 1,958 1,864 1,588
                                                                       USA                             17%
France          1,227 1,497 1,201 1,461 1,257 1,298
Switzerland       832 1,079      827 1,148 1,016 1,073                 21%
Germany         1,248      921 1,038     808 1,052     639
Singapore         563      445   520     383     493   280
                                                                                                       France
UK                796      555   389     351     390   242
                                                                         Others                          9%
China             992      378   647     286     309   218
Others          2,073 2,030 1,844 1,895 1,629 1,412                       15%       Switz.   Germany
Total          17,413 15,966 14,316 15,358 16,261 14,201                             8%        5%
Source: Ministry of Finance



The top US import brands in 1999 were Hershey (with 1,586 Metric Tons imported), Hawaiian Host
(630 MTs), Mauna Loa (300 MTs) and Snickers (110 MTs). The top Italian brands were Rocher
and Kinder Surprise from Ferrero (1,300 MTs), which comprised 2 percent of total chocolate sales.
The top Australian brands were supplied by Master Foods, and accounted for 3 percent of value
sales. These were: M&Ms (1,000 MTs), Snickers (1,080 MTs), Milky Way (300 MTs) and Maltesers
                                                                                Or
(250 MTs). The top Belgian brands were Godiva (1,170 MTs) and Cote d’ (266 MTs). Nestlé,
which produces its own chocolate confectionery in Japan, enjoyed around 2 percent of sales in
1999, due in large part to the increasing popularity of its Kit Kat mini-packs.

                3.1.3. Trends

                      The most popular chocolate item in March 2001 (based on E-POS1 sales
                                        s
                      data) was Nestlé’ Kit Kat Mini pack, whose sales comprised 4.82 percent of
                                                            s
                      the total, followed closely by Glico’ Pocky with 4.73 percent. While this
                      smaller version of the popular Kit Kat bars have enjoyed popularity, not all
                      bite-sized (or “          )
                                      countline” versions of American and European chocolate bars
       s
 Nestlé’ Kit Kat Mini do well in Japan. While most of the countline chocolate products sold in
                      Japan are imports, many popular American and European sellers like the
Mars bar are not well-received regardless of the smaller size preference, simply because Japanese
consumers consider it too sweet. (Note: complete E-POS data for all of 2000 is included in the
Annex).



1
 E-POS is the Electronic Point of Sale System, a compilation of product barcode scans taken at the point of
purchase. E-POS sales data was provided by The Japan Food Journal.
                                                     9
                                  The Japanese Market for Confectionery Products                          August 2001



Table 3.1.b: Japanese Chocolate Retail Sales Data,* March 2001
                                                                          Sales per store                         Sales
                                                                                                 Store     Ave.
 Rank       Company                          Product                                                              share
                                                                               ¥      Volume   coverage price (¥)
                                                                                                                    (%)
   1    Nestlé Macintosh Kit Kat Mini (17pcs)                                 43,180      151        355       285 4.82
   2    Ezaki Glico       Glico Pocky Chocolate (82g)                         36,499      295        412       124 4.73
   3    Fujiya            Mini Mini Peco-chan Minnano-Yume (26g)              23,066      136        323       169 2.34
   4    Lotte             Lotte Toppo (2bags)                                 13,386      114        411       117 1.73
   5    Meiji Seika       Meiji Best 3 Bag (250g)                             20,425       72        229       284 1.47
   6    Ezaki Glico       Glico Mousse Pocky (6sticks X 3bags)                13,831      113        291       122 1.27
   7    Meiji Seika       Meiji Fran Choco (3bags)                             9,398       76        407       123 1.20
   8    Meiji Seika       Meiji Kinoko-Takenoko (12bags)                      14,836       53        245       282 1.14
   9    Meiji Seika       Meiji Almond Choco Bag (210g)                       20,817       73        167       283 1.09
  10 Meiji Seika          Meiji Almond (84g)                                   8,306       50        403       165 1.05
  11 Lotte                Lotte Almond Chocolate (108g)                        8,486       49        371       174 0.99
  12 Meiji Seika          Meiji Macadamia (10pcs)                              8,283       51        379       163 0.99
  13 Lotte                Lotte Pie-no-mi (81g)                                7,587       66        407       114 0.97
  14 Meito                Meito Alphabet Chocolate (300g)                     20,501       66        149       310 0.96
  15 Meiji Seika          Meiji Fran White (3bags)                             7,739       63        393       124 0.96
  16 Morinaga             Morinaga Koeda Milk Chocolate (59g)                  7,511       67        403       112 0.95
  17 Lotte                Lotte Koala-no-March                                 7,211       87        412        83 0.93
  18 Meiji Seika          Meiji Milk Chocolate (130g)                          7,328       27        387       268 0.89
  19 Ezaki Glico          Glico Mousse Pocky White (6 sticks X 3bags)          9,247       76        284       122 0.83
  20 Meiji Seika          Meiji Almond Choco Stylish (80g)                     6,974       41        364       170 0.80
*Data taken from approximately 450 stores of 100 retail companies, including general merchandise superstores (15%),
supermarkets (67%), mini-supermarkets (4%), convenience stores (8%) and other venues (7%).
Source: E-POS



          3.2. Chewing Gum

                   3.2.1. Overview

  The Japanese chewing gum market has slowed in                   Figure 3.2.a.: Japanese Domestic
  recent years, and in 1999 was the smallest sector of        Chewing Gum Production by Type, 2000
  the confectionery market with 19 percent of total
  sales. Chewing gum witnessed a 2 percent rise in                                           Sugar-
  value sales between 1995 and 1999, while volume             Sugar free                     coated
                                                                                              10%
  sales rose by 0.5 percent. A notable exception to the          45%
  general stagnation of the chewing gum market has
                                                                                                 Bubble
  been the growing consumption of chewing gums                                                    gum
  containing xylitol, a sweetener that is less harmful to                                          5%
  teeth than sugar that was approved by Japan’          s
                                                                                             Other
  Ministry of Health and Welfare in 1997.            The                                      1%
                                                                             Stick gum
                       production of xylitol chewing gum Source: Japanscan       39%
                       has grown rapidly, and in 1999
                       reached ¥30 billion, or 70 percent of the sugarless chewing gum market.
                       Consequently, there has been a decrease in the consumption of conventional
         s
    Lotte’ Green Gum   sugarless gum.



                                                           10
                              The Japanese Market for Confectionery Products                                 August 2001

                               s
Popular varieties include Lotte’ Xylitol, Cool Mint Gum, Green Gum, and Black & Black; Warner-
        s                                    s                                        s
Lambert’ Xylimax; and Meiji Seika Kaisha’ Xylish. Other lines such as Warner-Lambert’ Trident
brand have benefited from the use of xylitol as a sweetener.

                3.2.2. Imports

Imports of chewing gum totaled ¥411.1 million in 1999, a decrease of 21 percent from 1997. The
US had a 53 percent share of import value and 38 percent of import volume in 1999. This was a
decrease of 25 and 16 percent, respectively, from 1997.

Table 3.2.a.: Japanese Chewing Gum Imports
                  1997          1998               1999                  Figure 3.2.b.: Japanese Chewing Gum
              MTs ¥million MTs ¥million         MTs ¥million                 Import Market Share, 1999 (¥)
USA              345     289   293    265         290    217                            Mexico
                                                                             Thailand
Korea            181      64   211     75         167      70                            2%
                                                                               2%
Canada            95      36   136     76         142      48
Philippines       94      42    83     37          93      38           Spain
Spain            156      62    93     36          56      22            5%
Thailand           2        1    1       1         19       6                                                USA
Mexico            91      29    42     12          16       9                                                53%
                                                                     Philippines
Brazil             3        1    3       1          2       1            9%
China                       1
Denmark
                                                                              Canada
Taiwan            41      23
                                                                               12%
Finland                                  1
Colombia         124      92                                                            Korea
                                                                    Source: MOF
                                                                                         17%
Total          1,131     639   861    505          785        411
Source: Ministry of Finance


                                                                           s
Other suppliers included Korea and Canada, although most of Korea’ imports of chewing gum
were manufactured and exported by a subsidiary of Lotte. Warner-Lambert is the dominant foreign
supplier, with a variety of multi-flavored xylitol-sweetened brands on the market.

                3.2.3. Trends

                                        s
The Ministry of Health and Welfare’ 1997 approval of xylitol led to the successful launch of a
number of chewing gums containing the sweetener, sales of which were bolstered by media reports
                                                                   s
that the ingredient helps prevent tooth decay. Most of Japan’ best-selling chewing gums now
contain xylitol, the majority of which are manufactured by Lotte. (See Table 3.2.b for a breakdown of
Japanese chewing gum sales by company and brand for March 2001; complete data for 2000 is
                                                                            s
included in the Annex). Foreign brands, such as Warner-Lambert’ Trident gums, were
consequently enhanced with xylitol in order to compete in this market.

Table 3.2.b.: Japanese Chewing Gum Retail Sales Data, March 2001
                                                                Sales per store   Store             Ave.       Sales
  Rank     Company                   Product                                    coverage           price ¥     share
                                                                  ¥     volume                                  (%)
   1    Lotte        Lotte Xylitol Gum Lime Mint (14 tablets X 3)   15,336         50        297       309       5.55
   2    Lotte        Lotte Xylitol Gum Lime Mint (14 tablets)        9,858         91        420       109       5.05
   3    Lotte        Lotte Xylitol Gum Lime Mint (14 tablets X 5)   14,557         30        156       491       2.77
   4    Lotte        Lotte Xylitol Gum Cool Herb (8 pcs)             5,072         47        406       109       2.51
   5    Lotte        Lotte Green Gum (9pcs)                          4,897         54        420        90       2.51
   6    Lotte        Lotte Xylitol Gum Fresh Mint (14 tablets)       5,019         46        404       110       2.47
   7    Lotte        Lotte Xylitol Gum Fresh Mint (3 packs)          8,224         27        246       308       2.47
                                                         11
                                The Japanese Market for Confectionery Products                               August 2001

Table 3.2.b.: Japanese Chewing Gum Retail Sales Data, March 2001
                                                                Sales per store   Store             Ave.       Sales
  Rank     Company                   Product                                    coverage           price ¥     share
                                                                  ¥     volume                                  (%)
   8     Lotte         Lotte Green Gum (9pcs X 3)                        5,342       21        330      256      2.15
   9     Lotte         Lotte Black Black Gum (9 pcs)                     3,938       43        416       91      2.00
   10    Lotte         Lotte Cool Mint Gum (9 pcs)                       3,507       39        418       91      1.79
   11    Meiji Seika   Meiji Petit Gum (54g)                             4,426       49        330       90      1.78
   12    Lotte         Lotte Cool Mint Gum (9 pcs X 3)                   4,225       17        327      253      1.68
   13    Lotte         Lotte Flavono Gum (9 pcs)                         3,308       36        415       91      1.67
         Kanebo
   14                  Frisk Peppermint (50 pcs)                         5,632       32        229      177     1.57
         Foods
         Warner-
   15                                                                    3,463       32        350      109     1.48
         Lambert       Recaldent mint (14 tablet)
   16    Meiji Seika   Meiji Xylish Crystal Mint Gum (12 tablets)        3,439       38        341       91     1.43
   17    Lotte         Lotte Mint Blue Gum (9 pcs)                       2,828       31        412       91     1.42
   18    Lotte         Lotte Black Black Gum (9 pcs X 3)                 5,268       21        220      256     1.41
   19    Lotte         Lotte Green Gum (9pcs X 5)                        5,476       13        205      419     1.37
   20    Meiji Seika   Meiji Xylish Gum (3 pcs)                          6,734       27        162      253     1.33
*Data taken from approximately 450 stores of 100 retail companies, including general merchandise superstores (15%),
supermarkets (67%), mini-supermarkets (4%), convenience stores (8%) and other venues (7%).
Source: E-POS



        3.3. Sugar and Sugar-free Confectionery

                 3.3.1. Overview

        s
Japan’ sugar confectionery industry has undergone notable changes in recent years, with several
beverage and pharmaceutical manufacturers introducing their own brand-name products into the
market. Despite the fact that total Japanese sugar confectionery sales fell 2 percent from 1995 to
1999 (to 178,600 MTs), the total value of sales actually increased 2 percent to ¥298 billion. While
this trend can be partly explained by inflation, the introduction of new, value-added products such
as candies containing vitamins and polyphenol have stimulated sales because of their relatively
higher unit prices.

                            The strong growth of the mints subsector also contributed to increase in
                            sales value, while the low unit weight of mints relative to other sugar
                            confectionery items contributed to the overall drop in volume sales.

                                                                                      s
                       Among soft candies, yogurt candy products such as Morinaga’ High-chu
         s
 Morinaga’ High-Chu    have enjoyed popularity with Japanese consumers.           Others include
                       Chelsea by Meiji Seika Kaisha, and throat lozenges from Kanro, Lotte and
Warner Lambert. Other products enjoying fast-growing popularity include vitamin supplement drops
and sugarless candies.

                 3.3.2. Imports

Japanese imports of sugar confectionery (including hard sugar candies, mints, caramels, etc.) have
experienced a marked decline in recent years, with total sales falling from ¥6.2 billion in 1997 to
¥5.0 billion in 1999, a drop of 22 percent. The decline is due to a fall in shipments from South
Korea, Indonesia, the United States and most European suppliers over this period, with the
exception of Spain, which increased exports to Japan.
                                                12
                              The Japanese Market for Confectionery Products                        August 2001



Table 3.3.a.: Japanese Sugar Confectionery Imports
                                                                       Figure 3.3.a.: Japanese Sugar
                  1997            1998             1999
                                                                     Confectionery Import Market Share,
              MTs ¥million MTs ¥million MTs ¥million
                                                                                  1999 (¥)
Holland        2,942    1,665  2,517   1,491   2,097    1,170
Spain          1,316      788  1,159     750   1,470      941                             Holland
China            456      155    314     115     668      443                              23%
                                                                        Others
USA              830      602    584     452     648      420
                                                                         30%
Austria          431      487    245     312     223      288
Germany          490      255    482     251     573      246                                   Spain
Belgium          224      144    223     156     371      198                                   19%
Switzerland      201      162    294     242     274      179
Korea          4,529      406  2,427     258   1,050      173         Germany                 China
France           592      267    431     224     395      168            5%                    9%
                                                                                       USA
UK               426      194    330     158     283      118                Austria
                                                                                       8%
Taiwan           133       53    167      60     331       92                 6%
                 461      196    206      39     212       37   Source: MOF
Indonesia
Malaysia          21       12    229      28     267       34
Others         1,781      799    948     527     998      569
Total         14,834    6,184 10,554   5,062   9,857    5,076
Source: Ministry of Finance

                                                           s
Notable import brands include Mentos from Holland and Spain’ Chupa Chups lollipops. Belgium’   s
Frisk mint brand was the number one mint brand in Japan in 1999, and is distributed by Kanebo
Foods. Taiwan dominates the Japanese import market for caramels, mainly through its subsidiaries
of the major Japanese manufacturers.

                3.3.3. Trends

Japanese pharmaceutical companies are now providing serious competition to
conventional sugar confectionery producers with new “      functional” product lines.
While the market for conventional sugar confectionery candies is stagnant, new
products like milk- and vitamin-enhanced candies are enjoying growing popularity
among consumers. Sales of “   medicated”confectionery are up 7 percent since 1995.
Sugarless candies are also gaining in popularity, with Morinaga recently introducing        s
                                                                                       Lotte’ Nodo-Ame
the first sugar-free caramel containing the popular additive xylitol. (See Table 3.3.b
on the next page for a breakdown of Japanese sugar confectionery sales by company and brand for
March 2001; complete data for 2000 is included in the Annex).




                                                     13
                                The Japanese Market for Confectionery Products                            August 2001



Table 3.3.b: Japanese Sugar Confectionery Sales Data, March 2001
                                                               Sales per store           Average Sales
                                                                                 Store
 Rank     Company                    Product                                            retail price share
                                                                 ¥      Volume coverage     (¥)       (%)
  1   Lotte           Lotte Nodo-Ame Candy (120g/bag)                   8,580        52     404        166     1.83
  2   Fujiya          Fujiya Milky Candy (138g/bag)                     6,567        39     389        170     1.35
  3   UHA Mikakuto    Mikakuto High Conc. Milk Candy 8.2 (120g)         7,009        40     364        177     1.34
  4   Kasugai Seika   Kasugai Kuro-Ame Candy (190g)                     9,318        72     238        129     1.17
                      Kanro Non-Sugar Nodo-Ame Candy
   5 Kanro                                                              6,801        39     326        173     1.17
                      (20grains)
   6 Kasugai Seika Kasugai Nodoni-Sukkiri (155g)                        6,995        53     315        131     1.16
   7 Novel Seika      Novel VC-3000 Nodo-Ame Candy (90g)                7,251        42     289        174     1.10
   8 Fujiya           Fujiya POP Candy (21pcs/bag)                      5,692        33     357        171     1.07
   9 Matsuya Seika Okinawa Kuro-Ame Candy (150g)                        9,884        71     200        139     1.04
  10 Morinaga         Hi-Chu Grape (12 grains)                          4,824        56     382         87     0.97
                      Kanro Healthy Plum Nodo-Ame Candy
  11                                                                    4,912        26     365        188     0.94
       Kanro          (90g)
  12 Kanro            Kanro Kanro Ame Candy (155g)                      5,371        34     332        156     0.94
  13 Meiji Seika      Meiji Chelsea Candy Mix (108g)                    4,537        27     377        169     0.90
  14 Morinaga         Hi-Chu Assort (103g)                              6,453        39     260        164     0.88
  15 Morinaga         Hi-Chu Strawberry (12 grains)                     4,381        51     382         86     0.88
  16 Morinaga         Hi-Chu Yogurt (12 grains)                         5,369        62     300         86     0.85
  17 Morinaga         Morinaga Milk Caramel (120g)                      5,281        31     304        168     0.85
  18 Sakuma           Sakuma Strawberry Milk Candy (125g)               4,398        25     326        176     0.76
  19 Morinaga         Hi-Soft Assort (120g)                             5,062        29     271        175     0.72
  20 Lotte            Lotte Nodo-Ame Candy (11pcs)                      3,351        37     408         91     0.72
*Data taken from approximately 450 stores of 100 retail companies, including general merchandise superstores
(15%), supermarkets (67%), mini-supermarkets (4%), convenience stores (8%) and other venues (7%).
Source: E-POS




                                                         14
                            The Japanese Market for Confectionery Products                    August 2001



4.0 Distribution System
The distribution of confectionery and other food and beverage products in Japan places high
emphasis on “  just in time” merchandise delivery, guaranteeing high turnaround and low inventories.
In addition, Japanese food distributors are contending with structural changes in the retail sector
that are similar to current developments in the US and Europe.

        4.1. Import Distribution

The distribution system for domestic confectionery differs significantly from that of imports. Whereas
domestic confectionery tends to be distributed through mass-market commercial channels, imports -
which tend to be higher-end consumer items – are distributed direct to specialty shops and up-
market department stores specializing in imported goods. Such a system does not facilitate the
entrance of new imported brands to the mass market, nor is it easy to introduce foreign items priced
in the mid-range into the current channels. In general, Japanese confectionery importers tend to
                                                    s
focus on upscale confectionery, such as Belgium’ Godiva chocolates, as opposed to items that
might appeal to mainstream middle class consumers.

Following are profiles of the major Japanese confectionery importers:

 1.    Kitano Shoji
 Type of business         Importer and wholesaler
 Products handled         European chocolate confectionery
                          Mr. Masahiko Kotani
                          Foreign Trade Department
                          Kitano Corporation
 Contact details          1-11-8 Oyodo-Minami, Kita-ku, Osaka 531-0075
                          Tel: 06.6458.7829; Fax: 06.6453.0212
                          E-mail: import@kitano-kk.co.jp
                          Web: http://www.kitano-kk.co.jp

Kitano Shoji imports a number of European confectionery brands like Weinrich chocolates and
Kaiser and Kalfany candies from Germany; L’     Albera and Mathez chocolate truffles from France;
Lollipops from the Netherlands, and Loacker Italian wafers. Their products are supplied primarily to
upper-scale department stores and import specialty shops. The company attends many
international food exhibitions. Exporters wishing to do business with Kitano Shoji should provide a
product catalog, company profile, prices and other relevant information to the Foreign Trade
Department.

 2.   Meidi-Ya
 Type of Business         Importer, wholesaler, and retailer
 Products handled         US and other foreign brands of chocolate and sugar confectionery.
                          Mr. Tetsuya Ikeda
                          International Department
                          Meidi-Ya Co., Ltd
 Contact Details          2-2-8 Kyobashi, Chuo-ku, Tokyo 104-0031
                          Tel: 03.3271.1120; Fax: 03.3274.4890
                          E-mail: info@meidi-ya.on.arena.ne.jp
                          Web: http://www.meidi-ya.co.jp


                                                  15
                               The Japanese Market for Confectionery Products                       August 2001

                     s
Meidi-Ya is Japan’ oldest groceries importer. The company maintains exclusive distribution
agreements with many notable foreign brands. With respect to US confectionery, Meidi-Ya imports
                 s
Brown & Haley’ Almond Roca Chocolate and Hawaiian Host chocolate Macadamia nuts. Firms
wishing to pursue opportunities with Meidi-Ya should send a company profile together with product
information to the International Department. Additionally, product information should include details
on raw materials and ingredients used in order to confirm that products meet Japanese food safety
requirements.

    3.    Takara Shoji
    Type of Business        Importer and wholesaler
    Products Handled        European and US chocolate and sugar confectionery
                            Mr. Aoki2
                            Trade Department
                            Takara Shoji Co., Ltd
    Contact Details         1-9-19 Kanda Kaji-cho, Chiyoda-ku, Tokyo 101-0044
                            Tel: 03.3256.6911; Fax: 03.3258.1292
                            E-mail: tsm@tskk.co.jp
                            Web: http://www.tskk.co.jp

Takara Shoji currently imports most of its branded confectioneries from Europe. They also handle
Charms candy, Lincoln popcorn & candy, Menehune Mac chocolates and Royal Hawaiian
chocolates from the US. This company supplies primarily upscale Department Stores like
Mitsukoshi, Isetan and Matsuzakaya, and import grocery shops like MEIDI-YA, Kinokuniya, and
others. Interested parties should first submit their product and company information to the Trade
Department, after which they will be contacted if product samples are desired.

    4.    Ryoka Japan
    Types of business       Importer and wholesaler
    Products handled        General confectionery
                            Mr. Jun Suzuki
                            Merchandising Section/
                            International Department
                            Ryoka Japan Ltd
    Contact details
                            6-1-1 Heiwajima, Ota-ku, Tokyo 143-0006
                            Tel: 03.3767.5351; Fax: 03.3767.5350
                            E-mail: trade@ryoka-japan.co.jp3
                            Web: http://www.ryoka-japan.co.jp




2
 Please note that where possible full names are given for company contacts, but it is not standard practice in
Japan to greet business executives using their first name. Rather it is more polite and common to address a
business executive by their family name followed by the honorific “san” as in “         ,
                                                                               Aoki-san” but Japanese are
                  Mr.
comfortable with “ Aoki” as well. Generally it is the younger executives who are more familiar with
Western business communication using a first and last name, but their family name or surname is more than
enough for business contact.
3
  Please note that while personal e-mail addresses are given where possible, it is not standard practice in
Japan to conduct business by e-mail. Rather it is more commonly used for inter-office communication and
most often the only external e-mail address available is for the general company mailbox which means that
the e-mail will most likely not get to the right person. When conducting business in Japan, it is best to make
initial contact through fax or post using official company letterhead.
                                                      16
                           The Japanese Market for Confectionery Products                 August 2001

Parties interested in working with Ryoka should send a company profile together with product
information to the Merchandising Section of the International Department, after which they will be
contacted if product samples are desired. No further company information is available.

 5.    Nisshoku
 Type of business        Importer
 Products handled        Chocolate confectionery
                         Mr. Nagaoka
                         General Manager, Foreign Trade Department
                         Nisshoku Co., Ltd.
 Contact details         9-10 Nozaki-cho, Kita-ku, Osaka 530-0055
                         Tel: 06-6313-1341, Fax: 06-6315-0184
                         E-mail: import@nisshoku-foods.co.jp
                         Web: http://www.nisshoku-foods.co.jp

Parties interested in working with Nisshoku should send a company profile together with product
information to the General Manager of the Foreign Trade Department, after which they will be
contacted if product samples are desired. They import chocolate confectionery as well as
beverages. No further company information is available.

 6.    Rokko Butter (QBB)
 Type of business        Dairy manufacturer, chocolate confectionery importer
 Products handled        Swiss chocolates
                         Mr. Tanaka
                         Sales Division
                         Rokko Butter Co., Ltd
 Contact details         1-3-13 Sakaguchi-dori, Chuo-ku, Kobe 651-0063
                         Tel: 078.231.4658; Fax: 078.231.4678
                         E-mail: info@qbb.co.jp
                         Web: http://qbb.co.jp

Rokko Butter is primarily a manufacturer of cheese, butter, and yogurt. In addition, the company
                                                          s
has held the exclusive distribution rights for Switzerland’ Lindt chocolates since 1989. Aside from
Lindt chocolates, the company is not active in the confectionery trade. There are no indications that
they are interested in other imported chocolate products, primarily because they are a dairy food
company.

        4.2. Wholesale Distribution

In Japan, wholesale operators occupy the central role in food distribution. In addition to difficult
                                                                                s
tasks of sourcing, warehousing and transporting a multitude of products, Japan’ wholesalers also
work with manufacturers and retailers in areas like market research and product development, often
providing financial support. The wide range of wholesaler activities often precludes direct
relationships between manufacturers and retailers who place special value on these services.

Rapid consolidation in the retail sector has produced a corresponding effect in the wholesale trade,
as small and medium-sized regional wholesalers have been acquired by larger distributors in order
to expand the geographic scope of their coverage.




                                                 17
                                The Japanese Market for Confectionery Products                         August 2001



     Table 4.1.: Number of branch/store and sales of confectionery wholesaler/retailer
                          Wholesaler               Retailer with mfg.             Retail w/o mfg.
                    Branches/        Sales      Branches/          Sales      Branches/         Sales
                      stores       ¥ billion      stores          ¥ billion     stores         ¥ billion
      1985            8,871        3,521.9       31,379            618.6       90,433          1,227.1
      1988            8,699        3,851.8       33,047            693.6       82,256          1,388.6
      1991            8,475        4,436.5       33,195            833.3       69,048          1,464.8
      1994            8,091        4,540.0       32,417            886.2       52,488          1,346.8
      1997            7,137        4,229.0       32,107            897.6       41,457          1,129.3
     Source: MITI

There is presently no single distributor capable of servicing the entire country, although a number of
wholesalers have increased the scope of their operations through acquisitions and partnerships. In
               s
general, Japan’ wholesale distribution of confectionery products can be divided into the following
groups:

           ?   The “Big Three” Wholesalers. Three large wholesale operators are the industry
               leaders in terms of upgrading the efficiency and scope of distribution (mainly through
               acquisitions), as well as in the innovation of new management systems:

               ?     San-Esu Group: Tokyo-based San-Esu maintains an alliance of 15 distributors
                                                                                s
                     of confectionery based throughout the country. The group’ members collaborate
                     on distribution, standardization of operations, product development, promotions,
                     and retail support.

               ?     Yamaboshiya Group: Yamaboshiya, a subsidiary of trading giant Marubeni
                     Corporation, maintains eight regional subsidiary branches.

               ?     Ryoshoku Group: Ryoshoku recently entered the confectionery business
                     through the acquisition of smaller wholesale companies in six different regions of
                     the country.

           ?   Regional Wholesalers. A number of independent wholesalers from different regions
               have also formed partnerships for the purposes of joint purchasing, distribution and
               other activities:

               ?     Japan Confectionery Corporation (JCC): JCC is a joint-partnership of 9
                     regional confectionery distributors including Tanekiyo (Nagoya), Hasegawa
                                                                              s
                     (Tokyo), and Daishin (Osaka), among others. The group’ activities center
                     around product development and promotion under the JCC brand, as well as
                     purchasing and distribution.

               ?     Zenkoku Ryutu Kashi Wholesale Co-operative: an alliance of 17 different
                     regional wholesalers focused on joint-purchasing and product development.

               ?     INAX Group: a partnership of 14 regional wholesalers including Yamaboshiya
                     (Osaka), Shikokuya (Tokyo), and Shojikiya (Nagoya).




                                                      18
                            The Japanese Market for Confectionery Products                 August 2001



Following are profiles of the major Japanese confectionery wholesalers:

 1.    San-Esu
 Type of business         Wholesaler, importer and exporter
 Products handled         Chocolate confectionery
                          Mr. Shoichi Kuroda or Mr. Takashi Kuroda
                          Foreign Trade Section
                          San-Esu Co., Ltd.
 Contact details          Kahei 3-2-17, Adachi-ku, Tokyo 121-8633
                          Tel: 03.3628.3333; Fax: 03.3605.5503
                          E-mail: info@san-esu.co.jp
                          Web: http://www.san-esu.co.jp

San-Esu is one of the leading confectionery distributors in Japan. While primarily a wholesale
operator, the company also acts as the import agent for chocolate producers like Ferrero, Ritter,
       s,
Arnott’ and others. Interested parties should send a products catalog, samples, and related
information – including an ingredients list and description of the production process – to the Foreign
Trade Section. The company advises potential suppliers to check whether ingredients and raw
materials are approved by Japanese food safety laws, an issue which has proven problematic for
foreign suppliers.

 2.    Yamaboshiya (Arista)
 Types of business        Wholesaler
 Products handled         Full range of confectionery products
                          Mr. Ikeda
                          General Manager, Purchase Planning
                          Yamaboshiya Co., Ltd.
 Contact details          Kozu 3-3-35, Chuo-ku, Osaka-shi, Osaka 542-0072
                          Tel: 06.6644.8844; Fax: 06.6644.6259
                          E-mail: yamaboshiya@arista.co.jp
                          Web: http://www.arista.co.jp

Yamaboshiya is also one of the leading confectionery wholesalers in Japan, purchasing most of
their products from local importers. The parent company, Marubeni Corporation,
(www.marubeni.co.jp/english/index.html) is one of the largest trading companies in Japan with its
annual turnover of over 10 trillion yen. The company recommends interested parties to contact them
through Marubeni or via their Japanese importers.

 3.    Takayama
 Type of business         Wholesaler
                          Mr. Toshiji Kono
                          Merchandising Division
                          Takayama Co., Ltd.
 Contact details          Nishi-Asakusa 3-24-6, Taito-ku, Tokyo 111-8588
                          Tel: 03.3843.1809, Fax: 03.3843.2213
                          E-mail: info@okasino-takayama.co.jp
                          Web: http://www.okasino-takayama.co.jp

Takayama is a large confectionery wholesaler with close ties to the Ito-Yokado Group of retailers
(Ito-Yokado, 7-Eleven, York Benimaru, etc). Takayama purchases confectionery goods from local
importers including Itochu, Mitsui and Mitsubishi Corp.
                                                  19
                              The Japanese Market for Confectionery Products                                  August 2001



 4.    Japan Confectionery Company (JCC)
 Type of business           Consortium of 9 confectionery wholesalers
                            Mr. Eiichi Nomura
                            Deputy General Manager
                            Japan Confectionery Co., Ltd.
 Contact details
                            Kinshi 3-7-1, Sumida-ku, Tokyo 130-0013
                            Tel: 03.3829.3111, Fax: 03.3829.3130
                            No e-mail or website.

JCC is actually a consortium of 9 private confectionery wholesalers including Tokyo-based
Hasegawa. The members collectively market their confectionery products under the JCC brand.
Interested parties should send their product and company information direct to the Deputy General
Manager.

 5.    Nippon
 Type of business           Wholesaler and importer
                            Mr. Susumu Tominaga
                            President
                            Nippon Chocolate Co., Ltd.
 Contact details            3-25-8, Tarumi-cho, Suita-shi, Osaka 564-0062, Japan
                            Tel: 06-6385-6741; Fax: 06-6338-4506
                            E-mail: tominaga@nippon-chocolate.co.jp
                            Web: http://www.nippon-chocolate.co.jp

Nippon deals primarily in chocolate confectionery. Interested parties should contact Mr. Tominaga
directly.

        4.3. Retail Distribution

It is estimated that the share of confectionery products sold by
specialty stores has decreased from 20 percent to 10 percent
over the last ten years. This is mainly due to the restructuring of
the retail industry, which has been marked by a decrease in the
number of small grocery, specialty, and “    mom and pop” stores,
all of which have lost significant market share to supermarkets,
convenience stores and “     superstores.” Supermarkets are now
the largest buyers of confectionery from wholesalers, followed by
convenience stores like Lawson and 7-Eleven. Secondary                          Convenience store confectionery display
wholesalers also purchase confectionery for distribution to
smaller retailers still prominent in more remote areas.

              Table 4.2.: Confectionery wholesaler revenues by client, 1999
                                                       Approx. turnover (¥ billion)
              Supermarket or superstore                           640
              Convenience store                                   400
              Secondary wholesalers                               240
              Confectionery specialty store                       160
              Others                                              160
              Total                                              1,600
              Source: Gekiryu Magazine and estimation by Japan Retail Insight


                                                        20
                                        The Japanese Market for Confectionery Products                               August 2001



                                                   The following table lists the top 40 Japanese food retailers.
                                                   While there is no specific data on confectionery performance,
                                                   these are estimated to account for approximately 7-8 percent
                                                   of total food sales. Also provided in the last column are the
                                                   retailer buying groups (CO-OP, Nichiryu, et. al.), although
                                                   several such as Izumiya, Kotobukiya, and others operate
                                                   independently from these.

 A well-stocked supermarket shelf



Table 4.3.: Top 40 Food Retailers in FY 2000
                                                           Food sales % of                 Gross     Net
                                                   Main                       Net sales                      No. of   Retail group
     Retailer                       Main region              (mil. of  Net                 profit  income
                                                  format                     (mil. of yen)                   store   Buying group
                                                              yen)    sales                 (%)      (%)
1    Daiei                           National     GMS         774,094   36.2    2,141,034     21.0       0.1    308       Daiei
2    Jusco                           National     GMS         679,862   50.2    1,354,406     25.4       0.7    347      AEON
3    Ito-Yokado                      National     GMS         605,880   40.6    1,490,709     27.4       2.3    176        IY
4    Seiyu                           National     GMS         398,289   47.3       841,815    22.1     -2.8     191      Seiyu
5    Uny                              Chubu       GMS         386,732   51.7       748,074    23.2       0.6    144       Uny
6    Mycal                           National     GMS         338,465   32.7    1,034,811     19.3       0.2    123      Mycal
7    Life Corp.                     Kanto/Kinki    SM         277,532   74.1       374,438    24.1       0.3    186  Nichiryu/JSA
8    Maruetsu                          Kanto       SM         273,149   85.1       320,964    26.4     -4.5     186       Daiei
9    CO-OP Kobe                       Hyogo       GMS         222,454   66.0       337,052    n.a.      n.a.    173 Nichiryu/CO-OP
10   Izumiya                           Kinki      GMS         184,192   53.0       347,464    24.8       0.9     75       n/a
11   Tokyu-store                       Kanto       SM         158,947   58.7       270,656    24.6       0.3     90    Hasshakai
12   York Benimaru                    Tohoku       SM         158,748   61.4       258,719    23.3       2.3     85        IY
13   Inageya                           Kanto       SM         157,962   89.8       175,943    25.8       0.9    120     Nichiryu
14   Heiwado                           Kinki      GMS         145,396   52.2       278,426    26.5       0.7     83  Nichiryu/JSA
15   Kotobukiya                       Kyushu      GMS         126,405   50.8       248,615    23.1       0.1    139       n/a
16   CO-OP Tokyo                       Tokyo       SM         124,200   94.0       132,128    n.a.      n.a.     82     CO-OP
17   Kasumi                           Ibaragi      SM         124,089   87.9       141,242    28.8       0.0    100  Nichiryu/JSA
18   Izumi                           Chugoku      GMS         121,768   44.2       275,611    23.5       0.5     74  Nichiryu/JSA
19   Summit                            Tokyo       SM         116,738   89.8       129,998    n.a.       1.2     72       AJS
20   Okuwa                          Wakayama       SM         114,165   59.9       190,643    24.6       0.6    108  Nichiryu/JSA
21   CO-OP Kanagawa                 Kanagawa       SM         106,608   82.9       128,598    n.a.      n.a.    134     CO-OP
22   Yamanaka                          Aichi       SM         103,714   87.6       118,436    23.0       0.4     65       JSA
23   Daimaru Peacok                 Kanto/Kinki    SM         102,827   81.3       126,478    n.a.      n.a.     60       JSA
24   CO-OP Sapporo                   Hokkaido      SM         101,872   68.3       149,154    n.a.      n.a.     90 Nichiryu/CO-OP
25   Fuji                            Shikoku      GMS         100,967   42.6       237,122    20.9       0.4     61       n/a
26   Kansai SM                         Kinki       SM          93,842   92.3       101,666    23.1     -0.6      48       AJS
27   York-Mart                         Tokyo       SM          91,358   82.4       110,872    n.a.      n.a.     59       n/a
28   U-store                           Aichi       SM          89,014   71.2       124,968    21.8       1.7     51       Uny
29   Taiyo                          Kagoshima      SM          82,132   68.4       120,065    20.9       1.4     85       n/a
30   Sotetsu-Rozen                  Kanagawa       SM          79,781   75.9       105,176    23.0       0.4     62    Hasshakai
31   SSV                             Nagano        SM          68,405   91.2        75,041    26.6       0.6     62    Seiyu/JSA
32   Yaoko                           Saitama       SM          67,946   86.9        78,193    26.3       1.7     49       JSA
33   MaxValu Nishinihon               Hyogo        SM          66,072   90.6        72,917    23.9       1.9     81      AEON
34   Ralse                           Hokkaido      SM          64,168   76.3        84,052    22.3       1.8     42    CGC/JSA
35   Tobu-Store                        Kanto       SM          62,288   61.1       101,938    22.6       0.1     53    Hasshakai
36   Valor                            Chubu        SM          58,274   67.8        85,925    26.5       1.5     71       n/a
37   Aoki-Super                        Aichi       SM          50,200   94.3        53,257    17.1       0.9     36       JSA
38   Yamazawa                         Tohoku       SM          50,096   83.4        60,077    23.5       1.8     45     Nichiryu
39   Mycal-Hokkaido                  Hokkaido     GMS          49,332   44.2       111,552    26.2       1.8     18      Mycal
40   Harashin                         Niigata      SM          47,365   91.1        51,982    24.6       1.9     39       CGC

                                                                   21
                                     The Japanese Market for Confectionery Products                                         August 2001

Table 4.3.: Top 40 Food Retailers in FY 2000
                                                         Food sales % of                      Gross      Net
                                                 Main                          Net sales                           No. of   Retail group
      Retailer                  Main region                (mil. of  Net                      profit   income
                                                format                        (mil. of yen)                        store    Buying group
                                                            yen)    sales                      (%)       (%)
Notes:
 1. Figures & Data: As of the fiscal year ended on Feb 2000, or as of the most recent preceding fiscal year-end.
 2. Main Format: Most common format to represent the retailer.
 3. Food Sales: Total annual retail sales of food categories of perishable and grocery.
 4. Net Sales: Total annual sales of merchandise excluding tenant rents and other revenues.
 5. CGC, CO-OP, JSA and AJS: Name of Voluntary Chain or Cooperative Chain.
 6. Nichiryu: A joint-merchandising company of regional supermarket and superstore operators.
 7. Hasshakai: A joint-merchandising company for retailing subsidiaries of private railway companies.
 8. GMS: General Merchandise Superstore
 9. SM: Supermarket



Following are profiles of the major Japanese retailers:

 1.        Maruetsu
 Type of store                     Supermarket
 Number of units                   186
 Average store space               1,830 m2
 Main geographic region            Kanto (Tokyo and Saitama Prefectures)
                                   Mr. Takashi Daigo
                                   Grocery Merchandising Division
                                   The Maruetsu, Inc.
 Contact Details                   Higashi-Ikebukuro 5-51-12, Toshima-ku, Tokyo 170-8401
                                   Tel: 03.3590.1794; Fax: 03.3590.4634
                                   E-mail: info@maruetsu.co.jp
                                   Web: http://www.maruetsu.co.jp

Maruetsu is the Supermarket subsidiary of The Daiei, Inc. The Marubeni Trading Company (parent
company of wholesaler Yamaboshiya) is a major stakeholder of Maruetsu. Their promotions include
the “High and Low by Chirashi” weekly advertisement distributed as newspaper inserts. Promotion
items are typically funded by the product manufacturer. The chain purchases confectionery from
their sister company Yamaboshiya.

 2.        Inageya
 Type of store                     Supermarket
 Number of units                   120
 Average store space               1,410 m2
 Main geographic region            Kanto region (Tokyo, Saitama, Ibaragi Prefectures)
                                   Mr. Masaharu Takashima
                                   Grocery Merchandising Division
                                   Inageya Co., Ltd.
 Contact details                   Sakaecho 6-1-1, Tachikawa-shi, Tokyo 190-8517
                                   Tel: 042.537.5201; Fax: 042.537.5243
                                   E-mail: info@inageya.co.jp
                                   Web: http://www.inageya.co.jp

Inageya sources imported confectionery from Ryoka Japan. The buyer for this chain noted the
relative difficulty in sourcing imports on a regular basis due to the longer lead time required for
ordering/receiving/stocking imported items, while imports are better-suited for one-shot sales.

                                                                   22
                            The Japanese Market for Confectionery Products                 August 2001

 3.    Summit
 Type of store            Supermarket
 Number of units          72
 Average store space      1,320 m2
 Main geographic region   Western Tokyo
                          Mr. Yoshikazu Okada
                          Grocery Merchandising Division
                          Summit, Inc.
 Contact details          Eifuku 3-57-14, Suginami-ku, Tokyo 168-8686
                          Tel: 03.3318.5141; Fax: 03.3318.5199
                          E-mail: info@summitstore.co.jp
                          Web: http://www.summitstore.co.jp

Summit sources its confectionery products from Takayama/Ryoshoku.


 4.    Seiyu
 Type of store            Supermarket and general merchandise superstore
 Number of units          191
 Average store space      6,300 m2
 Main geographic region   Nationwide
                          Ms. Sudo
                          Grocery Merchandising Division
                          The Seiyu, Ltd.
 Contact details          1-1, Akabane 2-chome, Kita-ku, Tokyo 115-0045
                          Tel: 03.3598.7296; Fax: 03.3598.7711
                          E-mail: cr@seiyu.co.jp
                          Web: http://www.seiyu.co.jp

Seiyu sources confectionery from San-Esu/Yamaboshiya.


 5.    Lawson
 Type of store            Convenience store
 Number of units          7,378
 Average store space      100 m2
 Main geographic region   National
                          Mr. Kusakabe or Mr. Kobayashi
                          Confectionery Merchandising Department
                          Lawson, Inc.
 Contact details          Shibaura 4-9-25, Minato-ku, Tokyo 108-8563
                          Tel: 03.5476.6824; Fax: 03.5476.6952
                          E-mail: info@lawson.co.jp
                          Web: http://www.lawson.co.jp

Lawson convenience stores, like most Japanese convenience stores (“                       ),
                                                                                c-stores” are mostly
                                                               s
franchise operations. Approximately 90 percent of Lawson’ stores are independently owned. As
with many similar operations, the most important factor in determining whether or not to carry a
particular product is the calculation of its “average sales quantity per store per day” figure. Lawson
sources its confectionery from confectionery wholesalers Yamaboshiya/Hasegawa.


                                                 23
                           The Japanese Market for Confectionery Products              August 2001

 6.    Okuwa
 Type of store            Supermarket
 Number of units          108
 Average store space      1,930 m2
 Main geographic region   Wakayama and Southern Osaka Prefectures
                          Mr. Takahiro Hiramatsu
                          Food Merchandising Division
                          Okuwa Co., Ltd.
 Contact details          Nakajima 185-3, Wakayama-shi, Wakayama 641-8501
                          Tel: 073.433.9888, Fax: 073.426.3794
                          E-mail: info@okuwa.net
                          Web: http://www.okuwa.net

Okuwa is part of the Nichiryu group, a joint-merchandising company formed by 19 regional food
retailers. The parent Nichiryu group is responsible for private label/new product development.


 7.    Yaoko
 Type of store            Supermarket
 Number of units          49
 Average store space      1,740 m2
 Main geographic region   Northern Kanto region (Saitama Prefecture)
                          Ms. Masako Oishi
                          Merchandising Division
                          Yaoko Co., Ltd.
 Contact details          Wakitahoncho 1-5, Kawagoe-shi, Saitama 350-1123
                          Tel: 0492.46.7777; Fax: 0492.46.7005
                          E-mail: info@yaoko-net.com
                          Web: http://www.yaoko-net.com

Yaoko sources its confectionery from wholesalers San-Esu and Yamaboshiya.


 8.    Ito-Yokado
 Type of store            General merchandise superstore
 Number of units          176
                                   2
 Average store space      9,743 m
 Main geographic region   Nationwide
                          Mr. Taro Hattori
                          Grocery Merchandising Division
                          Ito-Yokado Co., Ltd.
 Contact details          Shibakouen 4-1-4, Minato-ku, Tokyo 105-8571
                          Tel: 03.3459.2452; Fax: 03.3438.1355
                          E-mail: info@itoyokado.iyg.co.jp
                          Web: http://www.itoyokado.iyg.co.jp

Ito-Yokado sources its confectionery products from wholesaler Takayama.




                                                 24
                            The Japanese Market for Confectionery Products                 August 2001

 9.    Daiei
 Type of store            General Merchandise Superstore
 Number of units          308
 Average store space      8,590 m2
 Main geographic region   National
                          Mr. Masato Suda or Mr. Satomi Ezaki
                          Grocery Merchandising Department
                          The Daiei, Inc.
 Contact details          Shibakouen 2-4-1, Minato-ku, Tokyo 105-8514
                          Tel: 03.3433.9662; Fax: 03.3433.9687
                          E-mail: info@daiei.co.jp
                          Web: http://www.daiei.co.jp

Daiei sources imported confectionery from wholesaler Yamaboshiya, although the company also
develops private label products even with foreign-manufactured goods. Mr. Suda and Mr. Ezaki
above are engaged in buying activities through domestic vendors. If contacting Daiei through a
Japanese importer or wholesaler then this section will be the first point of contact.

Interested parties should send product information to the Product Development department care of
the following individuals:

                              Mr. Akiyama, Merchandiser – Private Label Development
                              Mr. Hiroaki Tsukamoto, Import Planning
                              Tel: 03.3433.9684; Fax: 03.3433.9807

Mr. Akiyama is responsible for private label development for both domestic and foreign
manufacturers, while Mr. Tsukamoto is specialized in dealing exclusively with foreign suppliers.
                          s
Therefore Mr. Tsukamoto’ section will be the first point of contact, but if a foreign manufacturer
wishes to consider private label development with Daiei then Mr. Akiyama will come up to the
                                                             s
negotiation. US manufacturers may also contact the group’ subsidiary based in Seattle:

                              Mr. Nobuyoshi Mizoguchi
                              General Manager, D International Inc.
                              15245 Pacific Highway South, Suite L-4
                              Seattle, WA 98188
                              Tel: (206) 243-3888; Fax: (206) 243-3416
                              E-mail: dimizo@email.msn.com

 10.    Jusco
 Type of store            General merchandise superstore
 Number of units          347
 Average store space      6,537 m2
 Main geographic region   Nationwide
                          Mr. Toru Azuma or Mr. Osamu Yasu
                          Grocery Merchandising Division
                          Jusco Co., Ltd.
 Contact details          Nakase 1-5-1, Mihama-ku, Chiba 261-8515
                          Tel: 043.212.6190; Fax: 043.212.6835
                          E-mail: info@jusco.co.jp
                          Web: http://www.jusco.co.jp


                                                  25
                           The Japanese Market for Confectionery Products             August 2001

Jusco sources its confectionery from Yamaboshiya.               They occasionally source foreign
confectionery direct through their subsidiary AIC, Inc. in Japan:

                             Mr. Nobuo Nitta (Foods Div.)
                             Shinkawa East Bldg. 23-5, 1-Chome,
                             Shinakawa, Chuo-Ku, Tokyo 104-8284
                             Tel. 03-5541-2060; Fax: 03-5541-2140
                             E-mail: info@aicincjp.com
                             Web: http://www.aicincjp.com/eng/e_index.html

11.    CGC Group
Type of store            Supermarket
Number of units          2,961 stores of affiliated companies (chains)
Average store space      600- 1,500 m2
Main geographic region   Nationwide
                         Mr. Hisashi Naoi or Mr. Wataru Miyamura
                         Confectionery Buying Team
                         CGC Japan Co., Ltd.
Contact details          Okubo 2-1-14, Shinjuku-ku, Tokyo 169-8531
                         Tel: 03.3204.1361, Fax: 03.3207.0702
                         E-mail: info@cgcjapan.co.jp
                         Web: http://www.cgcjapan.co.jp/index.html

CGC Group is responsible for product development under the CGC brand for its affiliated
supermarket chains. CGC brand products are developed both with domestic and foreign
manufactured products. Interested parties should send their company profile and product
information to the Foreign Trade Team:

                             Mr. Hiroshi Yuzawa, Team Leader
                             Mr. Shoichi Miyamoto, Representative
                             Tel: 03.3207.1363; Fax: 03.3207.1207

12.    Nichiryu Group
Type of store            Supermarket and general merchandise superstore
Number of units          1,364 stores of 19 food retail companies (chains)
Average store space      1,500-5,000 m2
Main geographic region   Nationwide
                         Mr. Yamane or Mr. Akihiko Taniguchi
                         Grocery Merchandising Division
                         Nihon Ryutsu Sangyo Co., Ltd
Contact details          Honmachi 3-1-15, Chuo-ku, Osaka 541-0053
                         Tel: 06.6264.6719; Fax: 06.6264.2125
                         E-mail: info@nichiryu.co.jp
                         Web: http://www.nichiryu.co.jp/english

Nichiryu Group is responsible for product development under the Kurashi-More brand for its
affiliated chains. Kurashi-More brand products are developed both with domestic and foreign
manufactured products. Interested parties may contact their Seattle office for more information:




                                                  26
                               The Japanese Market for Confectionery Products                 August 2001

                                 Mr. Yushitaka Murata
                                 Nichiryu Representative Office
                                 One Union Square
                                 600 University Street, Suite 3430
                                 Seattle, WA 98101 USA
                                 Tel: (206) 682-4498; Fax: (206) 682-4983
                                 E-mail: nichiryu@hitmark.com

 13.     CO-OP Group
 Type of store               Co-operative supermarket
 Number of units             2,556 stores belonging to 469 Co-op chains
 Average store space         500-1,500 m2
 Main geographic region      Nationwide
                             Mr. Takahashi/Takeuchi
                             Chocolate Buyer
                             Japanese Consumers’Co-operative Union
 Contact details             Shibuya 3-29-8, Shibuya-ku, Tokyo 150-8913
                             Tel: 03.5778.8092; Fax: 03.5778.8112
                             E-mail: kokusai@jccu.co-op.or.jp
                             Web: http://www.co-op.or.jp/jccu/English_here/

CO-OP Group is responsible for development of products under the Coop brand for its affiliated
members. Foreign confectionery is sourced from Hasegawa/Takayama.

 14.     Hasshakai Group
 Type of store               Supermarket
 Number of units             568 stores from 18 supermarket chains
 Average store space         1,500 m2
 Main geographic region      Nationwide
                             Mr. Akira Kosuge
                             Grocery Merchandising Department
                             Hasshakai Co., Ltd.
 Contact details
                             Ebisu 1-19-15, Shibuya-ku, Tokyo
                             Tel: 03.3449.8820; Fax: 03.3449.8819
                             No e-mail or website.

Hasshakai, a joint merchandising company for affiliated retailers, is responsible for development of
products under the V-mark and Well Flag brands for its affiliates. Foreign confectionery is typically
sourced from local wholesalers.

                                 4.4. Distribution Margins

                          Importers normally charge a 15-20 percent margin on confectionery products.
                          Wholesaler margins tend to be based on the business volume and
                          creditworthiness of its clients, with larger wholesalers charging roughly 12
                          percent on confectionery products while secondary wholesalers around 15
                          percent. Retailer margins are generally around 30-35 percent. Assuming
                          such percentages, items sold to importers for ¥45 would carry a retail price of
                          ¥75-80 without taking into account import duties.
 Typical in-store candy
 gondola.


                                                     27
                            The Japanese Market for Confectionery Products                 August 2001

It should be noted that a widely practiced custom in Japan is the giving of kickbacks by food
manufacturers to their wholesalers and retail buyers, based on the value of their purchases.
Although this practice is a common sales tool utilized by Japanese food manufacturers, it is rarely
applied on imported goods.

       4.5. Product Promotions

The most common retail promotion tool is the “ high and low price” promotion by Chirashi Flyer, a
weekly newspaper supplement. In-store displays take the form of end-cap “   gondolas,”which include
posters and other promotional materials supplied by the manufacturer. For “        special offer” or
reduced price promotions, it is customary for manufacturers to reduce the wholesale price of the
product in question (as opposed to paying special fees for the opportunity to promote their goods).

Major promotional events in the confectionery industry include:

       ?   The O-kashi Festival, sponsored by the Federation of Japan Confectionery
           Associations and the All Nippon Kashi (Confectionery) Association, is an exhibition and
           sales campaign for consumers held in Tokyo every November.

       ?          s
           Japan’ Chocolate and Cocoa Exhibition is held each February at the Ministry of
           Agriculture, Forestry and Fisheries (MAFF), and is jointly sponsored by MAFF and the
           Chocolate and Cocoa Association of Japan.

       ?   The Japan Chewing Gum Association has denoted June 1st as “Chewing Gum Day”
           accompanied by sales campaigns that last several days.

Following are contact details for these associations (generally no e-mails or websites available):

All Nippon Kashi Association
Tokita Bldg., 1-16-10 Shiba Daimon,
Minato-ku, Tokyo 105-0012
Tel. 03.3432.3871; Fax: 03.3432.4081
E-mail: anka@nifty.com

The Federation of Japan Confectionery Associations
2-21-14, Ikejiri,
Setagaya-ku, Tokyo 154-0001
Tel. 03.5486.2611; Fax: 03.5486.2131

Japan Chocolate and Cocoa Association
Tomita Bldg., 8-3-10, Ginza
Chuo-ku, Tokyo 104-0061
Tel. 03.3572.8275; Fax: 03.3289-4598

Japan Chewing Gum Association
Tomita Bldg. 8-3-10, ginza
Chuo-ku, Tokyo 104-0061
Tel. 03.3572.8275; Fax: 03.3289.4598



                                                  28
                              The Japanese Market for Confectionery Products                   August 2001



5.0 Market Entry Requirements
Regulatory, safety and other market entry requirements for confectionery exports to Japan are as
follows:

        5.1. Tariff Rates

Current Japanese tariff rates for confectionery products range from 5 to 24 percent, with sugar
confectionery imports bearing the highest rates:

             Table 5.1.: Japanese Tariff Rates for Confectionery Items
             Item Number                                 Product                 Tariff Rate
             1704.10.000             Chewing Gum (containing only sugar or add     24%
                                     sweetener)
             1704.90.210             Candies                                        25%
             1704.90.220             Caramels                                       25%
             1806.31.000             Chocolate (filled)                             10%
             1806.32.100             Chocolate (not filled)                         10%
             1806.90.100             Other chocolates                               10%
             2106.90.320             Chewing Gum (containing only sweetener)        5%
             Source: Ministry of Finance/Customs Bureau

        5.2. Food safety and labeling requirements

                        5.2.1. Food Sanitation Law

                s
Under Japan’ Food Sanitation Law, imports are inspected at the point of entry and must be
accompanied by a Notification Form for Importation of Foods. Upon arrival, items are separated into
those requiring document certification, and those for which physical inspection is required. Items
falling into the latter category include food products in which certain ingredients, additives or raw
materials are regulated by health authorities. Japan currently allows the importation of confectionery
products from all countries.

                        5.2.2. Labeling Regulations

The revised Japan Agricultural Standards (JAS) has been in effect since June 2000. According to
the standards, processed foods must bear labeling with the following information:

1.   Product Name
2.   Materials
3.   Content volume
4.   Best if used before date
5.   Means of preservation
6.   Name and address of manufacturers (or of importers, in the case of imported goods)
7.   Place of origin (in the case of imported goods)

Genetically modified foods have been subject to labeling since April 2000. Candy and marshmallow
producers who use cornstarch need to ensure their products are properly labeled to comply with
this regulation.


                                                       29
                            The Japanese Market for Confectionery Products                  August 2001



     Figure 5.1: Labeling Example for Imported Confectioneries and Snacks




                   Source: JETRO
5.3. Other Requirements

                      5.3.1. Container and Packages Recycling Law

       s
Japan’ law for promoting the recycling of containers and packages came into law in April 2000. It
stipulates that companies (food makers, package makers and importers) selling foods in containers
are obligated to recycle them and pay the associated costs; often importers will in turn deduct a fee
from exporters to cover this charge.

                      5.3.2. Product Liability Law

       s
Japan’ Product Liability Law has been in effect since July 1995. Prior to this law, responsibility for
defective products was based on the manufacturer’ “s prior knowledge”of the defect. Companies
were required only to include the manufacturing date on the product label, leaving freshness and
product expiration to be determined by the consumer.

Under the new law, manufacturers must include the expiration date for perishable goods and
assume full responsibility for freshness and safety. In the case of personal injury as a result of a
                                                                               s
defective product, an injured party can seek compensation from the product’ producer, distributor
or retailer, depending on which party is deemed liable.




                                                  30
                           The Japanese Market for Confectionery Products                August 2001



6.0 Conclusion
The Japanese consumer market has undergone significant changes in the last decade that will
affect the confectionery industry for some time to come. Factors to bear in mind when considering a
market entry strategy for Japan include the following:

       ? The Japanese confectionery market has an abundance of domestically produced goods
         in addition to a small (7-8 percent) share of imports. Nevertheless, Japanese importers
         are generally interested in working with US confectionery producers to determine the
         appropriate marketing approach for their products, whether for mass-market, high-end,
         or specialty niche consumption.

       ? The Japanese population is aging, and older consumers should be targeted, bearing in
         mind their preferences for confectionery that is relatively healthy (containing vitamin and
         mineral additives), functional (such as curing bad breath or preventing tooth decay), and
                                                          s
         generally less sweeter in taste than children’ candies (such as sugarless gum and
         sugar-free candies). Mitsui Norin Co. recently patented a chewing gum that has a
         preventative effect against infection by influenza virus and inhibits dissemination of
         influenza virus.

       ? Novelty items are especially popular. Example is the Kinder Surprise from Ferrero, which
         contains a toy inside its chocolate egg, and Chupa Chups from Spain that likewise
         contains a surprise inside its lollipops that makes them popular among children.

       ? Another potential product area is that of organic confectionery. The Japanese
         Agricultural Standard (JAS) of Organic Agricultural Products went into effect in June
         2000, paving the way for suppliers to begin marketing these products. However, due to
         the lack of domestic organic confectionery production, how consumers will respond to
         such products remains to be seen.

       ? Package size in Japan is important, with consumers maintaining strong preference for
         smaller-size and individually wrapped products. Nestlé took this preference into account
         when it modified the size of its Kit Kat bars into a successful “mini”bite-size pack.

       ? Brand marketing is an effective strategy in Japan. Foreign brands which are popular in
         Japan including Mentos from Holland, Frisk mints from Belgium and Chupa Chups
         lollipops from Spain.

       ? Importers advise potential suppliers to ensure that their product ingredients conform with
               s
         Japan’ food safety laws.

       ? Japanese supermarkets and convenience stores maintain little tolerance for product
         unavailability, which can be a source of friction between retailers and their wholesale
         distributors. Foreign suppliers must therefore ensure buyers that product can be shipped
         on a consistent basis in the desired quantities.




                                                31
                          The Japanese Market for Confectionery Products   August 2001



7.0 Industry Contact Information
      7.1. Importing Companies

Kitano Corporation
1-11-8 Oyodo-Minami, Kita-Ku, Osaka 531-0075
Tel: 81-6-6458-7829 Fax: 81-6-6453-0212
E-mail: import@kitano-kk.co.jp
Web: http://www.kitano-kk.co.jp

Meidi-Ya Co., Ltd.
2-2-8 Kyobashi, Chuo-ku, Tokyo 104-0031
Tel: 81-3-3271-1120 Fax: 81-3-3274-4890
E-mail: info@meidi-ya.on.arena.ne.jp
Web: http://www.meidi-ya.co.jp

Nisshoku Co., Ltd.
9-10 Nozaki-cho, Kita-ku, Osaka 530-0055
Tel: 81-6-6313-1341 Fax: 81-6-6315-0184
E-mail: import@nisshoku-foods.co.jp
Web: http://www.nisshoku-foods.co.jp

Rokko Butter Co., Ltd.
1-3-13 Sakaguchi-dori, Chuo-ku, Kobe 651-0063
Tel: 81-78-231-4658 Fax: 81-78-231-4678
E-mail: info@qbb.co.jp
Web: http://qbb.co.jp/

Ryoka Japan Ltd.
6-1-1 Heiwajima, Ota-ku, Tokyo 143-0006
Tel: 81-3-3767-5351 Fax: 81-3-3767-5350
E-mail: trade@ryoka-japan.co.jp
Web: http://www.ryoka-japan.co.jp

Suzusho Ltd.
23 Araki-cho, Shinjuku-ku, Tokyo 160-0007
Tel: 81-3-3225-1161 Fax: 81-3-3225-1160

Takara Shoji Co., Ltd.
1-9-19 Kanda Kaji-cho, Chiyoda-ku, Tokyo 101-0044
Tel: 81-3-3256-6911 Fax: 81-3-3258-1292
E-mail: tsm@tskk.co.jp
Web: http://www.tskk.co.jp




                                                32
                          The Japanese Market for Confectionery Products   August 2001



       7.2. Wholesalers

Japan Confectionery Co., Ltd.
Kinshi 3-7-1, Sumida-ku, Tokyo 130-0013
Tel: 81-3-3829-3111 Fax: 81-3-3829-3130

Nippon Chocolate Co., Ltd.
3-25-8, Tarumi-cho, Suita-shi, Osaka 564-0062
Tel: 81-6-6385-6741 Fax: 81-6-6338-4506
E-mail: tominaga@nippon-chocolate.co.jp
Web: http://www.nippon-chocolate.co.jp

San-Esu Co., Ltd.
Kahei 3-2-17, Adachi-ku, Tokyo 121-8633
Tel: 81-3-3628-3333 Fax: 81-3-3605-5503
E-mail: info@san-esu.co.jp
Web: http://www.san-esu.co.jp

Takayama Co., Ltd.
Nishi-Asakusa 3-24-6, Taito-ku, Tokyo 111-8588
Tel: 81-3-3843-1809 Fax: 81-3-3843-2213
E-mail: info@okasino-takayama.co.jp
Web: http://www.okasino-takayama.co.jp/

Yamaboshiya Co., Ltd.
Kozu 3-3-35, Chuo-ku, Osaka-shi, Osaka 542-0072
Tel: 81-6-6644-8844 Fax: 81-6-6644-6259
E-mail: yamaboshiya@arista.co.jp
Web: http://www.arista.co.jp/


       7.3. Retailers

CGC Japan Co., Ltd.
Okubo 2-1-14, Shinjuku-ku, Tokyo 169-8531
Tel: 81-3-3204-1361 Fax: 81-3-3207-0702
E-mail: info@cgcjapan.co.jp
Web: http://www.cgcjapan.co.jp/index.html

The Daiei, Inc.
Shibakouen 2-4-1, Minato-ku, Tokyo 105-8514
Tel: 81-3-3433-9662 Fax: 81-3-3433-9687
E-mail: info@daiei.co.jp
Web: http://www.daiei.co.jp/

Hasshakai Co., Ltd.
Ebisu 1-19-15, Shibuya-ku, Tokyo
Tel: 81-3-3449-8820 Fax: 81-3-3449-8819


                                                 33
                           The Japanese Market for Confectionery Products   August 2001



Inageya Co., Ltd.
Sakaecho 6-1-1, Tachikawa-shi, Tokyo 190-8517
Tel: 81-42-537-5201 Fax: 81-42-537-5243
E-mail: info@inageya.co.jp
Web: http://www.inageya.co.jp/

Ito-Yokado Co., Ltd.
Shibakouen 4-1-4, Minato-ku, Tokyo 105-8571
Tel: 81-3-3459-2452 Fax: 81-3-3438-1355
E-mail: info@itoyokado.iyg.co.jp
Web: http://www.itoyokado.iyg.co.jp

Japanese Consumers’Co-operative Union
Shibuya 3-29-8, Shibuya-ku, Tokyo 150-8913
Tel: 81-3-5778-8092 Fax: 81-3-5778-8112
E-mail: kokusai@jccu.co-op.or.jp
Web: http://www.co-op.or.jp/jccu/English_here/

Jusco Co., Ltd.
Nakase 1-5-1, Mihama-ku, Chiba 261-8515
Tel: 81-43-212-6190 Fax: 81-43-212-6835
E-mail: info@jusco.co.jp
Web: http://www.jusco.co.jp/

Lawson, Inc.
Shibaura 4-9-25, Minato-ku, Tokyo 108-8563
Tel: 81-3-5476-6824 Fax: 81-3-5476-6952
E-mail: info@lawson.co.jp
Web: http://www.lawson.co.jp/

The Maruetsu, Inc.
Higashi-Ikebukuro 5-51-12, Toshima-ku, Tokyo 170-8401
Tel: 81-3-3590-1794 Fax: 81-3-3590-4634
E-mail: info@maruetsu.co.jp
Web: http://www.maruetsu.co.jp/

Nihon Ryutsu Sangyo Co., Ltd.
Honmachi 3-1-15, Chuo-ku, Osaka 541-0053
Tel: 81-6-6264-6719 Fax: 81-6-6264-2125
E-mail: info@nichiryu.co.jp
Web: http://www.nichiryu.co.jp/english/

Okuwa Co., Ltd.
Nakajima 185-3, Wakayama-shi, Wakayama 641-8501
Tel: 81-73-433-9888 Fax: 81-73-426-3794
E-mail: info@okuwa.net
Web: http://www.okuwa.net



                                                 34
                          The Japanese Market for Confectionery Products   August 2001




The Seiyu, Ltd.
1-1, Akabane 2-chome, Kita-ku, Tokyo 115-0045
Tel: 81-3-3598-7296 Fax: 81-3-3598-7711
E-mail: cr@seiyu.co.jp
Web: http://www.seiyu.co.jp/

Summit, Inc.
Eifuku 3-57-14, Suginami-ku, Tokyo 168-8686
Tel: 81-3-3318-5141 Fax: 81-3-3318-5199
E-mail: info@summitstore.co.jp
Web: http://www.summitstore.co.jp/

Yaoko Co., Ltd.
Wakitahoncho 1-5, Kawagoe-shi, Saitama 350-1123
Tel: 81-492-46-7777 Fax: 81-492-46-7005
E-mail: info@yaoko-net.com
Web: http://www.yaoko-net.com/


      7.4. Associations

All Nippon Kashi Association
Tokita Bldg., 1-16-10 Shiba Daimon,
Minato-ku, Tokyo 105-0012
Tel. 81-3-3432-3871; Fax: 81-3-3432-4081
E-mail: anka@nifty.com

The Federation of Japan Confectionery Associations
2-21-14, Ikejiri,
Setagaya-ku, Tokyo 154-0001
Tel. 81-3-5486-2611; Fax: 81-3-5486-2131

Japan Chocolate and Cocoa Association
Tomita Bldg., 8-3-10, Ginza
Chuo-ku, Tokyo 104-0061
Tel. 81-3-3572-8275; Fax: 81-3-3289-4598

Japan Chewing Gum Association
Tomita Bldg. 8-3-10, ginza
Chuo-ku, Tokyo 104-0061
Tel. 81-3-3572-8275; Fax: 81-3-3289-4598




                                                35
                                       The Japanese Market for Confectionery Products                                          August 2001




        Annex I – Japanese Monthly Confectionery Sales Data: Chocolate

Data is Actual E-POS Data from selected 500 stores (constituted by General Merchandise Superstore 10.6%, Supermarket 73.7%, Mini-Supermarket
6.7%, C-store 6.7% and others 2.3%)
*PI Index = purchased quantity per 1,000 transaction count

January 2000
rank-                                                                                  sales   store   Retail Price (yen)
            Company                                                Chocolate Product   share coverage                                  PI
 ing                                                                                                   high ave low
                                                                                        (%)     (%)
 1      Nestle Macintosh       Kit Kat Mini (17pcs)                                      2.64     81.5 458 293 219                     3.14
 2      Lotte                  Lotte Toppo (2Bags)                                       2.08     95.4 150 116         88              2.27
 3      Meiji Seika            Meiji Fran Choco (3bags)                                  1.89     71.1 148 130 107                     2.73
 4      Ezaki Glico            Glico Pocky Chocolate (82g)                               1.83     95.2 150 119         95              2.01
 5      Lotte                  Bikkuriman 2000 Choco                                     1.83     37.2    60     56    50              4.98
 6      Meiji Seika            Meiji Fran White (3bags)                                  1.58     71.1 148 130 107                     2.28
 7      Meiji Seika            Meiji Milk Chocolate (50g)                                1.54     93.4 100       86    71              1.73
 8      Lotte                  Lotte Ghana Milk Chocolate (50g)                          1.31     95.4 100       87    73              1.44
 9      Morinaga               Morinaga Chocoball Peanuts                                1.27     94.5    60     53    44              1.40
 10     Bourbon                Truffle Milk Ganache (92g)                                1.04     57.9 148 106         91              1.66
 11     Lotte                  Lotte Pie-no-mi (81g)                                     1.02     94.3 150 114         83              1.12
 12     Lotte                  Lotte Kuro (black) Toppo (2Bags)                          0.99     88.8 150 116         61              1.14
 13     Lotte                  Lotte Koala-no-March                                      0.93     95.4 100       86    65              1.02
 14     Lotte                  Lotte Cruncky Chocolate                                   0.92     93.6 100       87    75              1.05
 15     Ezaki Glico            Giant Caprico Strawberry & Milk Yogurt                    0.88     86.3 100       90    75              1.05
 16     Morinaga               Morinaga Koeda Milk Chocolate (59g)                       0.87     91.5 178 118         99              0.99
 17     Denroku                Peanuts Chocolate Block (100g)                            0.87     21.8 110       98    88              3.73
 18     Morinaga               Solid Dozen Milk Chocolate (12pcs)                        0.82     91.1 100       87    74              0.92
 19     Morinaga               Morinaga Chocoball Caramel                                0.80     86.3    60     53    31              0.95
 20     Bourbon                Sepiato Fresh Cream Chocolate (95g)                       0.80     61.1 148 106         50              1.23

February 2000
rank-                                                                                  sales   store   Retail Price (yen)
            Company                                                Chocolate Product   share coverage                                  PI
 ing                                                                                                   high ave low
                                                                                        (%)     (%)
 1      Meiji Seika            Meiji Milk Chocolate (50g)                                2.60     93.3 100       85    74              3.67
 2      Nestle Macintosh       Kit Kat Mini (17pcs)                                      2.30     82.1 475 291 204                     3.39
 3      Lotte                  Lotte Ghana Milk Chocolate (50g)                          1.65     95.6 100       85    72              2.27
 4      Lotte                  Bikkuriman 2000 Choco                                     1.63     44.3    60     56    30              4.54
 5      Lotte                  Lotte Toppo (2bags)                                       1.62     95.6 149 119         98              2.23
 6      Ezaki Glico            Glico Pocky Chocolate (82g)                               1.60     95.6 150 118         88              2.20
 7      Meiji Seika            Meiji Almond (84g)                                        1.03     94.7 198 167 125                     1.42
 8      Morinaga               Morinaga Chocoball Peanuts                                0.97     94.2    60     54    45              1.35
 9      Lotte                  Lotte Cruncky Chocolate                                   0.91     93.5 100       86    75              1.31
 10     Meiji Seika            Meiji Black Chocolate (50g)                               0.88     72.5 100       87    69              1.40
 11     Morinaga               Solid Dozen Milk Chocolate (12pcs)                        0.88     91.3 100       86    69              1.24
 12     Bourbon                Truffle Milk Ganache (92g)                                0.86     55.8 148 108         98              1.75
 13     Morinaga               Morinaga Milk Chocolate limited (73g)                     0.85     34.1 180       95    68              2.70
 14     Meiji Seika            Meiji Fran Choco (3bags)                                  0.82     67.9 150 135 116                     1.59
 15     Meiji Seika            Meiji Fran White (3bags)                                  0.81     69.7 150 134 112                     1.54
 16     Lotte                  Lotte Koala-no-March                                      0.81     95.1 100       86    72              1.11
 17     Lotte                  Lotte Kuro (black) Toppo (2Bags)                          0.80     89.0 146 118         85              1.17
 18     Meiji Seika            Meiji Milk Chocolate (102g)                               0.74     58.1 295 172 126                     1.44
                                                                     36
                                 The Japanese Market for Confectionery Products                            August 2001

 19 Bourbon                Sepiato Fresh Cream Chocolate (95g)                 0.73     57.4   148   106    98    1.45
 20 Morinaga               Morinaga Milk Chocolate (65g)                       0.70     59.7    98    87    44    1.36

March 2000
rank-                                                                        sales   store   Retail Price (yen)
            Company                                      Chocolate Product   share coverage                       PI
 ing                                                                                         high ave low
                                                                              (%)     (%)
 1      Nestle Macintosh   Kit Kat Mini (17pcs)                                3.13     84.5 468 283 198          3.24
 2      Ezaki Glico        Glico Pocky Chocolate (82g)                         2.70     95.6 149 115         90   2.65
 3      Lotte              Lotte Toppo (2bags)                                 2.55     95.4 149 115         97   2.51
 4      Morinaga           Morinaga Chocoball Peanuts                          1.70     94.5    60     53    45   1.68
 5      Lotte              Lotte Koala-no-March                                1.59     95.4    98     84    62   1.57
 6      Lotte              Lotte Koala-no-March Fresh White                    1.45     73.4 100       86    75   1.81
 7      Meiji Seika        Meiji Milk Chocolate (50g)                          1.39     93.6 100       87    69   1.39
 8      Meiji Seika        Meiji Pukka Choco Snack (64g)                       1.36     93.4    98     86    73   1.36
 9      Lotte              Lotte Pie-no-mi (81g)                               1.27     94.3 150 112 100          1.27
 10     Lotte              Lotte Ghana Milk Chocolate (50g)                    1.18     95.6 100       87    74   1.16
 11     Meiji Seika        Meiji Almond (84g)                                  1.17     95.0 198 167 102          1.16
 12     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt              1.17     88.2 100       90    75   1.22
 13     Meiji Seika        Meiji Fran Choco (3bags)                            1.13     69.6 149 130         99   1.50
 14     Morinaga           Morinaga Chocoball Caramel                          1.05     87.9    60     53    44   1.09
 15     Lotte              Lotte Kuro (black) Toppo (2Bags)                    1.02     90.2 148 118         99   1.05
 16     Morinaga           Morinaga Koeda Milk Chocolate (59g)                 0.98     92.2 178 120 100          0.99
 17     Meiji Seika        Meiji Fran White (3bags)                            0.96     68.2 148 131         99   1.31
 18     Morinaga           Morinaga Chocoball Strawberry                       0.92     68.0    60     53    45   1.16
 19     Ezaki Glico        Glico Men's Pocky Chocolate (82g)                   0.90     90.7 149 121         98   0.92
 20     Meiji Seika        Meiji Macadamia (10pcs)                             0.89     85.2 198 169 133          0.95

April 2000
rank-                                                                        sales   store   Retail Price (yen)
            Company                                      Chocolate Product   share coverage                       PI
 ing                                                                                         high ave low
                                                                              (%)     (%)
 1      Lotte              Bikkuriman 2000 Choco                               6.42     80.5    60     56    45   7.16
 2      Lotte              Lotte Toppo (2bags)                                 2.84     95.6 148 114         91   2.69
 3      Nestle Macintosh   Kit Kat Mini (17pcs)                                2.74     80.5 468 287 197          2.82
 4      Ezaki Glico        Glico Pocky Chocolate (82g)                         2.38     95.6 150 118         87   2.25
 5      Meiji Seika        Meiji Milk Chocolate (50g)                          1.70     93.3 100       87    67   1.65
 6      Morinaga           Morinaga Chocoball Peanuts                          1.64     95.1    60     52    34   1.56
 7      Lotte              Lotte Koala-no-March                                1.56     94.7    98     84    54   1.48
 8      Lotte              Lotte Pie-no-mi (81g)                               1.52     94.7 150 115         93   1.46
 9      Meiji Seika        Meiji Pukka Choco Snack (64g)                       1.42     93.5 100       84    68   1.37
 10     Lotte              Lotte Koala-no-March Fresh White                    1.34     81.6 100       85    75   1.46
 11     Lotte              Lotte Kuro (black) Toppo (2Bags)                    1.27     89.7 148 115         91   1.27
 12     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt              1.27     89.0 100       90    77   1.27
 13     Lotte              Lotte Ghana Milk Chocolate (50g)                    1.22     95.6 100       88    75   1.15
 14     Morinaga           Morinaga Koeda Milk Chocolate (59g)                 1.17     91.5 178 120         94   1.14
 15     Morinaga           Morinaga Chocoball Caramel                          1.10     87.4    60     52    33   1.10
 16     Ezaki Glico        Glico Men's Pocky Chocolate (82g)                   0.97     89.9 150 123         74   0.96
 17     Meiji Seika        Meiji Almond (84g)                                  0.96     94.9 198 173 137          0.91
 18     Meiji Seika        Meiji Marble Chocolate                              0.91     92.6 100       89    74   0.87
 19     Morinaga           Morinaga Chocoball Strawberry                       0.88     69.3    60     53    45   1.06
 20     Lotte              Lotte Cruncky Chocolate                             0.85     94.2 100       88    75   0.83




                                                          37
                                 The Japanese Market for Confectionery Products                   August 2001




May 2000
rank-                                                               sales   store   Retail Price (yen)
            Company                     Chocolate Product           share coverage                       PI
 ing                                                                                high ave low
                                                                     (%)     (%)
 1      Lotte              Bikkuriman 2000 Choco                      7.79     83.9    60     57    45   7.71
 2      Lotte              Lotte Toppo (2bags)                        3.17     95.4 148 114         90   2.73
 3      Nestle Macintosh   Kit Kat Mini (17pcs)                       2.20     77.5 458 302 228          2.12
 4      Ezaki Glico        Glico Pocky Chocolate (82g)                1.93     95.6 160 118         92   1.65
 5      Lotte              Lotte Koala-no-March                       1.71     95.4    98     84    67   1.47
 6      Morinaga           Morinaga Chocoball Peanuts                 1.66     94.0    60     53    48   1.45
 7      Meiji Seika        Meiji Milk Chocolate (50g)                 1.43     93.1 100       88    54   1.26
 8      Lotte              Lotte Pie-no-mi (81g)                      1.39     95.1 150 115         82   1.21
 9      Meiji Seika        Meiji Pukka Choco Snack (64g)              1.30     92.6 100       86    68   1.13
 10     Morinaga           Morinaga Chocoball Caramel                 1.18     87.6    60     53    38   1.08
 11     Lotte              Lotte Koala-no-March Fresh White           1.16     83.4 100       85    69   1.13
 12     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt     1.15     89.2 100       91    79   1.04
 13     Meiji Seika        Meiji Almond (84g)                         1.14     94.9 198 167 140          0.99
 14     Lotte              Lotte Ghana Milk Chocolate (50g)           1.10     95.4 100       89    75   0.95
 15     Meiji Seika        Meiji Marble Chocolate                     1.06     93.5 100       89    73   0.92
 16     Lotte              Lotte Kuro (black) Toppo (2Bags)           1.03     90.3 175 119         91   0.91
 17     Morinaga           Morinaga Chocoball Strawberry              1.02     68.5    60     53    30   1.14
 18     Morinaga           Morinaga Koeda Milk Chocolate (59g)        1.01     90.6 178 121         99   0.90
 19     Meiji Seika        Meiji Fran Choco (3bags)                   0.90     64.4 148 129         99   1.14
 20     Ezaki Glico        Glico Pocky Strawberry (40g)               0.88     92.4    80     72    62   0.77

June 2000
rank-                                                               sales   store   Retail Price (yen)
            Company                     Chocolate Product           share coverage                       PI
 ing                                                                                high ave low
                                                                     (%)     (%)
 1      Lotte              Bikkuriman 2000 Choco                      8.76     85.8    60     57    45   7.10
 2      Lotte              Lotte Toppo (2bags)                        3.17     94.9 149 115         93   2.30
 3      Lotte              Lotte Pie-no-mi (81g)                      2.33     94.9 150 110         88   1.70
 4      Ezaki Glico        Glico Pocky Chocolate (82g)                1.96     96.0 151 117         88   1.41
 5      Morinaga           Morinaga Chocoball Peanuts                 1.69     94.3    60     53    45   1.24
 6      Meiji Seika        Meiji Milk Chocolate (50g)                 1.55     91.7 100       88    61   1.16
 7      Lotte              Lotte Koala-no-March                       1.50     95.2    98     84    70   1.09
 8      Lotte              Lotte Ghana Milk Chocolate (50g)           1.43     94.7 100       87    72   1.04
 9      Meiji Seika        Meiji Pukka Choco Snack (64g)              1.34     93.2 100       86    70   0.98
 10     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt     1.30     87.3 100       91    75   1.01
 11     Lotte              Lotte Kuro (black) Toppo (2Bags)           1.26     89.9 166 116         98   0.94
 12     Morinaga           Morinaga Chocoball Caramel                 1.13     85.3    60     53    41   0.88
 13     Meiji Seika        Meiji Marble Chocolate                     1.04     93.4 100       90    72   0.76
 14     Meiji Seika        Meiji Almond (84g)                         1.01     94.1 195 169 114          0.74
 15     Morinaga           Morinaga Chocoball Strawberry              1.00     65.7    60     53    40   0.96
 16     Ezaki Glico        Glico Coconuts Pocky (8pcs X 2Bags)        0.97     47.6 118 100         72   1.31
 17     Lotte              Lotte Koala-no-March Fresh White           0.97     84.2 100       85    69   0.80
 18     Lotte              Ichigo-tsumi Bar Chocolate (3pcs)          0.95     68.7    50     47    39   0.92
 19     Meiji Seika        Meiji Macadamia (10pcs)                    0.93     85.5 195 167 105          0.73
 20     Furuta Seika       Wanage Chocolate (26pcs)                   0.92     73.5    60     56    49   0.83




                                                            38
                                 The Japanese Market for Confectionery Products                   August 2001




July 2000
rank-                                                               sales   store   Retail Price (yen)
            Company                     Chocolate Product           share coverage                       PI
 ing                                                                                high ave low
                                                                     (%)     (%)
 1      Lotte              Bikkuriman 2000 Choco                      8.22     85.2    60     56    44   5.21
 2      Lotte              Lotte Toppo (2bags)                        2.96     95.0 149 116         60   1.68
 3      Ezaki Glico        Glico Pocky Chocolate (82g)                2.12     95.9 150 117         89   1.20
 4      Morinaga           Morinaga Chocoball Peanuts                 1.97     93.2    60     53    45   1.14
 5      Nestle Macintosh   Kit Kat Mini (17pcs)                       1.95     70.9 498 295 199          1.34
 6      Lotte              Lotte Pie-no-mi (81g)                      1.87     94.3 150 113         88   1.07
 7      Lotte              Lotte Koala-no-March                       1.65     95.2    98     85    67   0.93
 8      Meiji Seika        Meiji Milk Chocolate (50g)                 1.48     92.7 100       88    75   0.86
 9      Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt     1.46     87.7 100       91    80   0.88
 10     Meiji Seika        Meiji Pukka Choco Snack (64g)              1.43     88.6 100       85    66   0.85
 11     Morinaga           Morinaga Chocoball Caramel                 1.31     86.3    60     53    47   0.79
 12     Meiji Seika        Meiji Marble Chocolate                     1.26     93.2 100       89    75   0.72
 13     Morinaga           Morinaga Chocoball Strawberry              1.22     66.2    60     53    46   0.91
 14     Lotte              Lotte Ghana Milk Chocolate (50g)           1.14     93.8 100       88    50   0.65
 15     Morinaga           Kyoro-chan Chocoball                       1.10     81.8 148 130         77   0.67
 16     Lotte              Lotte Kuro (black) Toppo (2Bags)           1.09     88.4 148 118         90   0.64
 17     Meiji Seika        Meiji Almond (84g)                         1.09     93.2 195 169 114          0.62
 18     Furuta Seika       Wanage Chocolate (26pcs)                   1.06     73.4    60     57    52   0.75
 19     Lotte              Ichigo-tsumi Bar Chocolate (3pcs)          1.05     70.2    68     47    38   0.79
 20     Meiji Seika        Apolo Chocolate                            0.98     92.2 100       89    76   0.57

August 2000
rank-                                                               sales   store   Retail Price (yen)
            Company                     Chocolate Product           share coverage                       PI
 ing                                                                                high ave low
                                                                     (%)     (%)
 1      Lotte              Bikkuriman 2000 Choco                      5.81     84.9    60     56    41   3.90
 2      Lotte              Lotte Toppo (2bags)                        3.58     95.2 149 113         92   2.14
 3      Lotte              Lotte Pie-no-mi (81g)                      2.27     94.7 150 112         89   1.36
 4      Morinaga           Morinaga Chocoball Peanuts                 1.93     93.6    60     53    43   1.17
 5      Meiji Seika        Meiji Pukka Choco Snack (64g)              1.92     73.5 115       85    69   1.41
 6      Nestle Macintosh   Kit Kat Mini (17pcs)                       1.79     71.4 498 298 218          1.30
 7      Morinaga           Kyoro-chan Chocoball                       1.75     86.0 148 134         75   1.11
 8      Lotte              Lotte Koala-no-March                       1.66     95.8    98     85    69   0.99
 9      Ezaki Glico        Glico Pocky Chocolate (82g)                1.59     95.3 150 119         88   0.98
 10     Morinaga           Morinaga Chocoball Caramel                 1.42     85.6    60     53    40   0.91
 11     Meiji Seika        Meiji Milk Chocolate (50g)                 1.38     92.9 100       88    69   0.85
 12     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt     1.38     87.2 100       91    80   0.88
 13     Lotte              Lotte Kuro (black) Toppo (2Bags)           1.31     88.3 146 114         84   0.81
 14     Morinaga           Morinaga Chocoball Strawberry              1.30     68.0    60     53    45   1.00
 15     Meiji Seika        Meiji Marble Chocolate                     1.27     92.9 100       90    72   0.77
 16     Meiji Seika        Meiji Fran Choco (3bags)                   1.22     41.3 150 129         74   1.89
 17     Ezaki Glico        Glico Mousse Pocky (6sticks X 3bags)       1.21     17.1 150 129 118          3.69
 18     Lotte              Ichigo-tsumi Bar Chocolate (3pcs)          1.09     72.6    68     47    39   0.84
 19     Lotte              Lotte Ghana Milk Chocolate (50g)           1.05     93.8 100       88    50   0.64
 20     Furuta Seika       Wanage Chocolate (26pcs)                   1.03     72.8    60     56    29   0.79




                                                            39
                                 The Japanese Market for Confectionery Products                       August 2001




September 2000
rank-                                                                   sales   store   Retail Price (yen)
            Company                    Chocolate Product                share coverage                       PI
 ing                                                                                    high ave low
                                                                         (%)     (%)
 1      Meiji Seika        Meiji Fran Choco (3bags)                       4.25     93.8 150 128         87   4.19
 2      Ezaki Glico        Glico Mousse Pocky (6sticks X 3bags)           4.06     44.2 150 130 100          8.03
 3      Meiji Seika        Meiji Fran White (3bags)                       3.18     92.5 150 128         99   3.20
 4      Ezaki Glico        Glico Mousse Pocky White (6sticks X 3bags)     2.93     43.9 150 130 100          5.80
 5      Lotte              Bikkuriman 2000 Choco                          2.59     85.0    60     56    42   2.81
 6      Meiji Seika        Meiji Fran Mori-Ichigo (15pcs)                 2.45     66.6 150 127 100          3.46
 7      Ezaki Glico        Glico Pocky Chocolate (82g)                    1.92     85.0 148 122         74   2.09
 8      Nestle Macintosh   Kit Kat Mini (17pcs)                           1.86     80.2 468 288 208          1.99
 9      Lotte              Lotte Toppo (2bags)                            1.85     95.2 149 116         88   1.80
 10     Morinaga           Kyoro-chan Chocoball                           1.37     84.3 148 136         89   1.44
 11     Morinaga           Solid Dozen Milk Chocolate (12pcs)             1.22     83.6 100       87    69   1.20
 12     Morinaga           Morinaga Chocoball Peanuts                     1.22     94.3    60     53    39   1.20
 13     Meiji Seika        Meiji Milk Chocolate (50g)                     1.08     93.2 100       83    51   1.07
 14     Lotte              Lotte Ghana Milk Chocolate (50g)               0.98     94.7 100       86    50   0.96
 15     Lotte              Lotte Koala-no-March                           0.98     95.9 100       83    53   0.95
 16     Meiji Seika        Meiji Almond (84g)                             0.90     94.1 198 162 106          0.89
 17     Ezaki Glico        Glico Men's Pocky Chocolate (82g)              0.89     76.1 148 123         71   1.05
 18     Morinaga           Morinaga Chocoball Caramel                     0.88     86.3    60     53    36   0.92
 19     Lotte              Lotte VIP Chocolate Strawberry (8pcs)          0.86     40.3 150 125 100          1.76
 20     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt         0.86     87.9 100       91    73   0.88

October 2000
rank-                                                                   sales   store   Retail Price (yen)
            Company                    Chocolate Product                share coverage                       PI
 ing                                                                                    high ave low
                                                                         (%)     (%)
 1      Meiji Seika        Meiji Fran Choco (3bags)                       2.90     95.6 150 128         92   3.19
 2      Nestle Macintosh   Kit Kat Mini (17pcs)                           2.55     83.9 475 278 188          2.98
 3      Ezaki Glico        Glico Mousse Pocky (6sticks X 3bags)           2.28     43.8 150 130 107          5.11
 4      Meiji Seika        Meiji Fran White (3bags)                       2.27     95.6 150 128         89   2.50
 5      Meiji Seika        Meiji Fran Mori-Ichigo (15pcs)                 1.79     63.9 148 129         98   3.01
 6      Lotte              Lotte Toppo (2bags)                            1.78     95.6 149 114         81   1.96
 7      Lotte              Bikkuriman 2000 Choco                          1.69     84.1    60     57    42   2.10
 8      Morinaga           Petit Mont Blanc (12pcs)                       1.67     89.6 200 169 129          2.00
 9      Ezaki Glico        Glico Mousse Pocky White (6sticks X 3bags)     1.53     44.5 150 130 113          3.40
 10     Ezaki Glico        Glico Pocky Chocolate (82g)                    1.31     89.4 148 120         74   1.57
 11     Morinaga           Kyoro-chan Chocoball                           1.10     80.2 148 137         61   1.35
 12     Morinaga           Morinaga Chocoball Peanuts                     1.06     94.2    60     53    43   1.18
 13     Lotte              Lotte Almond Chocolate (108g)                  1.06     65.6 198 171         92   1.71
 14     Morinaga           Solid Dozen Milk Chocolate (12pcs)             0.98     94.5    98     85    69   1.09
 15     Meiji Seika        Meiji Milk Chocolate (50g)                     0.94     94.5 100       86    53   1.05
 16     Bourbon            Truffle Milk Ganache (92g)                     0.91     59.4 148 104         89   1.57
 17     Meiji Seika        Black Precious Cacao (54g)                     0.85     85.7 188 127         82   1.04
 18     Lotte              Lotte Koala-no-March                           0.84     95.4 100       84    68   0.92
 19     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt         0.84     88.7 100       90    47   0.97
 20     Lotte              Lotte Ghana Milk Chocolate (50g)               0.81     95.1 100       87    57   0.89




                                                           40
                                 The Japanese Market for Confectionery Products                   August 2001




November 2000
rank-                                                               sales   store   Retail Price (yen)
            Company                    Chocolate Product            share coverage                       PI
 ing                                                                                high ave low
                                                                     (%)     (%)
 1      Lotte              Bikkuriman 2000 Choco                      2.68     42.2    60     56    50   6.79
 2      Nestle Macintosh   Kit Kat Mini (17pcs)                       2.63     83.4 450 287 200          3.15
 3      Ezaki Glico        Glico Pocky Chocolate (82g)                2.13     95.6 150 117         90   2.36
 4      Lotte              Lotte Toppo (2bags)                        1.98     95.6 150 116         94   2.20
 5      Ezaki Glico        Glico Fuyuno-Kuchidoke Pocky (8pcsX4)      1.37     69.7 178 164         75   1.97
 6      Lotte              Lotte Kuro (black) Toppo (2Bags)           1.32     90.2 150 121         91   1.53
 7      Morinaga           Morinaga Chocoball Peanuts                 1.13     94.5    60     54    45   1.26
 8      Meiji Seika        Meiji Milk Chocolate (50g)                 1.10     93.8 100       87    60   1.24
 9      Meiji Seika        Meiji Fran Choco (3bags)                   1.09     50.0 148 129 110          2.36
 10     Meiji Seika        Ginza Sweet Fresh Chocolate (18pcs)        0.94     76.1 298 270 198          1.24
 11     Lotte              Lotte Ghana Milk Chocolate (50g)           0.92     95.9 100       87    60   1.02
 12     Morinaga           Morinaga Milk Chocolate (73g)              0.92     31.8 103       96    61   2.64
 13     Lotte              Lotte Koala-no-March                       0.91     95.4 100       84    58   1.01
 14     Meiji Seika        Meiji Fran White (3bags)                   0.88     50.0 148 130 112          1.91
 15     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt     0.86     88.4 100       90    75   1.02
 16     Ezaki Glico        Glico Men's Pocky Chocolate (82g)          0.84     90.2 150 120         75   0.97
 17     Lotte              Lotte Pie-no-mi (81g)                      0.82     94.0 150 115         85   0.92
 18     Bourbon            Truffle Milk Ganache (92g)                 0.81     55.6 148 108         50   1.40
 19     Lotte              Lotte Shasa White Mesh (73g)               0.79     88.8 200 164 101          0.93
 20     Morinaga           Morinaga Koeda Milk Chocolate (59g)        0.79     92.0 178 116         85   0.90

December 2000
rank-                                                               sales   store   Retail Price (yen)
            Company                    Chocolate Product            share coverage                       PI
 ing                                                                                high ave low
                                                                     (%)     (%)
 1      Nestle Macintosh   Kit Kat Mini (17pcs)                       3.22     84.1 458 287 217          3.57
 2      Lotte              Bikkuriman 2000 Choco                      2.61     38.5    60     56    50   6.64
 3      Ezaki Glico        Glico Pocky Chocolate (82g)                2.16     95.1 150 118         96   2.24
 4      Lotte              Lotte Toppo (2bags)                        2.03     95.1 150 117 100          2.11
 5      Meiji Seika        Meiji Milk Chocolate (50g)                 1.40     92.7 100       87    71   1.50
 6      Morinaga           Morinaga Chocoball Peanuts                 1.21     93.9    60     54    45   1.27
 7      Ezaki Glico        Glico Fuyuno-Kuchidoke Pocky (8pcsX4)      1.18     62.4 184 162         75   1.83
 8      Lotte              Lotte Kuro (black) Toppo (2Bags)           1.15     90.6 150 117         96   1.25
 9      Bourbon            Truffle Milk Ganache (92g)                 1.09     59.5 148 107         97   1.62
 10     Lotte              Lotte Ghana Milk Chocolate (50g)           1.01     95.4 100       88    58   1.05
 11     Bourbon            Sepiato Fresh Cream Chocolate (95g)        0.99     60.7 148 105         60   1.45
 12     Lotte              Lotte Pie-no-mi (81g)                      0.98     93.7 150 115         96   1.04
 13     Meiji Seika        Meiji Fran Choco (3bags)                   0.90     48.1 148 127 103          1.97
 14     Lotte              Lotte Koala-no-March                       0.89     94.7 100       85    64   0.92
 15     Ezaki Glico        Giant Caprico Strawberry & Milk Yogurt     0.89     86.9 100       90    75   1.00
 16     Meiji Seika        Meiji Almond (84g)                         0.84     93.9 200 162 100          0.88
 17     Lotte              Lotte Cruncky Chocolate                    0.77     92.7 100       88    62   0.84
 18     Meiji Seika        Meiji Fran White (3bags)                   0.77     47.9 148 127 101          1.69
 19     Morinaga           Morinaga Chocoball Caramel                 0.76     85.7    60     54    45   0.85
 20     Ezaki Glico        Glico Men's Pocky Chocolate (82g)          0.73     88.6 150 124         98   0.80




                                                           41
                                       The Japanese Market for Confectionery Products                                          August 2001


  Annex II – Japanese Monthly Confectionery Sales Data: Chewing Gum

Data is Actual E-POS Data from selected 500 stores (constituted by General Merchandise Superstore 10.6%, Supermarket 73.7%, Mini-Supermarket
6.7%, C-store 6.7% and others 2.3%)
*PI Index = purchased quantity per 1,000 transaction count

January 2000
rank-                                                                                    sales   store   Retail Price (yen)
           Company                          Chewing Gum Product                          share coverage                                 PI
 ing                                                                                                     high ave low
                                                                                          (%)     (%)
 1      Lotte              Lotte Xylitol Gum Lime Mint (14grains)                          7.52     98.1 120 109         88             2.48
 2      Lotte              Lotte Green Gum (9pcs)                                          3.55     98.1 100       90    75             1.17
 3      Lotte              Lotte Xylitol Gum Cool Herb (8 pcs)                             3.27     92.7 120 110         70             1.11
 4      Lotte              Lotte Cool Mint Gum (9 pcs)                                     2.85     97.5 100       90    75             0.94
 5      Lotte              Lotte Black Black Gum (9 pcs)                                   2.63     95.9 100       90    75             0.89
 6      Lotte              Lotte Flavono Gum (9 pcs)                                       2.52     95.9 100       91    75             0.84
 7      Lotte              Lotte Doraemon Bubble Gum (5pcs)                                2.19     77.7    50     47    38             0.83
 8      Lotte              Lotte Xylitol Gum Lime Mint (14grains X 3)                      2.16     62.2 348 310 250                    0.92
 9      Lotte              Lotte Mint Blue Gum (9 pcs)                                     2.13     96.1 100       91    75             0.72
 10     Lotte              Lotte Blueberry Gum (9pcs)                                      2.02     96.3 100       91    75             0.67
 11     Lotte              Lotte Xylitol Gum Fresh Mint (14grains)                         1.98     74.0 120 110         88             0.81
 12     Meiji Seika        Meiji Petit Gum (50g)                                           1.87     73.8 100       91    75             0.73
 13     Meiji Seika        Meiji Xylish Gum (12 grains)                                    1.87     62.2    98     89    46             0.94
 14     Lotte              Lotte Flavono Sugarless Gum (14 grains)                         1.83     90.4 100       91    75             0.65
 15     Lotte              Lotte Ume (Plum) Gum Stick (9pcs)                               1.78     93.8 100       91    75             0.61
 16     Lotte              Lotte No-time Hamigaki (toothpaste) Gum (7pcs)                  1.69     87.0 100       91    75             0.62
 17     Lotte              Lotte Fusen-no-mi Blueberry Gum (50g)                           1.52     79.0 100       91    78             0.59
 18     Lotte              Lotte La France Gum (9pcs)                                      1.49     90.6 100       91    60             0.52
 19     Lotte              Lotte Sweetie Gum (9pcs)                                        1.48     87.7 100       91    75             0.55
 20     Lotte              Lotte Green Gum Sugarless (9pcs)                                1.48     87.7 100       91    75             0.56

February 2000
rank-                                                                                    sales   store   Retail Price (yen)
           Company                          Chewing Gum Product                          share coverage                                 PI
 ing                                                                                                     high ave low
                                                                                          (%)     (%)
 1      Lotte              Lotte Xylitol Gum Lime Mint (14grains)                          6.67     97.7 120 108         88             2.18
 2      Lotte              Lotte Green Gum (9pcs)                                          3.52     97.7 100       90    66             1.16
 3      Lotte              Lotte Xylitol Gum Fresh Mint (14grains)                         3.17     84.4 120 110         68             1.14
 4      Lotte              Lotte Xylitol Gum Cool Herb (8 pcs)                             3.06     93.1 120 109         70             1.03
 5      Lotte              Lotte Cool Mint Gum (9 pcs)                                     2.82     97.2 100       89    69             0.93
 6      Lotte              Lotte Black Black Gum (9 pcs)                                   2.60     94.7 100       90    75             0.88
 7      Lotte              Lotte Flavono Gum (9 pcs)                                       2.46     95.1    98     90    75             0.82
 8      Meiji Seika        Meiji Xylish Gum (12 grains)                                    2.40     82.1 115       88    45             0.91
 9      Lotte              Lotte Doraemon Bubble Gum (5pcs)                                2.31     78.2    50     47    38             0.85
 10     Lotte              Lotte Mint Blue Gum (9 pcs)                                     2.10     96.1 100       90    67             0.71
 11     Lotte              Lotte Xylitol Gum Lime Mint (14grains X 3)                      1.99     64.7 364 309 245                    0.82
 12     Lotte              Lotte Blueberry Gum (9pcs)                                      1.97     95.6 100       90    69             0.65
 13     Meiji Seika        Meiji Petit Gum (50g)                                           1.97     77.8 100       91    75             0.74
 14     Lotte              Lotte No-time Hamigaki (toothpaste) Gum (7pcs)                  1.73     86.4 100       91    75             0.63
 15     Lotte              Lotte Ume (Plum) Gum Stick (9pcs)                               1.73     93.5 100       91    75             0.58
 16     Lotte              Lotte Flavono Sugarless Gum (14 grains)                         1.69     90.6 100       91    75             0.60
 17     Lotte              Lotte Fusen-no-mi Blueberry Gum (50g)                           1.51     78.4 100       91    75             0.58
 18     Lotte              Lotte Freezone Lemon (9pcs)                                     1.46     75.9 100       91    75             0.59
 19     Lotte              Lotte Green Gum Sugarless (9pcs)                                1.37     86.5 100       91    75             0.52
 20     Lotte              Lotte Sweetie Gum (9pcs)                                        1.36     87.6 100       91    75             0.51

                                                                     42
                                The Japanese Market for Confectionery Products                       August 2001



March 2000
rank-                                                                   sales   store   Retail Price (yen)
           Company                  Chewing Gum Product                 share coverage                       PI
 ing                                                                                    high ave low
                                                                         (%)     (%)
 1      Lotte          Lotte Xylitol Gum Lime Mint (14grains)             6.24     97.0 120 108         88   2.03
 2      Lotte          Lotte Green Gum (9pcs)                             3.81     97.7 100       90    68   1.24
 3      Lotte          Lotte Cool Mint Gum (9 pcs)                        3.06     97.0 100       90    75   1.00
 4      Lotte          Lotte Xylitol Gum Cool Herb (8 pcs)                2.81     93.4 120 110         90   0.94
 5      Lotte          Lotte Xylitol Gum Fresh Mint (14grains)            2.72     88.2 120 110         86   0.94
 6      Lotte          Lotte Black Black Gum (9 pcs)                      2.61     95.0 100       90    75   0.87
 7      Meiji Seika    Meiji Petit Gum (50g)                              2.46     78.9 100       90    75   0.92
 8      Lotte          Lotte Doraemon Bubble Gum (5pcs)                   2.46     78.2    50     47    38   0.90
 9      Meiji Seika    Meiji Xylish Gum (12 grains)                       2.40     85.4 114       89    75   0.85
 10     Lotte          Lotte Mint Blue Gum (9 pcs)                        2.36     96.1 100       90    69   0.79
 11     Lotte          Lotte Flavono Gum (9 pcs)                          2.34     95.0    98     91    75   0.77
 12     Lotte          Lotte Blueberry Gum (9pcs)                         2.00     96.1 100       90    67   0.65
 13     Lotte          Lotte Xylitol Gum Lime Mint (14grains X 3)         1.88     65.5 378 309 250          0.77
 14     Lotte          Lotte Fusen-no-mi Blueberry Gum (50g)              1.82     81.1 100       91    77   0.67
 15     Lotte          Lotte Ume (Plum) Gum Stick (9pcs)                  1.74     94.5 100       91    75   0.58
 16     Lotte          Lotte Flavono Sugarless Gum (14 grains)            1.65     89.5 100       91    71   0.60
 17     Lotte          Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.65     88.2 100       91    60   0.58
 18     Lotte          Lotte Sweetie Gum (9pcs)                           1.44     87.5 100       91    75   0.52
 19     Ezaki Glico    Uranaikko Bubble Gum muscat (6pcs)                 1.43     46.0    58     47    32   0.92
 20     Lotte          Lotte Green Gum Sugarless (14pcs)                  1.42     86.8 100       91    75   0.53

April 2000
rank-                                                                   sales   store   Retail Price (yen)
           Company                  Chewing Gum Product                 share coverage                       PI
 ing                                                                                    high ave low
                                                                         (%)     (%)
 1      Lotte          Lotte Xylitol Gum Lime Mint (14grains)             5.67     97.9 120 108         88   1.98
 2      Lotte          Lotte Green Gum (9pcs)                             3.65     97.9 100       90    72   1.28
 3      Lotte          Lotte Cool Mint Gum (9 pcs)                        2.89     97.2 100       90    72   1.01
 4      Lotte          Lotte Xylitol Gum Cool Herb (8 pcs)                2.65     93.5 120 109         90   0.95
 5      Lotte          Lotte Xylitol Gum Fresh Mint (14grains)            2.57     91.3 120 109         87   0.93
 6      Lotte          Lotte Black Black Gum (9 pcs)                      2.48     95.4 100       90    75   0.89
 7      Lotte          Lotte Flavono Gum (9 pcs)                          2.37     94.9    98     90    74   0.84
 8      Meiji Seika    Meiji Xylish Gum (12 grains)                       2.36     86.9    98     88    75   0.88
 9      Meiji Seika    Meiji Petit Gum (50g)                              2.29     79.6 100       90    64   0.90
 10     Lotte          Lotte Mint Blue Gum (9 pcs)                        2.17     95.8 100       90    70   0.78
 11     Lotte          Lotte Doraemon Bubble Gum (5pcs)                   2.15     78.7    50     47    38   0.84
 12     Lotte          Lotte Blueberry Gum (9pcs)                         1.78     96.5 100       91    75   0.63
 13     Lotte          Lotte Xylitol Gum Lime Mint (14grains X 3)         1.77     65.2 378 308 238          0.78
 14     Lotte          Lotte Fusen-no-mi Blueberry Gum (50g)              1.69     80.5 100       91    78   0.67
 15     Lotte          Lotte Flavono Sugarless Gum (14 grains)            1.61     88.5 100       91    68   0.63
 16     Lotte          Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.61     89.4 100       91    45   0.60
 17     Lotte          Lotte Freezone Hi-mint (9pcs)                      1.60     86.2 100       91    75   0.61
 18     Lotte          Lotte Ume (Plum) Gum Stick (9pcs)                  1.57     94.5 100       91    75   0.56
 19     Kanebo Foods   Super Soda Gum (5grains)                           1.47     53.0    70     66    56   0.85
 20     Lotte          Lotte Freezone Lemon (9pcs)                        1.47     80.5 100       91    75   0.59




                                                        43
                                 The Japanese Market for Confectionery Products                       August 2001



May 2000
rank-                                                                    sales   store   Retail Price (yen)
           Company                   Chewing Gum Product                 share coverage                       PI
 ing                                                                                     high ave low
                                                                          (%)     (%)
 1      Lotte           Lotte Xylitol Gum Lime Mint (14grains)             5.96     97.7 120 109         88   2.03
 2      Lotte           Lotte Green Gum (9pcs)                             3.71     97.7 100       90    70   1.27
 3      Lotte           Lotte Cool Mint Gum (9 pcs)                        2.81     97.2 100       90    70   0.96
 4      Lotte           Lotte Black Black Gum (9 pcs)                      2.69     95.4 100       91    75   0.94
 5      Lotte           Lotte Xylitol Gum Cool Herb (8 pcs)                2.63     93.3 120 110         90   0.93
 6      Lotte           Lotte Xylitol Gum Fresh Mint (14grains)            2.57     91.7 120 110         88   0.91
 7      Lotte           Lotte Flavono Gum (9 pcs)                          2.38     95.1    98     91    75   0.82
 8      Meiji Seika     Meiji Xylish Gum (12 grains)                       2.32     87.1    98     89    47   0.85
 9      Meiji Seika     Meiji Petit Gum (50g)                              2.25     79.5 100       90    45   0.87
 10     Lotte           Lotte Mint Blue Gum (9 pcs)                        2.19     96.3 100       91    75   0.77
 11     Lotte           Lotte Doraemon Bubble Gum (5pcs)                   1.88     78.2    58     47    38   0.72
 12     Lotte           Lotte Xylitol Gum Lime Mint (14grains X 3)         1.78     65.6 378 307 238          0.77
 13     Lotte           Lotte Blueberry Gum (9pcs)                         1.77     96.3 100       91    75   0.61
 14     Lotte           Lotte Fusen-no-mi Blueberry Gum (50g)              1.70     80.0 100       91    78   0.66
 15     Lotte           Lotte Freezone Hi-mint (9pcs)                      1.68     86.9 100       91    75   0.62
 16     Lotte           Lotte Flavono Sugarless Gum (14 grains)            1.61     88.3 100       91    57   0.61
 17     Lotte           Lotte Freezone Lemon (9pcs)                        1.59     81.6 100       90    59   0.62
 18     Lotte           Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.56     87.3 100       91    75   0.58
 19     Lotte           Lotte Ume (Plum) Gum Stick (9pcs)                  1.53     93.8 100       91    75   0.54
 20     Ezaki Glico     Uranaikko Bubble Gum muscat (6pcs)                 1.48     46.3    58     47    38   0.97

June 2000
rank-                                                                    sales   store   Retail Price (yen)
           Company                   Chewing Gum Product                 share coverage                       PI
 ing                                                                                     high ave low
                                                                          (%)     (%)
 1      Lotte           Lotte Xylitol Gum Lime Mint (14grains)             5.82     97.8 120 109         88   1.87
 2      Lotte           Lotte Green Gum (9pcs)                             3.38     97.3 100       90    75   1.09
 3      Lotte           Lotte Xylitol Gum Fresh Mint (14grains)            2.89     92.5 120 108         79   0.96
 4      Waner-Lambert   Recaldent mint (14 grains)                         2.82     77.0 120 107         85   1.09
 5      Lotte           Lotte Xylitol Gum Cool Herb (8 pcs)                2.74     93.0 120 109         86   0.91
 6      Lotte           Lotte Black Black Gum (9 pcs)                      2.70     95.4 100       90    71   0.89
 7      Lotte           Lotte Cool Mint Gum (9 pcs)                        2.66     96.5 100       90    63   0.86
 8      Meiji Seika     Meiji Xylish Gum (12 grains)                       2.36     86.5    98     89    64   0.82
 9      Lotte           Lotte Flavono Gum (9 pcs)                          2.30     94.7    98     91    59   0.75
 10     Meiji Seika     Meiji Petit Gum (50g)                              2.14     79.6 100       90    77   0.77
 11     Lotte           Lotte Xylitol Gum Lime Mint (14grains X 3)         2.07     67.0 378 306 238          0.82
 12     Lotte           Lotte Mint Blue Gum (9 pcs)                        2.01     95.6 100       91    70   0.67
 13     Lotte           Lotte Doraemon Bubble Gum (5pcs)                   1.72     75.7    58     47    38   0.64
 14     Lotte           Lotte Freezone Hi-mint (9pcs)                      1.65     86.2 100       91    75   0.57
 15     Lotte           Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.62     86.6 100       90    55   0.58
 16     Lotte           Lotte Fusen-no-mi Blueberry Gum (50g)              1.60     82.3 100       91    78   0.58
 17     Lotte           Lotte Blueberry Gum (9pcs)                         1.58     96.2 100       91    59   0.51
 18     Lotte           Lotte Freezone Lemon (9pcs)                        1.57     79.6 100       91    74   0.59
 19     Lotte           Lotte Flavono Sugarless Gum (14 grains)            1.57     86.6 100       91    65   0.57
 20     Lotte           Lotte Green Gum Sugarless (14pcs)                  1.42     86.0 100       90    64   0.53




                                                         44
                                 The Japanese Market for Confectionery Products                       August 2001



July 2000
rank-                                                                    sales   store   Retail Price (yen)
           Company                   Chewing Gum Product                 share coverage                       PI
 ing                                                                                     high ave low
                                                                          (%)     (%)
 1      Lotte           Lotte Xylitol Gum Lime Mint (14grains)             5.77     97.5 120 109         88   1.63
 2      Lotte           Lotte Green Gum (9pcs)                             3.37     97.0 100       91    72   0.96
 3      Lotte           Lotte Black Black Gum (9 pcs)                      3.03     94.7 100       90    62   0.89
 4      Lotte           Lotte Xylitol Gum Fresh Mint (14grains)            2.83     93.4 120 109         88   0.82
 5      Meiji Seika     Meiji Petit Gum (50g)                              2.75     78.4 100       90    78   0.88
 6      Lotte           Lotte Cool Mint Gum (9 pcs)                        2.68     96.8 100       91    75   0.76
 7      Lotte           Lotte Xylitol Gum Cool Herb (8 pcs)                2.64     92.7 120 110         96   0.77
 8      Lotte           Lotte Flavono Gum (9 pcs)                          2.34     93.6    98     91    75   0.67
 9      Lotte           Lotte Fusen-no-mi Blueberry Gum (50g)              2.26     81.8 100       91    78   0.73
 10     Lotte           Lotte Mint Blue Gum (9 pcs)                        2.22     95.4 100       90    58   0.65
 11     Meiji Seika     Meiji Xylish Gum (12 grains)                       2.15     86.8    98     90    58   0.65
 12     Waner-Lambert   Recaldent mint (14 grains)                         2.10     79.1 120 106         85   0.70
 13     Lotte           Lotte Xylitol Gum Lime Mint (14grains X 3)         1.85     65.9 378 308 238          0.66
 14     Lotte           Lotte Doraemon Bubble Gum (5pcs)                   1.83     77.3    58     47    38   0.59
 15     Lotte           Lotte Blueberry Gum (9pcs)                         1.63     95.4 100       91    75   0.47
 16     Lotte           Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.61     86.1 100       91    64   0.51
 17     Lotte           Lotte Freezone Hi-mint (9pcs)                      1.60     82.5 100       91    75   0.50
 18     Ezaki Glico     Uranaikko Bubble Gum muscat (6pcs)                 1.56     44.6    58     47    39   0.85
 19     Lotte           Lotte Freezone Lemon (9pcs)                        1.53     79.5 100       91    75   0.50
 20     Lotte           Lotte Ume (Plum) Gum Stick (9pcs)                  1.48     92.5 100       91    73   0.44

August 2000
rank-                                                                    sales   store   Retail Price (yen)
           Company                   Chewing Gum Product                 share coverage                       PI
 ing                                                                                     high ave low
                                                                          (%)     (%)
 1      Lotte           Lotte Xylitol Gum Lime Mint (14grains)             5.22     97.7 120 110         88   1.57
 2      Lotte           Lotte Black Black Gum (9 pcs)                      3.24     95.6 100       90    65   1.00
 3      Lotte           Lotte Green Gum (9pcs)                             3.22     97.2 100       90    63   0.97
 4      Meiji Seika     Meiji Petit Gum (50g)                              2.74     77.8 100       90    77   0.94
 5      Lotte           Lotte Xylitol Gum Fresh Mint (14grains)            2.60     93.6 120 109         79   0.80
 6      Lotte           Lotte Cool Mint Gum (9 pcs)                        2.56     96.3 100       91    75   0.78
 7      Lotte           Lotte Xylitol Gum Cool Herb (8 pcs)                2.39     93.6 120 109         96   0.74
 8      Lotte           Lotte Fusen-no-mi Blueberry Gum (50g)              2.19     81.5 100       90    78   0.75
 9      Lotte           Lotte Flavono Gum (9 pcs)                          2.12     94.2    98     91    62   0.65
 10     Meiji Seika     Meiji Xylish Gum (12 grains)                       2.08     85.6    98     89    50   0.68
 11     Lotte           Lotte Ume (Plum) Gum Sugarless (14pcs)             1.98     79.9 100       89    49   0.72
 12     Lotte           Lotte Mint Blue Gum (9 pcs)                        1.97     94.0 100       91    59   0.63
 13     Lotte           Lotte Doraemon Bubble Gum (5pcs)                   1.81     76.7    50     47    35   0.63
 14     Waner-Lambert   Recaldent mint (14 grains)                         1.80     79.4 120 108         68   0.64
 15     Ezaki Glico     Uranaikko Bubble Gum muscat (6pcs)                 1.71     46.1    58     47    40   0.98
 16     Lotte           Lotte Xylitol Gum Lime Mint (14grains X 3)         1.64     65.6 348 309 262          0.62
 17     Lotte           Lotte Blueberry Gum (9pcs)                         1.61     94.5 100       91    72   0.50
 18     Lotte           Lotte Freezone Hi-mint (9pcs)                      1.46     82.6 100       91    70   0.48
 19     Lotte           Lotte Ume (Plum) Gum Stick (9pcs)                  1.45     90.8 100       91    67   0.47
 20     Lotte           Lotte Flavono Sugarless Gum (14 pcs)               1.44     75.8 100       89    51   0.55




                                                           45
                                 The Japanese Market for Confectionery Products                       August 2001



September 2000
rank-                                                                    sales   store   Retail Price (yen)
           Company                   Chewing Gum Product                 share coverage                       PI
 ing                                                                                     high ave low
                                                                          (%)     (%)
 1      Lotte           Lotte Xylitol Gum Lime Mint (14grains)             5.70     97.7 120 109         88   1.70
 2      Lotte           Lotte Green Gum (9pcs)                             3.41     97.5 100       90    68   1.02
 3      Lotte           Lotte Black Black Gum (9 pcs)                      2.98     95.4 100       90    66   0.92
 4      Lotte           Lotte Xylitol Gum Cool Herb (8 pcs)                2.61     94.1 120 109         69   0.80
 5      Lotte           Lotte Xylitol Gum Fresh Mint (14grains)            2.58     93.6 120 109         77   0.79
 6      Lotte           Lotte Cool Mint Gum (9 pcs)                        2.58     97.2 100       90    69   0.77
 7      Meiji Seika     Meiji Petit Gum (50g)                              2.42     78.2 100       89    69   0.82
 8      Lotte           Lotte Flavono Gum (9 pcs)                          2.31     94.5 100       90    69   0.71
 9      Meiji Seika     Meiji Xylish Gum (12 grains)                       2.00     86.1    99     90    57   0.65
 10     Lotte           Lotte Fusen-no-mi Blueberry Gum (50g)              1.89     81.8 100       90    78   0.64
 11     Lotte           Lotte Doraemon Bubble Gum (5pcs)                   1.87     77.7    50     47    38   0.64
 12     Lotte           Lotte Mint Blue Gum (9 pcs)                        1.87     94.5 100       91    62   0.59
 13     Lotte           Lotte Flavono Sugarless Gum (14 pcs)               1.78     78.9 100       90    48   0.66
 14     Lotte           Lotte Xylitol Gum Lime Mint (14grains X 3)         1.74     65.3 348 309 149          0.66
 15     Lotte           Lotte Green Gum Sugarless (14pcs)                  1.67     80.0    98     90    54   0.61
 16     Waner-Lambert   Recaldent mint (14 grains)                         1.63     78.9 120 107         65   0.58
 17     Ezaki Glico     Uranaikko Bubble Gum muscat (6pcs)                 1.60     48.5    58     47    27   0.84
 18     Lotte           Lotte Cool Mint Sugarless Gum (14 grains)          1.59     78.0    98     90    54   0.59
 19     Lotte           Lotte Freezone Hi-mint (9pcs)                      1.56     81.4 100       90    75   0.52
 20     Lotte           Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.49     86.6 100       91    75   0.50

October 2000
rank-                                                                    sales   store   Retail Price (yen)
           Company                   Chewing Gum Product                 share coverage                       PI
 ing                                                                                     high ave low
                                                                          (%)     (%)
 1      Lotte           Lotte Xylitol Gum Lime Mint (14grains)             5.86     97.9 120 109         88   1.83
 2      Lotte           Lotte Green Gum (9pcs)                             3.60     97.4 100       90    70   1.13
 3      Lotte           Lotte Black Black Gum (9 pcs)                      3.05     95.4 100       90    66   0.98
 4      Lotte           Lotte Xylitol Gum Fresh Mint (14grains)            2.74     93.8 120 109         72   0.88
 5      Lotte           Lotte Xylitol Gum Cool Herb (8 pcs)                2.71     94.9 120 109         79   0.86
 6      Lotte           Lotte Cool Mint Gum (9 pcs)                        2.63     97.2 100       90    62   0.82
 7      Lotte           Lotte Flavono Gum (9 pcs)                          2.33     95.1 100       91    73   0.74
 8      Meiji Seika     Meiji Petit Gum (50g)                              2.19     76.6 100       90    45   0.79
 9      Meiji Seika     Meiji Xylish Gum (12 grains)                       1.96     85.0 100       89    47   0.67
 10     Lotte           Lotte Doraemon Bubble Gum (5pcs)                   1.94     77.7    50     46    26   0.70
 11     Lotte           Lotte Mint Blue Gum (9 pcs)                        1.87     94.9 100       90    67   0.61
 12     Lotte           Lotte Xylitol Gum Lime Mint (14grains X 3)         1.83     66.7 348 309 251          0.72
 13     Lotte           Lotte Flavono Sugarless Gum (14 pcs)               1.81     81.4 100       90    50   0.68
 14     Lotte           Lotte Green Gum Sugarless (14pcs)                  1.77     80.9 100       90    58   0.69
 15     Lotte           Lotte Fusen-no-mi Blueberry Gum (50g)              1.67     80.9 100       91    78   0.60
 16     Lotte           Lotte Cool Mint Sugarless Gum (14 grains)          1.64     79.3    98     90    59   0.64
 17     Lotte           Lotte Freezone Hi-mint (9pcs)                      1.61     82.8 100       91    59   0.56
 18     Lotte           Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.57     87.6 100       90    56   0.55
 19     Ezaki Glico     Uranaikko Bubble Gum muscat (6pcs)                 1.55     46.5    92     47    35   0.87
 20     Lotte           Babino Gum (9pcs)                                  1.46     86.2 100       91    60   0.50




                                                         46
                               The Japanese Market for Confectionery Products                       August 2001



November 2000
rank-                                                                  sales   store   Retail Price (yen)
           Company                 Chewing Gum Product                 share coverage                       PI
 ing                                                                                   high ave low
                                                                        (%)     (%)
 1      Lotte         Lotte Xylitol Gum Lime Mint (14grains)             7.27     97.9 120 109         87   2.38
 2      Lotte         Lotte Green Gum (9pcs)                             3.42     98.1 100       91    75   1.12
 3      Lotte         Lotte Xylitol Gum Cool Herb (8 pcs)                3.33     94.0 120 109         70   1.11
 4      Lotte         Lotte Cool Mint Gum (9 pcs)                        2.77     97.7 100       91    75   0.91
 5      Lotte         Lotte Black Black Gum (9 pcs)                      2.65     95.4 100       91    75   0.89
 6      Lotte         Lotte Flavono Gum (9 pcs)                          2.48     96.3 100       91    75   0.82
 7      Lotte         Lotte Xylitol Gum Lime Mint (14grains X 3)         2.11     62.5 348 309 258          0.90
 8      Lotte         Lotte Mint Blue Gum (9 pcs)                        2.02     97.0 100       91    75   0.68
 9      Meiji Seika   Meiji Xylish Gum (12 grains)                       1.92     64.0    98     89    46   0.93
 10     Lotte         Lotte Flavono Sugarless Gum (14 pcs)               1.84     90.6 100       91    75   0.66
 11     Lotte         Lotte Doraemon Bubble Gum (5pcs)                   1.82     78.4    50     47    38   0.69
 12     Meiji Seika   Meiji Petit Gum (50g)                              1.79     74.5 100       90    45   0.69
 13     Lotte         Lotte Blueberry Gum (9pcs)                         1.68     95.4 100       91    75   0.55
 14     Lotte         Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.67     87.9 100       91    75   0.60
 15     Lotte         Lotte Green Gum Sugarless (14pcs)                  1.53     87.9 100       91    75   0.57
 16     Lotte         Lotte Fusen-no-mi Blueberry Gum (50g)              1.51     79.7 100       91    78   0.59
 17     Lotte         Lotte Ume (Plum) Gum Stick (9pcs)                  1.50     94.5 100       91    75   0.50
 18     Lotte         Lotte Freezone Lemon (9pcs)                        1.31     64.5 100       91    75   0.60
 19     Lotte         Lotte La France Gum (9pcs)                         1.30     90.6 100       91    60   0.45
 20     Lotte         Lotte Sweetie Gum (9pcs)                           1.24     88.4 100       91    73   0.45

December 2000
rank-                                                                  sales   store   Retail Price (yen)
           Company                 Chewing Gum Product                 share coverage                       PI
 ing                                                                                   high ave low
                                                                        (%)     (%)
 1      Lotte         Lotte Xylitol Gum Lime Mint (14grains)             7.50     97.5 120 110         96   2.31
 2      Lotte         Lotte Green Gum (9pcs)                             3.39     97.8 100       90    72   1.04
 3      Lotte         Lotte Xylitol Gum Cool Herb (8 pcs)                3.33     92.7 120 110         70   1.06
 4      Lotte         Lotte Cool Mint Gum (9 pcs)                        2.66     97.5 100       90    69   0.82
 5      Lotte         Lotte Black Black Gum (9 pcs)                      2.55     94.9 100       90    77   0.81
 6      Lotte         Lotte Flavono Gum (9 pcs)                          2.45     94.7 100       91    75   0.77
 7      Lotte         Lotte Xylitol Gum Lime Mint (14grains X 3)         2.25     60.0 348 307 260          0.92
 8      Lotte         Lotte Doraemon Bubble Gum (5pcs)                   2.12     76.6    50     47    40   0.76
 9      Meiji Seika   Meiji Xylish Gum (12 grains)                       2.02     65.5    98     90    45   0.88
 10     Lotte         Lotte Mint Blue Gum (9 pcs)                        1.99     96.3 100       91    69   0.63
 11     Lotte         Lotte Blueberry Gum (9pcs)                         1.89     95.4 100       91    72   0.59
 12     Meiji Seika   Meiji Petit Gum (50g)                              1.85     73.0 100       91    75   0.67
 13     Lotte         Lotte Flavono Sugarless Gum (14 pcs)               1.84     89.4 100       91    70   0.63
 14     Lotte         Lotte No-time Hamigaki (toothpaste) Gum (7pcs)     1.72     86.0 100       91    77   0.58
 15     Lotte         Lotte Ume (Plum) Gum Stick (9pcs)                  1.64     93.0 100       91    73   0.52
 16     Lotte         Lotte Xylitol Gum Fresh Mint (14grains)            1.63     47.4 120 110         90   0.98
 17     Lotte         Lotte Fusen-no-mi Blueberry Gum (50g)              1.56     78.8 100       91    78   0.57
 18     Lotte         Lotte Green Gum Sugarless (14pcs)                  1.51     87.4 100       91    76   0.54
 19     Lotte         Lotte La France Gum (9pcs)                         1.43     90.8 100       91    60   0.46
 20     Lotte         Lotte Freezone Lemon (9pcs)                        1.39     69.6 100       92    75   0.58




                                                       47
                                       The Japanese Market for Confectionery Products                                          August 2001


          Annex III – Japanese Monthly Confectionery Sales Data: Sugar
                                 Confectionary

Data is Actual E-POS Data from selected 500 stores (constituted by General Merchandise Superstore 10.6%, Supermarket 73.7%, Mini-Supermarket
6.7%, C-store 6.7% and others 2.3%)
*PI Index = purchased quantity per 1,000 transaction count

January 2000
rank-                                                                                     sales      store   Retail Price (yen)
           Company                                           Sugar Confectionery Product share     coverage                             PI
 ing                                                                                                         high ave low
                                                                                           (%)        (%)
 1      Morinaga            Chupa Chups                                                     2.13        90.4    30     29    23         1.49
 2      Lotte               Lotte Nodo-Ame Candy (120g/bag)                                 1.78        94.5 199 169 130                1.21
 3      Kasugai Seika       Kasugai Nodoni-Sukkiri (155g)                                   1.37        61.3 158 125         97         1.29
 4      Kasugai Seika       Kasugai Kuro-Ame Candy (185g)                                   1.30        51.8 155 125         97         1.56
 5      Lotte               Lotte Nodo-Ame Candy (11pcs)                                    1.25        94.3 100       90    78         0.85
 6      Morinaga            Lemon Soda (26g)                                                1.06        82.9    60     55    45         0.79
 7      UHA Mikakuto        Mikakuto High Conc. Milk Candy 8.2 (120g)                       1.05        78.8 199 176 150                0.80
 8      Kanro               Kanro Non-Sugar Nodo-Ame Candy (20grains)                       1.04        69.5 199 174 130                0.90
 9      Kanro               Kanro Healthy Nodo-Ame Candy (90g)                              1.03        88.6 225 185         99         0.75
 10     Lotte               Kikansha-Thomas Chewing Candy (5pcs)                            0.97        54.5    50     47    40         1.04
 11     Kanro               Kanro Kanro Ame Candy (155g)                                    0.95        81.3 254 152 107                0.72
 12     Warner-Lambert      Warner New Mentos Grape (37.5g)                                 0.93        84.0 100       92    78         0.68
 13     Lotte               Hello Kitty Chewing Candy (5pcs)                                0.93        63.6    50     47    40         0.95
 14     Meiji Seika         Pokemon Cola-Lemon Candy (3pcs)                                 0.91        74.5    60     56    28         0.72
 15     Meiji Seika         Mogi-Mogi Fruits Strawberry Gummy (22g)                         0.89        79.3    60     56    30         0.66
 16     Meiji Seika         Yogulet (bifidobacteria) (18 grains)                            0.88        88.1 120 106         90         0.61
 17     Fujiya              Fujiya Milky Candy (138g/bag)                                   0.88        88.6 200 174 144                0.63
 18     Suntry              Beverage Mix 5 Candy (80g)                                      0.86        56.3 168 122         75         0.85
 19     Meiji Seika         Meiji Chelsea Candy Mix (108g)                                  0.85        89.7 200 169 109                0.60
 20     Meiji Seika         Pokemon Strawberry-Pine-Apple Pikachu (30g)                     0.78        64.7    50     47    25         0.73

February 2000
rank-                                                                                     sales      store   Retail Price (yen)
           Company                                           Sugar Confectionery Product share     coverage                             PI
 ing                                                                                                         high ave low
                                                                                           (%)        (%)
 1      Morinaga            Chupa Chups                                                     1.93        91.3    30     29    23         1.42
 2      Lotte               Lotte Nodo-Ame Candy (120g/bag)                                 1.58        94.5 199 169 118                1.14
 3      Kasugai Seika       Kasugai Kuro-Ame Candy (185g)                                   1.25        52.8 155 127         89         1.60
 4      Lotte               Lotte Nodo-Ame Candy (11pcs)                                    1.17        93.5 100       90    63         0.85
 5      Morinaga            Lemon Soda (26g)                                                1.14        81.9    60     54    45         0.89
 6      Kasugai Seika       Kasugai Nodoni-Sukkiri (155g)                                   1.09        62.0 188 133         92         1.09
 7      Morinaga            Chupa Surprise Candy (13g)                                      1.02        38.9 150 140 101                1.56
 8      UHA Mikakuto        Mikakuto High Conc. Milk Candy 8.2 (120g)                       0.99        78.2 199 177 150                0.81
 9      Kanro               Kanro Non-Sugar Nodo-Ame Candy (20grains)                       0.96        70.7 199 172 128                0.87
 10     Kanro               Kanro Healthy Nodo-Ame Candy (90g)                              0.90        88.5 225 185         98         0.71
 11     Lotte               Kikansha-Thomas Chewing Candy (5pcs)                            0.90        55.1    50     47    40         1.02
 12     Meiji Seika         Meiji Chelsea Candy Mix (108g)                                  0.89        89.0 199 168 109                0.67
 13     Lotte               Hello Kitty Chewing Candy (5pcs)                                0.88        64.9    50     47    39         0.94
 14     Kanro               Kanro Kanro Ame Candy (155g)                                    0.88        81.4 179 159 108                0.71
 15     Fujiya              Fujiya Milky Candy (138g/bag)                                   0.84        88.5 200 176 100                0.65
 16     Meiji Seika         Mogi-Mogi Fruits Strawberry Gummy (22g)                         0.84        79.1    60     56    45         0.66
 17     Warner-Lambert      Warner New Mentos Grape (37.5g)                                 0.82        83.9 100       92    77         0.64



                                                                     48
                                 The Japanese Market for Confectionery Products                               August 2001

 18 Novel Seika          Novel VC-3000 Nodo-Ame Candy (90g)                    0.79       54.0   195    171    100   0.90
 19 Meiji Seika          Pokemon Cola-Lemon Candy (3pcs)                       0.79       74.3    60     57     29   0.66
 20 Meiji Seika          Yogulet (bifidobacteria) (18 grains)                  0.78       87.6   120    107     90   0.58

March 2000
rank-                                                                        sales      store   Retail Price (yen)
           Company                                Sugar Confectionery Product share   coverage                       PI
 ing                                                                                            high ave low
                                                                              (%)        (%)
 1      Morinaga         Chupa Chups                                           2.15        91.6    35     29    23   1.65
 2      Morinaga         Chupa Surprise Candy (13g)                            1.71        65.3 158 140 101          1.83
 3      Morinaga         Hi-Chu Grape (12 grains)                              1.40        75.0    98     86    75   1.29
 4      Morinaga         Lemon Soda (26g)                                      1.24        83.4    60     54    45   1.00
 5      Morinaga         Hi-Chu Strawberry (12 grains)                         1.21        77.3    98     86    75   1.12
 6      Lotte            Lotte Nodo-Ame Candy (120g/bag)                       1.20        94.7 199 170 148          0.91
 7      Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                         1.15        53.0 155 129 100          1.51
 8      Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                         1.14        62.5 188 128         97   1.18
 9      Morinaga         Hi-Chu Green Apple (12 grains)                        1.09        73.2    98     86    75   1.07
 10     Lotte            Lotte Nodo-Ame Candy (11pcs)                          0.99        94.5 100       90    78   0.75
 11     Fujiya           Fujiya Milky Candy (138g/bag)                         0.97        89.9 200 171 100          0.77
 12     Warner-Lambert   Warner New Mentos Grape (37.5g)                       0.97        83.9 100       92    74   0.80
 13     Lotte            Kikansha-Thomas Chewing Candy (5pcs)                  0.95        58.2    50     47    35   1.04
 14     Meiji Seika      Meiji Chelsea Candy Mix (108g)                        0.90        89.5 199 166 111          0.71
 15     UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)             0.90        80.5 199 177 150          0.76
 16     Lotte            Hello Kitty Chewing Candy (5pcs)                      0.90        64.4    50     47    29   1.00
 17     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)               0.85        80.0    60     56    45   0.70
 18     Kanro            Kanro Kanro Ame Candy (155g)                          0.82        81.8 179 157 100          0.69
 19     Meiji Seika      Yogulet (bifidobacteria) (18 grains)                  0.81        87.7 120 107         75   0.63
 20     Kanro            Kanro Non-Sugar Nodo-Ame Candy (20grains)             0.80        71.4 199 174 135          0.76

April 2000
rank-                                                                        sales      store   Retail Price (yen)
           Company                                Sugar Confectionery Product share   coverage                       PI
 ing                                                                                            high ave low
                                                                              (%)        (%)
 1      Morinaga         Chupa Chups                                           2.22        90.8    30     29    24   1.43
 2      Warner-Lambert   Warner New Mentos Grape (37.5g)                       1.56        85.1 100       90    68   1.05
 3      Morinaga         Lemon Soda (26g)                                      1.40        83.3    60     54    45   0.95
 4      Lotte            Lotte Nodo-Ame Candy (120g/bag)                       1.21        93.1 199 174 148          0.77
 5      Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                         1.19        66.8 163 132         80   0.97
 6      Lotte            Lotte Nodo-Ame Candy (11pcs)                          1.14        95.1 100       90    78   0.71
 7      Meiji Seika      Meiji Chelsea Candy Mix (108g)                        1.12        87.8 199 167         89   0.76
 8      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                  1.10        89.0 120 104         73   0.71
 9      Lotte            Kikansha-Thomas Chewing Candy (5pcs)                  1.10        59.5    50     47    24   1.00
 10     UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)             1.02        81.4 199 179         94   0.71
 11     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)               1.01        81.6    60     56    45   0.67
 12     Meiji Seika      Pokemon Pikachu Soda Lemon (30g)                      0.98        69.5    50     47    37   0.81
 13     Fujiya           Fujiya Milky Candy (138g/bag)                         0.97        90.6 200 174 148          0.62
 14     Lotte            Hello Kitty Chewing Candy (5pcs)                      0.95        64.3    50     47    29   0.88
 15     Kanro            Kanro Kanro Ame Candy (155g)                          0.94        82.3 179 158         87   0.65
 16     Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                       0.94        72.5    60     56    29   0.69
 17     Kanro            Kanro Non-Sugar Nodo-Ame Candy (20grains)             0.89        71.8 199 175         94   0.69
 18     Matsuya Seika    Okinawa Kuro-Ame Candy (150g)                         0.87        36.6 178 140 100          1.27
 19     Meiji Seika      Kajyu Gummy Grape (68g)                               0.85        84.6 100       90    76   0.56
 20     Meiji Seika      Hi-Lemon (18 grains)                                  0.81        85.1 120 103         55   0.53




                                                         49
                                 The Japanese Market for Confectionery Products                               August 2001



May 2000
rank-                                                                         sales      store   Retail Price (yen)
           Company                                 Sugar Confectionery Product share   coverage                       PI
 ing                                                                                             high ave low
                                                                               (%)        (%)
 1      Morinaga         Chupa Chups                                            1.95        91.7    30     28    24   1.38
 2      Morinaga         Hi-Chu Grape (12grains)                                1.47        84.8 100       87    75   1.13
 3      Morinaga         Lemon Soda (26g)                                       1.37        82.3    60     54    47   1.03
 4      Warner-Lambert   Warner New Mentos Grape (37.5g)                        1.35        85.0 100       91    78   1.01
 5      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                   1.27        88.0 120 104         73   0.90
 6      Morinaga         Hi-Chu Strawberry (12 grains)                          1.26        86.4 100       87    75   0.96
 7      Morinaga         Hi-Chu Green Apple (12 grains)                         1.11        81.8 100       88    75   0.90
 8      Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)                1.02        82.3    60     56    45   0.76
 9      Meiji Seika      Hi-Lemon (18 grains)                                   1.02        83.0 120 104         72   0.77
 10     Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                          1.00        53.4 155 130 100          1.20
 11     Lotte            Kikansha-Thomas Chewing Candy (5pcs)                   0.99        58.7    50     47    24   1.01
 12     Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                          0.97        67.8 158 133 100          0.88
 13     Meiji Seika      Pokemon Pikachu Soda Lemon (30g)                       0.96        69.2    50     47    27   0.88
 14     Meiji Seika      Meiji Chelsea Candy Mix (108g)                         0.95        89.2 199 171         98   0.70
 15     Lotte            Lotte Nodo-Ame Candy (120g)                            0.93        92.6 199 176 150          0.65
 16     Lotte            Lotte Nodo-Ame Candy (11pcs)                           0.91        95.4 100       91    78   0.63
 17     Lotte            Hello Kitty Chewing Candy (5pcs)                       0.87        66.2    50     47    39   0.85
 18     UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)              0.85        81.1 199 179 150          0.65
 19     Morinaga         Lemon Melon Soda (26g)                                 0.80        55.0    60     54    29   0.86
 20     Meiji Seika      Kajyu Gummy Grape (68g)                                0.80        84.6    98     91    79   0.58

June 2000
rank-                                                                         sales      store   Retail Price (yen)
           Company                                 Sugar Confectionery Product share   coverage                       PI
 ing                                                                                             high ave low
                                                                               (%)        (%)
 1      Morinaga         Chupa Chups                                            1.59        89.7    30     29    24   1.03
 2      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                   1.30        87.9 120 103         83   0.84
 3      Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                        1.25        73.1    76     56    29   0.91
 4      Morinaga         Hi-Chu Grape (12grains)                                1.18        84.7 100       88    69   0.82
 5      Morinaga         Lemon Soda (26g)                                       1.18        83.1    60     55    48   0.80
 6      Warner-Lambert   Warner New Mentos Grape (37.5g)                        1.17        86.2 100       91    72   0.78
 7      Morinaga         Morinaga Milk Caramel (120g)                           1.12        82.7 100       89    75   0.77
 8      Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                          1.09        54.8 155 130 100          1.16
 9      Meiji Seika      Hi-Lemon (18 grains)                                   1.05        82.9 120 103         88   0.72
 10     Lotte            Kikansha-Thomas Chewing Candy (5pcs)                   1.01        60.4    50     47    40   0.92
 11     Morinaga         Hi-Chu Strawberry (12 grains)                          0.98        87.1 100       88    61   0.67
 12     Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                          0.98        69.6 158 135 100          0.78
 13     Lotte            Lotte Nodo-Ame Candy (120g)                            0.96        93.0 199 174 149          0.60
 14     Lotte            Lotte Nodo-Ame Candy (11pcs)                           0.94        94.1 100       90    76   0.59
 15     Morinaga         Hi-Chu Green Apple (12 grains)                         0.92        81.8 100       88    65   0.68
 16     Meiji Seika      Meiji Chelsea Candy Mix (108g)                         0.90        89.9 199 166         98   0.59
 17     UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)              0.89        82.7 199 177 147          0.61
 18     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)                0.88        82.5    60     55    45   0.59
 19     Kanro            Kanro Kanro Ame Candy (155g)                           0.88        79.9 179 150 100          0.63
 20     Matsuya Seika    Okinawa Kuro-Ame Candy (150g)                          0.88        40.1 178 139 100          1.17




                                                          50
                                 The Japanese Market for Confectionery Products                              August 2001




July 2000
rank-                                                                        sales      store   Retail Price (yen)
           Company                                Sugar Confectionery Product share   coverage                       PI
 ing                                                                                            high ave low
                                                                              (%)        (%)
 1      Morinaga         Chupa Chups                                           1.91        90.4    30     28    22   1.06
 2      Morinaga         Lemon Soda (26g)                                      1.57        86.1    60     54    45   0.91
 3      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                  1.32        87.9 120 105         93   0.73
 4      Morinaga         Hi-Chu Grape (12grains)                               1.29        85.9 100       88    75   0.76
 5      Warner-Lambert   Warner New Mentos Grape (37.5g)                       1.27        86.3 100       91    78   0.72
 6      Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                       1.20        75.2    60     56    46   0.75
 7      Meiji Seika      Hi-Lemon (18 grains)                                  1.08        82.0 120 104         94   0.65
 8      Lotte            Kikansha-Thomas Chewing Candy (5pcs)                  1.06        60.0    50     47    40   0.82
 9      Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)               1.01        81.6    60     56    45   0.59
 10     Morinaga         Hi-Chu Strawberry (12 grains)                         1.00        86.6 100       88    75   0.59
 11     Lotte            Hello Kitty Chewing Candy (5pcs)                      0.99        65.5    50     47    40   0.77
 12     Morinaga         Hi-Chu Kids Cola (7grains)                            0.98        69.8    60     54    38   0.64
 13     Morinaga         Hi-Chu Green Apple (12 grains)                        0.94        81.8 100       88    62   0.60
 14     Morinaga         Hi-Chu Kids Cream Soda (7grains)                      0.92        57.8    60     54    48   0.74
 15     Lotte            Lotte Nodo-Ame Candy (11pcs)                          0.87        93.6 100       91    75   0.47
 16     Meiji Seika      Pokemon Pikachu Soda Lemon (30g)                      0.86        68.2    50     47    22   0.61
 17     Lotte            Lotte Nodo-Ame Candy (120g)                           0.86        92.9 199 175 150          0.47
 18     Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                         0.85        52.8 155 131 100          0.80
 19     Meiji Seika      Kajyu Gummy Grape (68g)                               0.82        83.2    98     90    80   0.47
 20     Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                         0.77        68.2 158 138 100          0.54

August 2000
rank-                                                                        sales      store   Retail Price (yen)
           Company                                Sugar Confectionery Product share   coverage                       PI
 ing                                                                                            high ave low
                                                                              (%)        (%)
 1      Morinaga         Chupa Chups                                           2.03        90.4    30     29    25   1.18
 2      Morinaga         Lemon Soda (26g)                                      1.50        86.7    60     54    30   0.90
 3      Warner-Lambert   Warner New Mentos Grape (37.5g)                       1.34        86.7 100       92    78   0.79
 4      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                  1.24        87.2 120 105         73   0.72
 5      Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                       1.17        73.7    60     56    29   0.76
 6      Morinaga         Hi-Chu Grape (12grains)                               1.09        85.1 100       88    73   0.67
 7      Lotte            Kikansha-Thomas Chewing Candy (5pcs)                  1.04        62.5    50     47    32   0.81
 8      Lotte            Hello Kitty Chewing Candy (5pcs)                      1.03        65.9    70     47    40   0.83
 9      Meiji Seika      Hi-Lemon (18 grains)                                  1.03        82.1 120 104         71   0.64
 10     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)               0.99        85.6    60     56    45   0.59
 11     Morinaga         Hi-Chu Kids Cola (7grains)                            0.90        70.7    60     54    40   0.61
 12     Morinaga         Hi-Chu Strawberry (12 grains)                         0.86        87.2 100       88    73   0.53
 13     Meiji Seika      Kajyu Gummy Grape (68g)                               0.84        82.6    98     90    77   0.51
 14     Meiji Seika      Pokemon Pikachu Soda Lemon (30g)                      0.83        69.4    50     47    23   0.62
 15     Morinaga         Hi-Chu Green Apple (12 grains)                        0.81        80.3 100       89    73   0.55
 16     Morinaga         Hi-Chu Kids Cream Soda (7grains)                      0.79        55.4    60     54    48   0.69
 17     Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                         0.78        52.9 155 130 100          0.77
 18     Lotte            Lotte Nodo-Ame Candy (120g)                           0.78        92.6 199 176 143          0.44
 19     Morinaga         Lemon Soda Orange (26g)                               0.78        45.4    60     54    42   0.79
 20     Lotte            Lotte Nodo-Ame Candy (11pcs)                          0.78        93.8 100       91    78   0.44




                                                         51
                                 The Japanese Market for Confectionery Products                               August 2001




September 2000
rank-                                                                         sales      store   Retail Price (yen)
           Company                                 Sugar Confectionery Product share   coverage                       PI
 ing                                                                                             high ave low
                                                                               (%)        (%)
 1      Morinaga         Chupa Chups                                            1.67        91.3    30     29    20   0.98
 2      Warner-Lambert   Warner New Mentos Grape (37.5g)                        1.31        86.1 100       91    74   0.80
 3      Morinaga         Lemon Soda (26g)                                       1.21        87.7    60     55    30   0.73
 4      Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                          1.11        53.0 155 127 100          1.12
 5      Lotte            Kikansha-Thomas Chewing Candy (5pcs)                   1.11        63.7    50     47    24   0.86
 6      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                   1.05        88.4 120 106         84   0.62
 7      Morinaga         Hi-Chu Grape (12grains)                                1.01        84.8 100       88    59   0.64
 8      Lotte            Lotte Nodo-Ame Candy (120g)                            1.00        92.7 199 172 138          0.58
 9      Lotte            Hello Kitty Chewing Candy (5pcs)                       0.98        66.6    50     47    40   0.79
 10     Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                          0.98        68.9 158 131         94   0.71
 11     Lotte            Lotte Nodo-Ame Candy (11pcs)                           0.93        94.1 100       90    78   0.53
 12     Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                        0.91        73.9    60     56    40   0.60
 13     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)                0.91        85.7    60     56    42   0.55
 14     UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)              0.85        82.3 199 174 150          0.53
 15     Meiji Seika      Pokemon Pikachu Soda Lemon (30g)                       0.85        71.2    50     47    22   0.64
 16     Morinaga         Hi-Chu Strawberry (12 grains)                          0.81        86.6 100       88    58   0.51
 17     Meiji Seika      Hi-Lemon (18 grains)                                   0.81        85.7 120 106         82   0.49
 18     Morinaga         Hi-Chu Kids Cola (7grains)                             0.79        71.8    60     54    42   0.55
 19     Meiji Seika      Kajyu Gummy Grape (68g)                                0.79        83.9    98     90    48   0.48
 20     Matsuya Seika    Okinawa Kuro-Ame Candy (150g)                          0.79        42.8 178 141 100          0.90

October 2000
rank-                                                                         sales      store   Retail Price (yen)
           Company                                 Sugar Confectionery Product share   coverage                       PI
 ing                                                                                             high ave low
                                                                               (%)        (%)
 1      Morinaga         Chupa Chups                                            1.64        90.3    30     29    14   1.08
 2      Warner-Lambert   Warner New Mentos Grape (37.5g)                        1.37        87.3 100       91    78   0.92
 3      Lotte            Lotte Nodo-Ame Candy (120g)                            1.20        94.0 199 171 131          0.76
 4      Morinaga         Lemon Soda (26g)                                       1.13        86.9    60     55    30   0.76
 5      Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                          1.10        54.1 155 130 100          1.21
 6      Lotte            Lotte Nodo-Ame Candy (11pcs)                           1.08        94.7 100       90    67   0.67
 7      Lotte            Kikansha-Thomas Chewing Candy (5pcs)                   1.04        63.9    50     47    40   0.89
 8      Morinaga         Hi-Chu Grape (12grains)                                1.02        84.6 100       89    49   0.72
 9      Meiji Seika      Yogulet (bifidobacteria) (18 grains)                   0.98        87.3 120 107         79   0.64
 10     Meiji Seika      Meiji Chelsea Candy Mix (108g)                         0.97        88.9 199 158 100          0.66
 11     Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                          0.96        70.1 158 138 100          0.77
 12     UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)              0.93        84.1 199 174 112          0.62
 13     Lotte            Hello Kitty Chewing Candy (5pcs)                       0.92        65.3    50     47    35   0.83
 14     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)                0.87        84.4    60     56    29   0.59
 15     Matsuya Seika    Okinawa Kuro-Ame Candy (150g)                          0.87        42.8 188 141 100          1.09
 16     Kanro            Kanro Non-Sugar Nodo-Ame Candy (20grains)              0.83        75.0 199 174 100          0.61
 17     Morinaga         Hi-Chu Strawberry (12 grains)                          0.82        85.7 100       89    49   0.58
 18     Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                        0.81        73.1    60     56    30   0.59
 19     Meiji Seika      Pokemon Pikachu Soda Lemon (30g)                       0.80        68.1    50     47    25   0.69
 20     Kanro            Kanro Kanro Ame Candy (155g)                           0.79        77.0 179 155         98   0.58




                                                          52
                                 The Japanese Market for Confectionery Products                             August 2001



November 2000
rank-                                                                       sales      store   Retail Price (yen)
           Company                               Sugar Confectionery Product share   coverage                       PI
 ing                                                                                           high ave low
                                                                             (%)        (%)
 1      Morinaga         Chupa Chups                                          2.04        91.8    30     29    23   1.41
 2      Lotte            Lotte Nodo-Ame Candy (120g)                          1.43        94.7 199 170 116          0.96
 3      Lotte            Lotte Nodo-Ame Candy (11pcs)                         1.17        94.5 100       90    61   0.79
 4      Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                        1.14        63.1 159 131 100          1.05
 5      Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                        1.09        52.0 155 129         99   1.31
 6      Kanro            Kanro Non-Sugar Nodo-Ame Candy (20grains)            1.03        70.4 199 173 135          0.87
 7      Morinaga         Lemon Soda (26g)                                     1.00        83.6    60     55    42   0.74
 8      UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)            0.97        80.0 199 177 148          0.73
 9      Warner-Lambert   Warner New Mentos Grape (37.5g)                      0.94        85.0 100       91    78   0.68
 10     Kanro            Kanro Kanro Ame Candy (155g)                         0.91        81.3 180 153 105          0.69
 11     Meiji Seika      Meiji Chelsea Candy Mix (108g)                       0.90        89.5 200 163 101          0.63
 12     Lotte            Hello Kitty Chewing Candy (5pcs)                     0.87        61.8    50     47    40   0.90
 13     Lotte            Kikansha-Thomas Chewing Candy (5pcs)                 0.86        54.3    50     47    40   0.91
 14     Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                      0.84        75.0    60     56    29   0.65
 15     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)              0.82        80.6    60     56    30   0.60
 16     Meiji Seika      Pokemon Gummy Strawberry Pine Apple Pikachu          0.82        66.3    50     47    24   0.73
 17     Kanro            Kanro Healthy Nodo-Ame Candy (90g)                   0.80        86.1 220 189 150          0.61
 18     Fujiya           Fujiya Milky Candy (138g/bag)                        0.79        88.6 200 175 148          0.57
 19     Morinaga         Morinaga Milk Caramel (120g)                         0.78        81.8 100       90    75   0.59
 20     Meiji Seika      Yogulet (bifidobacteria) (18 grains)                 0.77        88.4 120 108         88   0.53

December 2000
                                                                            sales      store   Retail Price (yen)
rank-
  ing
           Company                               Sugar Confectionery Product share   coverage                       PI
                                                                             (%)        (%)    high ave low
 1      Morinaga         Chupa Chups                                          2.20        90.3    30     29    23   1.41
 2      Lotte            Lotte Nodo-Ame Candy (120g)                          1.65        94.4 199 166 121          1.02
 3      Kasugai Seika    Kasugai Nodoni-Sukkiri (155g)                        1.27        62.1 158 132         98   1.07
 4      Lotte            Lotte Nodo-Ame Candy (11pcs)                         1.26        93.4 100       91    78   0.79
 5      Morinaga         Lemon Soda (26g)                                     1.09        82.1    60     55    43   0.75
 6      Kasugai Seika    Kasugai Kuro-Ame Candy (185g)                        1.06        52.2 168 134         98   1.20
 7      UHA Mikakuto     Mikakuto High Conc. Milk Candy 8.2 (120g)            1.05        78.8 199 177 150          0.74
 8      Kanro            Kanro Non-Sugar Nodo-Ame Candy (20grains)            1.04        71.3 199 175 116          0.80
 9      Kanro            Kanro Ame Candy (155g)                               1.03        80.2 180 153 107          0.72
 10     Warner-Lambert   Warner New Mentos Grape (37.5g)                      0.97        85.0 100       92    78   0.65
 11     Meiji Seika      Pokemon Gummy Strawberry Pine Apple Pikachu          0.92        66.2    50     47    38   0.75
 12     Lotte            Hello Kitty Chewing Candy (5pcs)                     0.92        61.4    50     47    23   0.87
 13     Meiji Seika      Pokemon Cola-Lemon Candy (3pcs)                      0.92        72.5    60     56    29   0.68
 14     Meiji Seika      Mogi-Mogi Fruits Strawberry Gummy (22g)              0.92        78.3    60     56    43   0.62
 15     Kanro            Kanro Healthy Nodo-Ame Candy (90g)                   0.91        87.4 225 188 100          0.62
 16     Lotte            Kikansha-Thomas Chewing Candy (5pcs)                 0.88        51.8    50     47    40   0.91
 17     Fujiya           Fujiya Milky Candy (138g/bag)                        0.82        87.9 200 177 100          0.54
 18     Meiji Seika      Yogulet (bifidobacteria) (18 grains)                 0.79        86.5 120 108         90   0.50
 19     Meiji Seika      Meiji Chelsea Candy Mix (108g)                       0.79        89.1 200 173 109          0.51
 20     Fujiya           Fujiya POP Candy (21pcs/bag)                         0.76        79.5 199 176 128          0.52




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