Other Products Business

The Other Products Business includes the direct-to-consumer business, which sells functional food and other products through direct channels, the pet supplies business, which supplies products for the pet market, and other businesses.

Direct-to-Consumer Business

Performance in Fiscal 2015

In the direct-to-consumer business, Lion responded to the new Foods with Function Claims system, which went into effect in April 2015, and, in June 2015, launched an improved version of Nice rim essence Lactoferrin, which is now classified as a Food with Function Claims. Under the new system, it is possible to prepare more easily understandable labels and product information that are based on scientific and other evidence to emphasize the appealing points of functional products, and, as a result, after introducing the new version of Nice rim essence Lactoferrin, sales of this product expanded substantially. In December, Lion also introduced Ayumu Chikara, a beverage in powdered form that supports people’s ability to walk strongly and smoothly; however, in part because of the restraints on advertising and promotional expenses, overall sales in this business were below the previous year.

Strategy in Fiscal 2016

In the direct-to-consumer business, Lion will use the new Foods with Function Claims system to maximum advantage and work to develop second and third mainstay products in this business. To manage this business efficiently for future growth, beginning in January 2016, Lion established the Direct Marketing Division, and will aim for further business expansion.

Pet Supplies Business

A Review of Fiscal 2015

In this business, Lion focused on actively developing the pet oral care business. As a result of concentrating investments in promoting the understanding of the need for pet oral care, growth in sales remained substantially above that of the market, and results were favorable. In the Pet Supplies Business, sales of deodorizing cat litter products, which is a mainstay product in this business, were stagnant due to the effect of shrinkage in the market for mineral-based cat sand market. As a result, sales in the Pet Supplies Business were approximately the same as in the previous fiscal year.

Strategy in Fiscal 2016

In fiscal 2016, Lion will introduce new products in the growth fields of pet oral care and body care products. To further accelerate growth, Lion will devote further efforts to promoting better awareness among pet owners of the importance of caring for their pets. Focusing on the profitable cat sanitary product field, Lion is planning to introduce an improved version of its mainstay mineral-based cat litter, work to reduce costs, and improve profitability.