Hanwa Kogyo Co. has acquired 80 percent of Marugo Fukuyama Suisan Co., a seafood processor based in Wakkanai City, Hokkaido, Japan.
The Hanwa Group is a Tokyo-based conglomerate with global seafood operations, including ownership of Seattle Shrimp & Seafood Co. and E&E Foods in the United States. Fukuyama Suisan freezes, processes, and sells seafood landed in northern Hokkaido, including scallops, autumn salmon, hairy crab, and Pacific giant octopus. Founded in 2003, it had JPY 3.8 billion (USD 26 million, EUR 23.6 million) in sales in 2023.
“By making Fukuyama Suisan a group company of our food department, we will be able to strengthen the processing functions, which are the strengths of our existing group companies, [including] Hanwa Foods Co., Higashi Nippon Foods Co., Marumoto Honma Suisan Co., and further promote sales to overseas countries such as North America and ASEAN, and we believe that this will create synergy effects in the entire food division,” Hanwa said in a 30 September press release.
Hanwa particularly targeted Fukuyama Suisan’s scallop production. The company has maintained its scallop sales despite previous selling primarily into China – which implemented a ban on Japanese seafood products in August 2023 – though it recently announced its plans to end the ban soon – by initiating exports to Indonesia, according to the Nippo Hoso Kaisha.
“Scallops caught in the northern coast of the Sea of Okhotsk are large and thick, so they are highly regarded in the market and are popular not only in Japan but also overseas, and we are conducting a business that takes advantage of the strengths of a local manufacturer,” Hanwa said.
Further expanding its seafood range, Hanwa Kogyo announced on 2 October the launch of a new brand of ready-to-eat seafood products for the Japanese market.
The three boil-in-a-bag products sold under the Wano Hibiki brand, including miso-boiled mackerel, simmered mackerel, and salt-grilled mackerel, are being sold as individual meal packs, with three packs per bag. They have a 30-day best-before date, achieving longer product life, thereby reducing sales losses, according to Hanwa. The company said its plan is eventually to expand the range, with the goal of gaining widespread distribution among mass retailers in Japan.
Hanwa recorded an 8.9 percent decline in its 2023 net sales to JPY 2.4 trillion (USD 16.4 billion, EUR 14.9 billion) and a 22.4 percent drop in its operating income to JPY 49.7 billion (USD 340.2 million, EUR 308 million). It is forecasting a 15.1 increase in its total sales in its current fiscal year, reaching JPY 2.8 trillion (USD 19.2 billion, EUR 17.4 billion), and a 22.7 percent rise in operating income to JPY 61 billion (USD 417.6 million, EUR 378 million).
Hanwa’s primary business is in metal manufacturing, with seafood accounting for around 5 percent of its total sales. For its food business, which includes seafood, Hanwa increased its earnings in 2023, though its sales decreased by volume.
“Although the crab market prices remained low compared to the previous fiscal year, which pushed down profits, they have recently been on a gradual recovery trend,” it said. “In addition, the purchase cost risings of salmon, prawns, and chickens started to be sufficiently reflected in the selling prices.”
