Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
November 25, 2021
For Immediate Release
Company Name: YUKIGUNI MAITAKE CO., LTD.
Representative: Iwao Ashikaga, President and CEO,
(Tokyo Stock Exchange, First Section:1375)
Inquiries: Takenori Sakurai, Executive Officer
(Chief Financial Officer)
Capital Investment by Consolidated Subsidiary to Increase Button-Mushroom Production
-Evolution into Comprehensive Premium Mushroom Manufacturer-
Yukiguni Maitake Co., Ltd. (the "Company") hereby announces that our consolidated subsidiary, Mitsukura Norin Co., Ltd. (headquarters: Setouchi-city, Okayama; hereinafter "Mitsukura Norin") will make capital investment to increase production in order to meet the growing demand for button-mushrooms going forward.
1. Background and Purpose of Capital Investment
In October 2019, the Company acquired Mitsukura Norin, which produces and sells button-mushrooms, to make it a subsidiary. Selling button-mushrooms through the Company's direct sales channels and proposals for sales promotion plans, the sales volume of button-mushrooms has steadily increased, and the button-mushroom business has contributed to the Group's revenue. Therefore, in order to further strengthen our button-mushroom business, in the medium-term business plan for FYE March 31, 2022 to FYE March 31, 2026 announced on November 4, 2021, we have set the expansion of our button- mushroom business as one of our growth strategies under the basic policy of "Create further demand in the domestic mushroom market and evolve into a comprehensive manufacturer of premium mushrooms with global operations."
Unlike other mushrooms, button-mushrooms can be eaten raw and can be eaten all year round such as salads and ajillo, regardless of the season. It is also unlikely to compete with the Japanese mushrooms that we handle, such as maitake, and they are complementary to each other. The domestic production of button-mushrooms is about 7,000 tons 1, which is about 13% of the domestic production of maitake, but