Healthcare Biotechnology Food Page  1   2   3    Three Key Points towards the Future Point 1 Food Sanitation Management Capabilities    In the milk industry, Snow Brand Milk Products was split up as a result of the food-poisoning incident, and its milk division became a new company called Nippon Milk Community Co., Ltd. through a merger with two companies; one affiliated with the National Federation of Agricultural Cooperative Associations and the other a National Federation of Dairy Cooperative Associations affiliate. Because there is a high likelihood that negligence in food safety management will prove fatal to a food company, there is a possibility that similar reorganizations within the industry may take place. Point 2 Development Capabilities that Reflect Customer Needs    Although not restricted to the food industry, the ability to capture consumer needs in a timely manner and reflect such needs is important for product development. Kao Corporation, a major company in the toiletries sector, made a brilliant entry into the food industry through a cooking-oil sold under the Econa brand name. The success was made possible because Kao had captured the consumer needs and trends toward healthy products. The ability to capture consumer needs becomes an important and decisive factor in the food industry where it is not easy to develop revolutionary new products. Point 3 How Far can the Food Industry Advance Overseas?    While interest in Japanese food increases in the West and Asia, a key element for success is how a company can draw upon such trends to its favor. Kikkoman was able to make soy sauce, a traditional Japanese seasoning, into an international brand. Although sales overseas account for only about 20 percent of Kikkoman's consolidated sales, it is said that on a profit-contribution basis, overseas sales account for nearly 50 percent. Japanese manufacturers are making frantic efforts to sell instant-cup noodles and beer to Chinese consumers. With Japan's overall population said to begin declining around 2010 and negative growth of the market in Japan, Japanese food manufacturers will most likely be spurring exports as they search for new opportunities of growth.