Our Strategies for the Health Science Domain
Establish and foster the Health Science Business
- Make the best use of our proprietary and other high-performance materials to maximize business opportunities
- Establish a business model unique to the Kirin Group
Establish a robust value chain
Health Science Business Strategies of Kirin Group Companies
Kirin Group offers strategically selected materials in the three priority areas—immunity, brain functions, and gut microbiome.
In the immunity area, Kirin offers its proprietary Lactococcus lactis strain Plasma (Lc-PLASMA)—which has been authorized, for the first time in the Japanese food industry, to state that it provides benefits to the human immune systems—to wider applications to meet the public’s pressing need to reduce infection risks and expand our business around the products.
In the brain functions area, Kirin focuses on Citicoline. Kyowa Hakko Bio plays a key role in bringing Citicoline to the mass market by leveraging its fermentation technology to mass-produce high-quality Citicoline at low cost.
In the gut microbiome area, Kirin leverages its years of experience in microbial research to establish a business that provides the best personalized solutions to customers’ individual health needs.
Kirin Beverage will reposition itself to become a beverage company that plays a role in implementing the Group’s Health Science strategy. The company strives to achieve stable growth of business even in a challenging market by bolstering sales of beverage products with health benefits.
For instance, the company markets sugar-free and low-sugar beverage products to meet the needs of health-conscious consumers. Equally important, the company markets products with positive health effects to pursue substantial growth in sales of its iMUSE-branded beverage products that contain Lc-PLASMA, and works closely with FANCL to jointly develop new products and create added value.
Koiwai Dairy Products
Koiwai Dairy Products offers dairy products that contain Lc-PLASMA and β-lactolin, which has been found to mitigate memory loss with age, to make it easy for consumers to intake them as part of their healthy daily diet. iMUSE-branded yogurt, which was repackaged with a functional claim label in 2021, is one of the company’s key products to reach broader consumers.
Kyowa Hakko Bio
Kyowa Hakko Bio implemented a series of business revitalization initiatives throughout 2020, following quality-control issues in its Yamaguchi Production Center in August 2019. The company welcomed experienced engineers and managers from other Kirin Group companies who assisted in rebuilding its production management and quality-control systems and achieving better coordination between its head office and plants. The company is striving to bring production back to the previous level and return to profit by the end of 2021. As part of its efforts to shift to a profitable business model, the company plans to bolster production capacity for high-margin materials such as Citicoline and human milk oligosaccharide. Kyowa Hakko Bio’s goal for 2024 is to become a Japan-based global specialty fermentation company by leveraging its leading-edge biochemical technologies to resolve social issues that have emerged globally, and its financial target for 2024 is to achieve a normalized operating profit of 9.5 billion yen.
FANCL and Kirin Group companies are bringing their strengths together to achieve even greater results. For instance, FANCL and Kirin Group companies market their branded products through their combined distribution channels, including a direct-to-consumer channel. In addition, immediately following the announcement of a business and capital alliance, FANCL and the Kirin Group established a joint product development project and have already brought several new products to the market. In particular, Meneki Support, a dietary supplement introduced in 2020 that contains Lc-PLASMA supplied by the Kirin Group, has become one of the best-selling items in the company’s supplement lineup.
Kyowa Kirin provides the results of its fundamental research to assist Kirin Group companies in their Health Science Domain.
For instance, the company has assisted Koiwai Dairy Products in evaluating the functional benefits of β-lactolin during the product development phase. Under its medium-term management plan, Kyowa Kirin intends to develop and offer services beyond the traditional Pharmaceuticals Business in collaboration with Kirin Group companies.