Meiji Holdings is poised to close three yogurt manufacturing facilities in Japan, transitioning to a state-of-the-art production site. This strategic move, that underscores evolving food and beverage industry trends, includes a substantial investment of approximately Y40 billion ($279 million) for the new plant’s construction.
The new factory, which will be located in Atsugi, Kanagawa, aims to streamline Meiji’s yogurt production across Japan. The existing facilities in Taiwa (Miyagi) will cease operations in November 2025, followed by the Chigasaki (Kanagawa) plant in March 2027, and the Toda (Saitama) site in July 2027. Production from these plants will be consolidated into the new Kanagawa facility, demonstrating a proactive approach to operational efficiency in the food and drink business.
Furthermore, Meiji anticipates that the new location will produce a range of products, including plain and drinking yogurt, generating an estimated annual production value of about Y35 billion. The company notes, “The dairy business faces various issues, including responding to the diversifying needs of customers, labour shortages in production and logistics, and food loss. The new Kanagawa plant will adopt new production technology to extend use-by dates.”
In light of environmental considerations, the plant will utilize renewable energy solutions, incorporating energy-efficient heat pumps and solar panels. These enhancements are anticipated to contribute to a carbon-free smart factory model aimed at achieving zero CO2 emissions—an essential goal for companies navigating the latest consumer trends in sustainability.
Meiji has indicated that the investment’s impact on its consolidated financial results for the fiscal year ending March 31, 2025, is expected to be minimal. In the previous fiscal year, Meiji recorded a 4.1% increase in net sales, totaling Y1.1 trillion, coupled with an 11.8% rise in operating profit to Y84.3 billion. However, profit attributable to shareholders experienced a decline of 27% to Y50.7 billion, mainly due to a Y22.5 billion impairment related to the sale of “investment securities.”
The company also outlined similar reorganization strategies for its dairy operations in Hokkaido, announcing the construction of another facility to replace the Nishi Shunbetsu and Honbetsu plants in December.
