At a financial results conference for the first half of the fiscal year, Katsuya Matsuda, President of Meiji Holdings, outlined the current state, challenges, and future strategies for the yogurt and chocolate markets. Building on the achievements of the first half, the company will continue in the second half to focus on appealing to consumers’ sense of fundamental value while employing creative pricing measures to respond to market trends.
Yogurt Market Undergoing Shakeout — “Only Products Recognized for Core Value Will Remain,” Says President Matsuda
There was a period when the probiotic-centered yogurt category became confused due to the entry of new competitors. During that time, Meiji foresaw that the market would eventually undergo a shakeout and solidify, and that situation is now materializing. Simply entering the market in imitation of others will not ensure survival—only products recognized for their intrinsic value will remain.
Meiji’s Probio Yogurt series, including R-1, experienced a decline among younger consumers during the COVID-19 period, as impulse purchases decreased and brand recognition weakened. To counter this, Meiji has strengthened communication of its value to younger audiences by combining traditional television advertising with increased use of social media.
As a result, the series has recently posted growth approaching double digits. Going forward, Meiji plans to leverage its long-standing industry leadership to expand the category while continuing to communicate the inherent value of its products. One of the strengths lies in promoting the products not only from a health perspective but also through broader appeal, making use of unique characters such as “R-Ojisan.”
Competition also remains intense in the chocolate market. However, Meiji’s Chocolate Kouka (Chocolate Effect) has focused on highlighting the essential value of cacao polyphenol content, rather than merely cacao percentage. Meiji will continue to emphasize this point strongly in the second half, further strengthening the brand.
Although prices for cacao and dairy ingredients are expected to continue rising, Meiji aims to steadily expand its market by focusing on brand value communication, employing strategic pricing, and drawing on its promotional expertise. Chocolate Kouka’s large bags now exceed 1,000 yen at supermarkets in Tokyo, but starting on September 30, Meiji introduced a new 110g pack designed to be more accessible to consumers. While the per-gram price remains the same, the product’s perceived affordability has improved, leading to a positive sales trend. The company intends to apply similar pricing innovations in other business areas going forward.