Itochu Corporation has reached an agreement with Yamae Group Holdings (Yamae GHD) on a capital reorganization of their confectionery wholesale business.
Itochu will acquire a 40.8% stake in Confex HD, a subsidiary of Yamae GHD, making it an equity-method affiliate. Confex HD will fully subsume Dolce company within the Itochu Group that supplies confectionery products to major convenience stores and develops private-brand (PB) products—as a wholly owned subsidiary, thereby integrating the confectionery wholesale operations of both companies. Post-integration, Confex HD’s ownership will consist of Yamae GHD at 59.2% and Itochu at 40.8%. Including Dolce, Confex HD’s sales are projected to reach a scale of 400 billion yen, positioning it as the top domestic confectionery wholesaler.
The confectionery market is expected to continue expanding, driven by growing inbound tourism demand and more active proposals for food scene innovations (according to the company). In Japan’s domestic confectionery wholesale industry, estimated at around 2 trillion yen in circulation volume, wholesalers are required not only to provide nationwide procurement and supply capabilities but also comprehensive services to retailers and manufacturers, including product development, logistics, and marketing.
In this context, Confex HD aims to become an indispensable confectionery wholesaler for all trading partners by combining Dolce’s expertise in convenience store transactions and more following the integration.
Under its management policy “The Brand-new Deal-Profits Flow Downstream,” Itochu seeks to expand its business domains by accurately capturing diversifying needs, pioneering and evolving downstream businesses.
