NO BORDER

were able to maintain strong sales of our longselling
flagship products, such as Cup Noodle,
Japanese-style products, such as Nissin no
Donbei, and fried-noodle products, including
Nissin Yakisoba U.F.O.
However, high-added-value products, such
as Nissin Rao and Nissin GooTa were affected
by a general slowdown in demand for high-end
products, and sales were lower than in the previous
year. We aggressively introduced new
types of products, including Nissin Kentaro for
health-conscious consumers, and non-wheat
Nissin Pho (Vietnamese-style rice noodles) and
Nissin Harusame (bean-starch vermicelli).
Despite these efforts, total sales of cup-type
instant noodles declined by 1.3% year on year
to ¥184,282 million (US$1,569 million).
> Future Direction
Strengthening and Expanding
Brand Assets
We continue to record steady sales of our flagship
Chicken Ramen brand. Sales of this series
set a new record in fiscal 2004, 45 years after
the launch of the first product. In 2008, we will
celebrate the 50th anniversary of this series,
and in 2006 we mark the 35th anniversary of
the launch of Cup Noodle and the 30th
anniversary of Nissin no Donbei and Nissin
Yakisoba U.F.O. These long-selling brands are
growing steadily.
Our most important priority is to develop
these long-selling brands and maximize their
value. We believe that a brand can only be
strong if it has a long-established reputation and
is supported by consumers. The maintenance of
appropriate prices is an important aspect of
brand strength. We have carefully studied the
characteristics and functions of diversified retailing
formats, including the “everyday low price”
(EDLP) system, and retailing systems based on
selling at extremely low prices. Based on our
understanding of these methods, we believe
that the best way to protect the value of our
brands, including their prices, is to use marketing
expenditure appropriately and strategically in
coordination with special sales limited to specific
periods and volumes.
Developing New Demand
with New Products
In May 2006, we launched a new series, Yasai
Soup Noodle. Consumers have become more
health-conscious in recent years, and there
has also been considerable diversification in
the ways in which people take meals. These
changes have been reflected in rapid growth in
the market of low-calorie products, such as
non-wheat noodles (harusame and pho) and
cup soups that satisfy hunger while helping to
control the calorie intake. The Yasai Soup
Noodle products contain approximately 100g
of fresh vegetables, which are compressed
and air dried using exclusive Nissin Foods’
technology. Vegetables processed in this way
maintain their crispness and provide a greater
sense of volume than was previously possible
in products of this type. These healthy products
contain 140 kcal or less. There are three
types: Suanlatang, Jitang and Minestrone. All
are expected to attract wide consumer support,
especially among women and health-conscious
people.
Nissin Foods will
continue to explore
challenges in new food
categories in 2006.
Demae Itcho
Chicken Ramen
with a lidded mug
Nissin Kentaro
Nissin Pho and
Nissin Harusame
ANNUAL REPORT 2006
11