Consumers want different snack options, and Kenko can be one of them. “More and more people are eating gluten-free 6 and avoiding fried food. “I think you’re missing an opportunity,” Riku replied. “Salsa is different-it’s American too now!” Dave gave a hearty laugh. “But you have salsa in snacks and in the Mexican section,” Rebecca said. You’ll confuse people if Kenko is in both places.” We think that’s great, and there’s a niche market for your product-in the Asian section.

“Because the packaging, the flavors, the brand message are Japanese.

Why shouldn’t rice crackers sit with other popular snacks?” “But we’re not asking for more space, just different space. “Of course we understand your position,” Riku said. The company has a 60% market share in potato chips (Ruffles), a 72% share in tortilla chips (Doritos and Tostitos), an 87% share in cheese snacks (Cheetos), and a 62% share in other salted snacks. But Riku worried that it would be only a short-term fix and would fail to establish the Kenko brand in the United States.ĭominates the savory snacks category in the U.S., according to data from IRI, a Chicago-based market research firm. She believed it would help American consumers see Japanese rice crackers as a healthful, gluten-free snack choice and would provide the distribution bump the division needed to grow sales and become profitable. Rebecca Bairstow, Riku’s number two, was advocating strongly for the partnership. Recently, Kenko USA had been approached by Patty’s Pantry, a national discount grocery chain, about a deal to produce a private label line: 2 Kenko’s crackers with Patty’s branding. food outlets, but his team’s efforts had yet to bear fruit. Riku knew that the key was to expand beyond Asian supermarkets and grocery stores’ international sections and get Kenko crackers into the snack aisles of mainstream U.S. But growth was well below projections, and the division, which was supposed to be self-sustaining after five years, was still losing money. Sure, the business was chugging along, with sales increasing by a modest 2% per year. stint had turned into a stretch-because Kenko USA hadn’t taken off as hoped. Pregnant with Akari, Aoi had liked the idea of being a stay-at-home mom for a while and had agreed to put her teaching career in Japan on hold so that Riku could take the promotion.ġConsumer packaged goods companies seeking international growth have several options: create a foreign subsidiary to sell the original product abroad establish a new brand for the new market acquire a local brand partner with another brand for distribution and marketing and produce for a local company under its brand (in an original equipment manufacturer or private label deal). Riku and Aoi had both been excited about the opportunity. 1 It wanted to become the next Kikkoman, which had so successfully turned Americans on to its soy sauce and stir fry products. The largest producer of rice crackers in Japan, the company had $1 billion in domestic sales and hoped to kick-start growth and globalization plans. Six years earlier, he had been asked to relocate from Tokyo to San Mateo, California, to spearhead the launch of Kenko USA, the first foreign subsidiary of his employer, Kenko. He was feeling increasingly anxious about work. Riku chuckled, but her joke didn’t lift his mood. “Maybe you need to add fluorescent cheese dust?” I don’t understand why our crackers can’t be in this section, too.”Īoi nodded at the Cheetos bag Akari was now clutching to her chest.

“I wanted to see how chips and crackers are displayed.

“Remind me: Why are we walking down this aisle again?” Cheetos! Let’s get Cheetos!” Riku Nakamura’s daughter, Akari, lunged toward the grocery store shelf.

7 years from now riku