R&DUnderlying Functions and Systems

R&D functions

The Group addresses the diverse needs of its customers and the issues facing society, such as health, flavor, convenience, and reducing environmental impact, by leveraging its technology and product development capabilities based on its expertise in vegetable oils and fats research. Based on our technological strengths in evaluating the nutritional value and flavor of oils and fats, as well as our manufacturing and processing capacity, we will increase our collaboration and co-creation efforts within and outside the Group. This is part of our commitment to research and development that creates shared value under each of the priorities set out in Vision 2030. With Incubation Square, our new R&D hub, at the center, we will refine our oil and fat technologies to bolster the Group’s R&D capabilities. We will also use Incubation Square to co-create with customers from Japan and abroad. By exchanging technology and information, we will incorporate diverse perspectives and ideas to provide cutting-edge solutions.

Our R&D functions include our Basic Research Laboratory, which creates future value from a medium- to long-term perspective, and our Applied Research Laboratory, which advances and applies proprietary technology to generate value. At our Household-Use & Wellness Foods Business Strategy Center, we connect customer needs with our innovations to create products that better align with our customers. We also have a Product Application Development Center, which develops applications and proposes technology based on the needs of food manufacturers and distributors. Our Fine Chemical business has a development department that is primarily responsible for developing cosmetic ingredients and applications, as well as providing technical support. Our Intellectual Property Department strategically leverages technology acquired through R&D as intellectual property.

Global R&D system

In Japan, our R&D system revolves around Incubation Square, our core facility located at the Yokohama Isogo Complex.
Domestic group companies, such as Daito Cacao and Settsu, also have R&D functions. Each company leverages its strengths in its own operations while focusing on creating new value through the Group’s collective strength.
To build a global R&D system, we have established locations in Malaysia and Spain for overseas operations. In Malaysia, a major palm oil production area, we have established the Nisshin Global Research Center. The group company Intercontinental Specialty Fats also has R&D functions. In Spain, Industrial Química Lasem, a fine chemicals company, engages in R&D. Our domestic and overseas locations collaborate to advance initiatives geared toward creating value.

Incubation Square

Our core R&D facility, Incubation Square, hosts a broad range of functions, including basic and applied research on edible oils and the development of seasonings, foods for the elderly, nursing care products, processed oils and fats, confectionery fats, and fine chemicals. The facility provides incubation support covering the entire process, from product development to commercialization. With co-creation kitchens and pilot facilities for sample production and small-scale manufacturing, the Incubation Square enables us to collaborate with customers to develop new solutions and create value.

Incubation Square Building A

Incubation Square Building B

Case Study 1: Targeted solutions made possible by co-creation with customers

In the face of changing consumer behavior, diverse health-related food, demand for good flavor, labor shortages, rising costs, and other developments, we adapt to the needs and challenges of processing manufacturers, mass retailers, convenience stores, restaurants, and other B2B customers. We develop products and applications, as well as other technology-driven solutions. In the past, the sales department was the main contact point for customers. They would ascertain customer needs and challenges, then share this information with the development department. The development department would then create technical proposals. With Incubation Square, however, we can work alongside customers to develop products and find solutions together. Our new test kitchen features upgraded food preparation equipment and facilitates direct communication between developers from various lines of business and our development team. This setup enables them to collaborate closely as they select ingredients and produce a wide variety of samples. We pair sensory evaluation data with analytical equipment to quantify textures, flavors, and physical properties, creating objective data for more efficient and convincing solutions.

Glass fryers allow you to see how the test subjects are frying from all angles

Electron microscopes are used to examine the interior of samples and determine the relationship between their internal structure and texture

We have also improved our R&D environment for fine chemical cosmetic ingredients. Ester oils are essential ingredients in manufacturing cosmetics. These oils, along with others, are used to provide the moisture retention, texture, coloring, gloss, and other functions required of cosmetics. We use our new facilities to develop ester oils with the physical properties and functions that our customers need. We operate a solutions business that leverages the functions of our cosmetic ingredients. In our new constant-temperature and constant-humidity room, we can control the temperature and humidity and use various measurement devices to accurately and objectively assess skin conditions. This environment allows us to communicate directly with customers and deliver high-quality, highly functional products that meet their needs.

Our constant-temperature and constant-humidity room enables us to thoroughly measure and evaluate skin under specific conditions

We develop ester oils that have the physical properties and functions that customers need

Case Study 2: Enhanced pilot functions that accelerate co-creation and commercialization

In the process of developing oils and fats for food processing, samples need to be produced for evaluation on customers’ manufacturing lines after laboratory-scale evaluations. Previously, this posed a challenge, requiring either multiple laboratory-scale trial runs to produce individual samples or production on actual production equipment, which impacted other manufacturing schedules. Our new facility features medium-sized equipment for pilot-scale production. We can now manufacture samples ranging from 18 liters to several hundred kilograms. Our equipment and facilities are designed for refining and processing oils and fats, including fractionation and interesterification. This allows us to manufacture and evaluate new products while collaborating with customers, which accelerates development. Additionally, we use wireless technology to centralize the management of manufacturing data, speeding up the path to production. The equipment can also be used for small-scale production, supporting the start-up stage working toward commercialization.

Some of our pilot-scale equipment

Pilot-scale facilities

R&D accomplishments

Just as our original and advanced technologies are essential to mastering the core competence of oils and fats and becoming a global top provider of oils & fats solutions, so too is the ability to swiftly and consistently provide these solutions to customers. Accordingly, we proactively invest in intellectual and human capital to create a foundation for strategic intellectual property activities and strengthen our organizational capabilities.

R&D expenses (consolidated)

Number of patents held