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I would like to begin by extending my sincere sympathy and condolences to everyone who was affected by the Great East Japan Earthquake. Some buildings and equipment at Japan Foods were damaged by this disaster. However, the immediate response by our employees allowed our factories to resume operations on the same day. Since then, we have faced many challenges, notably rolling blackouts and the difficulty of procuring supplies and ingredients. Everyone at our company has dealt with these challenges in line with our corporate philosophy: “Contribute to society as a trusted company by supplying products that bring health and happiness to our lives.” Adhering to this spirit enabled us to continue to produce and supply the beverages that are indispensable to the people of Japan.

The situation in Japan is still uncertain. Japan Foods is committed to fulfilling its social mission even when we encounter the most serious challenges. We are determined to remain a source of safety and security by manufacturing beverages for other companies. We will also supply beverages that use our Boso no Oishii Mizu (“Delicious Water from Boso”) brand and supply water through our Water*net home delivery business. Water for our products comes from wells that are more than 100 meters deep and its safety has been confirmed by numerous tests.

Conserving energy is critical at this time due to the expected shortage of electricity during the summer. Japan Foods is dedicated to manufacturing products that are backed by the expertise of our workforce while cutting energy consumption.

In China, we established a company late in 2010 to manufacture beverages for other companies and started construction of a factory in May 2011. This is the first time that a Japanese company will operate an OEM beverage production business in China. We will do everything possible to make this business a success as we take full advantage of our technologies and know-how involving the production of beverages.

In closing, I ask for your continued support as we take the necessary steps to overcome the challenges we face and aim for further growth.

Ryota Honjo
President
Japan Foods Co., Ltd.

June 2011

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