Confectionery products, which led to the creation of the "snack culture" in Japan, such as milk caramel, candy, and chocolate-which are representative of today's confectioneries-and biscuits, which have established deep roots in the daily lives of the people of Japan, still occupy central roles in Morinaga's business operations. Along with the development of new products that introduce new and delicious tastes, Morinaga places emphasis on continuing to review and improve its existing product lines as well as redevelop products that have been best sellers for many years to offer excellent tastes that inspire and give consumers moments of rest and refreshment. In its foodstuffs operations, Morinaga is emphasizing good taste and enjoyment while working to promote a food-oriented lifestyle that focuses on the themes of health and safety and to cultivate markets that support the creation of a new food culture. Many of our foods have secured the top shares of their markets thanks to the way they provide consumers with a sense of delight as well as nutrition. Such products include Milk Cocoa, which contains polyphenols—substances that are receiving increasing attention for their beneficial effects; Amazake, a rice-based health drink; and Weider in Jelly, which is enjoying rapid growth and opening new markets. The Morinaga brand has steadily achieved increased market penetration since the commencement of the Company's frozen dessert operations in 1956. Currently, Morinaga sells products nationwide under the Choco Monaka Jumbo, Sundae Cup, ICE BOX and ICE GUY brands and offers lines of frozen desserts based on popular confectionery brands. Since commencing our health products operations in 1983, we have pursued a wide range of business activities in this sector, most notably through a tie-up with Weider Nutrition International, Inc., of the United States. Based on the new slogan “Power Your Life,” Morinaga conducts activities that range from the sale of nutritional supplements to the operation of training gyms, the provision of training and nutritional guidance, and the publication of various materials. Morinaga is seeking new adventures in food products through entrepreneurship in creating new food businesses and exploring of the frontiers of food culture. One of the key players in these activities is Morinaga's Innovation Center. Entrepreneurs from within the Company and outside gather in the center, going beyond the traditional framework of an enterprise, to seek ways to enable Morinaga to leap into the next generation by searching for the "seeds" and "needs" of new businesses, structuring new business models and creating new businesses. In addition, Morinaga's R&D Center conducts basic and applied research as well as product development and commercialization activities based on Morinaga's areas of strength in technology and know-how. Moreover, Morinaga's Product Planning Department is engaged in developing concepts that win the approval and support of customers based on an understanding of their needs gained from information gathered directly from customers through frontline marketing activities and other sources such as the newly established Food Culture Research and Development Center. The Product Planning Department, working together with Morinaga's Production Planning Department and drawing on the core technologies developed by the R&D Center, endeavors to create products that have strong brand power. Morinaga has introduced the Morinaga HACCP, a scientific quality management council, to enhance its production capabilities and ensure the supply of fresh, appealing products that consumers can enjoy. Based on marketing activities that emphasize product freshness, Morinaga is striving to raise its production capabilities to ensure the timely and adequate supply of products. Through such efforts, Morinaga intends to become known as an extremely qualified food company. Also, to enhance efficiency we have established a system whereby one product type is produced by a specific factory. To supply the freshest products possible and satisfy the needs of customers, Morinaga has established an advanced logistics structure that uses the latest in IT. This structure includes an efficient SCM system that covers all phases of logistics, from raw materials procurement to product sales as well as joint deliveries undertaken in cooperation with other companies in the food industry to achieve cost reductions and promote traffic and public safety. This leading-edge logistics structure is also instrumental in enabling Morinaga to realize its environmental goals under the slogan, "Gentle to the Earth, just like an Angel." With the aim of raising Morinaga's brand capabilities, the Company's Innovation Center determines strategies in each division.