New Japan Chemical Withdraws from Natural Premium Alcohol Business

TOKYO, Aug 07 (Pulse News Wire) – New Japan Chemical CO.,LTD. (4406.T) announced today that it has decided to withdraw from its natural premium alcohol business due to deteriorating competitive conditions.

The decision was made during a board meeting held on August 07, 2026. The company cited the worsening competitive environment, primarily driven by low-cost products from Southeast Asian manufacturers and oversupply in the market, as key reasons for the withdrawal. Despite efforts to improve profitability through alternative supply solutions, the company concluded that continuing the existing business model would be challenging. As a result, New Japan Chemical plans to exit external sales of natural premium alcohol by March 2027.

Key details of the withdrawn business include: - Sales revenue of ¥3.014 billion (as of March 2026 fiscal year) - Continued production and sale of Conole 2265 and 2,280 - Employee reallocation to other production departments and growth areas Regarding future timelines, the company expects to complete the withdrawal process by March 2027. Any associated costs, such as impairment losses on some equipment, are currently being assessed. New Japan Chemical will promptly disclose any significant impacts on its performance once confirmed. For more detailed forecasts on the company's consolidated earnings for the fiscal year ending March 2027, refer to the separate press release titled “Amended Forecast for Consolidated Financial Results for the Fiscal Year Ending March 2027.”.