Headwinds from the Removal of 20,000 Vending Machines!　Daidoh’s rationale for continuing to make “drinkable cheesecake” and other oddities

You can buy Basque cheesecake from a vending machine. There is also a sparkling drink in collaboration with Frisk, and apricot bean curd arranged in strawberry flavor. ……

Why is something like this in a vending machine?” (Osaka City) has been introducing a variety of unusual products that make people look twice and wonder, “Why is this in a vending machine?

The soft drink maker is well known for its “Daido-Blend” and “World’s Best Barista Supervision” series, and is a long-established company in the vending machine business, with sales from vending machines accounting for about 90% of its total sales. It is also known for its unique initiatives such as “talking vending machines” that speak in dialect and “baby diaper vending machines.

However, the vending machine business is currently in the midst of a headwind. The number of vending machines on street corners is slowly decreasing due to high prices and rising maintenance costs, and Daido itself announced in March 2014 that it will remove 20,000 of its 270,000 vending machines nationwide (compared to the fiscal year 2012 level).

We asked Mr. Katsuhiko Konishi of the Product Development Group of the company’s Marketing Department about the reasons for continuing to develop sharp products in this difficult market.

Unorthodox corporate culture that takes on industry firsts

Daidoh has been the talk of the town for its unusual drinks. However, these unusual products are not born from a simple idea.

The company’s image may be that of a manufacturer that produces unusual beverages, but at the root of this image is the idea of “producing something that doesn’t exist anywhere else in the world” that has existed since the launch of DAIDOH BLEND COFFEE in 1975. Every product is born from the desire to ‘give a surprise that no other company has.

says Konishi, who has been involved in product development for more than 20 years. What we mean by “something out of this world” is a style that is new to the industry or a product in a genre that other companies have yet to tackle. Starting with “Coffee Revolution,” a canned coffee with a portion of cream, Daidoh has introduced products that have been a little surprising in each era.

These unusual beverages are the result of the flexible thinking of the development team members.

In commercializing a product, there are criteria such as whether it fits a trend, whether consumers would like to try it, whether the selling price is appropriate, and how it is manufactured. However, the most important thing is the ideas of the development team members. To be honest, there were some ideas that we were not sure if they could meet all of these criteria, but each time we made some adjustments and succeeded in commercializing them,” says Katsuhiko Konishi.

Even when an idea goes beyond the bounds of common sense, we try to give it shape. This spirit has been the driving force behind the creation of oddball products for nearly half a century.

Prepare to be burned Seeds of a hit created with a determination to catch fire

The most representative of Daidoh’s oddball products in recent years have been “Basque Cheesecake,” “Strawberry Anjin,” and “FRISK SPARKLING.

The most impactful of these was the “Basque Cheese Cake” released in the fall of 1925. This was the industry’s first “shake it and drink it” style of cheesecake in a can, in which you shake the can to break up the contents and drink it. and “Is cheesecake even a drink in the first place?

When the project was first proposed, even the marketing department was skeptical.

The idea itself was very interesting, but because it was the first of its kind in the industry, we had to make a number of adjustments to ensure stable production, and it took about two years to commercialize the product. When the product actually came to fruition, other departments were amazed. It’s interesting! I want to sell it! I want to sell it!

On the other hand, “Strawberry Apricot” was born out of “another form of persistence.

The product we were planning to launch stalled due to a technical hurdle, so we reviewed our past ideas to see if there was anything we could make use of. We brushed up the “Chilly Apricot Shake” that we launched about 15 years ago to make it more modern and commercialized it.

The dessert jelly drink with a thick texture, which can be shaken to break it up and drink it or eaten with a spoon, became a hot topic among sweets lovers and vending machine enthusiasts even before its release.

In fact, the “Chilly Apricot Shake” is a product I was in charge of 15 years ago. It was impressive that we were able to bring it to the world with the fresh approach of today’s young members.”

FRISK SPARKLING” was a big hit on SNS.

It is the world’s first beverage that uses the “Frisk” license, and was released as an unsweetened carbonated beverage that provides a strong minty stimulation and cool sensation. Immediately after its release, the drink became a major topic of conversation on social networking sites, with both pros and cons, but this was to be expected, according to the company.

The idea was to create a carbonated beverage with a strong cooling sensation, something that had never been done before. However, if we had only pursued this idea, it would have ended up as a niche product. Then we realized the affinity with Frisk and approached Kracie, and the collaboration was realized.

We were also prepared for negative feedback on the “cooling sensation. However, we also thought that if we could create a buzz on social networking sites, including such opinions, many people would actually want to try the product.

The grape flavor that was subsequently introduced had an additional goal.

With the grape flavor, we wanted to create both a buzz and a good taste. While it’s important to have a sharp project, if you drink it once and that’s it, it becomes a world of self-satisfaction. I think it is important to find the right balance between the two to ensure repeat business.

The biggest “weapon” in the fight against the giants

Of course, not all odd varieties are successful. We have had many bitter experiences.

In our core business, we have not been able to achieve good results with our coffee varieties, such as ‘Foamed Demitasse Espresso’ and ‘Whiskey-Scented Black,'” says Katsuhiko Konishi. We have received comments of appreciation and requests for resale from our Customer Service Center, but the reality is that it is difficult when you consider the scale of our business.

Even so, Mr. Konishi will not stop.

I definitely want to try my hand at a different kind of coffee in the future.

The reason why Daidoh continues to focus on odd varieties is directly related to its business strategy and raison d’etre.

In the midst of a difficult vending machine market, if we stick to safe, standard products, we will end up competing against brand-name products. In order to compete with competing beverage manufacturers, who are superior in size, we believe that something that no other company can offer is a major weapon for us.

The vending machine sales floor is one device that makes these weapons stand out even more. The popular dessert beverages would be lost among other products in convenience stores and supermarkets, but in vending machines, where only beverages are sold, they are more likely to catch the attention of consumers.

To begin with, we view vending machines as a single storefront. We think of the vending machine as a store, and we want to offer not only standard products such as tea and coffee, but also different kinds of products to give consumers a reason to come to our vending machines.

In other words, the oddities are not just a means to make up numbers. Instead of fighting head-on with the giants, Daidoh will continue to make what no one else is making. That is how Daidoh fights, and that is its raison d’etre.

We are creating more and more products that will make people think, “Wow, a vending machine can do this! I would like to keep on releasing more and more products that will make people think, “A vending machine can do this! I think that is the best reason for people to come to our vending machines.

Tomorrow, the way people look at vending machines may change a little.

Click here for the official DyDo X account “Daidoh’s Hot Sigh “.