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7-11, A Japanese Convenience Store, Plans To Invest 367 Million Yuan To Set Up A Large Plant Factory

Nov 27, 2018

7-11, Japan's largest convenience store, will set up a plant factory to serve salads and sandwiches sold in shops in Tokyo and kanagawa prefecture. 

The latest news is that 7-11, the number one convenience store in Japan, will set up a large plant factory to provide vegetables for salads and sandwiches sold in shops in Tokyo and kanagawa prefecture. 

The 7-11 specialty plant has been built at around 6 billion yen (367 million yuan) by Prime Delica, a unit of Primaham corp., which makes bento and other items for 7-11. Production is expected to begin in January 2019. 7-11 will also explore the production of spinach and other products, and consider setting up plant plants in partner plants throughout Japan. 

Plants using light-emitting diodes (leds) can produce the equivalent of 70,000 salads a day, reducing the risk of climate-induced price and quality fluctuations. It is expected that large-scale procurement by large circulation enterprises will help stabilize the operation of plant factories and promote further expansion of scale. 

Food factories that supply 7-11s now buy vegetables from contracted farmers and others, but sometimes the weather doubles vegetable prices. The production cost of the plant factory is higher than the normal purchase price, but it is not affected by the climate, and the price and quality are stable. The incidence of discarded vegetables will also decrease. On average, the production cost of products is estimated to decrease. 

In Japan, tax breaks will be available from November if plants are built on agricultural land. But when factories and so on are converted to other USES, the fixed asset tax on land will remain high. 7-11 will realize "one-stop" service from vegetable production to commodity sales to ensure the advantages of scale effect and price stability.