Shiseido Initiates Test Facility And Farm For In - House Cultivation Of Safe And Reliable Plant Raw Materials

Shiseido Initiates Test Facility and Farm for In-house Cultivation of Safe and Reliable Plant Raw MaterialsShiseido has started trial operations of a plant cultivation test facility established in December 2012 at the Kakegawa 

Factory. Along with installing a container-type facility (Photo 1, 2) that enables plants to be efficiently grown as raw
materials for active ingredients, a test farm (Photo 2) was also set up and will commence full-scale operation from
April. With this initiative, Shiseido will embark on the development of safe and reliable plant raw materials that are
traceable to their source.

Going forward, in addition to aiming to launch cosmetics products formulated with plants*1 that have been
cultivated under the company’s supervision by 2014 at the earliest, Shiseido will gradually expand the on-site
cultivation and production of sources of plant raw materials while also gaining cooperation from raw material
*1 At this point in time, this refers to plants that have been cultivated, managed and harvested, including by Shiseido staff members, at
off-site farms.
Background of Plant Cultivation Test Facility and Farm
With regard to trends in cosmetic product consumption, in addition to the expansion of the natural- and
organic-oriented segment, expectations are also increasing toward reassurance and safety, including traceability, due
to various influences such as the spate of food safety scandals that have occurred in recent years.
At the same time, global competition is intensifying each year and new players are entering the cosmetic field
from different industries. However, many new manufacturers are outsourcing their production to other companies
without having their own cosmetics manufacturing plants.
Since it was founded in 1872 as Japan’s first Western-style pharmacy, Shiseido has consistently pursued the
beneficial effects and efficacy of products as well as manufacturing in order to deliver safety and reassurance to
customers. Amid such circumstances, as a result of examining “what Shiseido can do as a dedicated manufacturer of
cosmetic products,” the decision was made to establish the plant cultivation test facility and farm within the
company’s premises and start the development of plant raw materials that are traceable to their source.Advantages of Using Plant Cultivation Test Facility and Farm
The advantages of producing plant raw materials for active ingredients in-house are as follows.
1) Supervising from the stage of seeds and seedlings makes it possible to procure raw materials that are
“safe and reliable,” “of stable quality” and “traceable,” which in turn enables identification of the
background of plants and producers.
2) Using such high quality plant raw materials will also contribute to the development of products with
strong market competitiveness. At the same time, controlling cultivation conditions will also broaden the
potential of producing raw materials that contain greater amounts of active ingredients.
3) Less impact caused by the natural environment, including climate changes in production areas, will lead
to securing a stable harvest and reduce price fluctuation risk.
Future Initiatives
Going forward, Shiseido will promote tests of growing plants at the plant cultivation test facility and farm. By doing
so, Shiseido aims to formulate the first raw materials for active ingredients, which will be cultivated and harvested
under the supervision of Shiseido by taking various measures such as dispatching Shiseido employees to business
partners’ test facilities, in products scheduled for launch in 2014. Looking ahead, Shiseido will also consider
expanding production scale while also obtaining the cooperation of suppliers.
In addition to ensuring safety and reassurance, high quality and stable procurement, natural energy will be used
in certain parts as a heat source of the plant farm, thereby also striking a balance in terms of being environmentally
conscious as the first company to receive Eco-First Company certification in the cosmetics industry