FANCL REPORT 2022
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FANCL formed a capital and business alliance with the Kirin Group in 2019, which has since served as the impetus for a range of joint developmenRelaunched in November 2021, MILD CLEANSING OIL reemerged with the ability tokeratin plugs from skin pores using a new approach achieeved by blendraw material developed from matured hop extract in collaboration with the Kirin Group.Using Matured Hop Extract as a Cosmetic Raw MaterialAlthough it was previously known that the bitterness of hops possessed a range of health-promoting benefits, they were difficult to apply in health foods because of their strong bitter flavor. It was the maturing process, however, that overcame this barrier. The maturing process allowed us to reduce the bitterness of hops and successfully develop matured hop extract as an easy-to-use food ingredient. The number of products containing matured hop extract has increased each year, and by 2022, 15 such products had been released in Japan and around the world, including beverages, snacks, supplements, sausages, seasonings, and other Foods with Function Claims.Pursuing the Potential of Hops and Continuing the ChallengeAlthough Kirin has conducted research into the health-promoting benefits of hops for more than 20 years, it had never considered alliance with the Kirin Groupp in 2019rin Grouroup uproudevelopmentnnts.ged with the abilitemerged with the abiliity to remoovelending in a oration with the KirINHOP Co., Ltd.cosmetitic Incorporated in 2019, INHOP is an in-house venture spun-off from the Kirin R&D Division. In light of hops meaning “hope” in the language of flowers, the company's mission is “HOP for HOPE, Transforming the Power of Hops into Hope for Everyone.” Along with product development and raw materials sales focused on the health-promoting benefits of hops, primarily matured hop extract, INHOP engages in collaboration and communication aimed at expanding the potential of hops.Yuji KanekoPresident and CEOINHOP Co., Ltd.28Special FeatureManifesting Synergies with the Kirin Group— Product Development Using Matured Hop Extract —Against this backdrop, when we received a proposal from FANCL to apply matured hop extract in cosmetics, we were excited at this unique opportunity to convey the further potential of hops to customers. At the same time, however, we were uncertain about whether we could commercialize the concept of applying matured hop extract, which had been developed as a food ingredient, in cosmetics.One of the areas we struggled with in particular during this joint project initiated upon FANCL’s request, was setting the standards as a cosmetic raw material. Essentially, we had been developing matured hop extract under the assumption it would be produced in a brewery, so the standards and lot sizes did not meet the requirements as a cosmetic raw ingredient. As a result, improvements were required. Handling cosmetic raw materials was also a first for both myself and the production site. We therefore undertook the challenge of setting standards that would meet the requirements by collecting information from Ms. Kotaka and the team at FANCL, and by working in collaboration with other departments at Kirin. Likewise, I was overwhelmed with emotion when I finally saw off the first shipment as a cosmetic raw material from the production plant.applying the bittering component of hops to the skin. So, I was elated when this joint development identified new value for hops, and was surprised at the potential of this discovery. We intend to continue using these results to advance new value propositions to customers, and to more broadly convey the allure of hops.In addition, more than 100 people have been involved in the development of matured hop extract. And this raw material was conceived specifically because so many people believed in the potential of hops and sustained their research with enthusiasm and persistence. We have been strongly encouraged by the fact that this raw material, which is filled with the hearts of these researchers, has been used in many scenarios and has successfully contributed to society. Our current collaboration with FANCL to realize this has become a major strength for us. And we will continue to undertake challenges so that we can cooperate in product developments that leverage the strengths of both companies.

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