Sakuma Seika, which sells "Sakuma Drops" known for its red can package, has decided to go out of business in January next year.
The decline in sales due to the impact of the new coronavirus was compounded by the sharp rise in raw material costs, and management was deteriorating.
The predecessor company of Sakuma Seika was founded in Tokyo in 1908 and started selling "Sakuma Drops".
The product is known for its red can packaging, and has been loved by people of all ages, such as being featured in the anime movie Grave of the Fireflies.
According to the company, sales were sluggish due to the impact of the new corona, and while raw material costs continued to rise, management deteriorated because it could not be passed on to product prices, so it decided to close down on January 20 next year. That's it.
Even after closing, the company will continue to exist and will respond to payments etc.
In the company's settlement of accounts for the fiscal year ended September last year, the final profit and loss recorded a deficit of more than 150 million yen for the year.
On the other hand, "Sakuma Confectionery", which has a similar name and manufactures and sells "Sakuma Drops" in green cans, is a separate company and will continue to operate as before.