From Ramen to Rockets: Is the Business Scope of Trading Companies Really That Vast? Can You Provide Some Unexpected Examples?

From Ramen to Rockets: Is the Business Scope of Trading Companies Really This Vast?

Yes, the business scope of Japanese general trading companies (Sogo Shosha) is indeed exceptionally broad. They are not merely trading firms but comprehensive corporate groups involved in diverse fields such as investment, resource development, manufacturing, and services. This stems from Japan’s post-war economic development model, where trading companies adopted diversification strategies to mitigate risks and seize global opportunities. The five major trading companies invested in by Warren Buffett—Mitsubishi Corporation, Itochu Corporation, Mitsui & Co., Sumitomo Corporation, and Marubeni Corporation—are prime examples. Their businesses span from daily necessities to high-tech sectors, even extending into seemingly unrelated industries. Below are several surprising examples showcasing their cross-industry reach, from "ramen" (food retail) to "rockets" (aerospace technology).

1. Itochu Corporation: From Instant Noodles to Satellite Communications

• Surprising Fact: Itochu began as a textile trader but now invests in multiple food chain brands, including partnerships with renowned Japanese ramen brands (e.g., supporting Ippudo’s global expansion) in food supply chains. It also holds significant stakes in FamilyMart convenience stores, covering retail operations from instant noodles to daily groceries.
• High-Tech Crossover: Simultaneously, Itochu invests in satellite communication companies like Intelsat, providing global satellite internet services. This leap from "street-level ramen" to "space communications" epitomizes its extreme diversification.

2. Mitsubishi Corporation: From Seafood Trading to Rocket Launches

• Surprising Fact: Mitsubishi Corporation manages global seafood supply chains in its food division, even supplying ingredients for sushi chains (indirectly involving Japanese fast food like ramen).
• High-Tech Crossover: It collaborates with Mitsubishi Heavy Industries on commercial projects for Japan’s H-IIA and H3 rockets, including satellite launch services and space exploration investments. This transforms a "seafood trading company" into a key player in aerospace, stretching its reach from the ocean to outer space.

3. Marubeni: From Grain Imports to Drones and Aviation

• Surprising Fact: As one of Japan’s largest grain importers, Marubeni handles staples like rice and flour, investing even in instant noodle production and restaurant chains (e.g., partnerships with ramen brands).
• High-Tech Crossover: Marubeni invests in drone technology and aerospace projects, such as supplying aircraft parts for Boeing and developing Japan’s drone logistics systems. This innovation—from "noodles in the kitchen" to "rockets in the sky"—showcases its resource integration capabilities.

4. Other Surprising Cases: Cross-Industry Ventures by Sumitomo and Mitsui

• Sumitomo Corporation: Beyond metals and energy, it invests in animation production and entertainment (e.g., collaborations with Japanese anime studios), while also venturing into healthcare and even hospital operations. This diversification—from "resource trading" to "cultural entertainment"—is unexpected.
• Mitsui & Co.: It invests in global fruit brands within agriculture (e.g., Dole’s Asian operations, indirectly involving food processing), yet also participates in renewable energy and EV battery projects, even funding space debris removal technology.

These examples illustrate that trading companies go beyond simple commerce—they build ecosystems through investments and joint ventures. Buffett values precisely this stability and global influence; though their operations may seem scattered, they form formidable competitive barriers. If you’d like deeper insights into any specific trading company, feel free to explore further!