Accelerating Corporate Open Innovation with BX Creators (Part 1)

In recent years, open innovation—aiming to create new value through supporting startup growth and collaboration—has been promoted by various companies. However, for startups that are just beginning or have focused their limited resources on product development, there are cases where the core brand statement hasn't been fully articulated, or where the relationships between brands and how they are presented to end users haven't been properly organized.

Creative consulting—which crafts strategy from a creative perspective, not just traditional management viewpoints—addresses these challenges.

This two-part series introduces a case where Dentsu Inc. provided creative consulting to Smolt, a startup originating from Miyazaki University that researches, develops, produces, and sells Japanese native salmon (Sakura masu) fry, and to Sazaby League, which aims to create new value through investment and support for Smolt.

What was the motivation behind the collaboration between Smolt and Sazaby League? And what exactly is brand development through creative consulting?

We spoke with Mr. Tsuyoshi Uemura, Head of CVC at Sazaby League's President's Office; Mr. Ken Ueno, CEO of Smolt; and Mr. Masahito Nakagawa, Creative Director at Dentsu Inc. BXCC.

(From right) Mr. Tsuyoshi Uemura, CVC Manager, President's Office, Sazaby League / Mr. Ken Ueno, CEO, Smolt / Mr. Masahito Nakagawa, Creative Director, Dentsu Inc. BXCC

【Smolt Inc.】

Smolt is dedicated to developing superior lines of cherry salmon (Sakura Masu), a species now rare in the wild. Using proprietary technology cultivated in-house, they selectively breed generations of superior individuals that demonstrate environmental resilience and other desirable traits during the process of experiencing both freshwater and seawater. Drawing parallels to how wild Sakura Masu transform into larger, silvery fish with a lustrous, beautiful appearance while adapting to harsh, changing environments, Smolt embodies this challenging way of life and strives to innovate the fisheries industry.

 

Available for purchase in our online store: Premium Sakuramasu (for sashimi) and Tsukimi Ikura
 

Investing in startups creating the food future 100 years ahead to realize lifestyle proposals one step ahead

──First, please introduce yourself.

Ueno: I'm Ueno, CEO of Smolt. Our company is a startup originating from Miyazaki University, founded in April 2019. We are engaged in a D2C Inc. brand business that delivers Sakura trout, a species of salmon unique to Japan, to customers using rare circular aquaculture technology. We are also developing environmentally resistant strains to support the fishing industry.

Uemura: I'm Uemura, CVC Manager/Project Manager at Sazaby League. Our company has been operating fashion and food brands for 50 years. Specifically, we operate apparel brands such as Ron Harman and estnation, lifestyle brands such as Afternoon Tea Living and Flying Tiger, and food brands such as Shake Shack and Kihachi in Japan. In April 2022, we launched CVC activities involving business partnerships with startups and entrepreneurs, and in September 2022, we invested in Smolt as our first project.

Nakagawa: I'm Nakagawa, Creative Director at Dentsu Inc. BXCC. Half of my work involves advertising creative, and the other half involves helping startups and small-to-medium-sized enterprises grow their businesses through communication support and MVV (Mission, Vision, Values) formulation.

──I'd like to start by asking about the beginning of this project. Could you explain the background behind Smolt's fundraising?

Ueno: Since our founding, we've held the vision of "creating a world where delicious fish can be enjoyed for the next 100 years." We spent one to two years focusing intensely on developing the technology to raise cherry trout. Just as we finally completed our product and began sales, we wanted to take the next step: further product development, marketing, and expanding distribution channels. Around that time, we caught wind that Sazaby League was starting its CVC activities. Actually, one of our executives knew Mr. Uemura, so that executive was the initial connection that led to our discussions.

*Mr. Ueno participated in the interview online

Uemura: When I posted about starting CVC activities on social media, that director contacted me immediately. It was very quick, wasn't it? After that, we had several discussions with Mr. Ueno and others, and the investment decision was made within a few months.

──What were the key factors that led to the investment decision?

Uemura: Above all, the significant social impact of their work. Their efforts to raise Japan's native salmon and preserve the unique culture cultivated by the Japanese people for future generations are crucial for Japan's food industry, which has a low food self-sufficiency rate. Furthermore, I believed this activity was highly meaningful from the perspective of supporting global protein demand in the face of potential future protein shortages.

Another key factor was the immense potential we saw in Smolt's "Hon-Sakura Masu" (True Cherry Salmon). When I actually tasted it in Miyazaki, it was incredibly delicious. Imagining a future where such delicious fish graces people's tables and restaurants was truly exciting. Ueno-san's deep passion for fish, his grand vision, and the sheer deliciousness of the Sakura Masu were the decisive factors in our investment.

──Corporate venture capital (CVC) from operating companies often aims to create new businesses or synergies with existing operations through startup investments. What potential did you see in partnering with Smolt?

Uemura: Sazaby League is a company whose spirit is embodied in "It's a beautiful day." and whose mission is to propose lifestyles that are half a step ahead. Guided by this spirit, we have developed brand businesses in the areas of clothing, food, and housing. However, as the social environment undergoes significant changes and needs diversify, we must challenge ourselves to propose lifestyles that extend beyond these traditional domains. In this sense, we believe that by taking a step further through "investment" – a deeper form of collaboration – with Smolt, which is tackling new value creation through advanced technological development, we can aim to propose new lifestyles for the coming era and future.

Drawing inspiration for the statement from the founder's background

──Could you tell us how Dentsu Inc. came to join the project?

Nakagawa: It all started in 2022 when our team members met at a startup event, right?

Uemura: That's right. I remember hearing that you support startup growth using creative power. It struck me as a very fresh perspective and an approach that aligned perfectly with our needs. I thought, "If we could do something together," and introduced you to Ueno.

Ueno: I was surprised to learn that Dentsu Inc. was supporting startups, as I had the impression you primarily worked with large corporations. While we've been developing Sakura Trout breeding technology and products, we've also tackled marketing and branding. However, we felt some aspects weren't fully organized internally, so we really wanted your expertise. Honestly, we were concerned about costs, but you proposed various methods and your approachable support put us at ease.

──I understand this project involved "Creative Consulting," which focuses on developing strategy from a creative perspective. Could you explain the specific activities undertaken?

Nakagawa: The first step was designing Smolt's core statement. Essentially, this is an output that clearly articulates: What value does this company provide to the world? We explained that having this would make it easier for Mr. Ueno to communicate about the company both internally and externally, and it would also serve as a compass for any new initiatives. So, we decided to focus on that.

Ueno: Come to think of it, I remember being grilled about my background and personal interests right from the start (laughs).

Nakagawa: That's right. While we certainly asked about the company, we also wanted to understand your personal background. Questions like, "What kind of child were you?" or "Do you have favorite music or movies?" Since this is a startup born from the founder's strong convictions, we genuinely wanted to know more about you.

Ueno: But honestly, as I shared my background with Nakagawa, I found connections to Smolt's business and had many revelations that clicked for me personally. Looking back now, I think that process was incredibly important.

Uemura: Even before we invested, Smolt gave the impression that every output—photos, copywriting, design—was well-considered. Still, looking at it from a brand management perspective, I sensed areas that were individually optimized but didn't always connect seamlessly within the larger brand framework.

Of course, Mr. Ueno has poured his entire being into researching cherry salmon, so he approached branding and creative work intuitively, through repeated trial and error, even if he didn't fully understand the theory. On the other hand, aiming for further growth going forward, that approach has its limits and needs improvement.

That's precisely why I wanted to enlist Dentsu Inc.'s expertise. When I saw the actual output they delivered, it felt spot on – "Yes, that's exactly it." It wasn't just correct for Smolt; reading it, we could sense the underlying passion from Mr. Ueno's background shining through the words. I thought, "That's impressive."

Nakagawa: You can write copy based solely on company information without knowing the background. But then you release it without knowing if it's truly 100% accurate or if there are any mistakes. A statement can't just be vaguely good; it must be completely seamless. To achieve that, the process of deeply understanding the founder is crucial.

Uemura: And you also helped us develop a brand architecture that considers Smolt's current state and future, right?

Nakagawa: Yes. We worked together to organize the positioning and personalities of each brand: Smolt as the corporate brand, FISH FARM SAKURA as the D2C Inc. brand, and Honzakura Masu as the product brand.

Uemura: It's rare for a startup to have its corporate and product brands so clearly defined in the early stages. As companies grow, brands can multiply or roles shift, and before you know it, things can get messy.

Nakagawa: That's true. Founders probably think about brands more than anyone else, but that doesn't necessarily mean everything is neatly organized. This time, we used Figma, a collaborative design tool, to organize existing brands, brainstorm naming, and map out the relationships and roles of each brand.

Ueno: It was a really valuable experience.

Nakagawa: Visualizing it on a diagram really helped uncover a lot, didn't it?

Uemura: Exactly. We started seeing issues like, "What exactly is this brand's interpretation?" or "This part is missing." Having Nakagawa's team support us from an outsider's perspective was huge. If it had just been Ueno and me, we might have systematized things somewhat, but we wouldn't have been able to organize it that thoroughly.

(Continued in Part 2)

For inquiries, please contact:
Dentsu Inc. BX Creative Center: contact@dentsu-bxcr.com
BX Creative Center Website: https://dentsu-bxcr.com/