ercian has established an attractive brand image through television commercials, newspaper advertising and sales promotions, and continues to implement wide-ranging marketing activities. To keep pace with accelerating changes in consumption patterns, we strive continuously to develop, manufacture and market products that reflect customer preferences. Highly popular products developed based on in-depth market analyses include Original Peachtree Fizz, a low-alcohol drink, and the Bon Marche series of economically priced wines. Products such as these reflect Mercian's determination to respond accurately to evolving consumer needs. The introduction of the Bon Marche brand in 1994 triggered a significant increase in wine consumption in Japan, and the domestic wine market continues to exhibit steady growth. Mercian, as one of Japan's leading wine manufacturers, is firmly focused on the tremendous potential of the Japanese wine market, and is thus pursuing a marketing strategy that positions the wine business as its core operating area. Our marketing strategy is supported by our domestic and overseas distribution networks. Our international network spans 20 countries and includes five production facilities and one representative office. In addition, we maintain business relationships with more than 50 overseas companies. Forward-looking investments in overseas wineries and efforts to increase our involvement in their operations have brought tremendous success in both France and the United States. The result is a solid network built on trust, through which we supply customers with a greater variety of superior wines. In Japan, our marketing strategy is backed by a logistics system that provides integrated management of all domestic transport. Our transport management center in Kawasaki controls all domestic distribution, ensuring smooth links with sales networks and the efficient shipment of products via seven substations throughout Japan.