Ajinomoto Co. is set to acquire a 50.1% equity stake in More Than Gourmet (MTG), a US-based producer of classic French sauces and stocks. The strategic partnership will be facilitated through Ajinomoto’s consolidated subsidiary Ajinomoto Health & Nutrition North America.
Ajinomoto, which specialises in the food and amino acids business, hopes the move will enhance its Integrated Food Solutions business in the North American market.
The B2B market for prepared take-out foods, food service and restaurants in the United States stands at $18.3 billion, accounting for about 40% of the global market, and a steady growth rate of 3.2% is expected during the period from 2011 to 2025, according to an Ajinomoto Co. estimate.
The release noted that the popularity of liquid seasonings such as stocks, broths and sauces is increasing compared to powdered seasonings, largely due to their convenience and high-quality image. Collaborations between food ingredients manufacturers and liquid seasonings manufacturers allow sharing of knowledge, techniques and ingredients.
Ajinomoto plans to maintain MTG’s current management structure after the share acquisition, and the company maintains that, “the impact of the acquisition on Ajinomoto consolidated business results for fiscal 2019 will be immaterial”.
Ensuring food business growth with a stronger regional portfolio has been a key strategy for Ajinomoto, and the company claims the move will add value to local eating habits and food culture in the prepared take-out foods, food service and restaurant markets.
In other company news, Ajinomoto announced an investment of $84.9m earlier this week to relocate its Ajinomoto Malaysia Berhad (AMB) subsidiary to a new plant in Malaysia with the aim of strengthening its development of halal products.
© FoodBev Media Ltd 2019