Kiyotaka Ando, CEO of Nissin Foods.
Nissin Foods has announced plans to enter a joint venture agreement to import and sell a range of Japanese branded food and beverage products in China.
Nissin will own an 81% stake in the venture and contribute approximately HKD 18.6 million ($2.4 million) to its share capital.
Liu Feng, general manager and director of Dachang Dongfeng Food (Shanghai), will own the other 19%.
“Formation of the JV is the group’s latest initiative to diversify products and expand distribution channels in the PRC, and in the long run open new revenue streams for the group,” said Kiyotaka Ando, CEO of Nissin Foods.
“It will give us a stronger foothold in Shanghai, presenting us with long-term strategic value conducive to creating sustainable returns for our shareholders. It is also part of our localisation efforts to strengthen our presence and relevance in the PRC.
“In the way ahead, we will continue to look for opportunities in strategic partnerships or alliances, thereby fueling growth momentum.”
Nissin added that the joint venture will enable it to provide more diversified products to satisfy the growing demand of customers in China for Japanese products.
The joint venture will also create synergies with Nissin’s existing noodles business in China.
Nissin Foods’ five flagship product brands are Cup Noodles, Demae Iccho, Doll Instant Noodle, Doll Dim Sum and Fuku.
© FoodBev Media Ltd 2019