{"id":12258,"date":"2024-12-02T08:00:23","date_gmt":"2024-12-02T07:00:23","guid":{"rendered":"https:\/\/fei-online.com\/?p=12258"},"modified":"2024-11-27T12:02:21","modified_gmt":"2024-11-27T11:02:21","slug":"nissin-foods-forms-australian-joint-venture-to-expand-instant-noodle-distribution","status":"publish","type":"post","link":"https:\/\/fei-online.com\/nissin-foods-forms-australian-joint-venture-to-expand-instant-noodle-distribution\/","title":{"rendered":"Nissin Foods forms Australian joint venture to expand instant noodle distribution"},"content":{"rendered":"
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Nissin Foods forms Australian joint venture to expand instant noodle distribution<\/h1>joint venture<\/a><\/span>, E-News<\/a>, Industry News<\/a> <\/span><\/span><\/header>\n<\/div><\/section>
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A new joint venture between Nissin Foods and Nissin Asia aims to capitalise on growing instant noodle consumption in Australia and New Zealand, where demand has outpaced global growth rates. The move follows Nissin\u2019s recent ABC Pastry acquisition and establishes a direct presence in both markets through a new subsidiary, Australia Nissin Foods Pty., Ltd.<\/strong><\/p>\n

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Market analysis shows strong regional growth<\/strong><\/h3>\n

Data from both markets demonstrates robust growth in instant noodle consumption between 2019 and 2023. Australian demand rose from 420 million to 500 million servings, representing a compound annual growth rate (CAGR) of 4.5%. New Zealand showed even stronger growth with a CAGR of 5.1%, increasing from 90 million to 110 million servings. Both markets significantly exceeded the global CAGR of 3.1% during this period.<\/p>\n

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The new entity will be structured as a 51\/49 joint venture between Nissin Foods and Nissin Asia, with Nissin Foods contributing AUD1,020,000 (approximately US$670,000) from internal resources. The subsidiary will focus on importing and distributing instant noodles, snacks, cereals and other food products across both markets.<\/p>\n

Distribution network development<\/strong><\/h3>\n

Nissin Asia, which currently manages instant noodle manufacturing and sales operations across Thailand, Indonesia, Singapore, Cambodia and Malaysia, will contribute its regional distribution expertise. The partnership aims to optimise inventory management and strengthen local sales networks, while maintaining tighter control over retail distribution channels.<\/p>\n

Demographic drivers<\/strong><\/h3>\n

Analysis suggests that population growth, particularly from Asian migration to both countries, is a key factor in market expansion. This demographic shift is expected to continue supporting market growth for instant noodle products.<\/p>\n

Kiyotaka Ando, Executive Director, Chairman and Chief Executive Officer of Nissin Foods, commented on the strategic importance of the venture: \u201cThe establishment of Australia Nissin Foods Pty., Ltd. represents a significant milestone in our Group\u2019s international outreach, strengthening our presence in the Australian and New Zealand markets. Building on the strategic acquisition of ABC Pastry, which diversifies our product portfolio, this joint venture will reinforce our market position in these two markets.\u201d<\/p>\n

The joint venture\u2019s financial results will be consolidated into Nissin Foods\u2019 group financial statements, with operations expected to commence following formal incorporation.<\/p>\n<\/div><\/section>
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