Itochu, Calbee to establish snack food joint venture in China

Itochu Corp said Monday that it has reached an agreement with Calbee Inc and Master Kong Instant Foods Investment (China) Co Ltd to establish a snack food manufacturing company in China by July.

The snack market in China is said to be worth approximately 150 billion yen, and continues to achieve an average annual growth rate of over 10%. Although per capita consumption is still less than one hundredth of one in advanced countries, the Chinese snack market is projected to continue to post double-digit growth rates in the long term, reflecting lifestyle changes due to economic growth in China.

The joint venture aims to introduce and establish the brand as soon as possible in China through the technology and know-how offered by Calbee, the frontrunner in the Japanese snack market, for the promotion of product development in a joint effort with Tingyi Investment, and through the use of the distribution network and sales strengths of the Tingyi Group, the largest player in the instant noodle and beverage industries in China.

Specifically, the desired target for the joint venture is to capture a share of 10% in the Chinese snack market within five years from the launch of the business.

© Japan Today