Hong Kong-listed Nissin Foods Co. has announced intentions to acquire Gaemi Food, a South Korean producer of baked grain crispy rolls.
Nissin Foods Co., a subsidiary of Japanese noodle manufacturer Nissin Foods Holdings Co., aims to acquire the business for a sum of Won48 billion ($34.9 million).
Product Portfolio Integration
Upon completion of the transaction, Gaemi Food will become part of the portfolio of brands under Nissin Foods Co., alongside shelf-stable and frozen noodle brands such as Fuku, Demae Iccho, and Nissin Donbei.
Nissin Foods Co. stated in a release that the acquisition will encompass Gaemi Food’s confectionery line, including the Kemy brand of sweets, chocolates, and chewy gum. This addition will, according to Nissin, “further enhance” the company’s “non-noodle business.”
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The company’s array of offerings encompasses baked crispy grain rolls, spiced popped corn snacks, and confectionery items. Additionally, they manufacture crispy fruit and vegetable-filled rolls tailored for children and toddlers, marketed under the Kemy Kids brand.
Additionally, it engages in the processing of private-label foods and “original design manufacturer products.”
Nissin Foods Co. stated that the acquisition offers the chance to enhance the product’s “distribution capabilities in China and Southeast Asia, in response to growing market demand and evolving business landscapes.”
The company further expressed its anticipation of “ample opportunities for expanding the baked grain crispy rolls market,” citing the increasing consumer interest in “convenient” food options.
Expanding on the announcement, Kiyotaka Ando, executive director, chairman, and CEO of Nissin Foods Co., characterized the move as “a strategic milestone” for the company in advancing its presence “in the Korean and overseas markets.”
He further remarked, “By capitalizing on Nissin Foods’ strengths in marketing and food technology, the group is cultivating a non-noodle sector that can synergize with our instant noodle business.”
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“Expanding into global markets not only enhances our revenue streams but also increases our understanding of local cultures & consumer behaviours,” he said.
In addition to South Korea, Gaemi Food’s primary markets span China, Japan, Vietnam, Indonesia, Taiwan, Thailand, Australia, and the US.
Financial Overview
For the fiscal year ending December 31, 2023, the Seoul-based group reported revenues of Won20.1 million.
Nissin Foods Holdings Co., the parent company of Nissin Foods Co., manufactures a variety of noodle products, including the Soba and Nissin Premium Bag instant noodle brands distributed in Japan, China, Asia, the Americas, and Europe.
The holding company made its entry into Hong Kong in 2018 through a partnership with its Japanese counterpart Kagome Co.
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