TOKYO, June 1, 2015 - Ajinomoto Co., Inc. (“Ajinomoto Co.”) is strengthening its operating foundation for frozen noodles to expand its frozen foods business in North America. Ajinomoto Toyo Frozen Noodles Inc. (“ATFN”), a frozen noodle production company established in April 2015 by the Ajinomoto Group and Toyo Suisan Kaisha, Ltd., will build a frozen noodle production plant that is scheduled to start operation in July 2016. Ajinomoto Co. will accelerate the expansion of its frozen foods business in North America by rolling out frozen noodles with high quality and specialty, centered on Japanese-style ramen, through the sales network of Ajinomoto Windsor, Inc.1
Note 1: Windsor Quality Holdings, LP (“WF”), the No. 1 Asian/Ethnic frozen foods company rolling out its business from consumer business to food service in North America in which the Ajinomoto Group acquired a full equity interest on November 5, 2014, was reorganized on April 1, 2015 into Ajinomoto Windsor, Inc. (“AWI”), a new company that handles the consumer foods business.
The frozen foods market in North America is approximately USD 40 billion (approximately JPY 5 trillion; Ajinomoto Co. estimate for fiscal 2014). The market for frozen noodles in the Asian/Ethnic food category is approximately USD 180 million2 (approximately JPY 22 billion) and continues to grow by double digits each year. Moreover, demand for Japanese-style ramen is booming in North America, centered on urban areas, with sights such as customers lining up for ramen at USD 15 a bowl.
Note 2: Exchange rate as of May 31, 2015: USD 1 = JPY 124.17
ATFN will invest approximately USD 25 million (approximately JPY 3 billion) to build a production plant for frozen noodles. Ajinomoto Co. will bring together the high-level noodle manufacturing technology of Toyo Suisan Kaisha, Ltd., the production technology of Ajinomoto Frozen Foods Co., Inc. and the product development technology of AWI to provide the North American market with high-quality frozen noodles with specialty backed by technology. The current lineup of Asian frozen foods centers on products such as gyoza, spring rolls and fried rice. By enhancing the product lineup with the addition of Japanese-style ramen and other new frozen noodles, Ajinomoto Co. intends to rapidly expand its entire frozen foods business through the powerful sales network of AWI, which covers all of North America.
Overview of Capital Investment
Reference
■ Ajinomoto Toyo Frozen Noodles Inc.
■ Ajinomoto Windsor, Inc.
■ Toyo Suisan Kaisha, Ltd.
About Ajinomoto Co.
Ajinomoto Co. is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto Co. has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 26 countries and regions, Ajinomoto Co. had net sales of JPY 1,006.6 billion (USD 9.17 billion) in fiscal 2014. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com
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