Ajinomoto Co. Is Reinforcing Its
Frozen Foods Business in North America
Investment of Approximately USD 20 Million (Approximately JPY 2.4 Billion) to
Expand Production Capacity for Frozen Rice Products by 1.5 Times and
Build a Stable Supply System throughout North America
TOKYO, September 25, 2015 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) is reinforcing its business infrastructure for frozen rice products to expand its frozen foods business in North America. Ajinomoto Co. will build a new production line for frozen rice products at the Oakland Plant of Ajinomoto Windsor, Inc. (“AWI”)1 to expand production capacity and create an efficient supply system throughout North America. Through this measure, Ajinomoto Co. will increase sales of high-quality, specialty frozen rice products and accelerate the expansion of its frozen foods business in North America. Investment will total approximately USD 20 million (approximately JPY 2.4 billion), and the full-scale operations will begin in September 2016.
Note 1: On November 5, 2014, the Ajinomoto Group acquired a full equity interest in Windsor Quality Holdings, LP, the No. 1 Asian/Ethnic frozen foods company in North America, which conducts operations from the consumer business to food service, and reorganized it on April 1, 2015 into Ajinomoto Windsor, Inc., a new company that handles the consumer foods business.

Yakitori Chicken with
Japanese-Style Fried Rice
,
currently sold in warehouse clubs
The frozen foods market as a whole in North America is approximately USD 40 billion (approximately JPY 5 trillion; Ajinomoto Co. estimate for fiscal 2014). The market for frozen rice products in the Asian/Ethnic food category is approximately USD 120 million2 (approximately JPY 14.5 billion) and continues to grow by double digits each year. Since beginning frozen foods operations in North America in 2000, Ajinomoto Co. has been steadily expanding the business, rolling out high-quality frozen rice products as one of its core lines.
Note 2: Exchange rate as of August 31, 2015: USD 1 = JPY 121.18
Asian/Ethnic frozen rice products flavored with chunks of meat and vegetables are popular in North America, and AWI holds the top share of this market at 47%. Its Portland Plant, which has an integrated production line from rice cooking to flavoring and packaging, currently produces high-quality frozen rice products supported by the combined production technology of Ajinomoto Frozen Foods Co., Inc. and product development technology of AWI.

AWI will invest approximately USD 20 million (approximately JPY 2.4 billion) to build a new integrated production line for high-quality frozen rice products at its Oakland Plant in the eastern United States. Together with the existing Portland Plant in the western United States, this new line will expand production capacity by 1.5 times. Like the Portland Plant, the Oakland Plant is a USDA-inspected meat processing plant3 that can produce high-quality, specialty frozen rice products. By efficiently supplying products throughout North America from two production bases, one each in the east and the west, Ajinomoto Co. intends to increase sales of Asian/Ethnic frozen food products through the powerful sales network of AWI, which covers all of North America, and rapidly expand its entire frozen foods business.
Note 3: Both plants are meat processing facilities inspected by the United States Department of Agriculture (USDA) and have received grants of inspection for the manufacture of frozen rice products with meat ingredients and meat extract.
In the Ajinomoto Group’s FY2014-2016 Medium-Term Management Plan, North America is positioned as a priority area where it aims to develop product quality and establish a sales network centered on the frozen foods business. In the massive North American frozen foods market, Ajinomoto Co. will develop the Asian/Ethnic food category of the frozen foods market ahead of other companies to establish the clear No. 1 position and promote the penetration of the “Ajinomoto Brand.”

Overview of Capital Investment
(1) Location: Ajinomoto Windsor, Inc. Oakland Plant (Oakland, Mississippi, United States of America)
(2) Investment: Approximately USD 20 million (approximately JPY 2.4 billion)
(3) Production items: Frozen rice products (Yakitori Chicken with Japanese-Style Fried Rice, etc.)
(4) Production capacity: Approximately 7,300 tons/year
(5) Completion: August 2016 (scheduled)
(6) Start of production: September 2016 (scheduled)
(7) Start of sales: October 2016 (scheduled)

Overview of Ajinomoto Windsor, Inc.
(1) Company name: Ajinomoto Windsor, Inc.
(2) Location: Ontario, California, United States of America
(3) Representatives: Haruo Kurata, Chairman
    Bernard Kreilmann, President
(4) Established: 2000 (date of establishment of the surviving company, Ajinomoto Frozen Foods U.S.A., Inc.)
(5) Equity ownership: Ajinomoto North America Holdings, Inc. approximately 98%
    Ajinomoto Frozen Foods Co., Inc. approximately 2%
(6) Business description: Manufacture and sale of seasonings and frozen foods for home use and food service
(7) Sales regions: United States of America, Canada, Mexico
(8) Number of employees: Approximately 1,900

Ajinomoto Windsor, Inc. Oakland Plant

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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