TOKYO, January 10, 2013 - Ajinomoto Co., Inc. (Ajinomoto Co.; President: Masatoshi Ito; Head Office: Tokyo, Japan) will integrate the development, marketing and sales operations of Ajinomoto Frozen Foods U.S.A., Inc. (AFU; Oregon) into the Consumer Foods Division of U.S. subsidiary Ajinomoto North America, Inc. (AJINA; New Jersey). At the beginning of April 2013, seasonings, processed foods, and frozen foods businesses will operate under one structure. Ajinomoto Co. will strengthen the consumer foods business in North America, targeting expansion of retail sales channels, adopting AFU’s successful business model in which local staff has led development and sales of products tailored to American tastes.
With this reorganization, AJINA’s Consumer Foods Division will be relocated from Los Angeles to Portland, Oregon. AFU will become a manufacturer of frozen foods mainly for the North American market.
North America is the world’s largest market for consumer foods, with annual sales of JPY 63 trillion (2011, Ajinomoto Co. estimate). The market has grown at a steady rate of 1% annually over the last five years. Ajinomoto Co. intends to expand this business by applying the successful model used in the frozen foods business to expedite development and sale of products that closely match the tastes of local consumers. Its target is to increase net sales in the consumer foods business in North America to approximately $300 million (approximately JPY 26 billion) by fiscal 2020.
Strengthening and growing the overseas consumer foods business is one of the key principles of the 2011-2013 Medium-Term Management Plan aimed at making Ajinomoto a genuine global company. This integration has been positioned as an initial measure to display synergy that makes the most of both parties’ strengths. It will further advance business coordination between seasonings, processed foods, and the frozen foods businesses.
Business Development in North America
Ajinomoto has a long history in North America, as it was the first overseas region entered after the company’s founding in 1909. The New York Representative Office opened in 1917 and Ajinomoto U.S.A., Inc. was established in 1956. In addition to manufacture and sales of consumer foods, Ajinomoto’s operations in North America include manufacturing, import, export and sales of amino acids for applications in processed foods, animal feed, pharmaceuticals and chemicals. Of the JPY 192.6 billion in net sales generated by the Ajinomoto Group’s overseas consumer foods business (the shelf stable and frozen foods businesses) in fiscal 2011, North America accounted for approximately 4%, of which frozen foods comprised roughly 80 percent and shelf stable foods at 20 percent.
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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, Ajinomoto Co. had net sales of JPY 1,197.3 billion (USD 15.1 billion) in fiscal 2011. For more about Ajinomoto Co., (TYO: 2802), visit www.ajinomoto.com.
For further information, please contact:
Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com
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