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Nissin Foods Company has announced a new joint venture with Nissin Asia to establish a new food trading company in Australia, marking a significant step in the company's efforts to enhance its international market presence.

The joint venture, named Australia Nissin Foods, will be primarily focused on importing and selling instant noodles, snacks, cereals and other food products across Australia and New Zealand.

Nissin Foods will hold a 51% stake in the venture, while Nissin Asia will own the remaining 49%. The initial capital contribution from Nissin Foods amounts to AUD1 million (approx. $671,636), sourced from the company's internal resources.

This move comes as Nissin Foods aims to strengthen its sales and distribution network in the region, allowing for better control over retail operations and inventory management.

The establishment of a local entity is expected to enhance marketing activities and provide a more robust platform for growth in these two markets.

The instant noodle sector in Australia and New Zealand has witnessed impressive growth, with consumption increasing in recent years. In Australia, the market saw demand rise from 420 million servings in 2019 to 500 million in 2023, reflecting a compound annual growth rate (CAGR) of 4.5%.

Similarly, New Zealand experienced a surge from 90 million to 110 million servings, achieving a CAGR of 5.1%. Both markets have outpaced the global CAGR of 3.1%, indicating a strong appetite for instant noodles, particularly among the growing Asian migrant population.

Kiyotaka Ando, executive director and CEO of Nissin Foods, said: “The establishment of Australia Nissin Foods represents a significant milestone in our Group’s international outreach. This joint venture will reinforce our market position in these two markets and broaden our revenue streams over time."

Ando highlighted that the initiative aligns with the company’s ongoing efforts to enhance operational efficiency and adapt to evolving consumer preferences.

Nissin Foods, established in Hong Kong in 1984, is one of the largest instant noodle manufacturer in the region, with a diverse portfolio that includes brands such as Cup Noodles and Demae Iccho.

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The company has been proactive in expanding its market share through strategic mergers and acquisitions, including the recent acquisition of ABC Pastry, which diversifies its product offerings.

Based in Sydney, Australia, ABC Pastry is a national manufacturer of premium quality dumplings.

The deal, which was completed in September, will provide valuable expertise and experience in the operational and financial management of ABC Pastry, contributing to its long-term development while enabling Nissin to diversify its business portfolio.

Read more about the ABC Pastry purchase here.

In July, Nissin Foods acquired Korean snack company Gaemi Food in a move to bolster its presence in the Korean and overseas markets. The move came as Nissin seeks to diversify its revenue streams and deepen its understanding of local markets beyond its core instant noodle operations.

Read more about the Gaemi purchase here.

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