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September 30, 2005 |
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THE MIZKAN GROUP REINFORCES ASIAN OPERATION AND FURTHERS GLOBALIZATION
-Mizkan Asia Pacific Pte. Ltd. established in Singapore-
-Chinese enterprises acquired to enable entry into Chinese food market- |
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The Mizkan Group (Handa, Aichi, Japan/Matazaemon Kazuhide Nakano VIII, President & CEO), a global company known for the “mizkan” brand of food products, established Mizkan Asia Pacific Pte. Ltd. in Singapore in December 2004. Mizkan Asia Pacific Pte. Ltd. started full-fledged operation in August 2005.
In July 2005, the Mizkan Group entered the Chinese market by acquiring all the shares of Wadakan (Hong Kong) Investment Holding Company Limited, the holding company of Beijing Wadakan Food Co., Ltd, Beijing Longmen Wadakan Food Co., Ltd and Beijing Huwang Wadakan Food Co., Ltd, which are famous for the Wadakan brand of soy sauce and vinegar products in China.
The Mizkan Group considers globalization as part of its basic principles for growth. With operation centers in Japan, US, UK and Thailand, the Mizkan Group specializes in food products such as vinegar and other seasonings and is the largest manufacturer of vinegar in Japan*1 and the second largest in the U.S*2.
(Source: *1 Fuji Keizai food marketing data, *2 ACNielsen)
The establishment of Mizkan Asia Pacific Pte. Ltd. and the acquisition of these Chinese enterprises mark the beginning of business in Singapore and China. By adding to the existing operation centers with such new business hubs, the Mizkan Group will attempt to aggressively reinforce its Asian operation and further its globalization.
Mizkan Asia Pacific Pte. Ltd. established in Singapore
1.Purpose of the Establishment of Mizkan Asia Pacific Pte. Ltd.
In an effort to make a sturdier foundation in the Asia Pacific region, the Mizkan Group established Mizkan Asia Pacific Pte. Ltd. in Singapore serving as the head office and sales/marketing center of the region, the new company aims to create new business models.
Traditionally, the mainstream method of sales in the Asia Pacific region was through trading companies. However, establishing a new corporate entity will help us rebuild our sales network based in Singapore. This will allow us to directly inform local markets of our merchandise policies and quality advantages, thereby expanding the mizkan brand.
We will also underscore marketing in order to understand local needs and reflect such needs in our product development efforts to realize higher customer satisfaction. Our hope is to provide customers in the Asia Pacific region with the finest products of premium quality and play a role in enhancing the quality of their diet.
2.Company Profile of Mizkan Asia Pacific Pte. Ltd.
| ·Registered name: |
Mizkan Asia Pacific Pte. Ltd. |
| ·Capital: |
100 million yen |
| ·Established: |
December 2004 |
| ·Address: |
No.2 Pioneer Sector Lane, Singapore 628321 |
| ·Chief Operating Officer: |
Kazuhiro Ito |
| ·Scope of business: |
Sales and marketing in the Asia Pacific region |
| ·Sales office: |
Singapore office (opened in April 2005) |
3. The future business of Mizkan Asia Pacific Pte. Ltd.
| ·Business targets: |
We will strive to become the leading manufacturer of vinegar and vinegar-related products in the Asia Pacific region. |
| ·Merchandise policy: |
Under the catchphrase of “localization of Japanese food”, we will make positive efforts to take advantage of locally gathered information in our efforts to develop products best suited for the local diet.
More precisely, we will focus on Japanese seasonings such as vinegars, sushi seasonings, soup bases, Shabu-Shabu sauces and Japanese salad dressings. |
| ·Sales Policy: |
We will strive to boost our market shares in Singapore, Thailand, Malaysia, Taiwan, Australia and other markets, both in the retail and food service sectors.
While we have two sales offices in the Asia Pacific region, that is, Mizkan Thailand’s Bangkok Office and Mizkan Asia Pacific’s new Singapore Office, we are planning to open more offices in Taiwan, Hong Kong and other areas within a few years. This will allow us to expand our sales network even further. |
Chinese enterprises acquired to enable entry into Chinese food market
1. Background and Purpose of the Acquisition
The Mizkan Group specializes in food products such as vinegar and other seasonings, and has business locations in Japan, U.S., U.K., Thailand, and Singapore. The Mizkan Group is the largest manufacturer of vinegar in Japan*1 and the second largest in the U.S*2.
(Source: *1 Fuji Keizai food marketing data, *2 ACNielsen)
By providing Chinese customers with the finest products of one-step-ahead quality, the Mizkan Group hopes to play a role in enhancing the quality of the Chinese diet and to contribute to the development of the local food industry. To this end, the Mizkan Group will actively promote the development of value-added products, the improvement of technologies and one-step-ahead quality standards, while furthering the production technologies, quality control know-how and R&D capacity that belong to each individual member company.
We are also planning to promote our global corporate brand, “mizkan” and slogan “Bringing flavor to life” in China, along with the Wadakan brand, which is widely recognized in Beijing, China. This acquisition will assist us in spreading our corporate image and enhancing our brand power across China.
2. Summary of the Acquisition
·Details of the acquisition: 100 % of Wadakan (Hong Kong) Investment Holding Company’s shares were acquired, which has afforded Mizkan a 69.5%, 55% and 55% stake of Beijing Wadakan Food Co., Ltd, Beijing Longmen Wadakan Food Co., Ltd and Beijing Huwang Wadakan Food Co., Ltd., respectively.
·Agreement completed: July 31, 2005
·Company name: There will be no change in the names of any of the companies.
3. Business Operations after the Acquisition
·Management structure - Shen Zheng Xie, the current chairman, will continue to oversee the three companies within the existing management structure.
·Business partnership - The strengths of these companies will be applied multilaterally in the areas of production technology, quality control, R&D and marketing.
·Business targets - We intend to become the leading manufacturer of vinegar and soy sauce in China.
·Merchandising policy - We will provide customers with safe, reliable and healthy food products by achieving one-step-ahead quality improvement. Through our value-added products, such as soy sauce and vinegar, we will suggest new dietary styles.
·Sales strategy - We will endeavor to expand our share in all product categories while equally targeting retail, industrial and food service customers and place a strong emphasis on northern China, such as Beijing, Tianjin and Tangshan.
4. Mizkan Group Corporation Company Profile
| ·Name: |
Mizkan Group Corporation |
| ·Scope of business: |
Business administration, strategic planning, promotion of overseas business and R&D, with the goal of creating new business for the entire Mizkan Group |
| ·President & CEO: |
Matazaemon Kazuhide Nakano VIII |
| ·Founded: |
1804
Officially registered as a corporate entity: July, 1977 |
| ·Address: |
2-6 Nakamura-cho, Handa-shi, Aichi-ken 475-8585, JAPAN. |
5. Profile of the Chinese Companies
<Wadakan (Hong Kong) Investment Holding Company Limited>
| ·Name: |
Wadakan (Hong Kong) Investment Holding Company Limited |
| ·Address: |
Hong Kong |
| ·Scope of business: |
Holding company of Beijing Wadakan Food Co., Ltd, Beijing Longmen
Wadakan Food Co., Ltd and Beijing Huwang Wadakan Food Co., Ltd |
| ·Established: |
October, 1998 |
| ·Capital: |
USD 2,500,002 |
<Beijing Wadakan Food Co., Ltd>
| ·Name: |
Beijing Wadakan Food Co., Ltd |
| ·Address: |
Beijing, China |
| ·Capital: |
71.917 million yuan |
| ·Chairman: |
Shen Zheng Xie |
| ·Established: |
October, 1992 |
| ·Number of employees: |
Approximately 200 |
| ·Scope of business: |
Manufacturing and marketing of soy sauce |
| ·Major product lineup: |
Japanese soy sauce |
| ·Production capacity: |
15,000 tons |
| ·Sales: |
46 million yuan (approximately 600 million yen) |
*FY2004/January - December,2004
<Beijing Longmen Wadakan Food Co., Ltd>
| ·Name: |
Beijing Longmen Wadakan Food Co., Ltd |
| ·Address: |
Beijing, China |
| ·Capital: |
31.19 million yuan |
| ·Chairman: |
Shen Zheng Xie |
| ·Established: |
October, 1992 |
| ·Number of employees: |
Approximately 200 |
| ·Scope of business: |
Manufacturing and marketing of vinegar |
| ·Major product lineup: |
Vinegar |
| ·Production capacity: |
14,500 tons |
| ·Sales: |
34 million yuan (approximately 400 million yen) |
*FY2004/January - December,2004
<Beijing Huwang Wadakan Food Co., Ltd>
| ·Name: |
Beijing Huwang Wadakan Food Co., Ltd |
| ·Address: |
Beijing, China |
| ·Capital: |
25.00 million yuan |
| ·Chairman: |
Shen Zheng Xie |
| ·Established: |
June, 1993 |
| ·Number of employees: |
Approximately 200 |
| ·Scope of business: |
Manufacturing and marketing of soy sauce |
| ·Major product lineup: |
Chinese soy sauce |
| ·Production capacity: |
13,000 tons |
| ·Sales: |
29 million yuan (approximately 400 million yen) |
*FY2004/January - December,2004
The Global Operations of Mizkan at a Glance
| ·Established: |
1804 |
| ·Representative: |
Matazaemon Kazuhide Nakano VIII,
The
President and CEO of the Mizkan Group |
| ·Headquarters: |
2-6 Nakamura-cho, Handa-shi, Aichi-ken 475-8585, JAPAN. |
| ·Employees in the Group: |
2,570 |
| ·Group companies: |
20 companies in Japan, US, UK, Thailand and Singapore |
| ·Manufacturing facilities: |
10 in Japan, 10 in US, 1 in UK and 1 in Thailand |
| ·Locations of Sales: |
Japan (16 branch offices and 12 sales offices), US (12 locations), UK (1 office), Thailand (1 office) and Singapore (1 office) |
| ·FY2004 consolidated net sales: |
Approximately 12 billion yuan (150.8 billion yen) |
| ·FY2004 consolidated NPOI: |
Approximately 0.7 billion yuan (9.1 billion yen) |
| ·Major product lineup: |
Vinegars, citrus seasonings, cooking rice wines, sweet seasonings, soup bases, dipping sauces, mustards, and natto (fermented soybeans), etc. |
| ·Product range: |
Approximately 600 product items (combined retail and food service products excluding private brands and industrial products) |
| ·Market share: |
The number one vinegar manufacturer in Japan*1 and number two in the American vinegar market*2.
(Source: *1 Fuji Keizai food marketing data, *2 ACNielsen) |
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| Copyright(c)2008 Mizkan Group Corporation All Rights Reserved. |
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