Sojitz Enters Food Service Distribution Business in Thailand
- Expanding the Food Value Chain in the ASEAN Region -
Jun. 13, 2017
Sojitz Corporation (“Sojitz”) has acquired 43% equity interest in FB Foodservice (2017) Ltd. (“FBF”), a food service distribution company. FBF is a subsidiary of The Peace Canning (1958) Co. Ltd. (“PCC”), one of Thailand’s leading food processing companies. This marks Sojitz’s first foray into Thailand’s food service distribution business. Investing alongside Sojitz is Thailand’s equity-related investment management firm, Finansa Capital Ltd. (“FC”), who will acquire 6% equity interest in FBF from PCC.
FBF operates a wholesale business for canned goods manufactured by PCC and conducts a food service distribution business that offers fast delivery of a wide range of food products to members of the food service industry, including hotels, restaurants, and catering companies. In addition, FBF is equipped with the facilities to produce ready-to-cook and ready-to-eat meats, fishery products, and vegetables based on customer needs. FBF’s strength lies in its fast, one-stop service that provides everything from wholesale distribution to food processing, and this distinction has allowed the company to establish a large presence for itself within the industry.
Sojitz has built up its experience in the wholesale food business in the ASEAN region through operation of its major wholesale foods subsidiary, Huong Thuy Manufacture Service Trading Corporation.
Looking ahead, Sojitz Group will leverage Sojitz Foods’ knowhow to diversify foodstuff procurement as well as strengthen and expand its primary and secondary food processing business by improving its food processing function with technological support from NittoBest Corporation (Head Office: Sagae-shi, Yamagata; Representative Director: Kazuhiko Ohnuma), a company Sojitz Group has partnered with in Vietnam to operate a daily/prepared food production and meat processing business. FBF will also begin a new central kitchen business that makes use of these functions in order to distinguish itself from other distributors and to meet the needs of Thailand’s food service industry. The aim is to reach JPY 10 billion in sales by 2020.
FC is a wholly-owned subsidiary of Finansa Plc., a Bangkok-based financial services group listed on the Stock Exchange of Thailand. The Finansa Group has extensive experience in private equity investment in Thailand and is a position to provide advice and support on financing the future growth of FBF.
Among other countries in the ASEAN region, Thailand’s food service market is demonstrating notably stable economic growth and is forecast to grow further in the future. The need for food service distributors who can meet the demands of expanding chain restaurants is now on the rise. Sojitz aims to contribute to Thailand’s food service industry while expanding this food service distribution business. Additionally, Sojitz will accumulate greater knowledge regarding food service distribution and food processing, for the purposes of establishing similar businesses in other ASEAN countries.
Company Overview – The Peace Canning (1958) Co., Ltd.
|37 Moo 1, Soi Suksawad 43, Suksawad Road, Bangkru,
Phrapradaeng, Samutprakarn 10130 Thailand
|Manufacture of canned goods