Nissin Foods forms new joint venture, Australia Nissin Foods Pty 

AUSTRALIA – Nissin Foods Company has announced a new joint venture with Nissin Asia, forming a new trading entity, Australia Nissin Foods Pty., Ltd., to drive growth in the instant noodle and snack market across Australia and New Zealand.  

This joint venture aims to establish a robust sales and distribution network that will support importing and selling instant noodles, snacks, cereals, and other food products.  

Nissin Foods will hold a 51 percent stake in the venture, while Nissin Asia owns the remaining 49 percent. The initial capital of AUD1 million (US$671,636) will be funded from Nissin’s internal resources. 

This joint venture is set to operate as a non-wholly-owned subsidiary within the Nissin Group, with its financial results integrated into the Group’s consolidated financial statements.  

The move represents a significant step in the company’s international expansion strategy, which aims to strengthen its presence in the growing markets of Australia and New Zealand.  

According to company reports, these markets have seen considerable growth in instant noodle consumption, with Australia’s demand increasing from 420 million servings in 2019 to 500 million in 2023, achieving a compound annual growth rate (CAGR) of 4.5 percent. 

Similarly, New Zealand’s demand rose from 90 million to 110 million servings over the same period, achieving a CAGR of 5.1 percent, outpacing the global CAGR of 3.1 percent in this category. 

Kiyotaka Ando, Executive Director and CEO of Nissin Foods, noted that the establishment of Australia Nissin Foods will reinforce the company’s market position in Oceania and broaden its revenue streams.  

“The establishment of Australia Nissin Foods represents a significant milestone in our Group’s international outreach,” he stated.  

Ando also emphasized that this joint venture aligns with Nissin’s strategy to enhance operational efficiency and meet evolving consumer demands. 

This expansion follows a series of strategic acquisitions, including the September acquisition of ABC Pastry, an Australian company specializing in frozen dumplings.  

This A$33.7 million (US$23.3 million) deal marked a crucial addition to Nissin’s portfolio in Australia, giving the company access to major supermarkets and Asian grocery stores.  

Earlier in July, Nissin acquired Korean snack company Gaemi Food to strengthen its presence in Korea and overseas. 

As consumer demand for instant noodles fluctuates, Nissin aims to build a resilient business model through targeted expansions. 

In 2023, Nissin reported a revenue decline of 5.3 percent, totalling HK$3.83 billion (US$492.8 million), primarily due to weaker demand for instant noodles. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.