Ajinomoto to Invest in Flavor Seasoning Plant in Brazil

Ajinomoto has had a presence in Brazil for more than 50 years. In 1956, Ajinomoto began manufacturing and selling amino acids for feed and other applications, as well as seasonings, and has been involved in the instant noodle business since 1972.

Jan 25 2012 --- Ajinomoto do Brasil Industría e Comércio de Alimentos Ltda. (Ajinomoto do Brasil), a consolidated subsidiary of Ajinomoto Co., Inc. (Ajinomoto) will invest approximately JPY 2 billion (BRL 47 million) to expand production capacity for flavor seasoning Tempero Sazón in Brazil. This investment follows the recently announced construction of the new instant noodle plant of Nissin-Ajinomoto Alimentos Ltda. in the Northeast Region of Brazil. The capacity increase will position Ajinomoto for further expansion in Brazil's flavor seasoning market, which is expected to continue to grow.

Brazil's economy is expanding steadily due to a growing population (about 190 million in 2010 according to UN estimates) and increasing domestic demand. Economic growth is expected to continue. Ajinomoto has had a presence in Brazil for more than 50 years. In 1956, Ajinomoto began manufacturing and selling amino acids for feed and other applications, as well as seasonings, and has been involved in the instant noodle business since 1972. Brazil is now a key market for the Ajinomoto Group, second only to Asia. 

The market for flavor seasonings in Brazil has been expanding steadily, supported by a rising standard of living due to economic development. Through aggressive marketing, Ajinomoto's Tempero Sazón has gained consumer acceptance for its deliciousness, ease of preparation and convenience since its launch in 1988, and is now widely used in home cooking. Sold in nine varieties for different applications, Tempero Sazón has become a strong brand, maintaining its leading market share with 7 percent average annual growth in sales volume from fiscal 2007 to fiscal 2010.

The size of the overseas flavor seasoning market was approximately 1 million tons in 2010, according to Ajinomoto estimates. The South America market accounts for about 10 percent of the total, and is expanding steadily. At Ajinomoto, the flavor seasoning business accounts for nearly 35 percent of sales of overseas consumer foods. Sales are growing at double-digit rates in Indonesia, Vietnam and Thailand, and are also increasing steadily in Brazil.

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 production facility expansion will facilitate further business expansion in Brazil.