Lantmännen Unibake Strengthens Business Setup in Asia
Lantmännen Unibake has sold 51 percent of its Japanese sales company to Nichirei Foods Inc., which is one of the largest distributors of frozen foods in Japan, Nichirei Foods has ambitious plans for the frozen bread concepts of Lantmännen Unibake.
21 Apr 2010 --- Lantmännen Unibake changes its setup in Asia. In future the bread company will focus its investments in Europe and North America. At the same time strong partnerships in Japan and Korea are to support the development in the attractive Asian market.
In Japan, Lantmännen Unibake has sold 51 percent of its Japanese sales company to Nichirei Foods Inc., which is one of the largest distributors of frozen foods in Japan. Nichirei Foods has ambitious plans for the frozen bread concepts of Lantmännen Unibake, and they expect to double the turnover within the next two to three years.
The agreement with Nichirei Foods means that the products of Lantmännen Unibake will be marketed through the network of Nichirei Foods, supplying products to the major retailers, food service industry and the major international convenience store chains.
- This is the best possible setup for us in Japan. We will have access to a much wider and stronger customer base than we would be able to establish ourselves, and our new partner has profound knowledge of the Japanese market. Furthermore, we will be able to take advantage of Nichirei Foods’ strong competences in marketing and distribution in Japan as well as in other Asian markets. Our expectations to the cooperation are high, and we feel that Nichirei Foods is a perfect match to our business approach and fundamental values, says Lantmännen Unibake CEO Bent Pultz Larsen.
In Korea, Lantmännen Unibake has sold its Korean sales company to the local management team, who will continue the business as sole agent of Unibake’s products; an agreement, which Bent Pultz Larsen sees as a promising setup for both partners.
Growing stronger in Asia
Lantmännen Unibake’s decision to focus on the markets in Europe and North America does not mean that the company is leaving the Asian market.
- We decided that it was time to take the next step in the development of our activities in Asia, and with the new business setup in Japan and Korea we have strengthened our position, explains Bent Pultz Larsen, who is happy with the experience that Unibake has gained from the long presence in the two countries.
- Our experience from Asia has been valuable and contributed to increasing our competence. For instance the Japanese customers’ very strict requirements to food safety have brought us to the very top of the bread industry as regards food safety. We have implemented the Japanese standards in most of our bakeries and in this way moved ahead of the competitors, says Bent Pultz Larsen.
