Olam and Mitsubishi Strike JV to Supply Food and Drink Products in Japan

18 Apr 2016 --- Olam International has signed a joint venture with Mitsubishi Corporation called MC Agri Alliance (MCAA) to supply coffee, cocoa and other food products in Japan. Mitsubishi will hold 70 percent in the joint venture and Olam 30 percent.

The joint venture marks the first significant venture since Mitsubishi acquired a 20 percent stake in the Singapore-listed commodities trader for $1.1 billion last year.

The joint venture, which comes amid a growing consumer desire for food grown sustainably, will import and distribute coffee, cocoa, sesame, edible nuts, spices, vegetable ingredients and tomato products in Japan. It will begin in October this year.

Mitsubishi already has a presence in food ingredients through Mitsubishi International Food Ingredients, which supplies ingredients to the food, beverage and bakery industries.

Mitsubishi believes the joint venture will allow it to benefit from Olam’s expertise in dealing with smallholder farmers in Asia and Africa.

Olam, meanwhile, will benefit from Mitsubishi’s distribution and sales network in Japan.

While the deal will run across a portfolio of foods, it will also include coffee, in which Japan is a key market and is one of the leading coffee importers in the world.

Olam said: “Through Olam’s sustainable global supply chains, MCAA can offer a range of innovate and high quality food products that will appeal to today’s Japanese consumers.”

Both joint venture partners will continue to focus on ensuring that existing customers remain their priority.

Olam supplies coffee, cocoa, edible nuts and other agriculture and food raw material. It supplies companies including food and drinks giants such as PepsiCo.

Last year, Mitsubishi acquired a 20 percent stake in Olam for $1.1 billion.

The deal signified that Mitsubishi was banking that fast-growing populations will always need more food.