Nissin Foods, Kagome partner to sell beverages in Hong Kong

Nissin Foods Co. Ltd. (NF), a subsidiary of Nissin Foods Holdings Co. Ltd. (NFH), and Kagome have entered into an agreement regarding the formation of a joint venture to sell vegetable beverages in Hong Kong and Macau. As a part of its effort to achieve market capitalization of ¥1 trillion ($9.17 billion), NFH is actively pursuing business opportunities overseas. Since its establishment in 1984, NF has been manufacturing and selling food products focusing mainly on high-value instant noodle products in Hong Kong and China.

Kagome manufactures a wide variety of plant-based beverage brands, such as tomato and other types of vegetable juices, and has a large market share in the vegetable beverage industry in Japan. In 2014, Kagome established Kagome Hong Kong Co. Ltd. (Kagome HK), a wholly-owned subsidiary of Kagome. Kagome HK has expanded its presence in the vegetable beverage market in Hong Kong through the import and sales of vegetable beverages manufactured by Kagome in Japan.

Due to the increase of health-conscious consumers, the vegetable beverage market in Hong Kong and Macau is expected to grow even further. By utilizing Nissin’s competitive advantage in terms of its sales force and diversified marketing channels, the joint venture aims to expand its sales and brand presence as the healthy and high-quality vegetable beverages containing only fruit and vegetables. The company also plans to expand its market into the mainland China in the future.

Press release (pdf)