Japanese food giant Meiji Co. plans to invest $28 million to expand the production capacity of its Hello Panda snack brand in the United States. This financial commitment will be directed towards its subsidiary Meiji America, located in Santa Ana, California, though specifics regarding the nature of the expansion have not been disclosed.
This initiative aligns with Meiji’s broader Meiji Group 2026 Vision plan, which emphasizes international growth. The company intends to increase its overseas sales to account for 10% or more of total sales by fiscal 2026. By that period, Meiji aims to achieve approximately Y170 billion ($1.12 billion) in global sales, a significant increase from Y77.3 billion reported in its 2023 financial year. Notably, Meiji targets Y60 billion of these sales specifically from China.
In its fiscal year 2023, Meiji reported group sales of Y7.3 trillion. The Hello Panda brand, known for its chocolate cream-filled biscuits, was first introduced to the US market in the 1990s and has been produced domestically since 2015. The company emphasizes that this expansion is a response to the substantial rise in demand for Hello Panda, which has seen sales in the U.S. triple since 2017.
“We aim to achieve sales of approximately 1.5 times that of fiscal 2023 by fiscal 2026,” Meiji stated. To support future growth, Meiji also plans to introduce a new product: Hello Panda Pretzel, which will initially be manufactured in Japan and then exported to the U.S.
In a strategic move to enhance its offerings in the food and beverage sector, Meiji additionally reinvested in California Cultured, a cell-based cocoa startup, following its initial investment in 2021. This venture illustrates Meiji’s commitment to innovation in the food and drink business.
Hello Panda is currently available in 30 countries across Asia, Europe, the Middle East, and North America, showcasing its global appeal. As the food and drink consumer trends evolve, Meiji’s proactive stance on capacity expansion and product innovation aims to solidify its market position in the competitive landscape of the food and beverage industry.
