Nissin Foods Co. is responding to what it identifies as a growing appetite for Asian cuisine in Australia by acquiring local business ABC Pastry.
Located in Sydney, ABC Pastry specializes in the production of frozen dumplings, supplying various supermarket chains and Asian grocery stores across the country.
Nissin Foods Co., the Hong Kong-listed division of Japan’s Nissin Foods Holdings, has agreed to invest A$33.7 million ($23.3 million) in ABC Pastry.
In its stock-exchange announcement, Nissin Foods Co., which already exports to Australia, stated that this acquisition offers “a premium opportunity for the group to tap into the Australian frozen food market.”
While the company did not disclose specific data, it indicated that Australia’s frozen-food market is projected to experience “robust growth.”
Moreover, it emphasized, “Frozen dumplings, in particular, have been benefiting from the increasing Asian migration to Australia. A rising demand for convenient, high-quality frozen foods is being fueled by busy lifestyles and a growing interest in international cuisine such as Asian.”
“This trend is anticipated to continue, presenting ample opportunities for expanding the premium frozen food market in Australia,” Nissin Foods Co. added.
Founded in 1998, ABC Pastry is co-owned by the Gaoyang family and Min Investments. During the fiscal year that ended in June, the company generated A$15.2 million in revenue and reported a net profit after tax of A$2.8 million, according to Nissin Foods Co.
Earlier this year, Nissin Foods Co. announced its plans to acquire the South Korean baked grain crispy rolls manufacturer Gaemi Food.
In 2023, the company’s revenue fell by 5.3% to HK$3.83 billion ($492.8 million) due to diminished consumer interest in instant noodles. However, profit attributable to the company’s owners rose by 5.6%, reaching HK$330.2 million.
This strategic acquisition aligns with current food and beverage industry trends, emphasizing Nissin Foods Co.’s commitment to adapting to evolving consumer preferences in the food and drink business landscape. The growing popularity of international cuisine signals significant opportunities within food and drink consumer trends, particularly in frozen food offerings.
