Nissin Foods Company Limited has recently entered into an agreement to acquire 100% equity interest in Gaemi Food, a manufacturer of crispy roll snacks, which is also the top national brand in the domestic crispy roll market in South Korea.
The purchase price is reported to be Won 48 billion (US$34.7 million).
Gaemi Food will become a wholly-owned subsidiary of Nissin Foods engaged in the business of baked grain crispy rolls in the Korean and overseas markets. The Korean confectionery brand, Kemy, will be added to the Group’s portfolio, further enriching Nissin’s non-noodle portfolio business.
Gaemi Food has an estimated revenue of Won 20.15 billion (US$14.6 million) for the financial year ended 2023. It has a national brand portfolio that includes its flagship ‘Baked Crispy Roll’ product line and other product lines targeting children and toddlers.
Gaemi Food also supplies private brand and OEM services to customers.
The snack bars/rolls market is expected to experience robust growth in the next 5 years, not only in Korea but also in overseas markets such as China and Southeast Asia. This growth is driven by the continuous increase in consumer demand for convenience food products. The Group believes that this trend will continue and that there will be ample opportunities for expansion of the baked grain crispy rolls market.
The addition of the Korean snack manufacturer Gaemi Food to the Group will provide greater flexibility to deploy the Group’s distribution capabilities in China and Southeast Asia to respond to the increasing market demand and the changing business environment.
Kiyotaka Ando, Chairman and CEO of Nissin Foods said, “The addition of Gaemi Food represents a strategic milestone for Nissin Foods in developing our business in the Korean and overseas markets. While leveraging Nissin Foods’ core competencies in marketing and food technology, the Group is developing a non-noodle business that can create synergies with the instant noodle business. Most importantly, expanding into overseas markets not only diversifies our revenue sources, but also deepens our understanding of local cultures and consumer behaviours. This knowledge allows us to build stronger relationships with local consumers, enabling us to identify and pursue additional opportunities. Going forward, the Group will continue enhancing our market insights, ultimately boosting the Group’s market share and overall profitability.”
