South Korean food and beverage giant, SPC Group has formed a joint-venture (JV) with Malaysia’s Berjaya Food Bhd to build SPC’s first Halal-certified bakery factory in Nusajaya Tech Park (NTP) in Johor Bahru, Malaysia.
The 50:50 JV to be called Berjaya Paris Baguette Sdn Bhd will pump in RM130 million (US$30 million) into the new 16,500 sq.metre factory, which will be able to manufacture more than 100 baked goods, cakes, desserts and sauces for the first Paris Baguette store which will be opened in Kuala Lumpur by the end of 2022. The factory will also supply to Paris Baguette other stores in neighbouring Singapore, Indonesia, Vietnam and Cambodia. It will also serve as a production and distribution hub to supply to future Halal markets such as the Middle East.
The factory is scheduled to start operation in June 2023. According to Hur Jin-Soo, President of SPC Group, “We plan to penetrate into the global Halal food market estimated at around US$2 trillion annually by building the halal-certified factory in Malaysia.”
Malaysia is SPC Group’s 8th overseas investment and has one of the largest Muslim population in Southeast Asia on top of its strict Halal certification being recognised globally, making it ideal location for the factory.
SPC Group plans to open more than 600 Paris Baguette stores in Southeast Asia by 2030, up from only 30 which it has, as of end May 2022.
SPC Group is also increasing its focus on the Muslim market, which will account for more than 30% of the world’s population by 2030.
SPC Group owns the French-inspired Paris Baguette bakery founded in 1988, which is South Korea’s largest bakery chain. Meanwhile, Berjaya Food Bhd operates the Starbucks and Kenny Rogers Roasters franchises in Malaysia. Berjaya Food CEO Datuk Sydney Lawrance Quays said it plans to open at least 5 Paris Baguette outlets a year in the country.
