Nippon Indosari Corpindo, Indonesia’s largest bread products producer (and the only bread products manufacturer that is listed on the Indonesia Stock Exchange), established a joint venture - named Sarimonde Foods Corporation - with Philippine-based food producer and distributor Monde Nissin Corporation (MNC). For Nippon Indosari Corpindo, known for its Sari Roti brand, this is a chance to expand into the lucrative market of the Philippines, the second-largest market in the ASEAN region.
Within this joint venture, Nippon Indosari Corpindo owns a majority stake (55 percent), worth USD $6.8 million. The remaining 44 percent (worth USD $5.6 million) is in the corporate hands of Monde Nissin Corporation. Philippine-based Monde Nissin Corporation produces various food products, including noodles, biscuits and baked goods under the brands Lucky Me!, Nissin, Voice, Bingo, and Monde. Both parties signed the paperwork on 18 February 2016. Stephen Orlanda, Public Relations Manager at Nippon Indosari, said the new entity (headquartered in the Philippines) will start operations in 2017. He declined, however, to give detailed information about the business strategies of the newly established entity named Sarimonde Foods Corporation.
The Philippines is an interesting market for Nippon Indosari because - similar to Indonesia - the country has a large population (around 103 million people) that is characterized by a rapidly expanding middle class segment. This constitutes a powerful consumer force.
Based on information from Business Monitor International (BMI) consumption of food and beverages grew 4.9 percent (y/y) in the Philippines. The research firm expects this industry to grow by an average of 5.8 percent (y/y) per year in the next four years.
So far this year, shares of Nippon Indosari Corpindo have risen 4.74 percent.