By Leslie D. Venzon
MANILA, Dec. 2 (PNA) — Nissin Foods Holdings, Co., Ltd. of Japan is increasing its stake in a subsidiary of Universal Robina Corp. (URC) that makes and sells noodle products in the Philippines, as it expects the market to grow in the next few years.
This, as the Gokongwei-led snack and beverage manufacturer URC and Japan’s Nissin Foods are integrating their noodle businesses in the country to optimize the resources, achieve efficiency and establish an effective product portfolio.
In a disclosure to the Philippine Stock Exchange, URC said the integration would reduce its share in the joint venture, Nissin-Universal Robina Corp. (NURC), from 65 percent to 51 percent.
Nissin-URC makes and markets Nissin Cup Noodles, Nissin Ramen and Nissin Yakisoba in the Philippines.
“By the increase of Nissin’s share, NURC will have a more advance noodle technology as well as greater capacity in order to innovate and create best quality noodle products to address the ever changing needs of the consumers,” URC said.
Nissin URC also bought URC’s Tarlac noodle plant, equipment and inventories and now has the license to produce Payless products.
“We have been with Nissin-URC since 1995 and know that Nissin and Payless are great products that have a lot of potential especially in a growing market such as the Philippines,” said Eigo Ogiwara, Nissin Foods Holdings Co., Ltd., chief representative for Asia.
Nilo Mapa, URC’s managing director, said the resulting synergy will make Payless and Nissin bigger market players and the company more efficient and profitable.
“This transaction will help us ride the wave of growth that we expect in the coming years and beyond. We are now second in the market and we want a bigger piece of the pie,” he said.
Mapa said noodles have become an all-day staple in the country and the trend will grow and become more pervasive as the country’s population grows and seeks fast-food convenience.
Under the new set-up, Nissin, Japan’s leading noodle company, will produce Payless instant noodles using its new technology and equipment.
URC, on the other hand, will handle marketing, sales and distribution. (PNA)