Agrana has extended its presence in Asia with the purchase of the fruit preparations business of local food producer Taiyo Kagaku for an undisclosed sum.
As part of the transaction, Agrana will acquire Taiyo Kagaku’s fruit preparations plant. Located in Yokkaichi, in southern Japan, the plant will supply customers in Japan’s bakery products sector, as well as dairy and ice cream producers.
The Vienna-headquartered company will begin production of fruit preparations in Japan on 1 April.
Agrana Fruit Japan will join the company’s other Asian operations in China, India and South Korea. In 2019, the fruit, starch and sugar group invested €22 million to open a new fruit preparation facility in Changzhou.
According to Agrana, Japan has a growing market for fruit preparations with a volume of around 60,000 metric tons and forecasted annual growth of 2-3% a year.
Agrana’s fruit preparations involves fruit that is either puréed or diced, which can be used in dairy, ice cream and bakery products. In addition to the food processing industry, Agrana also supplies its fruit preparations to fast-food companies and food service providers.
The company also offers preparations with ‘brown flavours’ including caramel, coffee or vanilla, and inclusions such as chocolate balls.
“The acquisition of this Japanese fruit preparations plant from Taiyo is an important step as part of our expansion in Asia. The growing Japanese market for fruit preparations is characterised by high quality demands and innovations,” said Agrana CEO, Johann Marihart, who is retiring at the end of May.
“This ties in perfectly with our high-quality standards and the innovative direction as the global market leader in the fruit segment, where we satisfy the needs of our customers with a wide portfolio – ranging from standard fruit preparations for yogurts and ice creams to premium-segment fruit solutions such as sauces, condiments, fillings and smoothie bases,” he added.
Agrana now operates 26 fruit preparation sites in 20 countries.
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