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Insight AAK No 3 2016 E-book

AAK in the land of the rising sun One year ago AAK established a partnership with Miyoshi Oils & Fats Co. by forming a new company together for the Japanese market, AAK Miyoshi JP. With the partnership now fully operational AAK has further strengthened its presence in the strategically important Asian market. Despite its relatively small size, Japan is a major economic power in the modern world, behind only the United States and China. The manufacturing industry is the backbone of Japan’s economy and the country is well-known for its cutting edge technology. Japan is also a major player in the food industry sector and the country’s bakery and chocolate and confectionery markets are among the largest in the world.   According to global market research company Euromonitor, retail value sales within chocolate and confectionery increased by 7 percent in 2015, reaching ¥405.0 billion (approximately USD 3.4 billion). This despite a declining Japanese population.   “With global customers and regional leaders Japan is obviously a very attractive market to be present in for AAK”, says Torben Friis Lange, President AAK Asia. “Miyoshi is a very good match in size, location, technology and culture and has very well-developed relations with many important local customers. Together, we will continue to develop customer relations as well as the portfolio of speciality and semi-speciality solutions.” Many years of experience Miyoshi Oils & Fats Co. was established in 1921 and is made up of a food division (approximately 70 percent of revenues) and a smaller chemical division. The company started its edible oils and fats business in 1941 and has since then traditionally worked towards the bakery market in which it has a very strong position.   Miyoshi Oils & Fats Co. has well-located factories in the Tokyo and Osaka harbor areas as well as customer innovation labs in the Japanese capital. Margarines, shortenings, lard, powdered fats, whipping cream, and release agents are some of the major product groups within its food division.   AAK owns 70 percent of AAK Miyoshi JP (the remaining 30 percent is owned by Miyoshi Oils & Fats Co.) and AAK Miyoshi JP has a toll manufacturing agreement with Miyoshi Oils & Fats Co. who manufacture the products locally. Based in Tokyo, AAK Miyoshi JP has functions within sales and customer innovation that focus on products for the chocolate and confectionery, bakery, dairy and infant nutrition markets.   “AAK Miyoshi JP has been fully operational since January 2016 and the partnership has considerably extended the prerequisites for AAK’s business in the local market”, says Peter Brazel, Representative Director for AAK Miyoshi JP. “The partnership is particularly important for our Chocolate & Confectionery Fats and Bakery segments.” Co-Development is key As the Japanese market differs quite a lot from other Asian markets a local presence is vital in order to gain the right insights into consumer preferences. Together with customers AAK Miyoshi JP will co-develop new product ranges, optimized for Japanese applications and market experiences.   To highlight AAK’s position as a global leader and provider of value-adding oil solutions for Japanese customers, many of which possess high technical knowledge of oils and fats, AAK Miyoshi JP in June organized its very first “Co-Development Day”.   Special attention was given to advanced fat migration and bloom development mechanisms. Some major chocolate producers attended the event as did a number of representatives from food industry media. In addition, some top external professors were invited to the event. Their presentations underlined the pains and challenges that the chocolate industry faces today, and created many constructive discussions among the participants.   “To have a close relationship with our customers and to understand their particular challenges is critical for our co development approach”, says Peter Brazel. “This inaugural event in Tokyo was very successful and will no doubt be helpful to us when establishing AAK in the Japanese market.”


Insight AAK No 3 2016 E-book
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