October 12, 2007

Japan's heavyweight seafood companies expand abroad

Two major Japanese seafood processors are seeking to boost sales abroad.

Nippon Suisan Kaisha Ltd is consolidating marketing operations in Chile while Maruha Nichiro Holdings Inc. (TSE:1334) is tapping growing demand among health-conscious Europeans.

Nippon Suisan America Latina SA in Chile and a local seafood processor recently set up a joint venture to oversee the three processing companies they launched under a tie-up.

These three firms had marketed fillets and other processed foods independently, but the new company will now take over the sales operations.

Having posted sales of about 20 billion yen (US$170.62 million) in Chile in 2006, Nippon Suisan intends to double this figure in three years.

Meanwhile, Maruha Nichiro, which holds Maruha Corp. and Nichiro Corp. under its umbrella, will tap the sales network that Nichiro's US subsidiary has built in Europe. It will export crab and white-fleshed fish products processed at Maruha's North American facilities to Europe, where demand is shifting from meat to seafood.