Nissin expands stake in rice cake maker

Nissin expands stake in rice cake maker

Nissin Foods Holdings has raised its stake in Japanese rice snack maker Bonchi Co., making the business a consolidated subsidiary.

Nissin will acquire an additional 20.1% of the equity interest of Bonchi on 29 January, the company revealed today (15 January). This will increase its total holding in Bonchi to 50.1% and Nissin said Bonchi will become a consolidated subsidiary. 

Nissin, which is best known for its noodles but also manufactures products from confectionery to chilled and frozen foods, said it wants to benefit from Bonchi's "rich experience and know-how" as well as specialised equipment in the field of rice snacks.

The company manufactures brands including Bonchi-Age and Aji-Karuta. It was founded in 1931 and in 2015 the firm generated sales of JPY9.9bn (US$84.2m). 

Nissin initially took a stake in Bonchi in 2014 and, since then, the group's have cooperated in sales, marketing, product development and production. Nissin and Bonchi have been jointly "working to attract new customers" through marketing, a packaging revamp and NPD. 

"The conversion of Bonchi into a consolidated subsidiary will further the initiatives and enhance the corporate value of both the group and Bonchi," Nissin said in a statement. 

The group added the impact of the transaction was expected to be "insignificant" on its own results.


just-food has published research into the factors that will drive M&A in the food industry from now and into 2018.

The full report will be available from just-food in mid-February. However, those who take out an annual subscription to just-food before 31 January 2016, at a 35% discount on standard pricing, will receive free copies of both 'Drivers of Food Industry M&A' and another recent report, 'How Brands Can Win in Online Grocery', which was written by Professor David Hughes, Emeritus Professor of Food Marketing at Imperial College London and Miguel Flavián. To take advantage of this offer click here.