Chinese food manufacturer American Lorain has signed a joint-venture agreement with Japanese chestnut retailer Hisaya.
American Lorain and Hisaya will hold 51% and 49% of the joint venture, respectively, the firms announced today (27 June), with a total initial share capital of RMB500,000 (US$77,000).
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The joint venture will be targeted towards the high-end premium chestnut market in China, leveraging American Lorain’s domestic branch office networks as well as Hisaya’s operation model in Japan.
The first set of kiosks are expected to be opened in Chengdu, Sichuan Province.
Hisaya currently operates around 50 retail kiosks in Japan.
“Hisaya is the most successful premium roast chestnut chain operator in Japan,” said American Lorain’s chairman and CEO, Si Chen.
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By GlobalData“American Lorain started test production and sale of high-end premium roast chestnuts in 2010. Through this joint venture, we are able to further capitalise on Hisaya’s advanced operation model and quality control standards introduced from Japan.
“Meanwhile, the premium roast chestnut is aimed at the underdeveloped high-end chestnut consumption space, which I believe will be very helpful in defining and expanding this chestnut sub-market, and thus enhance the value-added and brand recognition for our chestnut products as a whole,” he added.
