Monde Nissin embarks on global expansion

MANILA, Philippines – Filipino snack foods giant Monde Nissin is on a global expansion binge ahead of a planned initial public offering (IPO) targeted next year.

Monde Nissin agreed to establish in the fourth quarter of this year a joint venture with Thailand’s Malee Sampran PLC,which would exclusively distribute the Thai company’s beverage products in the Philippines.  

Malee, the leading beverage company in Thailand, is known for its fresh fruit and vegetable juices. 

The establishment of the new company marks Malee’s first foray into the Southeast Asian market and will come on the heels of Monde Nissin’s acquisition of British vegetarian company Quorn Foods.

According to approvals of Malee’s board of directors, Monde Nissin and Malee have formed Monde Malee Beverage Corp., which will have an equity structure of 49 percent each for the two companies and two percent to be held by Thai investors.

The new company will have P400 million in authorized capital comprising of two million shares with par value of P200 per share and an initial paid-up capital of P100 million comprising of 500,000 shares with par value of P200 per share. 

The joint venture will bring Malee beverage products in the Philippine market.

“The new company engages in the importation, marketing, promotion and sale (by wholesale of food and beverage in Pilipino Market,” according to the resolutions approved by Malee’s board.

The company will have an initial funding of P49 million or 38.4 million baht.

Malee sees the move as a strategic way to expand its market base in Southeast Asian countries such as the Philippines and expects to boost overseas sales by at least 50 percent by 2016.

“Pursuant to the company’s business strategy and the management team foresees the potential and business opportunity in Asean countries. The joint venture company will help expand customer base to the Philippine market which has a population more than 100 million and the market value for the beverage market approximately around 224.4 billion baht per year,” Malee said.

Malee also expects to benefit from Monde Nissin’s strong distribution network in both modern trade, convenient store and general trade or sari-sari store avenue.

“Therefore the joint venture with Monde Nission Corp. will bring about market opportunities in Philippine market. Hence, the expected benefits tot he company and shareholders are as follows: The companies export revenues will increase and profit sharing from joint venture, expanding market of food and beverage to Philippine market and enhance Malee brand to be more reputation (sic) in AEC countries especially in Philippine market,” Malee said.

The joint venture aims to launch the first new product in early 2016.

Last week, Monde Nissin and Quorn announced the snack maker’s acquisition of the British brand for P38.9 billion.

Originally a biscuit manufacturer, Monde NIssin started as Monde Denmark Nissin Biscuit Corp. in 1980.

It then ventured into the instant noodle business with the Lucky Me! brand, now the leading brand in the country.

In 2002, the company acquired M.Y. San Corp., which is behind the Sky Flakes and M.Y. San Graham Crackers brands.

It is planning an IPO to raise between $300 million to $500 million next year.

Monde Nissin is owned by Betty Ang, the 19th richest person in the Philippines, with a net worth of $905 million in 2014, according to Forbes.