Umios, a Japanese seafood giant previously known as Maruha Nichiro, has recently made a strategic move to enter Southeast Asia’s pet-food market by acquiring a majority stake in Malaysia’s Pet World International (PWI). This acquisition marks Umios’s expansion into the region and diversification into the dry dog food segment, in addition to its current presence in wet cat food markets in East Asia, North America, and Europe.
The deal, valued at Y11.4bn ($70.4m), involves Umios purchasing 51% of PWI from Malaysian conglomerate Wah Kong Corporation. The company cited Southeast Asia as the “fastest-growing pet-food market” in Asia, emphasizing the growth potential in countries like the Philippines and Thailand, where sales are increasing at a compound annual growth rate of 10%.
In a stock-exchange filing, Umios highlighted PWI’s strong brand position in Malaysia, noting that the company holds the number two market share in the dog and cat pet food market in the country. PWI reported net sales of Y12.4bn in the 12 months leading up to September last year, with a net sales growth rate of 11.3% annually.
Pet food falls under Umios’s Processed Foods division, which has been performing well despite challenges such as exchange rates and input costs affecting profits. The company plans to leverage PWI’s procurement capabilities to source ingredients through Umios’s Marine Resources Business division, enhancing operational efficiency and cost-effectiveness.
Looking ahead, Umios has outlined plans to invest further in pet-food production and pursue mergers and acquisitions in the sector over the next two financial years. Pet food is seen as a key growth driver for the company, aligning with its strategic focus on expanding its presence in the thriving Southeast Asian market.
This article was originally published by Just Food, a GlobalData-owned brand, under the title “Umios enters SE Asia pet-food market.” The move by Umios to enter the Southeast Asian pet-food market reflects its commitment to capitalizing on the region’s growth potential and diversifying its product portfolio to meet evolving consumer demands.
