Nippon Suisan Kaisha Ltd (Nissui) president & CEO Naoya Kakizoe has revealed that, in an effort to further strengthen the group''s global links, the Japanese seafood giant has implemented two measures outlined for expanding the sales network for products both in Japan and in Europe.
Firstly it will integrate the sales function of New Zealand's Sealord Group, an affiliate in equity method, for products intended for the Japanese market
Sealord, which is New Zealand's largest fishery company, had previously conducted sales of its products intended for the Japanese and South Korean markets with annual sales of approximately JPY 3.4 billion (€30.7 million/$39.8 million) via Sealord Asia. However, from 1 July 2010, Nissui took over Sealord’s sales function for all products to be sold in the Japanese market.
This move is in line with Nissui's global policy of integrating multiple sales functions in a single market, which aims to reduce redundant costs and achieve efficient sales by eliminating overlapping functions within the group.
Formerly, Nissui's sales of frozen southern white fish (mainly hoki) had consisted primarily of fish caught in South America. However, with the transfer of Sealord's sales functions, Nissui will have additional access to fish caught in New Zealand.
Nissui would ensure the competitive edge of its supply system to the markets of Japan, South Korea and Southeast Asia.
Furthermore, Sealord, which had until now been engaged in sales of raw materials for processing would also be able to take advantage of Nissui's various functions including processing and enhance its added value, by becoming capable of various types of sales requested by individual customers.
Nissui’s second measure is the 100% acquisition of Denmark-based Nordic Seafood A/S.
Nordic Seafood, an affiliate of Nissui in equity method, which was established in May 2006 through a 35% equity investment by Nissui and the rest of investments by Sealord and other local companies has been engaged in the sales of processed seafood including frozen seafood, surimi, and breaded-seafood for commercial, household, and industrial use, throughout Europe, excluding Spain and Portugal.
As of 31 August 2010, Nissui has acquired the shares of Nordic Seafood held by Sealord and other companies and has consequently made Nordic Seafood its wholly-owned subsidiary.
Nordic Seafood will be under a new type of management, in which the day-to-day business will be left to the current management team, while members of the management of other companies in Nissui's Global Links will take part in its governance.
Through this move, Nissui said it intends to enhance its presence in the European market and further strengthen its global links.
Sealord became a member of the Nissui Group in 2001, with the acquisition of 50% of its shares by Nissui. Its major markets are Japan, Europe, and the US.
Nordic Seafood recorded sales of approximately JPY 25 billion (€225.7 million/$292.9 million) in the fiscal year ended April 2010. Its main markets are: Denmark (37%), Germany (20%), Sweden (10%), Russia (8%), and Austria (8%).
Around 66% of its sales are into foodservice and 11% goes into retail. The remaining 23% are industrial sales.
