OREANDA-NEWS. Ajinomoto Frozen Foods Co., Inc. will begin consignment production of restaurant-use frozen gyoza (Japanese-style dumplings) at JAWO Sp.z o.o. (JAWO) in Poland in late June 2013. Ajinomoto Frozen Foods Co. has positioned Europe as its top priority market following North America for its overseas business, and will work to further expand its European operations with the start of local production of its competitive gyoza.1 Double-digit year-on-year growth in sales in Europe to JPY 1.2 billion is forecast for fiscal 2013, and Ajinomoto Frozen Foods Co. aims to double sales by fiscal 2016. Ajinomoto Frozen Foods Co.’s net sales for fiscal 2012 were JPY 114.8 billion, of which overseas sales accounted for more than JPY 10.0 billion. The company is aiming for a double-digit overseas sales ratio through the expansion of its European operations.

With growing interest in Japanese food in Europe in recent years, the number of restaurants offering Japanese food has increased (approximately 8,000, according to an Ajinomoto Frozen Foods Co. survey). Accordingly, gyoza continues to grow as a popular dish at Japanese restaurants. Amid assumptions of future market expansion together with intensifying competition, Ajinomoto Frozen Foods Co. determined that it would be necessary to set up a production base in Europe at an early stage.

Ajinomoto Frozen Foods Co. has been importing gyoza, kara-age (Japanese-style fried chicken) and other products for the European market from an Ajinomoto Group company in Thailand since 2005, but European import restrictions on products using pork, tariffs and distribution costs became issues.

Consequently, to build a rapid production system that responds to local needs, the company will consign production of gyoza to JAWO, a top manufacturer of frozen pierogi (Polish dumplings),2 in addition to its current imports from Thailand. As the ingredients and production method of pierogi, a principal product of JAWO, are similar to those of gyoza, synergy can be expected in the areas of equipment and procurement of raw materials.

To offer products with the same level of quality as in Japan, Ajinomoto Frozen Foods Co. will construct a dedicated production line at JAWO by installing the main equipment for gyoza production, which it has loaned to JAWO, and provide technical support for production.

For the present, the item produced will be Chicken & Vegetable Gyoza, which is produced by an Ajinomoto Group company in Thailand, in parallel with imports from Thailand. In the future,

Ajinomoto Frozen Foods Co. will leverage the location of its production base in Europe to enhance its product lineup with items such as gyoza made with pork, which is a strong seller for the company.

Production for the initial fiscal year is forecast to be 300 tons (500,000 packages).

Sales will be handled by AJINOMOTO FOODS EUROPE S.A.S., which conducted a restructuring in 2011 to strengthen its restaurant channel in Europe, and will center on the Asian ethnic restaurant channel, mainly in France, the United Kingdom and Germany. This scheme will continue after the scheduled start of sales of locally produced products in early July.