SATS in Singapore, a foodservice caterer for the airline industry and airport lounges, plans to enter into a new partnership with Japan’s Mitsui & Co.
In a joint statement, the companies said the tie-up “is a significant step towards enhancing the parties’ food-value chain footprints across Asia”.
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It added: “By leveraging SATS’ food solutions competencies and Mitsui’s extensive network of distribution channels, the partnership seeks to capitalise on potential synergies and value-creation opportunities to drive growth and expansion in food-related businesses.”
As part of a previous memorandum of understanding (MoU) between SATS and Mitsui, the proposed partnership will aim to “develop and grow their respective food and retail solutions businesses”.
The S$36.4m ($27.1m) venture will see Mitsui hold a 15% stake, including “interests” in four SAT subsidiaries with a view to supporting growth and expansion: SATS Food Solutions India, SATS Food Solutions Thailand, SATS Tianjin and Country Foods.
Country Foods in Singapore was also part of a partnership in 2022 with Hilton Food Group, the UK-headquartered meat, seafood and plant-based proteins supplier.
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By GlobalDataSATS will seek to take advantage of Tokyo-based Mitsui’s network of food retailers and manufacturers, along with food and beverages outlets in Asia, to “unlock new business opportunities and expand SATS’ market reach”.
As well as food and retail, the Japanese conglomerate also has business interests in the energy industry, chemicals, infrastructure, IT and minerals. SATS is otherwise known as Singapore Airport Terminal Services and is owned by state investment firm Temasek.
Stanley Goh, the CEO of SATS Food Solutions, said: “SATS has developed the capacity and expertise to ideate, innovate and manufacture a wide range of high quality, nutritious, and authentic ready-to-eat food products through our network of kitchens in Asia.
“By collaborating with Mitsui, we can leverage our partner’s network and distribution channels to generate demand for a wide array of food products from our food entities and to expand our presence in key markets.”
SATS and Mitsui already have some other potential partnerships in progress, according to the statement.
Another subsidiary, SATS TFK, is in talks with a Mitsui foodservice business unit to supply food ingredients to the likes of the Kinokuniya and Coursair retail chains in Japan.
Under the new joint venture proposal, it is planned that SATS will supply Mitsui in Japan with frozen ready meals, with a target launch in the first quarter of next year.
Naoharu Asaumi, the COO of Mitsui’s retail business unit, said: “Combining SATS’ culinary expertise, food technology, innovation, unique product development and production capabilities to provide value-added services in Singapore with Mitsui’s global food and package procurement network, cold-chain logistics and distribution, and sales and marketing capability in each target market, we can scale this ambition.
“Mitsui and SATS aim to provide food solutions to a growing market and contribute to enriching the quality of life for the communities in Asia.”
