Fort Lee, New Jersey-based Ajinomoto North America, Inc. (AJINA), a consolidated subsidiary of Tokyo-headquartered Ajinomoto Co., Inc., has entered into an agreement to acquire Houston, Texas-based Windsor Quality Holdings, LP, a privately held US frozen food company, for approximately $800 million (about JPY 84 billion). The deal excludes Windsor’s sausage business, which will be spun off prior to the acquisition, scheduled for early November.
Windsor Quality Holdings, established in 2004, has developed a broad distribution network in the United States, with about 80,000 stores selling its products, including major retailers. It also has a strong foodservice operation, with approximately 120,000 restaurants purchasing its products.
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Windsor has seven production facilities throughout the country and strong brands and positions in the Asian (Taipei and Ling Ling), Mexican (José Olé), Italian (Bernardi) and appetizer (Fred’s) segments. The company, which employs approximately 1,700 people, rang up about $800 million in businesses last year. Its current management structure is expected to remain intact. Announcing the pending purchase on September 10, Ajinomoto stated: “By combining Windsor’ s marketing power, knowledge of US consumers, distribution and sales capabilities and production footprints throughout the United States with AJINA’s strengths in healthy, high-quality and delicious frozen food products which are originating from Japan and supported by advanced technologies, Ajinomoto Co. will accelerate its growth to achieve the fiscal 2020 sales target of JPY 100 billion for its frozen food business in North America, and secure its position as the clear No. 1 manufacturer in the Asian/Ethnic frozen food market.” |
In developing countries, Ajinomoto Co. promotes products accentuating umami, flavor, menu-specific and other seasonings that appeal to the local or regional taste preferences. In developed countries, such as the US and Europe, it is specializing in more highly processed foods originating from Japan, with a lineup focused on ethnic Asian frozen and processed foods adapted to suit local customer tastes.
The sizable frozen food trade in North America is valued at approximately $40 billion (about JPY 4 trillion). Within this market, the growth of Asian/Ethnic and differentiated categories of healthy/high quality foods has been particularly robust in recent years.
Ajinomoto Co., operating in 26 countries and regions and registering consolidated net sales of JPY 991.3 billion ($11 billion) in fiscal 2013, established a full-scale frozen food business in North America in 2000. That enterprise has now grown to approximately $130 million (roughly JPY 13.5 billion) in annual turnover, mainly generated by sales of high-quality products such as gyoza (pot stickers), noodles and rice dishes.
