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Japan snackmaker Calbee says aims to enter Australia this year

Published 15/01/2016, 08:37 pm
© Reuters.  Japan snackmaker Calbee says aims to enter Australia this year
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TOKYO, Jan 15 (Reuters) - Calbee Inc 2229.T is aiming to enter the Australian market as early as this year, its chief executive said, as part of the Japanese snack maker's plan to triple the contribution of overseas sales to its overall annual revenue.

The company, 20 percent owned by PepsiCo (N:PEP) Inc PEP.N , is the market leader in Japan but overseas sales in markets such as the United States, Britain and Singapore have driven growth over the past few years.

Chief Executive Akira Matsumoto told Reuters in an interview that Australia was an attractive market because of its developed economy.

"Australia's population is not big, but it's a developed economy, where you can expect relatively large volume of snacks consumption," he said.

Calbee, which reported annual revenue of 220 billion yen ($1.87 billion) for the year that ended March 31, has said it aims to increase the contribution of overseas markets to 30 percent from 10 percent currently.

Matsumoto reiterated that Calbee, whose name combines the supplements calcium and vitamin B1, was still seeking to re-establish its presence in China after scrapping a loss-making joint venture with Chinese food firm Tingyi Holding Corp 0322.HK and Itochu Corp 8001.T last year.

"The joint venture sold products priced at 6.5-7.5 yuan ($0.98-1.14). That's too expensive. We need to sell 1 yuan or 2 yuan products," he said, adding that Calbee would either find another partner to set up on its own.

Matsumoto, the former head of Johnson & Johnson's JNJ.N Japanese operations, was hired by Calbee founding family in 2009 to run the company, which was listed two years later. ($1 = 6.5864 Chinese yuan renminbi) ($1 = 117.5600 yen)

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