Mitsubishi, the Japanese conglomerate which is active in the FMCG space through its Living Essential Consumer Products division, is to take a minority stake in the UAE frozen foods firm Al Islami Foods. The size of the stake was not disclosed.
Al Islami, a subsidiary of the Dubai Cooperative Society, said that the decision to partner with Mitsubishi was the result of a study it had conducted into strategic NPD options, with the goal of increasing its frozen food market share in the GCC and wider global markets.
“The strategic investment will enable the local Superbrand to capitalize on Mitsubishi’s well-established distribution in key international markets particularly in Asia”, the company added.
Al Islami Foods is currently the second biggest player in the frozen meat sector in the UAE by market share. In addition to processed and unprocessed chicken, the product markets a broad range of other frozen products including vegetables, potato products, seafood and fruit.
Commenting on the deal, Saleh Saeed Lootah, chairman of the board of directors, Dubai Cooperative Society said: “This association with Mitsubishi Corporation is another step in Al Islami Foods ongoing efforts to accelerate growth. Mitsubishi provides our company and brand tangible solutions to help with added production capacity that will help accommodate the growing demand for our products both locally and globally. We believe the relationship with Mitsubishi will increase our production by double-digit growth over the next 5 years through a combination of the expansion of our product range and greater exports”.
Source: Al Islami Foods / Mitsubishi