Meiji invests USD28m to boost production capacity of Hello Panda in US, catapult overseas sales

23-Oct-2024 - Last updated on 23-Oct-2024 at 05:42 GMT

Meiji America has released a new product called Hello Panda Pretzel to capture a bigger share of the market. ©Meiji

Japanese dairy giant Meiji will invest USD28m into its US subsidiary to increase production capacity of its hero brand Hello Panda, aiming to raise overseas sales ratio to 10% or more by 2026.

Launched in 1987, the Hello Panda snack is characterised by its chocolate cream filling and panda illustration on the biscuit shell.

Originally made only in Japan, production of the snack was subsequently established in Singapore, Indonesia, and the US. In September this year, manufacturing operations of Hello Panda expanded to China.

According to Meiji, Hello Panda is the most popular snack among its confectionery products sold overseas. It is currently available in 30 countries across South East Asia, East Asia, Middle East, Europe, and the US.

In October 2024, the company’s US subsidiary Meiji America Inc launched a new product called Hello Panda Pretzel, as part of its moves to gain a bigger share of the market.

“The pretzel market in the US is estimated at approximately USD2.8bn (JPY420bn), and it is a very popular category. This new product combines pretzels and chocolate cream, allowing consumers to enjoy a sweet and salty flavour [in one bite],” the firm said.

Hello Panda began sales in the US in the 1990s and local production since 2015.

Based on FY2023 results, its sales in the US have tripled compared to FY2017, with the increase partly attributable to the broadening sales channels.

“Our confectionery business in the US has grown significantly due to the recognition of our product quality, as well as the expectation of safety and security. We aim to increase sales by approximately 1.5 times by FY2026, compared to FY2023.

“As the biscuit market is projected to continue expanding, we seek to further establish ourselves as a global brand by strengthening our production system and expanding our sales channels. In order to meet growing demand, we are investing about USD28m (JPY4.1bn) to increase our production capacity for Hello Panda, with plans to increase this amount in FY2025.”

The investment will go into Meiji America’s facility located in Santa Ana, where the production of three key brands, namely Hello Panda, Yan Yan, and Chocorooms, take place.

Under the Meiji Group 2026 Vision, the company has set the “establishment of a foundation for growth in overseas markets” as a key strategy to achieve mid- to long-term improvement in business value.

“By leveraging the biscuit manufacturing technology and know-how that we have cultivated in various countries, we will develop and deliver more unique, delicious, and value-added products to consumers around the world.

“In addition, through increasing production capacity for global expansion, we target to increase our overseas sales ratio to 10% or more by FY2026.”