Singapore-based SATS, a caterer for the airline industry and airport lounges, is planning to enter into a new partnership with Japan’s Mitsui & Co.
In a joint statement, the companies said the collaboration “is an important step towards improving the footprint of the parties in the food value chain in Asia”.
It added: “By leveraging SATS’s competencies in food solutions and Mitsui’s extensive network of distribution channels, the partnership aims to capitalize on potential synergies and value creation opportunities to drive growth and expansion in food-related businesses.”
As part of an earlier memorandum of understanding (MoU) between SATS and Mitsui, the proposed partnership will focus on “developing and growing their respective food and retail solutions businesses”.
The S$36.4 million ($27.1 million) venture will give Mitsui a 15% stake, including “interests” in four SAT subsidiaries to support growth and expansion: SATS Food Solutions India, SATS Food Solutions Thailand, SATS Tianjin and Country Foods.
Country Foods in Singapore also partnered with Hilton Food Group, the UK-based supplier of meat, fish and plant-based proteins, in 2022.
SATS aims to leverage Mitsui’s network of food retailers and manufacturers in Tokyo, along with food and beverage outlets in Asia, to “create new business opportunities and expand SATS’ market reach.”
In addition to food and retail, the Japanese conglomerate also has business interests in the energy, chemical, infrastructure, IT and minerals sectors. SATS is also known as Singapore Airport Terminal Services and is owned by state investment company Temasek.
Stanley Goh, CEO of SATS Food Solutions, said: “SATS has developed the capacity and expertise to conceive, innovate and produce a wide range of high-quality, nutritious and authentic ready-to-eat food products through our network of kitchens across Asia.
“By working with Mitsui, we can leverage our partners’ network and distribution channels to generate demand for a wide range of food products from our food entities and expand our presence in key markets.”
According to the statement, SATS and Mitsui are already working on a number of other potential partnerships.
Another subsidiary, SATS TFK, is in talks with a foodservice unit of Mitsui to supply ingredients to retail chains such as Kinokuniya and Coursair in Japan.
According to the new joint venture proposal, SATS will supply frozen meals to Mitsui in Japan, with the launch scheduled for the first quarter of next year.
Naoharu Asaumi, COO of Mitsui’s retail business unit, said: “By combining SATS’ culinary expertise, food technology, innovation, unique product development and manufacturing capabilities to provide value-added services in Singapore with Mitsui’s global food and packaging procurement network, cold chain logistics and distribution, and sales and marketing capabilities in each target market, we can achieve this ambition.
“Mitsui and SATS aim to provide food solutions to a growing market and contribute to improving the quality of life of communities in Asia.”
“Singapore’s SATS charts food adventure with Japan’s Mitsui” was originally conceived and published by Just Food, a GlobalData brand.
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