Ajinomoto to boost flavour seasoning production in Brazil

Japanese ingredients company Ajinomoto has begun construction of its 2bn-yen ($25.97m)Tempero Sazón plant expansion in São Paulo, Brazil, as part of its 2011-2013 strategy to grow its overseas consumer foods business.

The project, which is expected to be completed in May 2013 and with operations likely to begin in June 2013, will boost the facility’s production capacity to 6,700t of flavour seasonings. The expansion will enable the company to meet the increasing demand for its Tempero Sazón brand flavour seasoning, which has captured a significant market share in the country, with sales volumes growing an average of 7% a year from fiscal 2007 to fiscal 2010.

According to the company, the size of overseas flavour seasoning market was approximately a million tons in 2010, of which, South America accounts for 10%. Flavour seasoning accounts for nearly 35% of sales of its overseas consumer foods, with sales steadily increasing in Brazil, which is a key market for the company, following Asia where the company has seen double digit growth, especially in Indonesia, Vietnam and Thailand.

This investment follows Ajinomoto’s recent announcement to invest 2.2bn yen ($28.57m) to build a new instant noodle plant in northeast Brazil, to tap the country’s fast-growing instant noodle market.

Ajinomoto moved into the Brazilian market in 1956 with the manufacture and sale of amino acids and seasonings and entered into instant noodle business in 1972.