Japanese trading house Mitsui & Co. is teaming up with Singaporean airport services provider SATS to produce and wholesale frozen food in Asia.

Mitsui will invest about 4 billion yen ($25.5 million) for a 15% stake in Food Solutions Sapphire Holdings, a SATS subsidiary that operates in India, Thailand, China and Singapore. The deal is scheduled to be completed by September.

SATS supplies in-flight meals to Singapore Airlines and others, producing around 120,000 meals per day. The company’s strengths include its high food-safety standards and manufacturing efficiency. It also has the know-how to accommodate various food cultures, including halal food compliant with Islamic law.
 

An expanded middle class and increased urbanization in Asia have boosted demand for products like frozen foods and prepackaged meals.

SATS will use Mitsui's sales and procurement networks in various markets to diversify its business, which is currently focused on in-flight meals.

The two companies had signed a strategic partnership agreement to collaborate in the food industry in and outside Asia in 2023.

In Japan, SATS subsidiary TFK is already wholesaling products to high-end supermarket Kinokuniya and other outlets with Mitsui's cooperation.
 

A version of this article was first published by Nikkei Asia on Jul 19, 2024.
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