New venture for established group
“We think the time is right to assemble a company offering a variety of sauces and condiments, to bring out the different flavours of the Asian region,” said Fung Group chairman Dr Victor K. Fung.
“Our group has been in the consumer goods supply chain business for over 110 years, but focusing on non-food categories.
“Due in part to customer request to help them source for food products, we began looking into the food business in recent years. Our management felt a good place to enter the market would be in Asian sauces, which we want to bring to all over Asia and the world.”
Fung said the timing was right as Heritage Foods felt people’s tastes worldwide have become more diversified and they are willing to try new things.
“Diversity in food taste is a very important point, especially among the young consumers we want to appeal to,” he said.
“In terms of global sauce sales and distribution, Asia accounts for half the world market. The sector is growing at about 4% globally with China growing at double digits.”
Fung said Heritage Foods is building its food portfolio through selective acquisitions, focusing on companies with tradition and heritage.
“The companies we acquire offer something different that can be brought to the rest of the world. True heritage and uniqueness is important in today’s world,” he said.
“Everybody can claim they offer something different, but when you have history and heritage, nobody can duplicate that.”
Fung said Heritage Foods was proud of its association with Hamada, a brand with a 200-year history and strong Japanese origins.
“We acquired Hamada just before the 2016 earthquake. Unfortunately, we had to invest a significant amount in its restoration, but it was something we were happy to do,” he said.
“The Kumamoto government feels this is an important contribution to help symbolise the city’s recovery. The Hamada building is important to the region.
“But we also took the opportunity to redo the building such that it would allow consumers to be able to feel and experience Hamada’s heritage,” said Fung of the cafe and retail space that would be open to the public.
He added that Heritage Foods hopes to grow its sauce business into a venture worth between USD$500mil and USD$1bil over the next few years.