Bison sees higher revenue from food segment

Store operator signs two deals with Japanese parties

PETALING JAYA: Bison Consolidated Bhd expects its ready-toeat food segment to contribute 15% of revenue from 11% at present, following deals inked with two Japanese parties.

The myNEWS.com convenience store operator aims to achieve the higher revenue contribution during the financial year ending Oct 31, 2019 (FY19).

Bison inked two joint venture (JV) agreements yesterday with ready-to-eat producer Gourmet Kineya Co Ltd (GK) and specialised bakery Ryoyu Baking Co Ltd (Ryoyupan).

After the agreement signing ceremony, Bison executive director and CEO Dang Tai Luk said the bakery and ready-to-eat food market has huge growth potential in Malaysia, similar to what’s happening in Japan.

“Today, more people are consuming ready-to-eat food from convenience stores, supermarkets and shopping malls, in Japan and Taiwan, in tandem with consumers’ growing awareness of food safety,” Dang said.

“Hence, to provide Malaysians with food of Japanese quality standards, we must bring in Japanese experts to produce it.

“We are proud to be able to bring in these partners who are food experts to help us improve the underdeveloped and underserved ready-to-eat market in the country,” he said, adding that the retail front of Bison will work on educating the public on Japanese standards of food quality.

The ready-to-eat food and bakery products will be rolled out by the first quarter of 2019, after construction work on the 130,000 sq ft food processing centre is completed by end-2018.

The two agreements are for Bison’s food preparation and packaging facility in Rawang, Selangor, to develop, produce, and sell readyto-eat food and bakery products.

Under the first agreement, Bison and GK shall incorporate new JV company MyNEWS Kineya Sdn Bhd to produce ready-to-eat food, which will have a paid-up share capital of RM50mil.

Meanwhile, in the second agreement, Bison and Ryoyupan will establish JV company MyNEWS Ryoyupan Sdn Bhd to produce bakery products with a paid-up share capital of RM20mil.

Bison shall own 51% equity interest in both JV companies, with investment

RM35.7mil.

The cost of the investment will be funded through a combination of proceeds to be raised from internally generated funds and the proposed private placement announced on Aug 30.

Out of the total placement proceeds, Bison has earmarked RM20.4mil for the joint ventures.

“These ventures are in line with Bison’s growth and expansion strategy as they will contribute to increasing the quality of myNEWS. com’s food offerings.

“This is expected to support store traffic growth and reinforces customer loyalty, which shall in turn, contribute to Bison’s strategies of opening more stores and expanding the product lineup to retain and attract new customers,” said Dang. costs amounting to