Japan’s H2O Retailing in freshly baked bread business in Taiwan
TAIPEI, NNA – Japanese department store owner H2O Retailing Corp. will set up a joint venture in Taiwan to meet growing consumer demand for freshly baked bread.
H2O will upgrade its partnership with PX Mart Co., a local supermarket chain, to sell more freshly made bread in Taiwan.
The companies said on Wednesday that Chuan-lian Hankyu Bakery Co. will be formed in mid-May and capitalized at 260 million New Taiwan dollars ($8.4 million). It will be 49 percent owned by H2O with 51 percent held by PX.
They will increase the number of outlets baking bread from 61 now to 255 this year and to 880 by the end of 2021.
In late 2016, PX Mart began importing frozen bread dough from Hankyu B&C Planning Co., H2O’s wholly owned bread manufacturer and store operator. PX subsequently started selling freshly baked bread at its supermarkets at a price of around NT$30, or about 100 yen ($0.9), the same price as Hankyu Bakery’s bread sells for in Japan.
The Taiwan retailer expects to cut shipping and duty costs by about 30 percent by producing bread dough locally.
PX Mart sold about 850,000 buns worth NT$23 million at its stores last year. Taiwan’s total annual bread consumption is estimated at just over NT$60 billion, according to a local media report quoting government data.