Meiji to invest Y10B to boost chocolate snack output in US

Meiji to invest Y10B to boost chocolate snack output in US

Meiji to Invest $28 Million to Expand U.S. Chocolate Snack Production

Japanese food manufacturer Meiji Co. Ltd. has announced a $28 million investment to expand production capacity for its Hello Panda brand at its Santa Ana, California, facility in the United States. The funding, part of Meiji's Group 2026 Vision strategic plan, aims to meet surging demand for the chocolate cream-filled biscuit, which has seen U.S. sales triple since 2017. The expansion will also support the launch of a new product, Hello Panda Pretzel, a sweet-and-salty snack featuring a pretzel shell and chocolate cream filling, set for a U.S. rollout in October 2024.

Hello Panda, first introduced in Japan in 1987, has been produced in the U.S. since 2015 and is now sold in 30 countries. Meiji reported that U.S. sales of the brand are projected to grow by 1.5 times by fiscal 2026 compared to fiscal 2023 levels. The company's broader international expansion targets $1.12 billion in overseas sales by fiscal 2026, with $600 million expected from China alone.

The investment aligns with Meiji's goal to increase overseas revenue to 10% of total sales by fiscal 2026. Currently, overseas sales accounted for approximately 1.05% of Meiji's total $55.3 billion in group sales during fiscal 2023. The U.S. biscuit market's projected growth and the popularity of pretzel-based snacks— estimated at $2.73 billion in the U.S.—are key drivers for the new product.

Meiji's Santa Ana plant also produces other confectionery brands, including Yan Yan and Chocorooms. The company emphasized leveraging its global manufacturing expertise to strengthen its position in the U.S. market, where its snacks are distributed through grocery, club, and convenience channels.

This move underscores Meiji's focus on high-value-added products and international diversification amid evolving consumer preferences for innovative, premium snacks.