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Business

Japan's Ajinomoto AGF to launch coffee e-commerce in China

Food giant subsidiary will sell 10 high-end and other popular products

Ajinomoto AGF plans to market its powdered coffee drink Blendy in China.

TOKYO -- Ajinomoto AGF, a subsidiary of Japanese food giant Ajinomoto, is making final arrangements to break into the massive Chinese e-commerce market and feed demand from local coffee lovers.

The Tokyo-based company will start selling 10 coffee products, including high-end Sen ground coffee as well as the powdered drink Blendy stick coffee, in late October through the Chinese "Kaola" and "Tmall Global" cross-border online shopping sites.

The Kaola and Tmall Global online shopping platforms are operated by major e-commerce company NetEase and giant online retailer Alibaba Group Holding, respectively. The 10 products to be sold by Ajinomoto AGF are all popular with Chinese tourists visiting Japan.

It will be the first time for Ajinomoto AGF to sell its products in China. The Japanese company will aim to achieve 300 million yen ($2.66 million) in sales in China in the first year. Ajinomoto AGF plans to sell more coffee products in China in the future.

Ajinomoto AGF's foray into the Chinese market comes as it has decided that it can cash in on local demand for Japanese-made coffee products. By launching cross-border e-commerce, the Ajinomoto unit also hopes to boost its brand recognition.

(Nikkei)

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