South Korean foods giant SPC Team strategies to develop into Malaysia to choose a bite of the $2 trillion world-wide halal food items current market.
SPC Group reported it strategies to spend 40 billion gained (about $30 million) to develop a halal-accredited manufacturing unit in Johor, a Malaysian point out bordering Singapore. South Korean media noted that the locale, with a seaport, will give the manufacturing unit a channel to ship items during Southeast Asia and into the Middle East.
The offer is led by Hur Jin-soo, the eldest son of SPC Team chairman Hur Youthful-in, known as South Korea’s “Franchise King.” Jin-soo was named president of Paris Croissant, a subsidiary of SPC Team that operates the flagship Paris Baguette bakery café franchise brand name, in December.
SPC Team also runs 1,800 Dunkin’ Donuts retailers and Baskin Robbins ice product parlors, as properly as Pascucci (Italian café), The Entire world Vine (wine), Jamba Juice (smoothies) and New York burger home Shake Shack in Korea.
The Johor manufacturing unit will make 100 styles of bread, cakes and sauces—all organized in accordance with Islamic legislation. The manufacturing facility is scheduled to be concluded in June next calendar year. SPC Team has also established a 50-50 joint undertaking with Malaysia’s Berjaya Food stuff, which operates Starbucks coffee shops and 7-Eleven benefit retailers in Malaysia.
“Halal hub has been an important strategy in the Malaysian foodstuff sector,” says Alizan Mahadi, a senior director of analysis for Kuala Lumpur-primarily based assume tank Institute of Strategic & Worldwide Scientific studies Malaysia. “Malaysia has some of the best expectations for halal certification and consequently it is [recognized] inside of the Muslim entire world.”
Officials in Kuala Lumpur have labored toward standardizing halal food since 1974, when a prime minister’s business office investigation arm commenced to difficulty halal certification letters. The Southeast Asian country introduced its initial halal expectations in 2000, forward of other Muslim nations. The criteria elevated a “cottage industry” to a “vibrant new economy” with an approximated $2.3 trillion market price, the Malaysian government’s Islamic Tourism Centre states.