Paris Baguette of SPC Group Breaks into Halal Market By Establishing Joint Venture in Malaysia

Paris Baguette of SPC Group Breaks into Halal Market By Establishing Joint Venture in Malaysia

 

– Having started to build a halal-certified bakery factory by investing KRW 40 billion (approx. USD 31 million), the Group will complete its construction by 2023 to supply products across Southeast Asia and to the Middle East.

– It intends to open the first Paris Baguette store in Malaysia at the end of this year by establishing a joint venture with Berjaya Group, a local leading enterprise

– “We will target the world halal food market amounting to KRW 2500 trillion (approx. USD 2 trillion) by using Malaysia as an outpost for expanding markets in Southeast Asia and the Middle East,” said Hur Jin-soo, head of Global BU at SPC Group.

– It plans to open more than 600 stores in Southeast Asia by 2030.

 

 

Paris Baguette, a bakery brand of SPC Group, announced on June 20, 2022, that it breaks into the halal market by entering Malaysia.

 

To that end, SPC Group began construction of a halal-certified bakery factory in Johor Bahru, the second-largest city in Malaysia, while establishing a joint venture with Berjaya Food, a leading enterprise of the country.

 

SPC Group aims to make a foray into the Muslim market with a 1.9 billion-population that represents 24% of the world population by using Malaysia as a foothold for entering the halal market which comprises Southeast Asia and the Middle East.

 

“We will advance into the world halal food market that reaches KRW 2500 trillion (approx. USD 2 trillion) by building a global halal-certified bread production facility in Malaysia,” said Hur Jin-soo, head of Global BU at SPC Group. “We will continue to expand our global business more actively through aggressive investment.”

 

SPC Group intends to expand business in the Southeast Asian market by opening more than 600 stores in the region by 2030.

 

As the 8th foreign country to be entered by Paris Baguette, Malaysia is one of the major economic powers in the ASEAN region and a typical halal market that adopted Islam as its state religion.

 

Specifically, the ‘Nusajaya Tech Park (NTP)’, an industrial complex in Johor Bahru, where SPC Group will build a bakery factory, is a stronghold for efficiently transporting products throughout Southeast Asia as well as to the Middle East as it is neighboring the border with Singapore and close to Port of Tanjung Pelepas.

 

With floor space of 12,900 square meters in a lot area of 16,500 square meters, construction of the SPC Group’s factory in Johor Bahru will be completed in June 2023 by investing approximately KRW 40 billion (approx. USD 31 million). Equipped with capabilities of producing over 100 different products, such as bread, cakes and sauces, the factory will play the role of a foothold in supplying products to the world halal markets, including Singapore, Indonesia, Vietnam, Cambodia and Malaysia where SPC Group is already operating stores, as well as the Middle East countries, which are its future target markets.

 

In the meantime, having established a joint venture, Berjaya Paris Baguette Sdn. Bhd., with Berjaya Food Bhd., an affiliate of Berjaya Group, Paris Baguette Singapore LTD which is the regional holding company in Southeast Asia will open the Paris Baguette store in Malaysia’s capital city of Kuala Lumpur at the end of this year.

 

As a major enterprise in Malaysia that operates a variety of businesses, including real estate, distribution, food, hotel and resort, Berjaya Group manages diversified food distribution brands, such as Starbucks, 7-Eleven, Kenny Rogers Roasters and Jollybin.

 

“We are happy to introduce Paris Baguette, a global brand, to Malaysia,” said Dato’ Sydney Quays, CEO of Berjaya Food. “Combining Berjaya Food’s knowhow on Malaysian market with superb products and brand of Paris Baguette, we will provide the best gourmet experience to customers in Malaysia.”

 

SPC Group has been successfully expanding business in Southeast Asian markets, including Singapore, Cambodia and Indonesia, since it made inroads into the region starting with Vietnam in 2012. And the Group is also expediting the expansion of business in other global markets, such as North America, Europe and China. It opened over 100 stores in the United States and is girding for breaking into Canada and the United Kingdom, while actively increasing franchise business in China.