Snack maker Calbee poised to take bigger bite out of the US snack market

Japanese snack company Calbee is gearing up for a US marketing campaign for its best-selling Jagarico potato snack in an aggressive drive to increase overseas sales.

The Japanese snack company recently unveiled its medium-term business plan calling for overseas operations to account for 25% of total sales by March 2024, up 9 points from fiscal 2018.

One year after the departure of visionary chairman and CEO Akira Matsumoto, who transformed the small family-owned business into a snack powerhouse, Calbee is laying plans for future growth in the U.S., China and beyond.

In a May 15 news conference, President and CEO Shuji Ito pledged to expand foreign sales. Ito's long-term vision has overseas operations accounting for over 40% of total sales by 2030.

Calbee's sales have declined for two straight years. Some analysts, including Nomura Securities' Satoshi Fujiwara, note that the company has failed to make any big moves overseas in the past few years.

Investors have taken notice of the new growth plans, with shares in the company having reversed their downward trend, at least temporarily.

Former CEO Matsumoto, though credited with transforming the company into a household name in Japan, never fully leveraged Calbee's relationship with PepsiCo, and the snack maker's slumping stock price over the years reflects this.

Despite their recent uptick, shares closed on May 24 about 40% lower than their April 2015 high of 5,700 yen.

Ito wants to change this and sees another opportunity in India, where PepsiCo is firmly established. "Can we afford to sit back and do nothing," he asked, referring to the country's huge market.

The CEO also feels that Calbee can help its American partner in Asian markets where the Japanese maker has a presence.