To strengthen its activities both domestically and internationally, Calbee Inc. has set aside approximately USD1bn for M&A, automation, machinery, and facility improvements. To seek development and boost productivity, the company that produces the wildly famous Jagabee potato fries intends to spread the investment over the following three years.

A total of USD588m will be spent on M&A transactions to grow activities internationally and on general machinery and plant renovations. An extra USD441m will be spent on environmental, social, and governance initiatives as well as automation-based efficiency improvements.

Calbee is banking on a return on investment (ROI) that will see margins on its home turf improve while advancing its presence in overseas markets. For the year ended March 2022, 23% of its revenue came from overseas markets. It is aiming to lift this to between 30%-35% by 2025.

“We’ll position North America and China as key markets and boost recognition as a Japanese brand,” Makoto Ehara, COO, recently stated who will take over as president and CEO on April 1, 2023.

It also plans to return around USD184m to stockholders by fiscal 2025, with a yield on equity of 10% or higher.

Not long ago, the Tokyo-based business revealed intentions to construct a USD478m plant in Hiroshima, with an expected annual production capability of USD206m. The building is scheduled to open in December 2024.