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Diving overview:
- Hi-Chew owner Morinaga & Co. said Monday it has agreed to acquire My/Mochi, the largest mochi ice cream brand in the U.S., for an undisclosed amount.
- According to a press release, the deal allows Tokyo-based Morinaga to enter the U.S. frozen dessert market “in earnest,” as the company aims to expand the snack market there.
- For My/Mochi, the sale will strengthen the more than 30-year-old brand’s ability to innovate and reach a “broader group of consumers,” said Craig Berger, the brand’s CEO and president.
Dive Insights:
My/Mochi, which produces ice cream packaged with glutinous rice dough, has benefited from strong demand from Gen Z snackers looking for a variety of texture experiences and globally inspired flavors and foods.
Mochi ice cream was invented by Frances Hashimoto, a Japanese-American schoolteacher from Los Angeles. He brought the snack to the mainstream through his family’s confectionery business, Mikawaya, in the 1990s. In 2017, Mikawaya launched My/Mochi to reach more consumers by combining traditional options like green tea with more familiar flavors like chocolate.
The brand achieved annual sales of $80 million in the fiscal year ending Jan. 25, according to SPINS data cited by Morinaga.
Asian food is gaining a larger presence on American tables and restaurants due to its unique flavor profile and association with healthy eating habits. Sales of items in the “Asian/ethnic aisle” of U.S. grocery stores increased nearly fourfold compared to overall sales in 2024, according to data from analytics firm Circana cited by The New York Times.
Morinaga identifies the United States as one of its key growth markets and is investing heavily to expand awareness of Hi-Chew among Gen Z and Gen Alpha. The company plans to open a second factory in the United States in 2027.
Morinaga said it has identified the frozen snacks segment as one of its most attractive and fastest-growing segments as it seeks to expand its presence in the U.S. snacks sector. My/Mochi is working to launch new products, such as ice cream sandwiches, and Morinaga said it will be able to leverage its expertise in categories such as popsicles and ice cream bars to further expand its innovations.
“In welcoming Mai/Mochi to the Morinaga family, we see tremendous opportunity to build a sustainable snack business for future growth,” Teruhiro “Terry” Kawabe, president and CEO of Morinaga America, said in a statement.
