Nissin Foods Holdings Co., the company that invented instant noodles, appears to have created an entirely new category with a hit product: cup noodles made with cold water.
Initial supplies of the handy meal, available in Spicy Kimchi and Chicken Salt Lemon flavors, sold out a week after hitting store shelves on July 20, according to Nissin. While the Tokyo-based company didn’t disclose sales figures, it had anticipated supplies to last one to two months.
Nissin, which has almost half of Japan’s instant-noodle market, has long leaned on innovation to stay ahead of rivals including Toyo Suisan Kaisha Ltd. and Sanyo Foods Co. The surprise hit with Cold Cup Noodle shows the company is still able to find ways to connect with consumers with one of Japan’s most familiar convenience foods.
“Nissin is accelerating the launch of innovative products and flavors tailored to increasingly diverse food cultures and focusing on balanced distribution across multiple channels,” Macquarie Equity Research analysts Linda Huang and others wrote in a report.
Ever since Nissin founder Momofuku Ando invented instant noodles in 1958, the basic formula has always relied on hot water, even for some varieties meant to be chilled before eating. The new product, which sells for ¥307 ($2) apiece and was developed over five years, can be consumed after just five minutes, responding to growing demand for cool foods during hot weather.
Nissin, which has a market capitalization of ¥869 billion, says its new product uses a patented process that results in smooth yet firm noodles.
The Cold Cup Noodle has gone viral on social media, with influencers taste-testing them and trying out different liquids, such as soy milk or tea, to rehydrate the noodles.
The craze for Cold Cup Noodle has even reached Hong Kong, where a local store held a one-day-only sale event with people lining up for a taste of Japan’s latest food innovation, according to free local paper The Standard.
A spokesperson for Nissin says the company received feedback that cold noodles could also be used as an emergency food, given that it doesn’t require the extra step of preparing hot water. Asked whether the company planned to increase production, sell year-round or introduce new flavors, the spokesperson says: “Nothing has been decided at this point. We will consider our next steps based on factors including the sales performance of this product.”
Nissin’s playful approach with Cold Cup Noodle is a signature move by the company and will have a positive impact on its branding, according to Shoichi Arisawa, senior analyst at Iwai Cosmo Securities Co.
“The company provides this added value through launching unique products instead of engaging in price competition,” Arisawa says.
AloJapan.com