Friday, 11th February 2011
In General Japan News,
Japan's brewer to expand into soft drinks
Japan-based brewer Sapporo Holdings is set to diversify into new markets by increasing its stake in a soft drinks company.
The brewer has agreed a 21.27 billion yen deal to boost its stage in Pokka from 21.4 per cent to 85.5 per cent in order to increases its potential market opportunities.
It is expected that the agreement will be completed by the end of March and the two businesses will integrate operations, such as distribution and production, by April 2012.
The brewer also plans to integrate businesses with Pokka in April 2012. The two companies concluded a capital and business tie-up deal in 2009 to jointly undertake distribution, production and overseas operations.
Last year, Sapporo Holdings reported a net income of 10.772 million yen.
Market experts believe the venture is in response to a decline in the Japanese domestic beverage demand and a fall in the overall population. Therefore, many companies within the industry are looking at new ways to cut costs and discover alternative markets.
Written by Mark Smith.