Fortune Telling Collection - Free divination - Is there a Coca-Cola joint venture in Japan?
Is there a Coca-Cola joint venture in Japan?
10 year 10 On October 26th, Nikkei News reported that Coca-Cola and Kirin Holdings were close to completing a transaction, and the two companies confirmed that they would start capital cooperation in soft drinks business. The two sides will hold a few percentage points of each other's shares and cooperate in logistics and raw material procurement. These two companies rank first and fourth respectively in Japan's domestic soft drink market.
American Coca-Cola (Japan Coca-Cola) and Kirin Holdings' Japanese legal person will finalize the final cooperation content in the near future. If it goes well, both parties are expected to sign a cooperation agreement within 20 16. This is the first time that Coca-Cola Company has formally cooperated with Japanese enterprises in the same industry.
Coca-Cola West Company and Coca-Cola East Japan Company, which are engaged in the manufacture and sales of coke products in Japan, will merge to form a new company on April 20 17. The two companies will discuss participating in the new company and Kirin Beverage, a subsidiary of Kirin Holdings' soft drink business. The capital contribution may reach tens of billions of yen.
Kirin's soft drink products in Japan include milk tea, ready-to-drink coffee, water and tea drinks.
According to the Nikkei. Cooperation is expected to reduce the logistics and procurement costs of the two companies. For example, in terms of logistics, the joint venture company will be responsible for the unified distribution of goods to retail stores and vending machines, while in terms of raw materials, the joint venture company will also purchase juice, coffee beans and PET plastic bottles in a unified manner. It is expected that this will reduce the cost by billions of yen every year. Sales and market cooperation have not been included, but it does not rule out that the two companies will supply products to each other and jointly develop new products in the future.
Similar attempts have precedents in the Japanese beverage industry. In 2009, Kirin Holdings plans to merge with Suntory. If the merger is completed by then, the sales of the two parties in the soft drink market will surpass Coca-Cola. But in the end, the merger transaction fell through because of different opinions on the equity of the new company after the merger. Before the merger, Kirin and Suntory had already cooperated in the fields of procurement and distribution.
At present, the Japanese soft drink market is 4 trillion yen. However, with the aging population and weak market growth in Japan, according to the statistics of Japan's Ministry of Agriculture, Forestry and Fisheries, the sales volume of food and beverage dropped by about 5% this year. In addition, there are many Japanese beverage brands, and the price war is inevitable. Therefore, beverage companies choose to cut costs, but it is not feasible for Coca-Cola and Kirin to do so alone. Last year, Suntory, another Japanese beverage giant, bought the vending machine business of Japan Tobacco Company in order to reduce the cost of channel promotion. Analysts believe that competition in Japan's domestic soft drink market will intensify as leading brands begin to choose to cooperate with competitors.
Source: Interface News
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