Suntory Beverage & Food Ltd to Take over Japan’s Tobacco Inc’s Beverage Vending Business

Published By : 26 May 2015 | Published By : QYRESEARCH

Japan’s Tobacco Inc’s beverage vending business is being bought over by Suntory Beverage & Food Ltd for approximately 150 billion yen ($1.2 billion). Suntory’s goal is to grow as Japan’s topmost beverage company in five years.

Suntory is based in Tokyo and is involved in domestic and international food and non-alcoholic beverages business. The company business segments include Japan, Asia, Oceania, Americas, and Europe.

Tobacco Inc. is known for its "Momono Tennen-sui" flavoured water brands and its Roots canned coffee. The company is retreating from the competitive beverage business that has too many competitors contending in the limited market. The company will stop production and withdraw by September. 

Suntory and Coca Cola had more than 20% each of the market share last year and Japan Tobacco had only 1.6% according to industry report from a publication Inryosouken. Suntory will complete the procedures for buyout expectedly by July depending on regulative authorization and considers the deal as an incentive for its development initiative. 

The President of Suntory Beverage Nobuhiro Toril stated that the company wants to be Japan’s No 1 beverage manufacturer and they have a strong partnership to reach their ambitions.

Japan Tobacco’s net profit would increase after the sale and it would reach 100 billion yen by year ending in December, according to Noriaki Okubo the executive vice president of the company. Meanwhile Japan Tobacco would persist in its expansion of food and drug production business side by side with its central cigarette selling.
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