In pursuing strategies designed to build a fully integrated beverage group, the Kirin Group has identified the domestic and overseas food and beverage business as the primary driving force behind growth and is focused on further strengthening this area of operations. Based on Kirin Beverage’s business philosophy of “creating a new soft drink culture,” the company aims to continuously support the diverse, comfortable lifestyles that customers seek, constantly creating products and services that are ahead of their time. Four key words – security, safety, health and environment – guide us in our R&D efforts to create value-added products and actively propose new products and services based on the latest market research. Our primary focus in this area is on our core brands, which include Kirin Gogo-no-Kocha, the Kirin tea that has popularized a uniquely Japanese style of drinking black tea; the Kirin Fire series of coffees; and Kirin Namacha green tea. Kirin Beverage Group companies play a key role in encouraging a healthy diet for our customers. Koiwai Dairy Products Co., Ltd. provides dairy products; Kirin Tropicana Inc. provides Tropicana 100% Juice; and Kirin MC Danone Waters Co., Ltd. provides the market-leading imported mineral water Volvic and the ionized alkaline mineral water Kirin Alkali-Ion-no-Mizu.

In the area of seasonings and food ingredients, Kirin Kyowa Foods Co., Ltd. a new company formed in April, takes the lead in delivering delicious, healthy seasonings and ingredients for cooking. Kirin Kyowa Foods draws extensively on the fermentation technologies independently developed by Kyowa Hakko Foods Co., Ltd. and Kirin Food Tech Co., Ltd. In addition, Nagano Tomato Co., Ltd. produces tomato juice from the delicious tomatoes of Nagano Prefecture and supplies special nametake mushroom sauces and other products made from ingredients especially grown in Nagano Prefecture. In the area of health foods and functional foods, Kirin has introduced an intensified approach designed to incorporate the strength of the entire Kirin Group to promote health food and functional food business projects. The entire Kirin Group is currently involved in innovative cross-category product development that encompasses “all food products our health-conscious customers consume” with a particular concentration on beverages. We expect the first products in this line to hit market shelves in 2010.

National Foods Ltd. is Australia’s leading dairy product and juice beverage company with over 100 years of history behind it. The company holds an overwhelming market presence in Australia and also owns manufacturing sites in New Zealand, Malaysia and Indonesia. The Kirin Group joins its technology, research and marketing strengths with the powerful brand strength of National Foods, and expects to contribute to the further growth of National Foods with proposals for new products able to create new value for Australian customers.