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Kirin Brewery Company, Limited (President: Koichiro Aramaki, Head office: Chuo-ku,
Tokyo) and Takeda Chemical Industries, Ltd. (President: Kunio Takeda, Head office:
Chuo-ku, Osaka) have reached a basic agreement to establish Takeda Kirin Foods
Corporation, a joint venture company in the food business, focusing mainly on
seasonings and flavor enhancers, with a targeted startup date of April 2002. The
new company will be composed of new businesses, such as yeast extract, from Kirin's
Nutrient Food & Feed Business, and the food business of Takeda's Vitamin and
Food Company division. Kirin will have a 51% stake in the new company, with Takeda
owning 49%. Kirin plans eventually to acquire all of the shares of the new company,
which will be positioned as a key component of the Kirin Group's nutrient food
and feed business.
Based on yeast-related technologies developed for beer production, Kirin has developed
seasonings, dietary supplements and aquaculture feed businesses through its Nutrient
Food & Feed Business. Meanwhile, Takeda has been producing and marketing food
additives and ingredients such as seasonings and quality-improving agents for
processed food and food service industry through its Vitamin and Food Company
division.
The new joint venture will combine these businesses of the two companies to conduct
business that effectively takes advantage of Kirin's plentiful beer yeast and
Takeda's strengths in product development, manufacturing technology and marketing.
In doing so, it will strive to be a comprehensive seasonings company that ranks
among the leaders in its industry. After its establishment, the company will focus
its business initially on the food additives and ingredients market, but also
anticipates entering the business of household commercial seasoning products in
the future. In addition, the company will aggressively work to develop new functional
food products.
The food additives and ingredients market for processed food and food service
industry, centered on seasonings, sweeteners and quality-improving agents, has
reached a size of about \800 billion in Japan. With steady growth expected to
continue in processed food and food service industry, coupled with increasing
health consciousness among consumers, market expansion is predicted for natural
seasonings such as yeast extract, as well as functional food ingredients. The
new company will work to meet the needs of these markets and provide products
that bring new processed food proposals to customers by building on the business
foundations created by both Kirin and Takeda.
Based on the KG 21 Action Plan, its medium-term management plan for 2001-2003,
Kirin is promoting the diversification of its businesses with an emphasis on profitability.
The establishment of the new company will be a major step forward in creating
the foundation for future business development.
Takeda expects that through this business alliance, the food business of its Vitamin
and Food Company division will benefit from a new operating structure, and that
harnessing the synergy of the two companies' management resources will help further
expand its food business.
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