Suntory Continues Growth Plan With Japan Tobacco's Soft Drinks Acquisition
26 May 2015 --- Continuing its quest to lead the global soft drinks arena, Japanese drinks firm Suntory Beverage & Food has announced it is to acquire Japan Tobacco’s beverage vending machine business for a reported $1.2bn.
Japan Tobacco has struggled with fierce competition in recent years. Media reports suggest that the company, which owns brands such as Roots canned coffee and Momono Tennen-sui flavoured water, commands just 1.6% of the Japanese soft drinks market, while companies such as Coca-Cola and Suntory have round 20% each.
The company had announced in February it would pull out of the beverage business and stop production and sales of beverages by the end of September, reports news agency Reuters.
For Suntory, the purchase, which is expected to be completed by July, pending regulatory approval, will fuel its growth ambitions.
"We want to be the No.1 beverage maker in 2020 and we know it won't be easy," said Suntory Beverage President Nobuhiro Torii, at a media briefing. "We have got a strong partner to achieve this goal."
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