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Coca Cola and Kirin consider business tie-up www3.nhk.or.jp
Fierce competition in Japan's soft drink market has made the Coca Cola group and Kirin Holdings consider a business tie-up.
The Coca Cola group is the Japanese soft drink leader while Kirin ranks 4th in the market.
An industrial source says the 2 firms are considering a joint delivery of products and a joint procurement of ingredients, containers and other materials.
It says the operations team-up could develop into a capital alliance in the future.
The 2 beverage makers are apparently hoping to cut down costs and improve their earning capacity through the deal.
Japan's soft drink market has been shrinking with little growth potential seen in the nation's decreasing population.
The planned alliance between the largest and the 4th-ranked firms is likely to affect other makers' business strategy. This could touch off another consolidation in the industry.
Published Date:2016-10-26
