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Japanese beer giant Kirin sells 40% stake in China drinks company for US$994 million
Japanese brewing giant Kirin Holdings Co. is selling its stake in a beverage venture it formed with China Resources Holdings Co. for 115 billion yen (just shy of US$1 billion) as it shifts its focus to food, health and pharmaceuticals.
The Japanese brewer will gain around 39 billion yen from the sale of its 40% stake to Plateau Consumer Ltd., an investment fund based in the Cayman Islands, it has been announced.
Kirin established the partnership with China Resources Holdings in 2011 with a focus on the bottled-water business under major brand “C’estbon.” But as part of a business portfolio review, Kirin now intends to increase its profit in food and beverages, as well as strengthening its grip in pharmaceuticals and scaling up in the health science domain.
“Kirin has entered into an agreement to transfer its equity interest in CR Kirin to Plateau after careful consideration, including from the perspective of balance sheet portfolio management as set forth in the 2022 Medium-Term Business Plan,” the company said in a statement.
As part of the sale terms, Kirin has agreed to continue on with JV, its soft drinks business tie-up with China Resources, which operates a number of retail, beer, food and soft drink businesses in China.
“The business alliance including intellectual property licensing with China Resources Group for soft drink business in China will continue,” Kirin said.
The move comes shortly after Kirin decided to pull out of a joint venture brewery in Myanmar.
Kirin is among Japan’s top beer brands. It also owns Four Roses Distillery in the US and San Miguel Brewery in the Philippines.
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