Kirin, the Japanese beverage giant, has expanded its portfolio with the acquisition of Blackmores, an Australian-based company specializing in vitamins and supplements.
The deal, which was finalized on April 28th, 2023, marks Kirin's entry into the wellness market and positions the company to take advantage of the growing demand for health products globally. The acquisition comes as part of Kirin's strategy to diversify its business and reduce its reliance on beer sales, which have been declining in Japan due to changing consumer preferences.
Blackmores is a well-known brand in Australia and Asia, where it has a strong presence. The company was founded in 1932 and has since grown to become one of the largest vitamin and supplement manufacturers in the region, with a product portfolio that includes vitamins, minerals, herbs, and nutritional supplements.
The acquisition of Blackmores provides Kirin with a ready-made platform to expand its presence in the health and wellness market. With the global vitamin and supplement market projected to reach $278.02 billion by 2025, according to a report by Grand View Research, the acquisition is a strategic move by Kirin to capitalize on this growing trend.
In a statement, Kirin CEO Yoshinori Isozaki said: "We are excited to welcome Blackmores into the Kirin family. This acquisition aligns with our strategic priorities to diversify our business and to expand our presence in the health and wellness market."
Isozaki added that Kirin sees Blackmores as a "strong and complementary fit" with its existing businesses, which include beer, soft drinks, and food products.
The acquisition of Blackmores is the latest in a series of moves by Kirin to expand its global footprint. In 2021, the company acquired a stake in Brooklyn Brewery, a craft beer company based in New York. Kirin also owns a number of well-known beer brands, including Kirin Ichiban, Lion, and Four Roses.
The financial terms of the deal were not disclosed, but the acquisition is expected to be completed by the end of 2023, pending regulatory approval.
Overall, the acquisition of Blackmores by Kirin represents a significant move into the health and wellness market by the Japanese company. With a strong brand and established market presence in Asia, Blackmores is a valuable asset for Kirin as it seeks to diversify its business and capitalize on the growing demand for health products globally.
Japan maker Kirin purchases Australia vitamin giant Blackmores
Japanese maker Kirin has consented to buy Australian vitamins manufacturer Blackmores for A$1.88bn ($1.24bn; £999.4m).
The move comes as Kirin broadens right into health care in the face ofin the face of diminishing beer sales in its home nation and enhancing policy of alcohol.
"The purchase of Blackmores is highly corresponding to our current Health and wellness Scientific research business," it said.
The deal also gives Blackmores an exit as it is having a hard time to recuperate sales since the pandemic.
Before Covid-19, the Australian all-natural health and wellness firm taken advantage of the practice of "daigou", where Chinese customers bought products abroad to reclaim to China.
"The Kirin Scheme stands for an appealing, all-cash deal," the chair of Blackmores, Wendy Quits, said.
For Kirin, the deal is the newest in its initiatives to expand far from the alcohol business.
Beer sales in Japan have been dropping for several years because of lifestyle changes amongst youths. In 2015, the Japanese federal government introduced an across the country competitors requiring ideas to motivate individuals to drink more alcohol.
At the same time, the Globe Health and wellness Company is requiring stricter rules on the global alcohol industry, advising federal governments to set greater prices to dissuade drinking.
Kirin, which is known worldwide for its beers, has a wider item range in its home nation, consisting of non-alcoholic, sugar-free beverages.
It also has health care companies and in 2019 began a collaboration with Japanese skin care items and nutritional supplements firm Fancl.
Kirin has formerly said it aims to produce ¥500bn ($3.7bn; £2.97bn) in sales a year from its health and wellness business by completion of the years.
The deal is expected to be finished in August. It's sustained by Marcus Blackmore, the firm's founder's child, that has an 18% risk.
After the announcement, shares in the Australian firm increased by greater than 20%, acquiring one of the most in greater than 7 years.
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