Kirin Beverage Corp. said Thursday it will take a majority stake in Koiwai Dairy Products Co. to enhance its competitiveness in the chilled foods market.
The major soft drink maker said it will purchase 780,000 shares to be issued by Koiwai for 2.39 billion yen on April 1, giving it a 50.98 percent stake in the dairy product maker.
Koiwai is strong in the chilled foods business but mainly distributes products in eastern Japan.
The capital alliance will allow Koiwai to make use of Kirin Beverage's nationwide distribution network to make up for its insufficient distribution network in western Japan, a Kirin Beverage spokesman said.
Both Kirin Beverage and Koiwai are subsidiaries of Kirin Brewery Co., which now holds a 50 percent stake in Koiwai.
The latest deal will bring Kirin Brewery's stake in Koiwai down to 24.5 percent, the spokesman said.