Otsuka Pharmaceutical Co., the maker of Pocari Sweat sports drinks, will spend ¥120 billion for 49 percent of French water bottler Alma as it seeks to counter slowing drink sales at home.
Closely held Otsuka said it is buying the stake from French investment company Rox Invest, which this year purchased the bottler of Vichy Cilestins and Cristaline water brands from French winemaker Groupe Castel.
Otsuka joins Kirin Holdings Co. in investing outside its home market as its consumer business slows in Japan, where stagnant wages and rising prices have sent confidence to almost a five-year low. Otsuka's sales from food and beverages rose 3.8 percent last year, about a third the rate of its larger drugs business, and down from the 4.7 percent growth of the year earlier.
"Otsuka is discussing specific products to sell in Europe" through the alliance, including Pocari Sweat and CalorieMate energy bars, spokeswoman Yuko Kikuchi said in a telephone interview.
Alma has about ¥120 billion in annual sales, she said. Its share of the French mineral water market was about 36 percent in 2007, the Nikkei newspaper reported earlier Wednesday.
Tokyo-based Otsuka makes prescription drugs, supplementary food bars and sports drinks. Net income rose 17 percent to ¥61.9 billion last year, it said last week.
Sales from food and beverages were ¥258.6 billion, accounting for 28 percent of total revenue.
Kirin, Japan's biggest beverage maker, last month asked Australia's antitrust regulator for clearance to bid for Dairy Farmers, that nation's second-largest seller of fresh milk.
The brewer last year bought National Foods from San Miguel Corp. to gain Australian brands, including Berri juice, Pura milk and King Island Dairy.