OSAKA (Kyodo) Suntory Holdings Ltd. will begin selling its beverages in Guangdong Province, China, in January by enlisting the cooperation of U.S. food and drink producer PepsiCo Inc., Suntory officials said Monday.
Suntory is also considering expanding sales throughout China by relying on several dozen sales companies operated by PepsiCo, the officials added.
Because the domestic beverage market is shrinking due to the falling birthrate, Suntory aims to boost sales abroad and is spearheading the move by pushing first into the Chinese market.
Suntory will first market two of its milk-based drinks in Guangdong. Production is to be consigned to a local factory. It might later broaden its product offerings, the officials said.
To date in China, Suntory sells its drinks only in some parts of Shanghai and Beijing.
By expanding its selling area in the Chinese market, the company aims to increase beverage sales there fivefold compared with the 2009 level to ¥20 billion by 2012, Suntory said.