Sapporo Holdings Ltd. plans to forge a capital and business alliance with Kyodo Milk Industry Co., it was learned Thursday.
By the end of this year, Sapporo will acquire a stake of some 5 percent in the beverage and dessert maker and jointly develop milk and other products, sources said.
Kyodo Milk is affiliated with the National Federation of Agricultural Cooperative Associations, better known as Zen-Noh.
Sapporo is accelerating its business diversification drive since its mainstay beer operations are unlikely to post strong growth amid the shrinking domestic market.
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