Japan’s Suntory plans tie-up with Korea’s OB-paper

TOKYO, Dec 5 (BestGrowthStock) – Japan’s Suntory Holdings Ltd
will soon announce a tie-up with Oriental Brewery
Co to enter the South Korean market, in its first
partnership with a major foreign brewer to expand overseas, a
newspaper reported on Sunday.

The Nikkei business daily said the two unlisted companies
would announce the deal as early as Monday, without citing its
sources.

Oriental Brewery, South Korea’s second-biggest brewery
with a share of more than 40 percent, is majority owned by
U.S. investment fund Kohlberg Kravis Roberts & Co .

Under the partnership, Suntory will begin exporting one of
its flagship products, Premium Malt’s, which Oriental Brewery
would market to restaurants in around 30 cities, the Nikkei
said.

They plan to sell the beer directly to consumers from
spring, and Suntory aims to raise its annual beer sales in
South Korea to 600,000 cases, worth around 4 billion yen
($48.5 million), within several years, the paper said.

Officials at Suntory could not immediately be reached.

Japanese brewers including Kirin Holdings Co and
Sapporo Holdings have been aggressively expanding
abroad, including through acquisitions, to reduce their
dependence on the shrinking domestic market.
(Reporting by Chang-Ran Kim; Editing by Ron Popeski)

($1=82.55 Yen)

Japan’s Suntory plans tie-up with Korea’s OB-paper