US food manufacturer H. J. Heinz and Japanese ketchup and vegetable juice producer Kagome today [Monday] affirmed the strategic alliance they first announced in July 2001 but said they would delay investing in each other’s businesses.
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Under the alliance, Heinz and Kagome are exploring ways to work together to improve their global operations and product portfolios to accelerate sales growth and reduce operating costs, the companies said in a statement to the press.
Due to current economic and market conditions, however, Heinz and Kagome said they have decided not to implement their initial project in Japan, the previously announced investments in each other’s businesses.
The two companies will, however, continue to work together on various global projects under the terms of the agreement. For example, they plan to continue collaborating on projects in tomato seed development and product and packaging innovations.
In August 2002, Heinz and Kagome completed a joint study of the development of a North American fruit/vegetable juice business. As a result of this study, the two companies have agreed to continue their joint effort to commercialise opportunities in this market. As the first step, Kagome on its own will develop and introduce the Kagome brand for vegetable-based drinks in North America. Kagome plans to launch its vegetable drink products next spring.
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By GlobalData
