View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 16, 2019

Japan’s Kirin eyes “functional” food push with Fancl investment

Kirin Holdings, the Japanese drinks major, is looking to develop functional foods after buying a 30% stake in a local peer.

By Dean Best

Kirin Holdings, the Japanese drinks major, is looking to develop functional foods after buying a 30% stake in Fancl, a local cosmetics and health foods business.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The owner of beer brand Kirin has spent JPY129.3bn (US$1.22bn) acquiring a 30.3% shareholding in Fancl, which markets consumer-facing health foods and supplies ingredients to companies including Nestle.

Kirin and Fancl said they are working on the details of how they plan to work together. However, in a presentation issued by Kirin alongside its announcement of its investment in Fancl, the drinks giant said the companies “will offer a wide range of products, including beverages, foods and skin care, to contribute to customers’ beauty and health, by contributing the strong brands of both companies”.

Set up in 1980, Fancl markets rice products and snacks, alongside supplements and cosmetics for women with sensitive skin.

According to Fancl’s 2018 annual report, the company’s food and supplements business focuses on “foods with function claims that respond to the health concerns of middle-aged and older consumers”. 

The company’s work with food manufacturers includes supplying ingredients for Nestle-branded “wellness” beverages sold in Japan. Part of Fancl’s growth strategy is to “deepen ties with companies that have strong brands and superior capabilities in the food industry to foster future growth pillars”.

Fancl also markets its health foods in China through a distribution deal with China Sinopharm International.

In April, Kirin struck a deal to sell its Lion dairy and drinks business in Australia to Canadian dairy processor Saputo.

However, earlier this month, Australia’s competition watchdog said it has “preliminary” concerns about the deal, namely that associated dairy farmers will get a lower price for their milk if the acquisition is approved.

The Australian Competition and Consumer Commission is now inviting interested parties to submit any concerns about the deal by 22 August, with a final decision expected on 26 September.

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food