Kirin Holdings has announced plans to dissolve its health food joint venture with Yakult Honsha.

Kirin currently has a 55% stake in Kirin Yakult NextStage, which specialises in developing and marketing health and functional foods.

"A rapid change in the meal substitution food market means we have regrettably been forced to think again. We feel the company will do better under a single management at Yakult with whom we will maintain close ties," Kirin said in a statement.

Yakult will acquire 100% ownership of the venture in a deal expected to be completed next June. The financial details of the agreement were not disclosed.

Under Yakult, NextStage will close its Tochigi Prefecture plant next February and consolidate production at a factory in Oita Prefecture. The firm's headquarters will also be moved to the Oita plant.