Corrected: Japan's Coca-Cola, Kirin plan tie-up to cut costs - Nikkei

Coca-Cola Bottlers Japan Holdings

26/10/2016 04:21

(Corrects to remove Coca-Cola Co throughout and replace it with 
Coca-Cola bottling companies) 
    Oct 26 (Reuters) - The Coca-Cola group in Japan and brewer 
Kirin Holdings Co Ltd  2503.T  are near a deal for an 
operational and capital partnership amid intense price 
competition in the Japanese soft-drink market, the Nikkei 
reported. 
    The deal could be inked as soon as this year, the newspaper 
reported. 
    The companies are looking at cross-holding shares in the new 
entity to be formed by the merger of Coca-Cola West  2579.T  and 
Coca-Cola East Japan  2580.T  and in a unit of Kirin Holdings, 
Kirin Beverage, the Japanese daily reported. http://s.nikkei.com/2dTj7db 
    They will cooperate on distribution, including jointly 
shipping products to retail outlets and vending machines through 
the deal, according to the Nikkei. 
    They will also jointly procure raw materials such as juices, 
coffee beans and other materials, the report said. 
    No sales and marketing alliance is expected to be discussed, 
but mutual supplying and joint product development are future 
possibilities, the Nikkei reported. 
    Kirin earlier this month said it would take a minority stake 
in privately held Brooklyn Brewery to help it expand its craft 
beer offerings in Japan and Brazil.  urn:newsml:reuters.com:*:nL4N1CI3P2 
    Kirin was not immediately available for comment. 
 
 (Reporting by Aravind K in Bengaluru; Editing by Maju Samuel) 
 ((Aravind.K@thomsonreuters.com; Within U.S.+1 646 223 8780, 
outside U.S. +91 80 6749 1130; Reuters Messaging: 
aravind.k.thomsonreuters.com@reuters.net)) 
 
Keywords: COCA  COLA KIRIN/