Japanese leaders join forces
Japan’s leading producer of chocolate products, Meiji Seika Kaisha, is to merge with Meiji Dairies Corporation in a bid to improve competitiveness and growth potential.
Assuming shareholder approval, the new joint venture, Meiji Holdings Co Ltd is expected to become effective on 1 April next year.
Meiji Seika, which specialises in confectionery and other foods, as well as pharmaceuticals, and Meiji Dairies, an expert in milk products, both began life as part of the former Meiji Sugar Manufacturing Co almost a century ago. They will each become a wholly-owned subsidiary of the new holding company.
In recent years, Japanese food companies have had to become more competitive, as a result of factors such as the country’s declining population, and sharp rises in global raw material prices. Against this background, Meiji Seika and Meiji Dairies had begun to work together on joint product development and other initiatives. In announcing their decision to merge formally, the companies said: “We have reached the conclusion that it would be best to work towards establishing sustained growth and differentiation strategies by maximising brand power, research and development capabilities, technology capabilities, marketing capabilities and other management resources of both companies through management integration.”
The companies believe the move will enable them to capture even greater opportunities for growth’ and they aim to create new demand in the food market via new product development, particularly of high-value added products. They also aim to develop their businesses in growing markets such as China and other Asian markets.
Once operational, Meiji Group will command sales of more than one trillion yen (Ű7bn). Naotada Sato, current president of Meiji Seika, will become president of Meiji Holdings, while Shigetaro Asano, current president of Meiji Dairies, will become executive vice-president.
