Kirin Launches Kirin Chu-hi Hyoketsu, Global Brand Strategy, in

JCNN News Summaries - Japan Corporate News Network, May 12, 2005 by Andrew Wilcox

Tokyo, May 12, 2005 - (JCNN) - Kirin Brewery Company Limited (TSE: 2503) and Kirin Beverage Corporation (TSE: 2595) have announced a planned launch in mid-June 2005 of Kirin Chu-hi Hyoketsu in Shanghai, China.

Hyoketsu, the market leader in Japan's chu-hi, or RTD - ready-to- drink market - will be produced and marketed in Shanghai by Kirin Beverage subsidiary Shanghai Jin Jiang Kirin Beverage & Food Co., Ltd. It will be sold in China in three flavors-lemon, grapefruit, and green apple-under the name KIRIN TanShuangGuoBingJiu Bingjie , in 350ml cans.

The RTD market has potential for continued growth worldwide, particularly in the younger adult drinker market. The high popularity of Kirin Chu-hi Hyoketsu has been a key market driver in Japan, and launching the product for the first time outside Japan marks the start of a strategy to develop Kirin Chu-hi Hyoketsu as a global brand.

Kirin aims to make Kirin Chu-hi Hyoketsu the world's No. 1 RTD, and the launch in Shanghai and surrounding regions marks the first step in this strategy. The Kirin Beverage subsidiary Shanghai Jin Jiang Kirin Beverage & Food Co., Ltd. will produce and sell Hyoketsu in Shanghai under a licensing agreement with Kirin Brewery, realizing synergies in Group product development, technical skill and marketing.

Kirin is expanding its alcohol beverage, soft drinks operations in China as part of the Asia and Oceania markets, the company said in a statement.