Kirin Beverage Company, Limited

Kirin Beverage has been committed to creating a new beverage culture to meet consumer expectations through soft drinks based on the Kirin Group’s basic stance, a steady focus on quality and a consumer-first approach, which has been cultivated since our establishment almost half a century ago, in 1963. While Kirin Beverage provides unique products and offers consumers new value through consistent marketing that follows our Brand Purpose, we are also sharing the joy of food through our country-wide sales network and by creating sales floors based on a consumer perspective.

June 5, 2023

  • Working toward increasing revenue through the re-growth of core brands and expansion of the Health Science domain

  • Working toward increasing revenue through the re-growth of core brands and expansion of the Health Science domain

As part of the Kirin Beverage Group 2022–2024 Medium-Term Business Plan (2022 MTBP), we are working to regrow existing non-alcoholic beverage core brands, with a focus on Kirin Gogo-no-Kocha and Kirin Nama-cha, and to expand the sales of Lactococcus lactis strain Plasma (LC-Plasma)-containing beverages in the Health Science domain. Through these efforts, we will build a strong brand portfolio that showcases our strengths and improve revenue.

Furthermore, we are working to develop and establish a sustainable business infrastructure for the future and to promote the improvement of the cost competitiveness of our production and logistics systems. Through these initiatives, we are driving the Kirin Group’s CSV management and contributing to the resolution of social issues.

  • Figure: Provide “Health with good taste for everyone’s daily life” at the best touchpoints and achieve high profitability by creating a strong brand that is supported by consumers. Drive the Kirin Group’s CSV management and contribute to solving social issues

  • Figure: Provide “Health with good taste for everyone’s daily life” at the best touchpoints and achieve high profitability by creating a strong brand that is supported by consumers. Drive the Kirin Group’s CSV management and contribute to solving social issues

2022 Year in Review
  • Until March 2022, the Japanese beverage market was affected by the semi-emergency COVID-19 prevention measures, but from April 2022, the market grew larger than the previous year due to good summer weather and the revival of economic and human activities. Additionally, sales of functional and sugar-free teas grew*1 because of the increasing health consciousness from not being able to see a future free of COVID-19.
  • Under such circumstances, the annual sales volume of “Kirin Gogo-no-Kocha” grew 3%, “Kirin Nama-cha” grew 2%, and “LC-Plasma-containing beverages” grew 26% year-on-year. That was due to our focus on core brands in the existing non-alcoholic beverage business, in addition to the launch of new products and the renewal of the existing LC-Plasma-containing beverage products in the Health Science domain.
  1. Source: Food Marketing Institute Co., Ltd. (2022 results)
2023 Initiatives
  • We have newly established a pledge to consumers, “Health with good taste for everyone’s daily life,” as a broad concept to integrate and accelerate our growth strategy. While focusing on health as the core of Kirin Beverage’s competitive advantage and contributing to consumer’s mental and physical health with good taste through health-driven products and services, we promote “sustainable recycling of containers and packaging” as part of the Kirin Group's Environmental Vision and contribute to future “communities” that connect people and society.
  • As in our 2022 MTBP, in 2023 we will challenge ourselves to focus our resources and enhance investments into the Health Science domain, a driver of growth, to expand mid- and high-level price range products.
  • We aim to achieve high profitability through strengthening our LC-Plasma-containing beverages portfolio and the acceleration of collaboration with FANCL.

Promoting the personalization of immune care

  • Shoko Matsuoka Marketing Department Kirin Beverage Company, Limited Mina Kuwahara Sales Department Kirin Beverage Company, Limited

  • Shoko Matsuoka Marketing Department Kirin Beverage Company, Limited Mina Kuwahara Sales Department Kirin Beverage Company, Limited

Kirin iMUSE Morning Immune Care was created to spread immune care as a new health habit and to help everyone stay healthy. We realized that low-capacity yogurt drinks and lactic acid drinks are often consumed in the morning and that many people find it easier to make morning activities a habit. That is why we aimed to create a new market through the proposal of immune care by launching a new product with immune function claims that allows for the easy intake of LC-Plasma.

To make it easier for consumers to consume these products daily, we made product volume and taste our top priorities. We focused on creating a container that fit easily in the refrigerator and contained an amount of product that was easy to consume in addition to other breakfast items on busy mornings, so we adopted the use of 100ml PET bottles for the first time in our Group. We also developed a refreshing yogurt flavor, making it easy to drink every day.

In addition to volume and taste, we also focused on distribution channels and selling methods. For this, it was essential for us to cooperate with the Sales Department and the SCM Department. Most low-volume yogurt and lactic acid drinks are sold as chilled products. Working toward the nationwide rollout of Kirin iMUSE Morning Immune Care in March 2022, we established a distribution system for chilled products and a system for business negotiations with buyers in aim of creating a new market through the promotion of new health habits by working directly with our partners.

Furthermore, from the beginning of development we had been planning to adopt a bulk purchase option to help promote new health habits. Although 10-packs are the norm for chilled products sold in bulk, we have received reports from our sales representative that 10-packs may become a factor that impedes the buying motivation of consumers, especially during the trial sales period. Therefore, we decided to adopt six-packs to strengthen trial sales and lower the hurdle for bulk purchases. As the formation of immune care habits spread due to the increase in awareness of immune care, the six-packs became popular with not only consumers concerned about their own health but also those concerned about the health of others, and sales of the low-volume lactic acid drink have steadily increased.

In March 2023, we made changes to the design and taste of Kirin iMUSE Morning Immune Care and launched Kirin Oishii Immune Care to better convey both function and good taste. We will further expand the immune-care market by instilling immune care habits in consumers.

  • Image: Kirin Oishii Immune Care

  • Image: Kirin Oishii Immune Care

KIRIN x FANCL Calolimit Apple Sparkling

  • Image: KIRIN x FANCL Calolimit Apple Sparkling

  • Image: KIRIN x FANCL Calolimit Apple Sparkling

  • Shoko Matsuoka Marketing Department Kirin Beverage Company, Limited Ayane Kakigi Product Planning Group 2 Product Planning Department, Health Food Business Division FANCL CORPORATION

  • Shoko Matsuoka Marketing Department Kirin Beverage Company, Limited Ayane Kakigi Product Planning Group 2 Product Planning Department, Health Food Business Division FANCL CORPORATION

We decided to develop KIRIN x FANCL Calolimit Apple Sparkling together with FANCL to solve consumers’ health issues and to help them enjoy healthy lives by providing delicious beverages. We made the decision during a discussion about further boosting synergy between our Group and FANCL, whose management philosophy includes eliminating the negatives from the world.

Apple Sparkling, a collaborative product with FANCL’s long-selling supplement Calolimit, can be enjoyed alongside meals. Indigestible dextrin contained in the product can reduce the absorption of sugar and fat from food. The introduction of the product on the side of the package states "Satisfy your body and mind," which means that the product will “satisfy your body and mind by providing you the happiness of eating well.”

Health drinks of this kind, including Food for Specified Health Use (FOSHU) and food with functional claims, are popular among people in their 40’s and older,*2 and carbonated beverages registered as FOSHU and those with functional claims are increasingly being enjoyed alongside meals. Since the main buyers of these carbonated beverage products, men in their 40's to 50's,*3 have a relatively high rate of vending-machine use, we set vending machines as a main distribution channel of the product. We are also exploring new channels, such as over the counter.

  1. Source: Kirin Holdings
  2. Source: Intage SCI (includes people in their 70s), nationwide, January 1, 2022–December 31, 2022