Kirin to Acquire Fancl for ¥220 Billion, Shifting Focus from Beer to Health Products in Japan

17 Jun, 2024

Kirin to Acquire Fancl for ¥220 Billion, Shifting Focus from Beer to Health Products in Japan

Kirin Holdings, a major Japanese brewer, is set to acquire skincare and cosmetics brand Fancl for approximately ¥220 billion ($1.39 billion), marking a strategic shift from its traditional beer business. This move is part of Kirin's broader effort to diversify its portfolio and reduce its dependence on alcohol sales, a trend seen across Japan's beverage industry. By offering ¥2,690 per share, a 40% premium on Fancl's recent closing price, Kirin aims to secure two-thirds of the shares it does not already own, facilitating a seamless integration.

This acquisition is expected to enhance corporate value and allow for more dynamic business strategies, according to Kirin's statement. The purchase follows Kirin's acquisition of Australian vitamins maker Blackmores for ¥170 billion last year, highlighting the company's commitment to expanding its health-focused product lineup. With a target of ¥500 billion in annual sales, Kirin anticipates that its health business will contribute about 20% of total revenue.

The deal reflects a broader trend among Japanese alcohol companies to diversify amid changing consumer preferences. Kirin's competitor, Asahi Group Holdings, plans for low- and non-alcoholic beverages to constitute 20% of its volume by 2030. Additionally, companies like Fujifilm Holdings are leveraging their expertise in other fields to enter the health and wellness market. This strategic pivot signifies a transformative period for Japan's beverage and health industries.