Mitsubishi Corporation

Press Room

March 18, 2013

Mitsubishi Corporation acquires Kirin Holdings’ Food Science Business
Business Seeks to Increase its Value Proposition and Provide the Global Food Processing Industry with Scaled up Food Flavoring Innovation

Kirin Holdings Company, Limited (KH) and Mitsubishi Corporation (MC) are pleased to announce that they have entered into a share transfer agreement, whereby all shares of KH’s food science subsidiary, Kirin Kyowa Foods Company, Limited (KKF), will be transferred to MC. MC will purchase about 81% of KKF shares in July 2013 and the remainder in January 2015.
 
KKF is a leading domestic company, which draws on its rich expertise in food processing technology to supply large-scale food processors and retail food chains. Through its operations in Japan, Indonesia and China, the company produces a variety of ingredients and flavor enhancing products which include yeast extracts, nucleotides and hydrolyzed proteins.
 
The global market for food ingredients and flavoring materials is said to be valued at US$120 billion. This market continues to show growth, fuelled by rapid economic expansion in China and other Asian countries. As emerging economies aim to achieve higher standards of living, and developed countries like Japan grapple with aging populations and declining birth rates most major   economies are working to develop more sustainable health practices. These social changes give rise to a changing market environment, due to increased demand for food products that are delicious and healthy from safe and secure sources. As the global market expands, the market for natural flavors has reached US$10 billion and the market for products such as yeast extracts, in particular, are showing rapid expansion. The market for flavor enhancing ingredients is therefore expected to see continued growth in the coming years.
 
With food sciences as its main line of business, MC’s Chemicals Group organized the “Life Sciences Division” in April 2011. The purpose of this division is to leverage its strengths in the “science” and the high-end “food technology” fields and to take advantage of the company’s extensive network. Mitsubishi Corporation Life Sciences Limited (MCLS) was established in November 2012 as a wholly owned subsidiary of MC. MCLS brings together two existing subsidiaries – Mitsubishi Shoji Foodtech Co., Ltd., which specializes in sweeteners and seasonings, and KOHJIN Life Sciences Co., Ltd. which specializes in fermentation technology – under one umbrella. Adding KKF to this group as a core entity will allow for the consolidation of their collective food innovation capabilities and technical know-how. This strengthens the group’s value proposition and enables an improved response to sophisticated customer needs. This further allows the development of further business opportunities making the group one of the leading companies in the global industry.
 
 
 
Reference Information
1.Outline of Kirin Kyowa Foods Company, Limited
・Headquarters
    2-2-8 Higashi Shinagawa, Shinagawa-ku, Tokyo
・Main Business
    Manufacture and sales of flavoring materials, seasonings, bakery ingredients, and varieties of other food ingredients.
・Representative
    Soichiro Katsura - President
・Date Established
    April 1, 2009 (current name changed from the original)
・No. of Employees
    692 (1,585 on a consolidated basis) (as of June 30, 2012)
・Locations
     Factories:Tsuchiura, Ibaraki; Nikko, Tochigi (Japan)
     Branches:Sapporo; Sendai; Nagoya; Osaka; Hiroshima; Fukuoka
     R&D Centers:Tsuchiura, Ibaraki; Nikko, Tochigi (Japan)
     Affiliated Companies:Kirin Kyowa FD Company, Limited; Kirin Ohland Foods Company, Limited
     Overseas Locations:Kirin Kyowa Foods (Jiang Ying) Co., Ltd. (China); PT. Kirin-Miwon Foods (Indonesia)
 
2.Outline of Kirin Holdings Company, Limited
・Headquarters
    2-10-1 Arakawa, Chuo-ku, Tokyo, Japan
・Main Business
    Developing, implementing and overseeing group-wide management strategies for the Kirin Group
・Representative
    Senji Miyake – President and CEO
・Date Established
    February 23, 1907 (as Kirin Brewery Co., Ltd.) July 1, 2007 (changes name to Kirin Holdings Company, Ltd. and becomes a holding company for the Kirin Group)
・No. of Employees
    256 (41,246 on a consolidated basis) (as of December 31, 2012)
 
3.Outline of Mitsubishi Corporation
・Headquarters
    3-1, Marunouchi 2 Chome, Chiyoda-ku, Tokyo, 100-8086, Japan
・Main Business
    MC has six Business Groups which develop operations in the diverse fields of Industrial Finance, Logistics & Development; Energy; Metals; Machinery; Chemicals; and Living Essentials. In addition to these Business Groups, MC has also recently established its Business Service Group and Global Environment & Infrastructure Business Development Group.
・Representative
    Ken Kobayashi, President and CEO
・Date Established
    July 1, 1954
・No. of Employees
    65,289 (Consolidated basis as of September 30, 2012)

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