TOKYO--(BUSINESS WIRE)--Otsuka Pharmaceutical Co., Ltd. (Head Office: Chiyoda-ku, Tokyo, Japan; President: Taro Iwamoto) announced today that it has reached an agreement to establish joint venture in the functional food and beverage category. The newly formed company, Otsuka Thang Nutrition Co., Ltd., will launch Pocari Sweat in Vietnam starting the middle of August 2012. This will mark the 17th market*1 where the beverage is sold.
Pocari Sweat was first developed in 1980 under the concept of a "replenishment drink," and is designed to quickly replace water and electrolytes in the body lost due to perspiration. The beverage has become popular outside of Japan, especially in Asia. Today some 30 years after it was released, the overseas sales volumes of Pocari Sweat have outstripped sales in Japan.*2
Vietnam is a young country, the world's 13th largest population of 87 million, with the average age of 28. *3 As a result, the market is expected to have solid growth. In Vietnam, Otsuka Pharmaceutical will appeal Pocari Sweat's importance of rehydration for the body as part of its efforts to establish the brand.
Otsuka Pharmaceutical first became acquainted with the new JV partner through the Vietnam IV solution business in 2002.*4 As the partner is well versed in the FMCG business as well as the IV solution business, Otsuka Pharmaceutical decided to form a JV in 2012 for functional foods and beverage and launch Pocari Sweat.
Otsuka Pharmaceutical engages in the pharmaceutical business, which contributes to the treatment of illnesses, and the nutraceutical business, which supports daily health maintenance and improvement. Going forward, Otsuka Pharmaceutical plans to expand operations in Vietnam as a total healthcare company by leveraging the trust it has earned in the market among healthcare professionals.
*1 Japan, Taiwan, Singapore, Bahrain, Saudi Arabia, Oman,
United Arab Emirates, South Korea, Indonesia, Thailand, Malaysia, China,
Kuwait, Qatar, the Philippines, Egypt and Vietnam.
*2 Overseas sales volumes have outstripped sales volumes in Japan in 2008.
*3 Nielsen・2012 Pocket Reference Book、United Nations (2011). World Population Prospects: The 2010 Revision
*4 Otsuka OPV: Otsuka OPV Co., Ltd. Currently, the company engages in the I.V. solutions business and therapeutic agent business.
Profile of New Joint Venture Company
|Name of Company||：||Otsuka Thang Nutrition Co., Ltd|
|Date Established||：||September 1, 2012 (scheduled)|
|Capital||：||6 million US dollars|
|Location||：||1st Floor, PVFCco Building 43 Mac Dinh Chi, Da Kao Ward, Dist. 1 HCMC Vietnam (plans to relocate after head office is established)|
|Employees||：||25 (planned headcount as of September 2012)|
|Business Description||：||Import and sales of beverages and food products|
About the Launch of Pocari Sweat in Vietnam
|Launch date||：||Scheduled for the middle of August 2012|
|Product||：||Pocari Sweat 500ml PET bottle (for start of sales)|
|Produced at||：||Imported from the Kejayan Factory in Indonesia|
|Sales area||：||Ho Chi Minh City and surrounding areas (for start of sales)|
|Sales channels||：||Supermarkets, drug stores, and general retailers|
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