News last month that Kirin Holdings Co. and Suntory Holdings Ltd. were discussing a merger shocked the domestic beverage industry for its sheer breadth: The deal would create a company with annual sales of ¥3.8 trillion, making it the world's fifth-largest drink and food conglomerate.
The deal is still pending, but experts said it indicates Japan's largest and second-largest beverage and food companies — which are particularly strong in beer and soft drinks — are maneuvering to ensure their survival against both domestic and global competition.
With the population likely to continue shrinking over the long run, the domestic beverage industry is expected to face bleak growth.