Japanese drinks giants Kirin Holdings and Suntory are close to reaching merger terms, creating one of the world’s largest beverage and food companies.

A merger would have huge implications for New Zealand, possibly involving an investigation by the Commerce Commission for competition issues.

Kirin is the parent company of brewing, wine and spirits company Lion Nathan, while Suntory-owned Frucor is a leader in soft drinks and juices.

The long, slow slide towards one giant beverage mega-company could be one step closer, with rumours flying that a merger between Kirin and Suntory Group could be on the cards.

The Japanese drinks companies both have a strong footprint in the New Zealand market, with Kirin owning brewer Lion Nathan, while Suntory recently purchased Frucor and its product range, which includes Fresh Up, Just Juice, V, Frank and Mizone.

Coca Cola Amatil (CCA) posted a net profit after tax of $A385.6 up 24.1% on last year.

CCA managing director Terry Davis said he was happy with the result given the rough economic conditions.

Revenue for New Zealand/Fiji fell by 1.9% to $A445.6 million due to higher input costs, despite sales volumes being up 1%.

Earnings before interest and tax for the region was up 7.2% to $A83.4 million.

Japanese brewer Suntory’s purchase of Kiwi drinks company Frucor could see new ranges of products launch here.

Suntory purchased Frucor from Danone for €600 million euros, the deal was settled on Friday. 

Managing Director Mark Cowsill has been showing the new owners around the company’s local infrastructure, and is excited by the possibilities the cash-rich company offers.

French drinks company Groupe Danone says it has completed the sale of Kiwi drinks company Frucor to Japanese brewer Suntory for €600 million.

Investment bank JP Morgan handled the sale, with Suntory announced as the winner in late October.

Using October’s exchange rate this equates to $NZ1.36 billion, today’s fallen Kiwi dollar puts it at $NZ1.53 billion, either way, Suntory paid a premium to obtain the company.

After intense market speculation, Groupe Danone announced today that its subsidiary drinks company Frucor would be sold to Japanese brewing and distilling company Suntory.

Suntory has beaten out fellow Japanese heavyweights Kirin (through its subsidiary National Foods) and Asahi, as well as soft drink heavyweights Coca Cola Amatil.

Subject to regulatory conditions, Suntory will pay $NZ1.3 billion for Frucor, which sells fruit juices, fruit drinks, energy drinks, waters and soft drinks in New Zealand and Australia.