Issue of Annual Report 2010

In March 2011 Sapporo Holdings acquired 85% of the shares of POKKA
CORPORATION, making it a member of the Sapporo Group. This move has
allowed the Sapporo Group to reinforce its Soft Drinks and Food business to
balance its earnings sources from its Alcoholic Beverages and Real Estate
businesses. At the same time, consolidated net sales rose in excess of ¥500 billion.
A capital and operational alliance made with POKKA CORPORATION in 2009
produced synergies worth ¥500 million through optimized production systems,
joint purchasing operations, shared use of vending machines and other strategies
in Japan, as well as international expansion for the Sapporo Group using POKKA
CORPORATION (Singapore) Pte Ltd.’s sales channels. We expect the recent
management integration to produce even greater synergy benefits. (The targets in
the graph do not include our forecast figures for synergy benefits).
POKKA CORPORATION
Strengths
1. Strengths in the Beverages and Food
businesses
• Strong market share in beverages containing
lemon juice and soups
Lemon-based products: No. 1 in homeuse
market
Soup: No. 2 market share in Japan
2. Expansion Capability in Asia
• Among POKKA CORPORATION’s flagship
tea-based beverages, its green tea
products have around 70% of the
market in Singapore, demonstrating the
company’s unrivaled brand recognition
in Asia.
• POKKA CORPORATION operates various
restaurants in Hong Kong and Singapore.
3. Number of Vending Machines
• Vending machines are a key sales channel
covering about 30% of the soft
drinks market in Japan
• POKKA CORPORATION has about
90,000 vending machines, which added
to those of Sapporo make a total of
about 120,000 available vending
machines
Focus Themes
1. Accelerate International Expansion
• Accelerate expansion in Asia where both
companies are strong
• Boost the proportion of overseas sales
to total revenue
2. Strengthening Complementary
Businesses Domestically
• Enhance complementary aspects of soft
drink operations
• Expand the food business
• Expand the restaurants business
3. Combine R&D and Technological
Innovations to Create New Value
Outline of
POKKA CORPORATION
Head office:
4-2-29 Sakae, Naka-ku, Nagoya, Aichi,
Japan
Representative:
President & CEO Masatoshi Hori
Established:
April 11, 1968
(Founded: February 22, 1957)
Main businesses:
Manufacture and sale of foods and
beverages
Number of employees
(consolidated, as of March 31, 2010):
2,473
Capital:
¥2,376 million
Number of issued shares
(as of March 31, 2010):
9,487,000
Net sales
¥97,121 million (FY 2010/3)
Total assets
¥58,527 million (FY 2010/3)
From left: Lemon-based product, Coffee, Soup
CAFÉ de CRIÉ
SAPPORO HOLDINGS LIMITED
Annual Report 2010 15