FamilyMart to make private-brand beverage products

FamilyMart Co, a major convenience store chain, plans to set up a beverage production company later this month to secure a stable supply of private-brand products.

The move comes as retailers across Japan are scrambling to secure stable sources of low-priced private-brand products at a time when consumers are flocking to them to defend against rising food prices.

The new company, based in Kobayashi in the southern Japan prefecture of Miyazaki, will spend some 800 million yen to build a plant, which is scheduled to start operations in June next year.

The plant will make 10 million to 11 million 500-milliliter bottles of mineral water, or slightly over 10 pct of FamilyMart's annual sales, in the initial year.

All of the products will be sold at FamilyMart outlets at some 10-20 pct cheaper than comparable products.

FamilyMart plans to increase the plant's annual production to 30 million bottles in the future. It will also consider manufacturing tea and soft drinks at the plant.

© JCN