According to the probiotic beverage producer, the move involves transferring the factory’s operations to its existing production sites in Wuxi and Tianjin, while establishing a new branch in Shanghai to handle sales functions.
The decision comes as the probiotics market experiences rapid growth, driven by increasing awareness of gut health’s role in overall wellbeing and healthy ageing.
Market intelligence firm GlobalData reports significant compound annual growth in this sector, positioning China as a key market for probiotic products.
Yakult’s Shanghai factory, operational since 2006, is among the company’s seven production facilities in China.
As reported by Shine, an online platform backed by Shanghai Daily, the site currently has a production capacity of approximately 16 million bottles per year.
Despite this output, Yakult’s restructuring indicates a focus on centralizing production to optimize costs and resource management.
In its official statement, Yakult emphasized that the changes aim to “improve management efficiency,” which aligns with broader industry trends where companies are consolidating production to streamline operations.
The move will see Shanghai Yakult, a wholly owned subsidiary of Yakult China, dissolved, with its sales division integrated into the newly established branch under Yakult China’s oversight.
Yakult first entered the Chinese market in 2002, with local production beginning at its Guangzhou factory.
By 2003, the company had expanded into Shanghai, marking a significant milestone in its efforts to tap into China’s growing demand for health-focused functional beverages.
Over the past two decades, Yakult has established a strong foothold in China, where its signature probiotic drink has gained a loyal consumer base.
Similarly, Finland-based dairy giant Valio has announced its own operational overhaul, signaling a parallel trend in the food and beverage industry.
As reported, Valio plans to close its Vantaa plant and Helsinki Pitäjänmäki warehouse, relocating operations to Joensuu and Riihimäki.
These changes, aimed at consolidating production and logistics, align with Valio’s focus on improving profitability and addressing logistical complexities.
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