Suntory Beverage & Food has said it will buy Japan Tobacco Inc’s beverage vending machine business for about ¥150 billion ($1.2 billion), according to a Reuters report citing figures from the industry publication Inryosouken.
JT’s withdrawal from the business, which includes the sale of its Roots canned coffee and Momono Tennen-sui flavoured water brands, comes in the face of fierce competition in the nation’s beverages industry.
The company announced in February that it would pull out of the beverage business and stop production and sales of beverages by the end of September.
JT competes against larger rivals, including Suntory and Coca-Cola Co, which last year held more than 20 percent market share each. JT controlled 1.6 percent.