To expand its business in the world's fourth-largest jeans market, the owner of the Wrangler brand, VF CORP. of Wyomissing, Pennsylvania, joined current Wrangler licensee and big textile manufacturer TOYOBO CO., LTD. and MITSUBISHI CORP. to establish a majority-held company to make and market the Wrangler product. Japan is one of VF's largest Wrangler licensed operations, generating annual revenues in excess of $100 million. Toyobo has marketed the Wrangler brand since 1971, building it into the third best-selling jeans in the country. VF's Lee brand of jeans, which is licensed to another company, is not affected by the joint venture.
An exchange rate of ¥135=$1.00 was used in this report.