Japan-US Business Report Logo

No. 355, April 1999

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American Companies in Japan


FOOD AND AGRICULTURAL PRODUCTS

In its first international licensing arrangement, HORIZON ORGANIC DAIRY, the top U.S. producer of branded organic milk, has agreed with TAKANASHI MILK PRODUCTS, LTD. to cobrand organic dairy products for the local market. Until Japanese dairy farmers are certified to produce organic milk, the Longmont, Colorado company will ship organic dairy ingredients to its Yokohama partner. The first product Takanashi Milk Products will make is a line of organic yogurt. Although available initially just in the metropolitan Tokyo area, sales could total $1.8 million in the first year, the company estimates. The agreement formalizes a relationship that began last year when Horizon Organic, which has its own farms as well as a national network of organic milk producers, processors and distributors, started to provide technical advice to Takanashi Milk Products' suppliers to help them convert to organic agriculture.

Fruit-flavored frozen milk drinks seem to be catching on in Japan. SUNKIST GROWERS, INC. is the second big American company in recent months to have its smoothie mixes on store shelves. MORINAGA MILK INDUSTRY CO., LTD. is distributing two varieties: Sunkist Smoothie Blueberry Mix and Sunkist Smoothie Peach Mix.

An exchange rate of ¥120=$1.00 was used in this report.aaaaaa

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