DyDo DRINCO to Expand Japanese Vending Machine Business in Moscow

DyDo DRINCO to sell a wide range of quality Japanese beverages from sophisticated hot and cold capable vending machines

OSAKA, Japan - (BUSINESS WIRE) - DyDo DRINCO, INC. (TOKYO:2590) is happy to announce that it will set up a wholly owned subsidiary 'DyDo DRINCO RUS,LLC.' in Moscow as a beverage vending machine business by the end of January 2014. DyDo DRINCO will establish the base for the beverage vending machine business in Moscow. The number of beverage vending machines installed is expected to reach 500 units in 2014, and increase to 10,000 units by 2018, with anticipated sales of 5 billion yen for 2018.

'DyDo DRINCO RUS,LLC.' will mainly hold functions of business management, marketing, and beverage wholesale. Operation management of the vending machines will be outsourced to Avalon Group LLC.

These sophisticated beverage vending machines, manufactured in Japan, are capable of simultaneously selling both hot and cold beverages from the same unit. The beverage vending machines will make the high quality coffee, juice, and soft-drinks (packaged in cans, plastic bottles) produced in Japan, easily accessible to residents of Moscow.

In Moscow city there has been a push to increase the number of beverage and other vending machines, while regulating makeshift shops. There are currently 15,000 vending machines set up throughout the city, however, there are plans to increase that by six-fold to 90,000 units by 2015. By partnering with local companies, DyDo DRINCO aims to establish a business base in Moscow and expand that business at an early stage.

The vending machines will be deployed to locations with heavy pedestrian traffic, such as roadsides, universities, parks, rail and metro stations, office buildings, and retail facilities.

DyDo DRINCO executive officer charged with overseas operations Naokazu Hasegawa commented, "Moscow is Europe's largest city with 11 million people, and it is an attractive market with high levels of both consumption and income. Health-conscious needs of the residents have been trending-up in recent years. I am confident that the delicious, healthy Japanese beverages that DyDo DRINCO has developed will be well received by the residents in Moscow."

Status quo of the Japanese beverage vending machine industry sector

There are approximately 2.52 million Japanese beverage vending machines in service. Japan is renowned as a 'vending machine country'. Installed virtually everywhere in cities, in office building cafeterias and rest areas, beverage vending machines are widely known to the public as spots to purchase drinks.

Various business models exist, depending on the company. In some cases, the beverage manufacturer is responsible for planning, development and manufacture of beverages as well as carrying out in-house maintenance services and operations management of the beverage vending machines. For others, the maintenance services and operations management is outsourced. The beverage vending machine business has developed as an industry unique to Japan.

About DyDo DRINCO

DyDo DRINCO is a soft drink maker which owns 280,000 beverage vending machines across Japan. They hold the third largest market share of beverage vending machines in the industry, and the machines account for approximately 90% of the revenue for the beverage sales department. The DyDo DRINCO corporate group includes commissioned beverage manufacturer 'Daido Pharmaceutical Corporation', which holds the No.1 spot in Japanese market share, and 'Tarami Corporation', which holds top spot in Japanese market share for the manufacture and sale of dried fruit jelly.

About DyDo DRINCO RUS, LLC.

DyDo DRINCO RUS,LLC. is a 100% wholly owned subsidiary of DyDo DRINCO. Based in Moscow, DyDo DRINCO RUS,LLC. will be responsible for business management, marketing, and beverage wholesale for the beverage vending machine business.

About Avalon Group LLC

Avalon group is a private investment company promoting its business interests across various economic sectors such as property development, consumer goods, and distribution. Avalon group has more than 20 years of experience in those fields. In distribution, Avalon group is now focusing on inovative and functional products.

Contacts
DyDo DRINCO, INC.
Hayato Hirata, +81-6-6222-2621(in Japanese only)
Public Relations Department
hayato-hirata@dydo.co.jp (in English or Japanese only)