Japan’s Yakult plant in Shanghai, China, has been closed for the first time in about 20 years.
According to Chinese economic media companies on the 11th, the Shanghai plant of Yakult, a Japanese lactobacillus beverage brand, stopped production on the 6th.
The size of the restructuring following the plant’s closure is known to be about 3,000 people, and production capacity will be transferred to other factories in China, such as Tianjin and Wuxi.
Yakult Honsha, Japan, said it decided to close its Shanghai factory as one of its management reforms.
Founded in 2004, the Shanghai plant began operating its production line in 2006.
At one point in China, the consumption of Yakult drinks reached 7.5 million bottles a day, but fell to 220,000 bottles.
Analysts say that in recent years, Chinese consumers have been affected by the preference for low-sugar and sugar-free drinks and the increase in consumption of lactobacillus-related nutritional supplements and health functional foods.
In addition, not only Yakult but also Japanese brands such as Pocari Sweat and Santori are showing an overall decline in sales in China.
Yakult promoted that probiotics (yu Ik-gyun) were effective in preventing and treating the coronavirus in 2021, which became a big controversy, and was later fined 450,000 yuan.
Yakult then made a public apology, but his reputation suffered.
EJ SONG
US ASIA JOURNAL
