Yamazaki and Nabisco split

[Samurai_Jerk]

Yamazaki Baking parts ways with Nabisco after 46 years

Ending a decades-old partnership, Yamazaki Baking will cease production of Oreos, Ritz and two other iconic Nabisco brands in Japan -- the outcome of a strategy shift in an industry marked by frequent mergers and realignments.

The company announced Friday that the licensing contract with current U.S. brand owner Mondelez International will end at the end of August. Subsidiary Yamazaki-Nabisco, which will change its name Sept. 1, will end manufacture of the snack foods by the end of August and stop sales by the end of November. Mondelez's Japanese unit will take over sales starting in September.

So why end the Nabisco tie-up, which has lasted since 1970? "They wanted us to simply be a subcontractor," said Yamazaki President Nobuhiro Iijima at a press conference Friday. Mondelez had earlier sent out feelers about an arrangement in which the U.S. company would take over sales in Japan while Yamazaki would make the snacks under contract.

Sales of the four Nabisco brands in Japan amount to roughly 15 billion yen ($132 million) annually, making it a small part of Yamazaki's 1 trillion yen business. Still, Yamazaki-Nabisco accounts for just over 10% of group operating profit, making it hard to ignore the impact that the contract dissolution will have on profit this fiscal year and next, said Yoshiyasu Okihira, a senior analyst at SMBC Nikko Securities.

Yamazaki prides itself on having established the Nabisco brand in Japan, so becoming a mere contract manufacturer was an unacceptable offer.

[Takechanpoo]

ive ever thought nabisco was japanse company..

what first comes to mind when thinking of nabi is this gum lady.

[legion]

I prefer this

Though the versions on Youtube are not the best from this particular series

[Grumpy Gramps]

Too soft, methinx. My dogs like their treats more chewy

[Coligny]

Too soft, methinx. My dogs like their treats more chewy

Despite eating their crap on a near daily basis I never knew yamakamikasaki was behind... so the chest puffing...

So why end the Nabisco tie-up, which has lasted since 1970? "They wanted us to simply be a subcontractor," said Yamazaki President Nobuhiro Iijima at a press conference Friday. Mondelez had earlier sent out feelers about an arrangement in which the U.S. company would take over sales in Japan while Yamazaki would make the snacks under contract.

feels comically ridiculous... somebody should have told Tanaka to keep baking and shut the fuck up...

also... you have to choose...

Sales of the four Nabisco brands in Japan amount to roughly 15 billion yen ($132 million) annually, making it a small part of Yamazaki's 1 trillion yen business. Still, Yamazaki-Nabisco accounts for just over 10% of group operating profit, making it hard to ignore the impact that the contract dissolution will have on profit this fiscal year and next,

can't be both at the same time... and "just over 10% of the profit" still sound like a kick in the balls...

[inflames]

Not at all surprised. The original reason for the contract is long gone and Mondelez has experience selling stuff on their own in Japan, plus the products are well-established on their own. Basically they could tell Yamazaki to do what they wanted and Yamazaki didn't like that.

[matsuki]

Not at all surprised. The original reason for the contract is long gone and Mondelez has experience selling stuff on their own in Japan, plus the products are well-established on their own. Basically they could tell Yamazaki to do what they wanted and Yamazaki didn't like that.

Needs more gaman...less stubborness

[kurogane]

Is that the same Yamazaki of the pasty bread and Daily Yamazaki corner stores? At first I was worried another foreign company had given up on Japan (like BK, etc.), but if it's just la bizinissa and oyaji pissiness, I say carry on carrying on. Solozzo only shot Don Corleone because it was business; it was never personal.

[Samurai_Jerk]

Though money doesn't always talk as loud as it should here, it might not just be stubbornness in this case. The deal with Nabisco limited what other brands they could sell in Japan so they didn't feel the new terms were worth missing out on those potential opportunities. At least that's what they're saying.

[matsuki]

Though money doesn't always talk as loud as it should here, it might not just be stubbornness in this case. The deal with Nabisco limited what other brands they could sell in Japan so they didn't feel the new terms were worth missing out on those potential opportunities. At least that's what they're saying.

If that's the case, more power to them....but whoever they lose that manufacturing contract to is going to be in a better position to compete with them.

[Samurai_Jerk]

Though money doesn't always talk as loud as it should here, it might not just be stubbornness in this case. The deal with Nabisco limited what other brands they could sell in Japan so they didn't feel the new terms were worth missing out on those potential opportunities. At least that's what they're saying.

If that's the case, more power to them....but whoever they lose that manufacturing contract to is going to be in a better position to compete with them.

Yes and no. They won't be competing with them on the consumer side since Nabisco is taking over sales activity regardless of who manufactures it.

[matsuki]

Right, but as I'm sure you know, economies of scale are at play. As Coligny pointed out, 10% is pretty significant. It weakens them and strengthens the competition.

Of course, if the other brands they were prevented from selling have more potential, it's not a bad move. (unless they fail to capitalize on that potential)

[Samurai_Jerk]

Right, but as I'm sure you know, economies of scale are at play. As Coligny pointed out, 10% is pretty significant. It weakens them and strengthens the competition.

Of course, if the other brands they were prevented from selling have more potential, it's not a bad move. (unless they fail to capitalize on that potential)

I guess it also depends on how much of that 10% was from selling the product. If the revenue from manufacturing would only be a small fraction of that 10%, it might not be as much of a loss as it seems. Plus Nabisco was offering a short-term contract so they might have just been looking to take advantage of the production capacity already in place while they shopped for another way to manufacture products for the Japan market. Anyway, it could have been a good business move on Yamazaki's part or it could have been stubbornness and face saving. Neither would be surprising.

[matsuki]

I'd be lying if I didn't say I hope it turns out to be stubbornness...I can already see it being featured in a South Park episode. "Zattsu za uei za kuukiii klubuuu!"