Opportunities Abound In EMs For Yakult (Asia Pacific Food and Drink Insight)

Opportunities Abound In EMs For Yakult (Asia Pacific Food and Drink Insight): Recent financial results of Japanese probiotic and fermented drink producer Yakult Honsha are in line with our view that growth opportunities abound in the Asian functional food and drink (F&D) sector. Yakult manufactures and distributes its fermented milk drink Yakult in Hong Kong, Singapore, Indonesia, Australia, Malaysia, Vietnam, India, China and other countries. The potential of the Asia Pacific functional F&D markets is clearly within the sights of Danone as it seeks to increase its stake in Yakult. However, Yakult has reportedly said that it does not want Danone to increase its stake on concerns that it may compromise its independence. Given Yakult's strong fiscal position, we believe it is well positioned to pursue expansionary growth across emerging markets (EMs).