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Japanese Soft Drink Maker Expands Vending Business Into Moscow

Posted On: 12/5/2013

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TAGS: vending, international vending business, DyDo Drinco Inc., DyDo Drinco Rus LLC, Moscow unit, Japanese soft drink maker, Avalon Group LLC.

OSAKA, Japan -- DyDo Drinco Inc. said it will establish a wholly owned beverage vending subsidiary in Moscow by the end of January 2014.

Called DyDo Drinco Rus LLC, the new Moscow unit will be responsible for business management, marketing, and wholesale beverage sales. Operation of the vending machines will be outsourced to private-equity group Avalon Group LLC.

The Japanese drink giant plans to install 500 machines throughout Moscow by 2014, with 10,000 in the field by 2018 and anticipated sales of 5 billion yen ($50 million).

The sophisticated beverage vending machines, manufactured in Japan, are capable of simultaneously selling both hot and cold beverages. They will dispense hot coffee along with juices and soft drinks packaged in cans and plastic bottles, produced and packaged in Japan.

DyDo Drinco said the vending machines will be deployed to locations throughout the Russian city with heavy pedestrian traffic, including roadsides, universities, parks, bus and train stations, office buildings and retail sites.

There are currently 15,000 vending machines in operation throughout Moscow, and city officials plan to increase that base sixfold to 90,000 units by 2015, according to DyDo Drinco.

"Moscow is Europe's largest city with 11 million people, and it is an attractive market with high levels of both consumption and income," said DyDo Drinco executive officer Naokazu Hasegawa.

DyDo Drinco reportedly owns 280,000 beverage vending machines across Japan. In addition to manufacturing and selling beverages, the company owns Tarami Corp., which holds the top spot in Japanese market share for the manufacture and sale of dried fruit jelly.