Welch's Announces New Business Partnership in Japan

Partners with Calpis Foods in Exclusive Deal to Manufacture, Market and Distribute Welch's Brand Products in Japan

Concord, MA, August 1, 1997

Welch's announced today that it has signed a licensing agreement with Calpis Foods Industry Co. Ltd. of Tokyo, making Calpis the exclusive manufacturer, marketer and distributor of Welch's brand juice products in Japan. Calpis will begin distribution of Welch's brand into the Japanese market in the fall of 1997.

The partnership is designed to further enhance the penetration and sales of the Welch's brand in Japan. Welch's brand products have been available in Japan since 1976 and had total sales of $10 million in the 1997 fiscal year.

"We are thrilled to be teaming up with Calpis Foods, a leading beverage manufacturer in Japan," said Dan Dillon, president and chief executive officer of Welch's. "We are eager to expand our customer base in Japan, a market with a growing demand for high quality, high nutrition juice products. Our new partnership will prove to be successful in reaching a broader range of customers with the very best quality juice products, while remaining cost competitive in Japan's $3.5 billion juice industry."

Calpis Foods Industry Co. Ltd. is headquartered in Tokyo. Since 1917, the company has held a leading market share position in Japan's juice and beverage manufacturing business. The company manufactures and distributes juice products, lactic acid beverages and processed foods for general retail and institutional markets.

Welch's, headquartered in Concord, Massachusetts, is the world's leading marketer of Concord and Niagara grape-based product, including grape juice and jelly. The Company also produces a variety of other fruit-based products including blended fruit juices and cocktails, fruit juices in both the frozen concentrate and shelf-stable concentrate form (JuiceMakers), and an assortment of jams, jellies and preserves under both the Welch's and BAMA brand names.

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