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Mitsui and Kichiri to participate in Italian food retail, dining, and wholesale business in Japan and the Asia Pacific Region

Jun. 15, 2015


Mitsui & Co., Ltd.
KICHIRI Co., Ltd.


Main Contents

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga), together with KICHIRI & Co., Ltd. ("Kichiri", Head Office: Tokyo, President: Masanori Hirakawa) and EATALY Distribuzione S.R.L. ("Eataly"), have established EATALY Asia Pacific Co., Ltd. ("EATALY Asia Pacific") to begin a retail, dining, and import wholesale business of Italian foods and ingredients in Japan and the Asia Pacific region.

There is growing interest in Italian food in Japan in recent years, and the Expo Milano 2015, which started in Italy last May, is attracting much interest. As the food culture diversifies in the Asian region as economic progress continues, foods are becoming more westernized, and we expect growing demand for European and especially Italian foods.

Eataly opened its first multi-dimensional market and food court, "EATALY", in 2007 in Turin, selling Italian foods, including uncured ham, cheese, wine, pasta, olive oil, sweets, and gelato, as well as offering eat-in establishments, including restaurants and cafes. It currently operates 18 locations in Italy, two in the US, one in the UAE, one in Turkey, and one in Brazil. Eataly established its Japanese subsidiary in 2008, and a number of directly managed businesses were rolled out. However, Eataly has changed its direction to franchise-style business development from its directly operated business and has entered into a franchise agreement with EATALY Asia Pacific, assigning it as a franchisee.
EATALY Asia Pacific holds exclusive rights to the "EATALY" trademark in Japan.

Kichiri runs 77 restaurants under its direct management. In addition, Kichiri promotes a service called a "platform-sharing business" whereby it provides its 17 years of food and drink business know-how to other, rival food-service companies.

Mitsui is equipped with a domestic distribution network centered on its global commodities procurement capabilities and Mitsui Foods Co., Ltd. ("Mitsui Foods"). By combining Kichiri's branding, know-how and restaurant operational capabilities with EATALY's product lines and services, we aim to make a substantial entry into the Italian food retail, dining, and wholesale business in both Japan and the Asia Pacific region, initially with business development in Japan.

EATALY Asia Pacific will take over two locations that were directly operated by Eataly's Japan subsidiary, and plans to progressively open new, medium-sized 330-square-meters stores and also launch a 1,000-square-meters flagship store targeted for the Asia Pacific market — both in the heart of Tokyo — with the 2020 Tokyo Olympic Games in sight. In addition to the retail and dining business, EATALY Asia plans to utilize the EATALY brand and Mitsui Foods' sales channels to develop a large-scale wholesale business in Japan for the Italian foods handled by EATALY.

Mitsui will continue business development of food products and services that most accurately capture consumer needs, not only in Japan, but also in overseas markets such as those of emerging countries with expanding food demand. Mitsui, through investment into EATALY Asia Pacific, will accelerate its business expansion in the food and retail markets of the Asia Pacific region, which are expected to continue growing, and aims to contribute to the region's food culture by providing products and services that meet new needs.

Business Scheme

Business Scheme

[EATALY MILANO SMERALDO] (Milano, Italy)

[EATALY MILANO SMERALDO] (Milano, Italy)

Profile of EATALY Asia Pacific

Name of Company EATALY Asia Pacific, Ltd.
Head Office Tokyo, Japan
Representative Hirohito Motai
Establishment March 2015
Equity ¥400 mil.
Shareholders Mitsui 63.5%
Kichiri 34.0%
EATALY 2.5%
Business Activities

Retail, dining, and import wholesales business of Italian foods and ingredients based on exclusive rights to the EATALY trademark in Japan , and to promote EATALY business to the Asia Pacific region

Profile of Kichiri

Name of Company KICHIRI & Co., Ltd
Head Office Tokyo, Japan
Representative Masanori Hirakawa
Establishment July 1997
Equity ¥381 mil.
Employees 1,800
Business Activities Restaurant and dining business.

Profile of Eataly

Name of Company EATALY Distribuzione S.R.L.
Head Office Turin, Italy
Representative Luca Baffigo Filangieri
Establishment 2006
Equity US$21 mil.(as of Dec 2013)
Employees 799(as of Dec 2013)
Business Activities Italian food retail and dining business

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Hiroo Yoshida
Telephone: +81-3-3285-7564
Facsimile: +81-3-3285-9819
KICHIRI & Co., Ltd
Public Relations
Yuka Tanimoto
Telephone: +81-3-5466-3456
Mobile: +81-80-3797-7286
tanimoto@kichiri.co.jp