Ajinomoto to Acquire 33.4% Equity Interest in Kao Subsidiary

With the rapid aging of Japanese society, there has been a notable increase in needs among people who want lifelong health. The aging population is also giving rise to social issues such as the growing burden of health care costs for the government and businesses.

31 May 2012 --- Kao Corporation (Kao) and Ajinomoto Co., Inc. (Ajinomoto) have agreed to form an alliance in the health solutions business, the companies will focus on the senior nutrtion market.

The business will focus on prevention and improvement of metabolic syndrome and the decreased locomotive functions with aging.

As part of the alliance, Ajinomoto has agreed to acquire a 33.4% equity interest in and send directors to Kao's wholly owned subsidiary Healthcare Committee Inc. (HCC).

With the rapid aging of Japanese society, there has been a notable increase in needs among people who want lifelong health. The aging population is also giving rise to social issues such as the growing burden of health care costs for the government and businesses.

This has spotlighted the importance of not only treatment of illnesses that have manifested but also routine prevention - especially the prevention of metabolic syndrome (conditions such as hypertension and high blood sugar caused by an excess of visceral fat) and the decreased locomotive functions associated with aging.

Kao has been undertaking consumer research, health care research, and health care product development and sales on the theme of metabolic syndrome in the middle-aged, as well as prevention and improvement of lifestyle-related diseases through QUPiO, a prevention program that HCC provides for health insurers (hereinafter referred to as "health insurance societies").

Ajinomoto's vision is to be "a group of companies that contributes to human health globally." To promote healthy lifestyles, Ajinomoto has been developing and marketing amino acid-based food ingredients and supplements with health value such as low salt, low sugar and low fat. The company is also promoting its AminoIndex, a health checkup support service using amino acid analysis.

By leveraging their respective strengths with these measures, Kao and Ajinomoto will provide personalized, comprehensive health solutions for prevention and improvement of metabolic syndrome and the decreased locomotive functions with aging and work toward the creation of a "society with active seniors."

In the future, HCC plans to develop QUPiO into a health portal program and expand the number of users from approximately 1.3 million at present to over 5 million by 2020. In addition, it aims to develop the business using QUPiO as the brand.

Furthermore, to minimize the decreased locomotive functions with aging, Kao and Ajinomoto also plan to carry out joint education programs aimed at maintaining and improving the ability of the elderly to exercise and walk. They will also provide related products and develop a counseling system and work to link these initiatives with QUPiO.

In the future, Kao and Ajinomoto will consider applying the know-how gained through this business outside Japan.