Japanese conglomerate Mitsui & Co is taking stake in TBP Importação e Comércio de Cosméticos, Kao Corporation’s wholly-owned subsidiary in Brazil.
The two companies have signed a Quota Subscription Agreement under which the Mitsui will own 30% of the Brazilian subsidiary while Kao will retain 70% of the capital. The agreement is expected to go into effect in April 2023, after approval by CADE (Conselho Administrativo de Defesa Econômica), Brazil’s antitrust body. The financial details of the operation have not been disclosed.
Growth opportunities for Bioré in Brazil
The agreement mainly aims at expanding the sales of Kao’s Bioré skincare brand in Brazil, the world’s fourth-largest beauty and personal care market. According to Kao, this market is projected to post a yearly growth rate of 7.7%, driven by new consumption behaviours, in particular among the growing middle-income earner class and Gen Z consumers .
Kao and Mitsui have cooperated in the sales and marketing of Bioré in Brazil since 2017. The two companies recently carried out a market research that, they say, has shown strong acceptance of the brand by Brazilian consumers. The two companies therefore intend to strengthen the brand’s footprint in the country with the aim to manufacture Bioré products locally.