Food & DrinkMulti-region
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JOURNEY · DETAIL
Yakult: How the Little Red Bottle Swept Across 40 Countries via Direct Sales
Founded: Minoru Shirota · Yakult Honsha Co., Ltd.
JOURNEY
Key Fields
FIELD STAMPSIndustryFood & Drink
RegionMulti-region
ScaleGiant
ChannelOther
Origin
In 1935, to help alleviate frequent diarrhea and low immunity among Japanese children at the time, Minoru Shirota founded Yakult in Osaka, introducing the 100ml little red bottle yogurt drink containing the L. casei Shirota strain and 10 billion live lactic acid bacteria per bottle. Positioned with the concept of 'health starts from the gut,' the product opened up community channels through daily deliveries by housewives, and was subsequently replicated in 40 countries and regions worldwide, with daily sales once reaching approximately 40 million bottles (according to public data, unverified independently).
Milestones
1935
Company Foundation and First Product Launch PMF
In 1935, Minoru Shirota opened the first factory in Osaka, launching the first probiotic yogurt drink with an annual production of only about 50,000 bottles. Due to the product's taste and health benefits being welcomed by local families, first-year sales exceeded 100,000 bottles, laying the foundation for subsequent scaling.
1963
Overseas Expansion Turning Point
In 1963, Yakult established a joint venture in Brazil, achieving annual sales exceeding $100 million for the first time, marking its official entry into markets outside Japan. Factories were subsequently established in regions such as the United States and Southeast Asia, and global annual sales had already exceeded 1 billion bottles by the 1970s.
1997
Entry into the Chinese Market PMF
In 1997, a joint venture was established in partnership with Shanghai Jinfeng, setting up the first production line in Shanghai with an annual output of about 200 million bottles. Relying on local housewife direct sales networks and school distribution channels, national sales exceeded 500 million bottles in just three years, making it one of the best-selling dairy drink brands in China.
2008
Brand Upgrade and Channel Innovation Growth
In 2008, the upgraded 'Yakult + Prebiotics' product was launched, and an online direct sales platform was opened in Japan, deeply integrating social media with housewife communities. Full-year global sales exceeded 2.5 billion bottles, with daily sales of about 30 million bottles and revenue reaching approximately 90 billion yen.
2020
Pandemic Impact and Sales Decline Turning Point
In 2020, affected by global COVID-19 supply chains, Yakult's sales in China plummeted by 1.1 billion bottles, and annual sales revenue dropped by about 15%. In the same year, Japan also experienced its first factory suspension lasting two months, prompting the company to accelerate its digital channel transformation.
2025
Closure of Chinese Factories and Global Restructuring Shift
In 2025, due to the sustained sluggishness of the Chinese market, Yakult officially closed its factories in Guangzhou and Shanghai, resulting in the layoff of about 600 employees. During the same period, global annual sales remained at approximately 3 billion bottles, but the revenue structure dropped from China contributing 25% to 8%. The company announced it will set up new production bases in Southeast Asia to reduce costs and reposition its layout.
Turning Points
- Entered the US market in the 1970s and achieved localized production
- Entered China through a joint venture with Shanghai Jinfeng in 1997, launching the housewife direct sales model
- Launched the prebiotic upgraded version in 2008, opening online direct sales channels
- Sales plummeted due to the pandemic in 2020, initiating digital channel transformation
- Closed Chinese factories in 2025, pivoting to low-cost production in Southeast Asia
Failures & Pitfalls
- Attempted direct sales through supermarket channels in the early 1990s, resulting in a sharp decline in sales due to a lack of channel support
- Failed to adjust supply chains in time during the 2020 pandemic, causing an 1.1 billion bottle sales drop in the Chinese market
- Attempted to launch a high-priced, high-concentration version in Europe in 2023, which was abandoned by consumers due to overpricing, leading to the product line being withdrawn within a year
关键成功要素
- Insisting on single-product deep cultivation to build brand awareness
- Relying on the housewife direct sales network to form low-cost, high-penetration channels
- Adopting localized production and marketing strategies when facing international markets
- Rapidly transforming digital channels during crises to maintain consumer stickiness
- Combining global layout with regional cost centers to enhance supply chain resilience
Lessons
- The health positioning of a single product requires continuous R&D investment to maintain brand vitality
- Over-concentration of channels carries high risk; online and offline channels must be developed simultaneously
- Localized packaging and taste research must be well-prepared before entering new markets
- Supply chain flexibility during crises is the key to maintaining sales
- In mature markets, product upgrades are needed to maintain consumer freshness
Core Data
- Annual sales volume：3 billion bottles (2023) (according to public data, unverified independently)
- 2023 revenue：120 billion yen (according to public data, unverified independently)
- 2023 team size：8,000 people (according to public data, unverified independently)
- 2025 China sales：2 (according to public data, unverified independently)
- 2023 global market share：12% (according to public data, unverified independently)
Competitors / Peers
Yakult's main competitors include Danone's Actimel, Nestlé's NESTÉ GLOPRO, and domestic brands such as Yili's 'Ambrosial.' While these brands adopt multi-channel layouts globally, most rely on supermarket channels and online e-commerce, forming a sharp contrast with Yakult's housewife direct sales model. Danone holds a leading position in the European market thanks to strong R&D investment, Nestlé enhances penetration through cross-category bundling marketing, and Yili rapidly replicated Yakult's direct sales model in China relying on its channel network, making competition between the two in the Chinese market particularly fierce.