DyDo DRINCO, Inc. and Asahi Soft Drinks Co., Ltd. have entered into a comprehensive business alliance agreement for vending machine business with the aim of improving the corporate value of both companies. The COVID-19 pandemic has significantly changed the environment surrounding the vending machine market, and surging raw material prices and logistics costs have had a material impact on the business. This has led each company in the industry to implement a different vending machine strategy and increasingly intensifying the tendency towards oligopoly of a limited number of companies.

Under such an environment, DyDo DRINCO and Asahi Soft Drinks have decided to enter into a comprehensive business alliance agreement for vending machine business with the aim of growing and developing their vending machine businesses to improve the corporate values of both. On the occasion of this comprehensive business alliance, DyDo DRINCO will pursue efficient and high-quality operations with its expertise in smart operations, while leveraging economies of scale through partnership with Asahi Soft Drinks, to establish a significant competitive advantage in the vending machine market. In January 2023, DyDo DRINCO and Asahi Soft Drinks will make a co-investment to newly establish Dynamic Vending Network, Inc. (hereinafter "NewCo"), which will operate vending machine business.

At the same time, NewCo will make its subsidiaries DyDo Beverage Service, Inc. (hereinafter "DyDo Beverage Service"), DyDo Beverage Shizuoka, Inc. (hereinafter "DyDo Beverage Shizuoka"), and DyDo Vending Japan, Inc. (hereinafter "DyDo Vending Japan", and DyDo Beverage Service, DyDo Beverage Shizuoka and DyDo Vending Japan are collectively referred to as "Three DyDo DRINCO target subsidiaries"), which are DyDo DRINCO's 100% subsidiaries, and Asahi Soft Drink Sales Co., Ltd. (hereinafter "Asahi Soft Drink Sales"), Kyushu Asahi Soft Drink Sales, Ltd. (hereinafter "Kyushu Asahi Soft Drink Sales"), and Michinoku, Ltd. (hereinafter "Michinoku", and Asahi Soft Drink Sales, Kyushu Asahi Soft Drink Sales, and Michinoku are collectively referred to as "Three Asahi Soft Drinks target subsidiaries"), which are Asahi Soft Drinks' 100% subsidiaries. NewCo will operate the direct sales channels of its six subsidiaries integrally as a consolidated subsidiary of DyDo DRINCO, and will develop smart operations utilizing IoT technology, in which DyDo DRINCO has expertise, to not only improve operational speed, quality control capabilities, and productivity, but also to solve the issues of future labor shortages and keeping personnel by reducing workloads. DyDo DRINCO and Asahi Soft Drinks will continue to have discussions to reduce manufacturing costs by outsourcing the production of some of DyDo DRINCO brand products to Asahi Soft Drinks' plants around 2023 and beyond.