Kao, CP forge partnership for sustainable products

Kao Corporation, a global manufacturer of consumer and industrial chemical products, and Thai conglomerate Charoen Pokphand (CP) Group have signed a memorandum of understanding (MoU) to drive collaboration in co-creating sustainable consumer and chemical products.
Yoshihiro Hasebe, representative director, president and chief executive of Kao Corporation of Japan, said the two companies agreed to jointly create a new house brand for CP Group with product and innovation support from Kao Group.
Furthermore, both parties will consider importing environmentally friendly products from Kao Corporation to be distributed through CP’s extensive retail and distribution network, including 7-Eleven convenience stores, Lotus’s retail outlets, and Makro wholesale centres.
The MoU also includes jointly developing the “Club Model” concept for shelf-ready display and pallet display, for use with speciality products sold exclusively through CP AXTRA, as well as exploring further collaboration opportunities in the chemical business.
“The collaboration will integrate Kao’s sustainable innovation with CP’s extensive distribution channels, which could drive further growth of both parties,” said Mr Hasebe.
For the house brand that they aim to develop, it will be branded under the CP Group and exclusively available at CP Group’s distribution channels, said Yuji Shimizu, president of Kao Industrial (Thailand) Co Ltd.
It is expected that the new consumer products would be introduced in 2025, while both companies still have not yet held discussions about the joint venture model, he said.
Imported products are expected to be haircare and skincare products, he added.
As Thailand has been a very important market for the company, this collaboration has marked the strong presence of CP and Kao in Thailand, said Mr Shimizu.
“Thais and Japanese have different consumer behaviour. Nevertheless, both customers are currently opting for more sustainable and environmentally friendly products,” he said.
Mr Shimizu said the company believes that the fast-moving consumer goods industry has recovered above the pre-pandemic level, and the market is still expanding.