The joint venture will produce and distribute non-alcoholic beverages in the Greater China region including the mainland, Hong Kong and Macao, with the mainland being the priority market, the Hong Kong-listed brewer said in a statement released Monday.

Both firms will inject their existing non-alcohol beverage businesses in the mainland into the joint venture, in which China Resources will retain a 60 percent share, and Tokyo-based Kirin will hold the remaining shares, according to the statement.

Kirin will invest around $400 million in the joint venture, Kirin said in a statement on its website Monday. Neither side offered a timeline for the joint venture plan.

Analysts said the two firms are banking that the cooperation will help expand their respective non-alcoholic beverage businesses in China.

China Resources can make use of Kirin's strength in product development and technology to make a breakthrough in the market, said Liu Hui, a Shanghai-based analyst with Capital Securities Co.

Currently, China Resources' non-alcoholic drink business has been focused on its "C'estbon" brand of purified water.

Kirin could also rely on China Resources Enterprise's strong presence in the country to expand its distribution network, Liu added.

China Resources has built up a network of more than 3,000 retail outlets across the country, Kirin said in its statement.

Kirin's non-alcoholic beverage commercial presence is in Beijing, Shanghai and Guangzhou areas. Popular products include "Kirin Go-go-no Kocha" brand black tea and its "Kirin FIRE" brand of coffee.

"The joint venture will speed up its foray into new product categories and new markets throughout China, aiming to become a leading player in this rapidly growing market," Kirin said in the statement.

But analysts also pointed out that given the clout of some big brands in the market, it remains difficult for the two firms to gain leading positions in China's non-alcoholic market.

These two firms are primarily engaged in the beer business, with limited market clout compared to leading players such as Taiwan's Uni-President and Master Kong and the US' Coco-Cola, said Zhao Yong, an industry analyst with Haitong Securities Co in Shenzhen, Guangdong Province.

Earlier Monday, Japanese media erroneously reported Kirin Holdings Co would partner with China Resources to explore new opportunities in China's beer sector, as growth in Japan's beer market slows down.