Doughnut battle heats up in Japan

Major Japanese convenience store chains are stepping up their fight for a bite of the doughnut market, following Seven-Eleven Japan Co.'s pioneering move to launch its ring-shaped confection in autumn. Rival Lawson Inc. <2651> has introduced doughnuts at 600 of its outlets in Japan, selling them for 100 yen a piece.

Heartened by brisk sales, the firm will boost the number of stores handling the product to some 8,000 as early as this summer.Meanwhile, existing doughnut shops aim to stay ahead of the competition mainly by promoting their freshly made products.Convenience store chain operators tout doughnuts as snacks that go well with the fresh coffee they sell, a market where the industry has also expanded rapidly.