Interim Financial Results Presentation for Fiscal Year Ending December 2005

Interim Financial Results Presentation for
Fiscal Year Ending December 2005
August 5, 2005
Coca-Cola West Japan Co., Ltd. (2579)
Contact: PR Division
Tel. +81-(0)92-641-8591 Fax +81-(0)92-632-4304
Website:
http://www.ccwj.co.jp/
email: [email protected]
Contents
Ⅰ．Interim Financial Results for Year Ending
December 2005
Ⅲ．Review of Second-Quarter Marketing
Activities
１．Interim summary of results
（１）Sales volume
3
（２）Interim summary of results
4
（３）Major reasons for divergence from plan
(consolidated)
6
（４）Major reasons for changes from fiscal 2004
(consolidated)
8
（５）Group companies’ results
11
２．Coca-Cola National Beverage’s results
12
３．Interim summary
14
Ⅱ．Full-year Projections
１．Market status
23
２．CCWJ sales results
26
３．Q2 summary
52
Ⅳ．Third-Quarter Marketing Activities
１．Q3 marketing points
54
２．Brand strategies
55
３．Distribution strategies
64
４．Scenario for achieving H2 sales plan
67
５．Sales targets for 2005
68
２．Sales volume plans
16 Reference
１．Japan’s Coca-Cola system
17
３．H2 and full-year projections
18
１．H2 marketing themes
70
２．Group companies
72
３．Glossary
74
1
I. Interim Financial Results for Year Ending
December 2005
2
１．Interim summary of results
（１）Sales volume
(thousand cases, % ）
2004
results
plan
results
2005
vs. plan
change
(amount) ratio (%)
vs. 2004
change
(amount) ratio (%)
18,730
19,138
18,171
-967
-5.1
-559
-3.0
April
7,759
7,806
7,150
-656
-8.4
-610
-7.9
May
7,094
7,416
7,310
-107
-1.4
216
3.0
June
7,934
8,017
8,058
42
0.5
124
1.6
Q2
22,787
23,239
22,518
-721
-3.1
-269
-1.2
H1
41,517
42,377
40,689
-1689
-4.0
-828
-2.0
Q1
4.0
VS plan
VS. 2004
2.0
3.0
1.7
1.6
0.5
0.0
- 4.0
- 6.0
- 1.4
- 1.6
- 2.0
- 4.0
- 4.6
- 7.9
- 7.5
- 8.0
- 8.4
- 9.7
- 10.0
Jan.
Feb.
Mar.
Apr.
May
Jun.
3
（２) Consolidated summary of results
(million yen, % ）
A. Q2
Net sales
Operating income
Recurring profit
Net income
2004
Q2
results
64,721
3,809
3,837
2,099
plan
64,800
4,200
4,200
2,300
results
63,193
3,523
3,594
1,715
Q2 2005
vs. plan
amount ratio (%)
-1,606
-2.5
-676
-16.1
-605
-14.4
-584
-25.4
B. Interim
(million yen, % ）
2004
interim
Net sales
Operating income
Recurring profit
Net income
vs. Q2 2004
amount ratio (%)
-1,527
-2.4
-285
-7.5
-242
-6.3
-384
-18.3
results
119,850
8,294
8,387
4,726
Interim 2005
plan
120,600
6,100
6,200
3,000
results
117,359
5,313
5,509
2,543
vs. plan
amount ratio (%)
-3,240
-2.7
-786
-12.9
-690
-11.1
-456
-15.2
vs. interim 2004
amount ratio (%)
-2,491
-2.1
-2,981
-35.9
-2,878
-34.3
-2,182
-46.2
4
Reference: Non-consolidated
2004
A. Q2
Net sales
Operating income
Recurring profit
Net income
Q2
results
49,874
3,420
3,441
1,879
(million yen, %）
Q2 2005
plan
50,300
3,600
3,700
2,100
results
48,269
3,142
3,234
1,653
vs. plan
-2,030
-457
-465
-446
-4.0
-12.7
-12.6
-21.3
Sales performance
Within area
vs. Q2 2004
amount ratio (%)
-1,604
-3.2
-278
-8.1
-206
-6.0
-225
-12.0
(thousand cases, %)
22,787
23,239
22,518
-721
-3.1
-269
-1.2
(million yen, %)
B. Interim
Net sales
Operating income
Recurring profit
Net income
2004
interim
results
92,047
7,753
8,123
4,712
plan
93,400
6,200
6,500
3,600
results
89,213
5,509
5,906
3,148
2005 interim
vs. plan
amount ratio (%)
-4,186
-4.5
-690
-11.1
-593
-9.1
-451
-12.5
Sales performance
Within area
vs. 2004 interim
amount ratio (%)
-2,833
-3.1
-2,244
-28.9
-2,216
-27.3
-1,563
-33.2
(thousand cases, % ）
41,517
42,377
40,689
-1,688
-4.0
-828
-2.0
5
（３）Major reasons for divergence from plan (consolidated)
(million yen)
Q2
change
Net sales
Interim
change
-1,600
-3,200
Operating income
-700
-800
Recurring profit
-600
-700
Net income
-600
-400
Major reasons for change
・ Sales volume within area
・ Sales mix
・ Sales from other bottlers etc.
・ Transfer from CCWJ Logistics
・ Transfer from other group companies
Ne t sal e s
C o st o f sal e s
・Sales volume within area
・Sales mix
・Sales from other bottlers etc.
・Transfer from CCWJ Logistics
・Transfer from other group companies
Se l l in g, ge n e r al & adm in i st r at i ve e xpe n se s
・Personnel expenses
・Depreciation and amortization
・Sales commissions
・Others
Non-operating income
Non-operating expenses
Re c u r r in g pr o fi t
Ext r ao r di n ar y i n c o m e
Ext r ao r di n ar y l o sse s
・New banknote-related expenses
・Others
C o r po r at i o n t ax e t c .
Q2
change
-1,400
-400
-100
＋300
-1,600
+200
-800
＋400
-100
＋300
＋400
-1,100
-600
-100
-100
-300
+100
-600
+100
+500
＋300
＋200
-400
Interim
change
-3,400
-600
-100
＋600
＋300
-3,200
-400
-1,800
＋700
-100
＋400
＋400
-2,000
-1,000
-200
-100
-700
+100
-700
+200
+500
＋400
＋100
-600
6
Reference A: Major reasons for changes in interim gross profit and
operating income vs. plan (consolidated)
（million yen）
Gross profit
54,600
Gross profit for interim 2005 (plan)
-1,600
Sales volume within area
-1,300
＋200
Sales mix
Transfer from CCWJ Logistics
-100
Transfer from other group companies
51,800
Gross profit for interim 2005
500
505
510
515
520
525
530
535
540
545
Operating income
550
（million yen）
6,100
Operating income for interim 2005 (plan)
-2,800
+1,000
+200
+100
＋700
Gross profit
Personnel expenses
Depreciation and amortization
Sales commissions
Others
5,300
Operating income for interim 2005
0
10
20
30
40
50
60
70
7
（４）Major reasons for changes from fiscal 2004
(consolidated) Q2 Interim
Q2
change
Net sales
change
-1,500
-2,400
Operating income
-200
-2,900
Recurring profit
-200
-2,800
Net income
-300
-2,100
Major reasons
・Sales volume within area
・Sales mix
・CCNBC effect (sales from other bottlers)
・CCNBC effect (income from consigned orders)
・Transfer from Mikasa CCBC
・Transfer from other group companies
Ne t Sal e s
C o st o f sal e s
・Sales volume within area
・Sales mix
・CCNBC effect (sales from other bottlers)
・CCNBC effect (income from consigned orders)
・Transfer from Mikasa CCBC
・Transfer from other group companies
Se l li n g, ge n e r al, an d adm i n ist r at ive e xpe n se s
・ Personnel (including effect of changes in retirement plan)
・Outsourcing expenses
・Transport
・Others
Non-operating income
Non-operating expenses
Re c u r r in g pr o fi t
Spe c i al gai n s
Spe c i al l o sse s
・New banknote related expenses etc.
・Others
C o r po r at i o n t ax
change
-500
-500
-2,300
＋1,500
-600
＋900
-1,500
-300
-300
＋400
-2,100
＋1,400
-300
＋600
-1,000
-100
+200
-500
-600
-200
+500
+400
+100
-400
(million yen)
Interim
change
-1,700
-700
-3,400
＋3,100
-800
＋1,100
-2,400
-400
-900
＋300
-3,300
＋2,800
-500
＋1,200
900
+2,000
+200
-800
-500
-100
-2,800
+100
+1,000
+900
+100
-1,600
8
Reference A: Major reasons for changes in gross profit and
operating income vs. interim 2004 (consolidated)
（million yen）
Gross profit
53,800
Gross profit for interim 2004
-800
Sales volume within area
-1,000
-100
＋300
-300
Sales mix
CCNBC effect (sales from other bottlers)
CCNBC effect
(income from consigned orders)
Transfer from Mikasa CCBC
-100
Transfer from other group companies
51,800
Gross profit for interim 2005
505
510
515
520
525
530
535
540
Operating income
（million yen）
8,200
Operating income for interim 2004
-2,000
Gross profit
Personnel expenses
-2,000
-200
+800
＋500
Outsourcing expenses
Transport
Others
5,300
Operating profit for interim 2005
0
10
20
30
40
50
60
70
80
90
9
Reference B: Operating income vs. interim 2004 (consolidated)
Excluding effects of changes to retirement benefits plan and introduction of
external standards taxation
Increase in operating
income due to changes in
retirement plan
B
（million yen）
8,294
2,271
5,579
C
A
266
Fall in operating income
due to introduction of
external standards
taxation
6,023
D
D
Interim 2004
5,313
A
Interim 2005
Interim 2004
Interim 2005
Y-o-y change
amount
ratio (%)
Operating income (A)
8,294
5,313
-2,981
-35.9
Rise in operating income as a result of changes in
retirement plan (B)
2,271
--
-2,271
--
--
266
266
--
6,023
5,578
-444
-7.4
Fall in operating income as a result of introduction
of external standards taxation (C)
Net operating income (D) = (A) – (B) + (C)
10
（５）Group affiliate results (interim)
Mikasa CCBC
Sales volume
Net sales
Operating income
（million yen, thousand cases, %）
2004
interim
results
7,464
15,293
-7
plan
7,639
14,494
42
results
7,659
14,431
54
2005 interim
vs. plan
amount ratio (%)
20
0.3
-63
-0.4
11
28.3
Nishinihon Beverage
Net sales
Operating income
10,236
-85
（million yen, thousand cases, %）
9,714
-48
9,687
46
-27
95
CCWJ Products
Net sales
Operating income
-0.3
-
-549
132
-5.4
-
（million yen, thousand cases, %）
3,030
-193
3,221
-122
3,352
14
131
136
CCWJ Logistics
Net sales
Operating income
vs. 2004
amount ratio (%)
195
2.6
-862
-5.6
61
-
4.1
-
321
207
10.6
-
（million yen, thousand cases, %）
4,181
-21
4,254
-43
4,887
149
633
192
14.9
-
705
170
16.9
-
11
２．Coca-Cola National Beverage Company（ＣＣＮＢＣ) results
（１） Operating results
Oct. 2003 to Dec. 2004
CCNBC
Former toll products11
200 million cases
400 brands
From Jan. 2005
CCNBC
600 million cases
900 brands
Bottlers
Former franchise
products22
400 million cases
500 brands
1.
2.
Activities for 2005
･･Integrated
Integrated SCM
SCM
system
system settled
settled
down
down 33 months
months
after
-over
after cut
cut-over
･･Maintain
Maintain IT
IT and
and
process
process systems
systems
while
while training
training
throughout
throughout 2005
2005
･･Further
Further raise
raise
efficiency
efficiency for
for true
true
optimization
optimization
Products such as tea and mineral water manufactured by the former CCTPC and bottled and sold by the bottlers.
Products such as carbonated drinks and coffee manufactured and sold by the bottlers using a beverage base purchased
from CCJC.
12
（２） Aims of Cost Reduction Program (vs. 2003)
3.0 +
ＣＣＷＪ
1.9
2004 results
2.2
2005 (plan)
2004 results
2007 (target)
25.0 +
Nationwide estimate
16.7
(billion yen)
19.0
2005 (plan)
2007 (target)
13
３．Interim summary
（１） Sales volume
◆ CCWJ sales volume and market share
Q2
・ 3.1% below plan, 1.2 percent below Q2 2004
・ Face-to-face retail market share of 27.5% (1.2 percentage points below Q2 2004)
Interim ・ 4.0 ％ below plan, 2.0% below interim 2004
・ Face-to-face market share：28.4 ％ (1.2 percentage points below interim 2004)
（２） Consolidated results
Q2
・ Net sales of ¥63.1 billion yen (¥1.6 billion below plan, ¥1.5 billion below Q2 2004)
・ Operating income: ¥3.5 billion (¥600 million below plan, ¥200 million below Q2 2004)
Interim ・ Net sales of ¥117.3 billion (¥3.2 billion below plan, ¥2.4 billion below interim 2004)
・ Operating income of ¥5.3 billion (¥700 million below plan, ¥2.9 billion below interim
2004)
Note: ¥400 million below interim 2004 when excluding the effects of changes to the retirement plan
14
Ⅱ. Full-Year Projections
15
１．H2 marketing themes
Pursue business themes comprehensively
・ Expand sales and market share
・ Enhance profits
（１） Maximize sales at optimum time
（２） Pursue cost reductions
（３） Strengthen group businesses
16
２．Sales volume plans
（thousand cases, %)
2005
2004
results
H1 results
Q3 results
Q4 results
H2 results
Full year
41,517
25,386
20,193
45,579
87,096
initial
plan
42,377
27,032
21,591
48,623
91,000
revised
plan
40,689
27,581
21,814
49,395
90,084
revised vs. initial plans
vs. 2004
change
change
change
change
(amount)
(ratio)
(amount)
(ratio)
-1,689
-4.0
-828
-2.0
549
2.0
2,195
8.6
224
1.0
1,622
8.0
772
1.6
3,816
8.4
-916
-1.0
2,988
3.4
17
３．H2 and full-year projections
（１）H2 (consolidated)
2004
results
Net sales
Operating income
Recurring profit
Net income
133,398
8,565
8,678
3,838
（million yen, %）
2005
initial plan
revised plan
134,200
9,500
9,700
5,600
135,900
9,900
10,000
5,700
revised vs. initial plan
change
change
(amount)
(ratio)
1,700
400
300
100
1.3
4.2
3.1
1.8
vs. 2004
change
change
(amount)
(ratio)
2,501
1,334
1,321
1,861
1.9
15.6
15.2
48.5
（２）Full-year (consolidated)
（million yen, %）
2004
results
Net sales
Operating income
Recurring profit
Net income
253,248
16,860
17,065
8,564
2005
initial plan
254,800
15,600
15,900
8,600
revised plan
253,300
15,200
15,500
8,200
revised vs. initial plan
change
change
(amount)
(ratio)
-1,500
-400
-400
-400
-0.6
-2.6
-2.5
-4.7
vs. 2004
change
change
(amount)
(ratio)
51
-1,660
-1,565
-364
0.0
-9.8
-9.2
-4.3
18
Reference A: Non-consolidated
１）H2
（million yen, %）
2004
results
Net sales
Operating income
Recurring profit
Net income
103,019
7,270
7,422
3,640
2005
initial plan revised plan revised vs. initial plan
change
change
(amount)
(ratio)
104,900
8,100
8,300
4,700
106,100
9,100
9,200
5,400
1,200
1,000
900
700
1.1
12.3
10.8
14.9
２）Full-year
3,080
1,829
1,777
1,759
3.0
25.2
23.9
48.3
（million yen, %）
2004
results
Net sales
Operating income
Recurring profit
Net income
vs. 2004
change
change
(amount)
(ratio)
195,066
15,024
15,545
8,353
2005
initial plan revised plan revised vs. initial plan
change
change
(amount)
(ratio)
198,300
14,300
14,800
8,300
195,300
14,600
15,100
8,500
-3,000
300
300
200
-1.5
2.1
2.0
2.4
vs. 2004
change
change
(amount)
(ratio)
233
-424
-445
146
0.1
-2.8
-2.9
1.7
19
Reference B: Consolidated full-year operating income
(year-on-year change)
Excluding effects of changes to retirement benefits plan and introduction of
external standards taxation
Increase in operating
income due to changes in
retirement plan
（million yen, %）
16,860
Fall in operating
income due to
introduction of
external standards
taxation
15,765
B
2,271
A
14,589
D
C
565
D
（Ａ）
Rise in operating
income as a result of （Ｂ）
changes in retirement
Fall in operating
income as a result of （Ｃ）
introduction of external
Net operating income
（Ｄ）＝（Ａ）－（Ｂ）+（Ｃ）
A
15,200
2005
2004
Operating income
948
2004
2005
Y-o-Y change
results
full-year
projection
amount
ratio
16,860
15,200
-1,660
-9.8
2,271
-
-2271
-
-
565
565
-
14,589
15,765
1,176
8.1
20
（３）Revised plan for group affiliates (full-year)
Mikasa CCBC
（million yen, thousand cases, %）
2005 (full-year)
2004
full-year
results
Sales volume
Net sales
Operating income
16,075
32,614
503
initial plan revised plan revised vs. initial plan
change
change
(amount)
(ratio)
16,400
30,606
495
16,430
30,526
541
30
-80
46
Nishinihon Beverage
Net sales
Operating income
21,075
-220
6,592
137
19,764
53
19,476
150
-288
97
9,125
266
2.2
-6.4
7.6
6,644
70
9,233
205
-1.5
183.0
-1,599
370
-7.6
－
（million yen, thousand cases, %）
6,772
144
128
74
Coca-Cola West Japan Logistics
Net sales
Operating income
355
-2,088
38
（million yen, thousand cases, %）
Coca-Cola West Japan Products
Net sales
Operating income
0.2
-0.3
9.3
vs. 2004
change
change
(amount)
(ratio)
1.9
105.7
180
7
2.7
5.1
(million yen, thousand cases, %）
10,718
545
1,485
340
16.1
165.9
1,593
279
17.5
104.9
21
Ⅲ. Review of Second-Quarter Marketing
Activities
22
１．Market status
（１）Year-on-year change of sales volume (shipping base) measured at
point of shipping from manufacturer
A. By category (nationwide)
All
Carbonated
categories
drinks
＋2
0
H1
（percent ）
Coffee
Tea
+2
+3
Oolong tea Green tea
-8
Sports
Mineral
drinks
water
-4
+22
+8
Source: Inryo Soken
（percent ）
B. By manufacturer (nationwide)
Market total
Coca Cola
Suntory
Kirin
Itoen
Asahi
Source: Inryo Soken
Q1
April
May
June
Q2
H1
＋2
-1
+5
+3
+2
＋2
＋1
-3
+5
+1
+1
＋1
＋4
+1
+5
+4
+3
＋4
＋1
0
+4
+10
+5
+3
＋10
+10
+10
+6
+8
＋9
＋8
+20
+17
+11
+16
+12
23
（２） Face-to-face marketing (excluding vending machines)
at point of store sales
A. Nationwide
（percent, percentage points)
Q1
Coca Cola
Suntory
Kirin
Itoen
Asahi
market share
y-o-y change
market share
y-o-y change
market share
y-o-y change
market share
y-o-y change
market share
y-o-y change
22.8
-0.1
15.7
+0.2
9.6
-0.7
6.2
+0.4
5.1
+0.5
April
21.8
-0.7
16.0
-0.1
9.9
-0.6
5.7
+0.1
6.5
+1.7
May
22.7
+0.3
15.3
-0.1
9.2
-0.7
6.2
+0.1
5.6
+0.7
June
23.0
+1.3
15.3
+0.1
9.4
-0.4
5.6
-0.6
5.1
+0.3
Q2
22.5
+0.3
15.5
-0.0
9.5
-0.6
5.8
-0.2
5.7
+0.9
H1
22.7
+0.2
15.6
+0.0
9.5
-0.6
6.0
+0.1
5.4
+0.7
Source: Intage Store Audit
24
B. CCWJ Territory
（percent, percentage points ）
Q1
ＣＣＷＪ
Suntory
Kirin
Itoen
Asahi
market share
y-o-y change
market share
y-o-y change
market share
y-o-y change
market share
y-o-y change
market share
y-o-y change
29.6
-1.2
12.1
+0.1
8.9
+0.1
5.1
+0.3
5.0
+0.8
April
27.1
-2.3
12.7
-0.0
9.2
+0.3
4.9
+0.2
6.3
+1.7
May
27.9
-1.1
11.7
+0.2
8.5
+0.0
5.3
+0.1
5.5
+1.0
June
27.4
-0.4
11.6
+0.0
8.8
+0.1
5.2
-0.3
5.2
+0.3
Q2
27.5
-1.2
11.9
+0.0
8.8
+0.1
5.1
-0.0
5.6
+1.0
H1
28.4
-1.2
12.0
+0.1
8.8
+0.1
5.1
+0.1
5.3
+0.9
Source: Intage Store Audit
25
２．CCWJ sales results
（１） Monthly sales trends
（thousand cases, % ）
vs. plan
amount
ratio
Y-o-Y change
amount
ratio
Q1
Q2
-967
-721
-5.1
-3.1
-559
-269
-3.0
-1.2
H1
-1,689
-4.0
-828
-2.0
+3.0
vs. plan
y-o-y change
+1.6
（percent)
+0.5
-1.2
-1.4
-3.0
-3.1
-5.1
-8.4
Q1
April
-7.9
May
June
Q2
26
（２）Brand status
（thousand cases, % ）
H1 2005
Q2 2005
results
vs. plan
amount
★
vs. Q2 2004
ratio
amount
results
ratio
vs. plan
amount
vs. H1 2004
ratio
amount
ratio
Coca-Cola
2,291
-161
-6.5
-347
-13.1
3,611
-605
-14.4
-571
-13.7
Georgia
6,285
-160
-2.5
28
0.4
13,158
-28
-0.2
-62
-0.5
★
Aquarius
2,420
207
9.4
502
26.2
3,495
125
3.7
552
18.8
★
Sokenbicha
1,718
-587
-25.5
-307
-15.1
2,945
-951
-24.4
-354
-10.7
Hajime/Marocha
1,644
170
11.5
440
36.5
2,662
171
6.8
528
24.7
Subtotal
14,358
-530
-3.5
316
2.3
25,872
-1,289
-4.7
92
0.4
612
75
14.0
65
11.9
1,009
25
2.5
17
1.7
Others
7,548
-267
-3.4
-651
-7.9
13,808
-425
-3.0
-938
-6.4
Total
22,518
-721
-3.1
-269
-1.2
40,689
-1,689
-4.0
-828
-2.0
Mori no mizudayori
27
A: Coca-Cola
Monthly sales figures (year-on-year change)
（percent)
+1.2
-13.1
-14.6
-16.3
-21.6
Q1
April
May
June
Q2
28
Sales by package: Q2 2004 vs. Q2 2005
（thousand cases, %)
280ml
can
350ml
can
Coca-Cola
vol.
-70
-21
Diet Coca-Cola
vol.
-16
-2
Coca-Cola Lemon
vol.
+33
Coca-Cola C2
vol.
Total
vol.
％
500ml
can
-180
-2
500ml
PET
1.5L
PET
+11
-17
-5
+2
+81
+39
-168
Bottle
can
Total
％
vol.
+63 -193 -10.0
-31
-50 -15.2
+71 +237
-
-171 -341 -92.1
-53
-25
-180
-81
+24
-68
-347
-28.3
-26.3
-43.7
-12.9
+5.1
-11.9
-13.1
29
B. Aquarius
Monthly sales figures (year-on-year change)
+44.2
（percent)
+37.9
+26.2
+4.8
-7.2
Q1
April
May
June
Q2
Sales by package: Q2 2004 vs. Q2 2005
500ml can
Aquarius
vol.
Active Diet
vol.
Total
vol.
％
-141
-141
-43.4
500ml PET
+57
+180
+237
+53.2
（thousand cases, %)
2L PET
+35
+141
+176
+23.0
Bottle can
+15
+126
+141
+51.0
Total
Vol.
+2
+500
+502
+26.2
％
+0.1
-
30
C. Sokenbicha/Hajime
Monthly sales figures (year-on-year change)
（percent)
+46.6
+37.5
+36.5
+26.5
Hajime Sokenbicha
+9.5
-3.7
-13.0
Q1
April
-15.6
May
-16.5
June
-15.1
Q2
31
Sales by package: Q2 2004 vs. Q2 2005
（thousand cases, %)
Hajime/Marocha
Soken
bicha
Sokenbicha
Sokenbicha
green tea blend
Total
Total
vol.
vol.
350ml 280ml 500ml 2.0L
PET
PET PET
can
-57 +227 +263
+28
-60
vol.
Total
vol.
+440
％
+36.5
-7.6
-37
-43
-39
-130
-22
-126
-31
-177
-307
-54.0
vol.
-60
-59
-169
-70
-15.1
vol.
-117
+168
+94
-42
+133
％
-43.4 +24.0
+6.8
-5.6
+4.1
32
D. New products
Brand numbers and sales volumes
2004
Q1
（no. of brands, thousand cases）
2005
Q2
H1
Q1
Y-o-y change
Q2
H1
Q1
Q2
H1
No. of brands
23
54
77
27
47
74
4
-7
-3
Sales volume
725
1,947
2,672
1,257
4,267
5,524
532
2,320
2,852
Sales volume: year-on-year change
5,524
Hajime
2,178
Coca-Cola C２
2,672
TADAS
377
H1 2004
869
500
Nanairo-acha
237
Others
Georgia
Espresso Cafe
Aquarius
Active Diet
Coca-Cola
Lemon
370
（thousand cases）
Others
121
H1 2005
33
Reference: Hajime results
１) Green tea market share trends in CCWJ area
Source: Intage
※Figures outside the graph show year-on-year change
Main products
100
％
Healthier
Ryokucha
Others
Wakamusha
Asahi
（percent)
20.6
21.0
0.7
0.6
16.0
18.2
0.3
3.5
7.6
4.4
5.0
27.1
Oiocha
Itoen
33.7
-2.8
33.9
29.4
26.5
-0.4
-5.7
19.7
22.3
25.0
-4.4
25.0
+0.6
16.0
29.6
-5.1
-4.4
-5.9
21.0
Iemon
+3.1
Suntory
21.0
23.2
+12.7
+16.3
Namacha
+2.6
-4.2
12.2
20.0
Jan
-6.4
9.1
Feb
18.6
+5.6
+3.6
15.1
+0.7
14.0
+2.5
15.0
+0.1
13.0
+0.8
13.9
-0.5
14.8
+2.6
14.9
+1.5
-3.3
Coca-Cola
10.4
+4.3
15.9
15.6
Kirin
13.6
Hajime
16.4
-4.2
16.2
+6.2
Mar
Apr
May
+3.2
Jun
H1
34
２) Green tea sales trends at vending machines in CCWJ area
(year-on-year change )
Sales per full service vending machine
Source: Intage
（no. of cases）
15.4
16.0
15.0
2005 500 ml
ＰＥＴ
14.0
13.0
11.6
12.0
11.5
11.0
2004 500ml
PET
9.7
10.0
2004 280ml PET
9.0
2005 280ml PET
8.0
7.0
3/7～
3/14～
3/21～
3/28～
4/4～
4/11～
4/18～
4/25～
5/2～
5/9～
5/16～
5/23～
5/30～
6/6～
6/13～
6/26～
6/27～
35
３) 500ml PET market share trends for green tea
at convenience stores (CCWJ area)
Source: Intage
（percent）
100%
Others
3.4
0.5
1.6
0.5
0.6
0.5
0.0
Asahi
1.2
2.1
12.2
6.4
4.9
3.4
28.6
37.5
36.3
35.6
24.2
21.6
25.9
12.8
16.5
14.7
22.2
17.9
17.3
17.1
Apr.
May
4.6
32.0
Itoen
42.9
42.6
28.2
20.4
Suntory
31.2
Kirin
Coca-Cola
0%
39.9
16.6
11.7
5.4
3.7
Jan.
Feb.
13.8
25.4
Mar.
16.1
Jun.
H1
36
４) Market share trends for green tea 2L PETs at supermarkets
(CCWJ area)
Source: Intage
(percent)
100%
Others
11.8
15.0
0.0
0.0
Itoen
9.3
0.0
13.6
15.3
15.2
Asahi
22.
1
12.6
5.6
5.9
13.6
5.0
29.7
29.7
23.5
22.7
25.8
29.6
22.8
Suntory
26.5
26.5
18.6
22.5
21.7
18.7
22.8
Kirin
19.7
17.8
18.4
14.7
14.7
12.7
Apr.
May
Jun.
18.4
17.9
19.0
23.0
Coca-Cola
12.3
10.4
Jan.
Feb.
14.9
0%
Mar.
H1
37
５) Green tea 2L PET price trends at supermarkets (CCWJ area)
Average unit price (yen)
Source: Intage
Sokenbicha
190.0
Hajime
（yen）
185.7
182.2
179.6
180.0
179.2
173.4
170.0
Oiocha
Iemon
Namacha
163.1
Wakamusha
160.0
はじめHajime
おーいお茶 Oiocha
伊右衛門 Iemon
爽健美茶Sokenbicha
生茶 Namacha
若武者 Wakamusha
150.0
2/28
3/7 3/14 3/21 3/28
4/4 4/11 4/18 4/25 5/2
5/9 5/16 5/23 5/30
6/6 6/13 6/20 6/27
38
E. Brand distribution
100 ％
38%
Others
26%
28%
6%
8%
7%
5%
6%
6%
Sokenbicha
5%
8%
Aquarius
7%
Georgia
32%
43%
45%
Coca-Cola
10%
10%
10
%
Hajime/Marocha
Sales volume
Net sales
H1 ２００４
Gross profit
37%
7%
7%
8%
30%
7%
7%
7%
27%
7%
7%
6%
32%
41%
45%
9%
8%
8%
Sales volume
Net sales
Gross profit
H1 ２００５
39
（３）Results by channel
（thousand cases, %）
Q2 2005
results
vs. plan
H1 2005
vs. Q2 2004
results
change change change change
(amount) (ratio) (amount) (ratio)
★ Vending machines
★ Chain stores
vs. plan
vs. H1 2005
change change change change
(amount) (ratio) (amount) (ratio)
7,586
-83
-1.1
289
4.0
13,901
-317
-2.2
148
1.1
4,624
-56
-1.2
116
2.6
7,706
-352
-4.4
-148
-1.9
Convenience
stores
2,530
-102
-3.9
58
2.3
4,865
-198
-3.9
-2
-0.0
Retail stores
3,683
-163
-4.2
-278
-7.0
6,509
-244
-3.6
-347
-5.1
Food services
1,964
-46
-2.3
89
4.8
3,594
-135
-3.6
72
2.0
466
-12
-2.5
5
1.0
816
-32
-3.8
-4
-0.5
1,664
-260
-13.5
-549
-24.8
3,298
-410
-11.1
-546
-14.2
22,518
-721
-3.1
-269
-1.2
40,689
-1,689
-4.0
-828
-2.0
Agencies
Others
Total
40
A. Vending machines
1) Recover
２) Strengthen new
development activities
VPM*
Sales power
ＮＯ.1
Operation
ＮＯ.1
３） Promote IT
Device services
ＮＯ.1
・Exploit IT in vending machines
・ Strengthen market
New
locations
Existing
locations
**
Sales
Sales per
per vending
vending machine
machine
development system
・ Strengthen
development of prime
indoor market
locations
・ Strengthen by locations
・ Market effectively
Implement new
products and
promotions
・ comprehensively
manage selling
and non-selling
products
・ Optimize
columns
according to
location
・ Enhance
effectiveness of
visits
・Strengthen corporate
Sales
・Improve badly performing
VMs
・ Enhance
freshness
・ Shorten machine
repair response
times
・ Enhance business
effectiveness with
operation of new
device
management
system
(installation,
maintenance, and
repair parts)
・ Reduce machinerelated costs
41
１） Recover VPM (sales per vending machine)
◆ Strengthen 23,000 machines (22% of full-service vending machines) at key
accounts
January to June sales up 102.3％ year-on-year
◆ Optimize VM columns through OEPs*
* Operation Ｅｆｆｅｃｔｉｖｅｎｅｓｓ Ｐｒｏｊｅｃｔs based on key business indicators
VPM trends for all full-service vending machines
（no. of cases, %)
Q1
2004
2005
Y-o-y
change
66.1
63.1
95.3%
April
24.1
23.6
May
23.7
24.9
June
26.2
27.0
Q2
H1
74.0
75.6
140.2
138.6
98.0% 105.2% 103.0% 102.1%
98.9%
42
２） Strengthen new development activities
◆ Development crew activities for entire area (April to May)
◆ Strengthen organization development at Market Development Division
◆ Develop VMs that contribute to individual regions (disasters, soccer,
administrative support, etc.)
（no. of machines）
Results of development activities
Q1
April
May
June
H1
Q2
Plan
3,463
1,372
1,161
1,191
3,724
7,187
Results
2,257
1,331
1,047
1,373
3,751
6,008
Change
-1,206
-41
-114
+182
+27
-1,179
Results of Market Development Division’s activities
Q1
No.ofm achines　plan
resul
ts
annualsales achi
eved
(thousand cases)
ＶＰＭ* （cases）
Q2
H1
220
290
510
273
449
722
159
582
242
401
534
555
* ＶＰＭ: Sales per vending machine
43
３） Promote IT
Maintain course of plan with expansion of on-line system and
investment in vending machine IT
Vending machine for disaster support
・ Illuminated sign displays disaster information
･ Dispenses free soft drinks if disaster breaks out
･ 20 machines introduced in Yasugishi city,
Shimane prefecture, for the first time
in West Japan
･ Currently expanding through local authorities
centered on San-in region
44
４） Sales volume for full-service vending machines
（thousand cases, %）
Q1
Results
vs. 2004
vs. plan
vol.
％
vol.
％
April
May
June
Q2
H1
6,314
-140
-2.2
2,369
-12
-0.5
2,504
166
7.1
2,713
134
5.2
7,586
289
4.0
13,901
148
1.1
-234
-3.6
-109
-4.4
-41
-1.6
67
2.5
-83
-1.1
-317
-2.2
45
B. Chain stores
“Ten-round 10”
10% vertical and horizontal extension of store floors
(1) Floor display (RfW)*
**RfW:
RfW: Reform
Reform from
from within
within
Create five
floor displays
(2) Product lineup (RfW)
Product lineup
policy to realize
floor display
concepts
(3) Account sales (RfW)
Management to
realize floor
display
concepts
46
１） Floor display (RfW)
◆ Investigate floor displays and promote management at all stores
(total of 3,157)
◆ Expand displays by aggressively installing machinery and materials
・ Installation of refrigerated devices
191 small hot & cold coolers installed (up 30% since end of 2004)
397 average-sized coolers installed (up 39% since end of 2004)
◆ Expand total brand numbers
29.2 brands per store as of June 30（up 9% since end of 2004)
Q2 floor display results (per store)
No. of stores
3,157
No. of brands
29.2
Faces
85.3
Machinery
and
materials
1.5
Sales locations
2.0
47
２） Product (RfW)
◆ Recover large package volume share
Create large-volume sales opportunities and flexible pricing policies
◆ Expand key products
・ Initiatives to acquire greater share of midi-PET corner
4.0 brands per store as of June 30 (up 0.8 since end of 2004)
・ Initiatives to acquire greater share of 500ml PET selection corner
9.1 brands per store as of June 30 (up 0.7 percent since end of 2004)
Package sales (year-on-year change)
（thousand cases, %)
Q1 2005
Q2 2005
vol.
-223
％
-15.9
1.5L PET
1L PET
-76
+37
500 PET
+13
2L PET
vol.
H1 2005
％
+84
+4.7
vol.
-139
％
-9.6
+588.2
-6
+19
-0.7
+38.2
-83
+56
-5.0
+99.3
+2.7
+24
+3.0
+37
+2.9
-4.4
48
３） Account sales (RfW)
◆ Recovery of results in nine discount accounts
・ Organization brought under direct control of headquarters (May)
・ Initiatives to improve response to account features
Strengthening connections with headquarters
Category management
◆ Strengthening key accounts and stores
・ Select 827 key stores from 53 key accounts
Developing key activities there as designated strategic stores
Sales by account (year-on-year change)
Q1 2005
vol.
9 discount accounts
Key accounts
CCNSC/ＮＫ
Others
Total
（thousand cases, percentage points）
H1 2005
Q2 2005
％
vol.
％
vol.
％
-183
-18
-23.4
-1.4
-28
+124
-3.9
+7.4
-211
+124
-11.9
+3.6
+34
-98
-265
+7.1
-11.5
-7.9
+99
-78
+116
+16.0
-6.4
+2.6
+133
-177
-148
+12.1
-8.5
-1.9
※ ＣＣＮＳＣ: National supermarket chain that Coca-Cola National Sales Company deals with.
ＮＫ: Supermarket chain handled as a joint venture between CCJC and bottlers.
49
４） Sales volume and market share among chain stores
Sales volume
（thousand cases, %)
Q1
results
y-o-y change
vs. plan
vol.
％
April
May
June
Q2
H1
3,083
-265
1,375
-118
1,508
74
1,740
160
4,624
116
7,706
-148
-7.9
-7.9
5.2
10.1
2.6
-1.9
-297
-8.8
-153
-10.0
53
3.7
44
2.6
-56
-1.2
-352
-4.4
vol.
％
Market share (year-on-year change)
Q1
April
（percent, percentage points）
May
June
H1
market y-o-y
share change
Q2
ＣＣＷＪ
-2
-2
-1
-0.5
-1.1
26.3
-1.5
Suntory
-0.3
-0.4
-0.5
-0.5
-0.5
12.7
-0.4
Kirin
+0.8
+0.8
+0.5
+0.4
+0.6
8.5
+0.7
Itoen
+0.4
+0.4
+0.4
+0.2
+0.3
4.5
+0.4
Asahi
+0.8
+2.0
+1.1
+0.7
+1.2
5.4
+1.1
50
C. Sales distribution by channel
Others
Agencies
Food services
Chain stores
100
％
9%
2%
9%
19%
12%
2%
2%
5%
2%
3%
9%
13%
25%
8%
2%
9%
2%
3%
12%
19%
24%
28%
28%
59%
56%
Vending machines
33%
Sales volume
4%
2%
3%
8%
26%
28%
Convenience and
retail stores
11%
43%
Net sales
H1 ２００４
34%
Gross profit
Sales volume
46%
Net sales
H1 ２００５
Gross profit
51
３．Q2 summary
Nationwide market status
„
April: Shipments failed to expand, partly because of reaction to the launch of
major new products in March.
Loyalty to green tea led to stagnation of other major established brands.
„
Green tea and water continued to drive the Q2 market overall.
ＣＣＷＪ status
„
Sales volumes down both on previous year and plan
9
„
The May and June recovery could not compensate for the April downturn.
This fiscal year’s most important new product, Hajime, and key product Aquarius
Active Diet performed well.
9
Meanwhile, Coca-Cola, Sokenbicha and other flagship brands performed
badly.
„
Activities in the core vending and chain store channels bore fruit from May
onward.
52
Ⅳ. Third-Quarter Marketing Activities
53
１．Q3 marketing points
Maximize sales at optimum time
（１） Recovery from H1 sales downturn
Brand strategy
（２） Maximum development of new Georgia campaign
（３） Comprehensively strengthen vending machine
& chain store channels
Channel strategy
54
２．Brand strategy
（１）Sales targets by brand
Q3 sales plan
（thousand cases, ％ ）
H1
Q3 2005
revised
vs. plan
Coca-Cola
vs. H1 2004
vs. initial plan
vs. Q3 2004
change
change
change
change
plan
(amount) (ratio) (amount) (ratio)
3,103
+369
+13.5
+312
+11.2
-14.4
-13.7
-0.2
-0.5
6,766
+254
+3.9
+723
+12.0
-24.4
-10.7
2,361
-149
-6.0
-308
-11.6
Aquarius
+3.7
+18.8
3,433
+209
+6.5
+309
+9.9
Hajime/Marocha
+6.8
+24.7
1,753
-60
-3.3
+331
+23.3
Mori-no-mizudayori
+2.5
+1.7
787
+153
+24.1
+118
+17.6
Others
-1.6
-6.3
9,378
-228
-2.4
+710
+8.2
Total
-4.0
27,581
+549
+2.0
+2,195
+8.6
Georgia
Sokenbicha
-2.0
55
（２) Recovery from H1 sales downturn
Major activities for Q3
Sales
targets
channels
（thousand
cases）
7/1 to 8/31
All channels
－
New Georgia campaign and all-product renewal
from September
All channels
－
Sokenbicha national promotion
from September
All channels
－
7/4 to 8/31
VM
1,160
Georgia: 30 year commemorative/summer cans
6/20 to 8/31
VM
540
Mori-no-mizudayori: 500ml PET promotion
6/20 to 8/31
VM
210
Mori-no-mizudayori : Strengthen 500ml and 2L PETs
Jul. to Sep.
S’market
420
Hajime: Strengthen 2L PETs
Jul. to Sep.
S’market
240
Hajime: Develop follow-up plan
Jul. to Sep.
All channels
1,700
Sokenbicha: 500ml ＰＥＴ near-pack
From July 18
S’market
20
Sokenbicha: Naotaro Moriyama live promotion
7/11 to 7/31
S’market
－
Summer promotion
National
promotion
Implementation
Development
Promotion of Coca-Cola, Sokenbicha, and Aquarius
extra-volume cans
ＣＣＷＪ
original
promotions
56
New products for Q3
Date of launch
（thousand
cases）
9/5
All channels
267
Kuromame Latte 280ml PET
Mid-Sep.
Face-to-face
21
Café Latte 280ml PET（hot）
End of Sep.
Grande 190ｇ can
Georgia
Sokenbicha
Fukami-kobashi Sokenbicha
280ml PET/350ml PET（hot)
Hajime
Sales
targets
Channel
development
Hajime 350ml PET（hot）
9/26
9/5
Face-to-face
All channels
(280)
Face-to-face
(350)
Face-to-face
86
92
181
VMs (280)
Nanairo-acha
Fanta
Ｑｏｏ
Nanairo-acha 280ml PET/350ml PET（hot）
9/26
Face-to-face
(350)
99
Fanta
Ultra Lemon 500ml bottle can
7/4
Face-to-face
19
Fanta
Cho-ultra Lemon 500ml bottle can
7/4
Face-to-face
27
Fanta
Kiwi 500ml PET/1.5L PET
8/29
Face-to-face
9/12
All channels
Qoo Morimori Kudamono 500ml PET/1.5L PET
Sales objectives: 4-wk introduction
63
49
57
（３）Maximum development of new Georgia campaign
Basic
Basic
policy
policy
¾¾ Fully
Fullyexploit
exploitthe
thefirst
firstrenewal
renewalfor
for
55years,
years,and
andcultivate
cultivateGeorgia’s
Georgia’snew
newconsumers.
consumers.
¾¾ Comprehensively
Comprehensivelystrengthen
strengthenexisting
existing55main
mainflavors
flavors
around
aroundthe
thehub
hubof
ofthe
thenew
newGrande
Grandeproduct.
product.
Summary of Georgia’s new strategy development
Renewal/new products
◇ Renewal (from Sept. 5)
Sep. 5
・ Kuromame Latte Sep. 19
・ Hot Café Latte
◇ TVCM
（Sep. 7 OA）
◇ New products
・ Grande
New advertising
campaigns
◇ Radio, newspapers,
and magazines
◇ Outdoor advertising
Sep. 26
◇ PR activities
Promotions
◇ Nationwide promotion
◇ VM promotion
◇ Channel promotion
◇ Sales contests
58
Renewal
¾ Exploit the resource of the Georgia coffee cup icon while creating a more modern,
refined design
Strengthen “high-quality,”
“refined,” “modern,” and
“new” feel
Keep “major” and
“regal” feel
59
New products
Georgia Grande
◆ Launch date: Mon, Sep. 5
◆ Package: 190g can
◆ Target channels: All channels
◆ Product features: Coffee packed with the essence of good taste using generous amounts of
high-grade beans from Brazil
Customers can enjoy the fine taste of coffee’s essence created with rich flavored beans
◆ Targets: Increase nos. of young coffee users, and propose new coffee standard
Restrained milk taste
Standard & bitter segments
Black
segment
Full coffee
taste
Restrained
coffee taste
Product positioning
Café au lait segment
Full milk taste
60
New ad campaign
Georgia ads: always ahead of their time and leading the pack
1994 to 1999
“Tranquility”
New campaign for fall 2005
“Brand message” ad Product ad
2000 to 2002
“Tomorrow is
another day”
Campaign
copy
Performer
Music
Celebrities
What message
is needed for
the coming
times?
2003 to 2005
On to the next one!
61
PR activities
Station ads
End display development
Wrapping trains
Fully decorated VMs
Sampling
62
Sales share targets (million cases)
27.6
26.5
New Georgia campaign
Sep. to Dec.
Sep. to Dec.
10.2
9.5
Jul. to Aug.
3.8
Jul. to Aug.
4.3
Jan. to Jun.
Jan. to Jun.
13.1
13.2
2004 results
2005 plan
(revised)
＋13.2％
＋0.2％
Sep. to Dec. sales
10.2
y-o-y change +7.3％
Canned coffee share
73％
y-o-y change +3％
Note: Excludes syrup and powder
63
３．Distribution strategies
(1) Sales targets by channel
Q3 sales targets
（thousand cases, %）
H1
vs. plan
Q3 2005
vs. H1
2004
revised
plan
revised vs. initial plan
change
(amount)
change
(ratio)
vs. Q3 2004
change
(amount)
change
(ratio)
VMs
-2.2
+1.1
9,101
+436
+5.0
+1057
+13.1
Chain stores
-4.4
-1.9
6,278
+196
+3.2
+769
+14.0
Convenience
stores
-3.9
0.0
2,636
-186
-6.6
+63
+2.4
Retailers
-3.6
-5.1
4,350
+90
+2.1
+65
+1.5
Food services
-3.6
+2.0
2,480
+12
+0.5
+161
+7.0
Agents
-3.8
-0.5
577
+12
+2.1
+35
+6.4
Others
-11.1
-14.2
2,158
-12
-0.5
+44
+2.1
-4.0
-2.0
27,581
+549
+2.0
+2,195
+8.6
Total
64
(２) Vending machines
A. Expand no. of machines installed in market
Development
scale (no. of VMs)
„
„ Develop
Develop prime
prime locations
locations centered
centered on
on indoor
indoor market
market
2,000
„
„ Maintain
Maintain and
and strengthen
strengthen predatory
predatory activities
activities
1,750
B. Expand sales per vending machine (VPM)
Sales targets
（thousand cases）
„
„ Maximize
Maximize VPM
VPM in
in July
July and
and August
August
・Promotion
・Promotion of
of extra-volume
extra-volume cans
cans
・Georgia
・Georgia 30-year
30-year anniversary
anniversary program
program
・Mori-no-mizudayori
・Mori-no-mizudayori 500ml
500ml PET
PET promotion
promotion
・UGVCCS
time service
service activity
activity promotion
promotion
・UGVCCS** time
・Strengthen
・Strengthen VMs
VMs loaded
loaded with
with 500ml
500ml PETs
PETs
„
„ Create
Create VM
VM columns
columns for
for fall
fall period
period
・・ Develop
Develop strong
strong new
new Georgia
Georgia campaign
campaign
・・ Reinforce
Reinforce tea
tea beverages
beverages
・・ Ｈot
Ｈot product
product lineup
lineup
*
Upgraded VCCS: Vending machines that support sales with added functions
such as promotions and remote warm/chill switching
841
406
170
243
－
－
175
137
65
(３) Chain stores
A. Floor display (RfW): Maximize sales at acquired floor displays
Expand
Expand high-quality
high-quality floor
floor displays
displays
„ Maximize guarantee of standard, large, end, and
other kinds of floor display.
„ Fully activate machinery and materials
„ Check display lineup to review distribution
loads and brand & face nos. for new products
and flagship brands
×
Boost
Boost turnover
turnover at
at
expanded
expanded floor
floor
displays
displays
B. Products (RfW): Expand flagship brands and establish
key products
„
„ Comprehensively
Comprehensively strengthen
strengthen large
large PETs
PETs of
of non-sugar
non-sugar teas,
teas,
water,
water, and
and carbonated
carbonated water
water
„
„ Reinforce
Reinforce can
can packages
packages (350ml
(350ml Georgia
Georgia cans)
cans)
„
„ Strengthen
Strengthen sales
sales of
of small
small PETs
PETs (hot
(hot and
and cold)
cold)
Period
Implementation
scale
（thousand cases）
Jul.
Jul. to
to Aug.
Aug.
1,600
1,600
Jun.
Jun. to
to Dec.
Dec.
1,250
1,250
Sep.
Sep. to
to Dec.
Dec.
100
100
C. Account sales (RfW): Recover and expand key customer sales
„
„ Continue
Continue strengthening
strengthening 99 discount
discount accounts
accounts
„
„ Strengthen
Strengthen key
key accounts
accounts and
and initiatives
initiatives at
at 827
827 stores
stores
66
４．Scenario for achieving H2 sales plan
H2 2005
Chain stores
Growth rate for
H2 2005
Initial plan
May & June 2005
+2.3％
+ 2.3%
Actual net
increase
1,144
Chain store targets
not yet achieved
＋1,000
（thousand cases）
48,623
Hot
weather
- 600
Typhoon
damage
+900
Others
-83
Recovery
VMs
＋648
Recovery plan
＋722,000 cases
H2 ２００４
results
Revised plan
+207
49,395
（＋1.6％）
Insufficient
contribution
from new
products
+600
45,579
67
５．Sales targets for 2005
Basic sales policies
Sales ((RfW):
RfW): Expand and raise efficiency
Expand sales and market share
〇 Improve profits
〇
Sales volume
2004 results
８７.１ million cases
2005 targets
９０.０ million cases
Total market share
２８．５ ％
３０．０ ％
68
Reference
69
１. Japan’s Coca-Cola system
Investment
（１００％）
The
Coca-Cola
Company
（TCCC）
(2)
（１００％）
Coca-Cola
Asia Pacific
Innovation
Center
（CCAP R&D）
(4)
Coca-Cola
(Japan)
Co., Ltd.
（CCJC）
(3)
Coca-Cola
National
Beverage
Co., Ltd.
(CCNBC）
(6)
Coca-Cola
Beverage
Services
Co., Ltd.
（CCBSC)
(7)
Coca-Cola
National
Sales
Co., Ltd.
（CCNSC）
(8)
FV
Corporation
(9)
Joint venture of
TCCC/CCJC and
bottlers
(5)
Coca-Cola
West Japan
Co., Ltd.
(CCWJ) (1)
Coca-Cola
Central Japan
Co., Ltd.
（CCCJ)
（５％）
（５％）
Coca-Cola
Bottling
Companies
12 bottlers
（CCBC）
70
Coca-Cola group companies and their roles
1.
Coca-Cola West Japan Co, Ltd. (CCWJ)
In July 1999, Sanyo Coca-Cola Bottling Co., Ltd. and Kita
Kyushu Coca-Cola Bottling Co., Ltd. merged with a capital
injection from The Coca-Cola Company to form Coca-Cola West
Japan Company Limited (CCWJ). CCWJ is the first Coca-Cola
Anchor Bottler in Japan.
2. The Coca-Cola Company (TCCC)
Established 1919 in Atlanta, Georgia, in the United States.
Carries the rights to license manufacturing and sales of CocaCola to bottlers. Either TCCC or its subsidiary ties bottling
contracts with bottlers.
3. Coca-Cola (Japan) Co., Ltd. (CCJC)
Established 1957 in Tokyo, as “Nihon Inryo Kogyo K.K.,” a
wholly-owned subsidiary of The Coca-Cola Company of the U.S.
The company name was changed in 1958 to Coca-Cola (Japan)
Company, Limited. The company carries out marketing and
planning as well as manufacturing and distribution of
concentrate in Japan.
4. Coca-Cola Asia Pacific Innovation Center (CCAP R&D)
Established January 1993 as a wholly-owned subsidiary of The
Coca-Cola Company of the U.S. Since January 1995, the CCAP
R&D carries out product development and technical support to
respond to the needs of the Asian region.
5. Coca-Cola bottlers (CCBCs)
There are 14 bottlers in Japan, which promote sales in the respective
sales regions.
6. Coca-Cola National Beverages Co., Ltd. (CCNBC)
A joint venture established in April 2003 by TCCC and CCBCs, with
the aim of creating an optimal nationwide supply chain. Operation
started in October 2003. At CCNBC, procurement of raw materials,
manufacturing, demand and supply plans, and coordination are
integrated on a nationwide basis to supply products to the bottlers.
7. Coca-Cola Beverage Services Co., Ltd (CCBSC)
Established June 1999 as a joint venture of TCCC and the CCBCs.
Operations started September 1999. Procurement operations were
transferred to Coca-Cola National Beverage Services as of October
2003. Carries out promotional activities to reform Japan’s Coca-Cola
information system.
8. Coca-Cola National Sales Co., Ltd. (CCNSC)
Established October 1995 as a joint venture between all the CCBCs
and CCJC. Carries out sales activities for national chain customers.
9. FV Corporation (FVC)
Established May 2001 as a joint venture between CCJC and all the
CCBCs. Its functions include sales negotiations with cross-regional
corporate customers for the vending machine business and
procurement of non-corporate (not authorized by CCJC) products.
71
2. Group Companies
Outline
100.0%
100.0%
Coca-Cola
West Japan
Products
100.0%
2)
Daisen
Beverage
Coca-Cola West
Japan (CCWJ)
3)
94.3%
Coca-Cola West
Japan Customer
Service
4)
78.8%
Coca-Cola West
Japan Logistics
5)
Nichibei
6)
TakaMasamune
7)
100.0%
13)
100.0%
66.0％
Coca-Cola business
100.0%
100.0%
Non Coca-Cola business
Investment
Mikasa CCBC
9)
1)
Coca-Cola West
Japan Vending
100.0%
33.0%
Nishinihon Beverage
100.0%
21.2%
5.7%
West Japan Service 8)
Mikasa Logistics
10)
Mikasa Service
11)
Mikasa Beverage
Service
12)
72
1) Nishinihon Beverage Co., Ltd.: Vending machine operator business focusing on Coca-Cola
products
2) Coca-Cola West Japan Products Co., Ltd.: Beverage producer
3) Coca-Cola West Japan Vending Co., Ltd.: Vending machine operator
4) Coca-Cola West Japan Customer Service Co., Ltd.: Vending machine maintenance company
handling installation, repair, and cleaning
(name changed from Nishinihon Customer Service Co., Ltd. on April 1, 2005)
5) Coca-Cola West Japan Logistics Co., Ltd.: Freight transport company
(name changed from Logicom Japan Co., Ltd. on April 1, 2005)
6) Nichibei Co., Ltd.: Food processor
7) TakaMasamune Co., Ltd.: Liquor brewer and distributor
8) West Japan Services Co., Ltd.: Insurance agent, leasing agent, and realtor
9) Mikasa Coca-Cola Bottling Co., Ltd.: Food and beverage distributor
10) Mikasa Logistics Co., Ltd.: Freight transport company
11) Mikasa Service Co., Ltd.: Vending machine maintenance company handling installation,
repair, and cleaning
12) Mikasa Beverage Service Co., Ltd.: Vending machine operator focusing on Coca-Cola brands
13) Daisen Beverage Co., Ltd.: Beverage producer
73
3. Glossary
1. Distribution channels
Vending
Retail sales business to distribute products through vending
machines to consumers.
Chain store
Wholesale business for supermarket chains.
Convenience store
Face-to-face sales business for convenience store chains.
Retailer
Face-to-face sales business for grocery stores, liquor shops, and
other outlets.
Food service
Syrup sales business for operators of entertainments popular
among young people (the future core target), such as fast food
restaurants, movie theaters, sports facilities, family restaurants,
and theme parks.
Agents
Intermediaries who work for Coca-Cola handling our products in
remote areas and islands.
74
2. Vending
Regular vending machine
A vending machine lent free of charge to a client who supervises its operation
and uses it to sell products purchased wholesale from us.
Full service vending machine
A vending machine installed and managed directly by us. Management
functions include supplying products and collecting money from machines.
Location fees are paid to the proprietors of installation spots.
Indoor market
Market of vending machines installed indoors. The user types are relatively
specific.
Outdoor market
Market of vending machines installed outdoors. The user types are less specific.
Predatory
Eliminating competitors’ vending machines by replacing them with ours.
Upgrade
Replacing an existing vending machine with another type that responds better
to customer needs and sales trends. Examples might include a different-sized
machine or a machine adaptable for PET bottles.
VPM
Sales per vending machine.
75
３．Chain stores
・ National chain
A chain of supermarkets that CCNSC deals with.
・ NK (New KAM)
A chain of supermarkets that CCJC and bottlers deal with jointly.
・ Regional chain
A supermarket chain that carries out store development within the territories of two or
more bottlers.
・ Local chain
Supermarket chain carrying out store development with one bottler only.
４．Other
・ Sales mix
Includes the difference between budget and results due to changes in a product’s unit
price and brand distribution.
76
The plans, performance forecasts, and strategies appearing
in this material are based on the judgment of the management
in view of data obtained as of the date this material was released.
Please note that these forecasts may differ materially from actual
performance due to risks and uncertain factors including those
listed below:
- Intensification of market price competition.
- Changes in economic trends affecting the business climate.
- Major rate fluctuations in capital markets.
77