To whom it may concern
March 13, 2003
Coca-Cola (Japan) Co., Ltd.
Mikuni Coca-Cola Bottling Co., Ltd. (Code 2572)
Tone Coco-Cola Bottling Co., Ltd.
Tokyo Coca-Cola Bottling Co., Ltd.
Coca-Cola Central Japan Co., Ltd. (Code 2580)
Kinki Coca-Cola Bottling Co., Ltd. (Code 2576)
Coca-Cola West Japan Co., Ltd. (Code 2579)

Announcement to Establish Coca-Cola National Beverage Co., Ltd.
The Coca-Cola (Japan) Group Creates a National Supply Chain Management Company

Coca-Cola (Japan) Co., Ltd. (CCJC) and six bottlers have announced that they have reached an agreement tojointly establish the Coca-Cola National Beverages Co., Ltd. (CCNBC) as of April 1, 2003. The bottling partners
are Mikuni, Tone, Tokyo, Coca-Cola Central Japan (which wholly owns Fuji and Chukyo), Kinki, and Coca-Cola
West Japan. The new company aims to establish a nationwide supply chain management (SCM) system and ismaking progress testing and preparing to build optimum organization, operating processes, information systems,
and economic effectiveness. Release of further details is planned for September 2003.
The Coca-Cola (Japan) Group’s nationwide SCM initiative aims to radically review its production and distributionfunctions currently dispersed among individual bottlers and to build an optimum national-scale supply chain
system ranging from procurement to production and distribution, including the procurement functions currently
performed solely by Coca-Cola Beverage Service Co., Ltd. (CCBSO). This system will be designed to boost
procurement, production, and distribution efficiency and cut costs, while at the same time building a flexible
national supply system that can meet changing consumer and customer needs and improve customer services. To
this end, CCJC and the bottlers will collaborate to unify decision-making, optimize production and distribution
networks, consolidate demand and supply plans, and develop a common information system. They will also create
more efficient national-level production and investment plans and reduce risks based on a new scheme
incorporating the current franchise and toll system (see Attachment 2). Achieving this goal will strengthen thelong-term competitiveness of the group as a whole.

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Establishing CCNBC
While CCNBC will be established initially by the seven companies, other bottlers are also expected to join one
after another. Minami Kyushu Coca-Cola Bottling, Hokuriku Coca-Cola Bottling, and Mikasa Coca-Cola Bottling
have declared their intention to participate, while the other bottlers are in the process of making a final decision. Tomaximize effectiveness, all bottlers intend to become part of the new scheme as soon as possible. They aim tobuild a total, optimum SCM for the Coca-Cola (Japan) Group by transcending conventional bottler frameworks
and territories and shifting their horizons towards collaboration and a nationwide scale.
Sugaya, Representative Director and Senior Adviser at Coca-Cola West Japan Co., Ltd., will become Chairman ofthe Board of Directors at CCNBC and Guy Wollaert, Representative Director and President of Coca-Cola Tea
Products Co., Ltd., will become Representative Director and President. Other directors will be appointed from thebottler companies and CCJC.
Visions and Transformation of Japan’s Coca-Cola GroupThe Coca-Cola (Japan) Group’s mission is to refresh and satisfy everyone coming into contact with our brand andcreate value for all parties related to our business. Our basic strategy is to reinforce the current collaboration
among CCJC and bottlers to create additional value, focusing on the areas of consumer marketing, customer
service, and SCM. To this end, the Group and its members are radically reforming to transcend conventional
structures and practices. This will enable the Group to respond to fast-changing social, economic, and market
environments by quickly ascertaining and constantly raising customer satisfaction. The recent decision by thebottlers and CCJC to jointly establish CCNBC and proceed with detailed studies and groundwork to build anationwide SCM system marks an extremely important step in the development of Japan’s Coca-Cola Group.
Creation of new value through SCM
The assets newly created from reducing Japan’s Coca-Cola Group SCM costs will be plowed back into efforts tocreate advanced manufacturing technology and distribution networks and to reinforce the Group’s competitivenessin the marketplace. Some of the money will be aggressively reinvested to develop the industry’s most advanced
information network. The Group will also exploit its strong business base rooted in local communities to transcend
the bottlers’ territories and build a nationwide SCM system, with the aim of proving better services to all thecustomers. In addition, it will maintain its solid customer reliability by providing the high-quality and safe products
sought by consumers as well as create new demand by offering new products and packages with high added value.
As a leader in the soft drinks industry, the Coca-Cola (Japan) Group will brush aside conventional structures tocarry out reform and aspire for long-term growth and the creation of new values. With reform of its SCM system
as a first step, Japan’s Coca-Cola Group will continually work to strengthen its long-term competitiveness.

2**********************************************Inquiries:

Kouta Takasugi,

Corporate Communication Division, Coca-Cola (Japan) Co., Ltd.,

Toshio Kaneko,

Public Relations and Environment Dept., Mikuni Coca-Cola Bottling Co., Ltd., Tel: +81-48-774-3131

Hidehiro Oi,

General Affairs Dept., Tone Coca-Cola Bottling Co., Ltd.,

Setsuo Ohashi,

Public Relations and Environment Dept., Tokyo Coca-Cola Bottling Co., Ltd., Tel: +81-3-5444-8555

Nobuhiro Hasegawa,General Affairs and Public Relations Unit, Coca-Cola Central Japan Co., Ltd., Tel: +81-45-222-5850

Reiji Goh,

Public Relations Dept., Kinki Coca-Cola Bottling Co., Ltd.,

Tel: +81-6-6330-2191

Yoshihiro Nakamura,

Public Relations Dept., Coca-Cola West Japan Co., Ltd.,

Tel: +81-92-641-8591

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Tel: +81-3-5466-8120
Tel: +81-4-7123-1113

Attachment 1
Outline of CCNBC
Corporate name: Coca-Cola National Beverage Co., Ltd. (CCNBC)
To be established: April 1, 2003
Headquarters: Minato-ku, Tokyo
Capital: 10.5 million yen
Settlement of accounts: December
Business purposes: Planning, research, and consulting operations concerning procurement of raw materials,
production, and distribution (supply chain) for soft drinks and all accompanying and related operations
Stockholders:
Mikuni Coca-Cola Bottling Co., Ltd.

14.29%

Tone Coca-Cola Bottling Co., Ltd.

14.29%

Tokyo Coca-Cola Bottling Co., Ltd.

14.29%

Coca-Cola Central Japan Co., Ltd.

14.29%

Kinki Coca-Cola Bottling Co., Ltd.

14.29%

Coca-Cola West Japan Co., Ltd.

14.29%The Coca-Cola Company or its subsidiary

14.29%

Executive officers
Chairman:

Kunio Sugaya (Representative Director and Senior Adviser, Coca-Cola West Japan Co.,Ltd.)

President:

Guy Wollaert (Representative Director and President, Coca-Cola Tea Products Co., Ltd.*)

Directors:

Nanyo Yafuji (Representative Director and President to be appointed as of March 28,
Mikuni Coca-Cola Bottling Co., Ltd.)
Yoshimoto Aoki (Representative Director and President, Tone Coca-Cola Bottling Co., Ltd.)
Keiji Takanashi (Representative Director and President, Tokyo Coca-Cola Bottling Co.,
Ltd.)
Naohisa Sotomura (Representative Director and President to be appointed as of March 27,
Coca-Cola Central Japan Co., Ltd.)
Masakazu Morito (Representative Director and President, Kinki Coca-Cola Bottling Co.,Ltd.)
Yoshio Sueyoshi (Representative Director, President and CEO, Coca-Cola West Japan Co.,Ltd.)
Masahiko Uotani (Representative Director and President, Coca-Cola (Japan) Co., Ltd.
John Murphy (Representative Director and Vice President, Coca-Cola (Japan) Co., Ltd.)(*CCTPC: a subsidiary of the Coca-Cola Company involved in toll manufacturing)4

Attachment 2

Franchise and Toll
Coca-Cola Group products in Japan are classified as “franchise” or “toll” depending on their production anddistribution methods
Franchise: In this method, the bottlers procure concentrates from CCJC and then produce and sell products
under their own brand. (Coca-Cola, Georgia, Fanta, and Sprite brands are based on this method).
Toll: In this method, the bottlers purchase products manufactured by CCTPC as finished goods. Toll products
include tea, water, and new category products. This method has been developed to accommodate production
and capital investment planning and risk management on a national basis and for products in rapidly growing
categories for which investments in new production lines are required, or for new products for which
accurate forecast demand may be difficult.

History of Collaboration toward Reforms
Japan’s Coca-Cola Group has maintained a well-established presence as a leader in the country’s soft drink
industry supported by marketing developed by CCJC and the production and distribution bases of the 15 bottlers
across the country.
The Coca-Cola Group in Japan has always striven to respond quickly to fast-changing consumer needs in order tomaximize customer satisfaction. To this end, CCJC and the bottlers have jointly implemented a range of measuressince the mid-1990s in response to changing business environments and needs.
In 1995, the 15 bottling partners established Coca-Cola National Sales Co., Ltd. in an effort to enhance theirservices to retail chain customers operating on a national scale. Last year, the partners also founded the collectively
run Customer Management Learning Center to strengthen proposal-driven sales capabilities. In 1999, theCoca-Cola Company and the Japanese bottlers invested in establishing a joint procurement company, Coca-Cola
Beverage Service Co., Ltd., which is already procuring 90% of the major raw materials for Japan’s Coca-Cola
Group as a whole.

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Attachment 3

Nationwide Supply Chain Management (SCM) Initiative

The SCM initiative of the Coca-Cola (Japan) Group aims to strengthen the Group’s long-term competitive
advantage by reducing the costs of procurement, production, and distribution. More specifically, it aims to:
Increase consumer satisfaction by offering high-quality, safe, and high value-added new products
Improve customer services with prompt and flexible supply systems
Invest strategically in advanced technologies and facilities
Exploit existing facilities to the fullOptimize inventories and reduce the costs of procurement, production, and distribution
Based on the judgment that national-level strategies are the most effective means of achieving these aims, Japan’s
Coca-Cola Group opened a pilot office last August to lay the groundwork for a nationwide SCM initiative.
Participants comprised the six bottlers (Mikuni, Tone, Tokyo, Coca-Cola Central Japan, Kinki, and Coca-Cola
West Japan), CCJC, and CCTPC. This initiative has the following strategic objectives:
Centralize decision-making
Optimize the production and distribution networks on a national basis
Establish consolidated demand and supply plans
Build a common information system for all Group companies.
The nationwide SCM aims to build an optimized system by reinforcing and developing regional SCM throughcollaboration among the bottlers and CCJC. Last year, Japan’s Coco-Cola Group carried out the following SCM
initiatives:Coca-Cola East Japan Products Co., Ltd., a joint production company with investment from four bottlers(Tokyo, Mikuni, Tone, and Coca-Cola Central Japan) began operation.
A west Japan demand and supply mechanism began operation with participation from seven Group
companies: Coca-Cola West Japan, Kinki, Chukyo, Hokuriku, Mikasa, Shikoku, and Minami Kyushu.
A joint mineral water production company, Daisen Beverage Co., Ltd., was established by four bottlers:
Coca-Cola West Japan, Kinki, Chukyo, Shikoku, and Minami Kyushu.

6【For Reference】
List of bottlers in Japan(As of March 13, 2003)
Company nameHead office location

Representative

Sales territory

director
Coca-Cola West Japan

Fukuoka city,Co., Ltd.

Fukuoka pref.

Norio Sueyoshi

Hiroshima, Okayama, Yamaguchi, Shimane,

Hokkaido Coca-Cola

Sapporo city,

Yoshitoshi

Bottling Co., Ltd.

Hokkaido

Kitajima

Michinoku Coca-Cola

Shiba county, Iwate

Kunihisa

Bottling Co., Ltd.

pref.

Tanimura

Sendai Coca-ColaSendai city, Miyagi

Yasuyoshi

Bottling Co., Ltd.

pref.

SuzukiTone Coca-Cola Bottling

Noda city, Chiba

Yoshimoto Aoki

Chiba, Ibaragi, TochigiCo., Ltd.

pref.

Mikuni Coca-Cola

Okegawa city,

Noboru Kishida

Saitama, Gunma, Niigata

Bottling Co., Ltd.

Saitama pref.

Tokyo Coca-Cola

Minato-ku, Tokyo

Keiji Takanashi

Tokyo

Fuji Coca-Cola Bottling

Ebina city,

Masao Ishizaki

Kanagawa, Shizuoka, YamanashiCo., Ltd.

Kanagawa pref.

Chukyo Coca-Cola

Nagoya, Aichi pref.

Shigeru

Aichi, Gifu, Mie

Tottori, Fukuoka, Saga, and Nagasaki
Hokkaido
Iwate, Akita, Aomori
Miyagi, Fukushima, Yamagata

Bottling Co., Ltd.

Bottling Co., Ltd.

Hatoyama

Hokuriku Coca-Cola

Takaoka city,

Bottling Co., Ltd.

Toyama pref.

MikasaCoca-Cola

Haruhiko Inagaki

Nagano, Toyama, Ishikawa, Fukui
Nara, Shiga, Wakayama

Tenri city, Nara

Nobutsugu

Bottling Co., Ltd.

pref.

Nakajima

Kinki Coca-Cola Bottling

Settsu city, OsakaCo., Ltd.

Masakazu

Osaka, Hyogo, Kyoto

MoritoShikoku Coca-Cola

Takamatsu city,

Bottling Co., Ltd.

Kagawa pref.

Minami Kyushu

Kumamoto city,

Coca-Cola Bottling Co.,

Kumamoto pref.

Yotaro Endo

Kagawa, Tokushima, Kochi, Ehime

Yuichi Honbo

Kumamoto, Kagoshima, Oita, Miyazaki

Hiroshi Ohara

Okinawa

Hitoshi Ariwaka

Wholly ownedLtd.
Okinawa Coca-Cola

Urazoe city,

Bottling Co., Ltd.

Okinawa

Coca-Cola Central Japan

Yokohama,Co., Ltd.

Kanagawa pref.

company of Fuji and Chukyo Coca-Cola
Bottling companies

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Coca-Cola (Japan) Co., Ltd.
Coca-Cola (Japan) Co.,

Shibuya-ku,

Masahiko

Sale of concentrates to the bottlers andLtd.

Tokyo

Uotaniplanning of marketing strategies

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