September 18, 2003
News Release to Media
Coca-Cola (Japan) Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd.
Michinoku Coca-Cola Bottling Co., Ltd.
Sendai Coca-Cola Bottling Co., Ltd.
Mikuni Coca-Cola Bottling Co., Ltd.
Tone Coca-Cola Bottling Co., Ltd.
Tokyo Coca-Cola Bottling Co., Ltd.
Coca-Cola Central Japan Co., Ltd.
Kinki Coca-Cola Bottling Co., Ltd.
Hokuriku Coca-Cola Bottling Co., Ltd.
Shikoku Coca-Cola Bottling Co., Ltd.
Coca-Cola West Japan Co., Ltd.
Minami Kyushu Coca-Cola Bottling Co., Ltd.
Okinawa Coca-Cola Bottling Co., Ltd.
Coca-Cola National Beverage Co., Ltd.

Coca-Cola National Beverage Starts Operations

Coca-Cola (Japan) Co., Ltd. and all the Coca-Cola bottlers in Japan have jointly announced that Coco-Cola
National Beverage Co., Ltd. (CCNBC) will start its operations regarding the procurement, production, anddistribution for Japan’s Coca-Cola Group on October 1, 2003. In fiscal 2004, CCNBC is projected to produce andsupply about 200 million cases of products.
As a company born from collaboration among Coca-Cola (Japan) and the bottlers, CCNBC aims to create newvalues through supply chain management (SCM) on a national scale. It will help reinforce the long-termcompetitiveness of Japan’s Coca-Cola Group by responding quickly to changing market environments andincreasing customer and consumer satisfaction.

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Competitiveness to be boosted by nationwide SCM
CCNBC will centralize the operations related to procurement, production, and distribution by Japan’s
Coca-Cola Group companies, build an optimum SCM on a national scale, and thus reduce the relevant costs.
The assets to be created from CCNBC’s operation will be reinvested in such efforts as strengthening theGroup’s marketing activities and increasing customer service in order to ensure the long-term competitivenessof the Coca-Cola Group in Japan.
With the help of a newly consolidated Group information system, CCNBC’s nationwide SCM is projected toachieve an annual cost reduction of ¥25 billion by fiscal 2007 by increasing productivity through improved
management of resources distributed across Japan, maximum use of the production lines, and optimization ofthe inventories.

Roles of CCNBCCCNBC will perform joint procurement of raw materials and equipment, oversee the production anddemand-and-supply plans and their adjustment on a national level, and supply its products to the bottlers. Itwill make quick decisions regarding the SCM strategy of the Coca-Cola Group in Japan, invest in advanced
manufacturing technologies, and introduce innovative, high-quality products and containers meeting
consumer needs, thus increasing customer and consumer satisfaction.
Furthermore, CCNBC will pursue optimization of the Coca-Cola production and distribution bases across thecountry. By expediting standardization of the Coca-Cola Group’s operational processes and information
systems, it will also create a more powerful information network enabling individual bottlers to acquiredetailed national-level information instantly, so that a more flexible national supply system can be generated.
By linking the SCM and individual marketing activities closely together, CCNBC’s new information system
will strengthen still further the community-based customer services that have been promoted by the bottlers
over the years.

Deploying CCNBC operations
The operations to be overseen by CCNBC will be transferred in two stages. In the first stage, on October 1,
2003, CCNBC will take control of toll operation products (see Attachment 2), which are now controlled byCoca-Cola Tea Products Co., Ltd. (CCTPC), and procurement operations, which are now controlled by
Coca-Cola Beverages Service Co., Ltd. (CCBSC).
In the second stage, in January 2005, CCNBC will take control of franchised product operations, which are
now carried out by the individual bottlers. When the second stage is complete, the toll and franchisingproduction schemes, currently being operated in different ways, will be consolidated into one. CCNBC willthus be placed in a position to control all Coca-Cola products on a national level.
Contact for inquiries about CCNBC:
Public Relations Division
Coca-Cola (Japan) Co., Ltd. http://www.cocacola.co.jp/
4-6-3 Shibuya, Shibuya-ku, Tokyo 150-0002
Tel: +81-3-5466-8120 / Fax: +81-3-3797-1481

2Attachment 1
Corporate Profile of CCNBC (as of October 1, 2003)
Corporate name:Coca-Cola National Beverage Co., Ltd.

Established:

April 1, 2003

Head office:Zone Roppongi Building, 6-2-31, Roppongi, Minato-ku, Tokyo 106-0032

Capital:¥5 billion (capital reserve: ¥5 billion)

Accounts closed:

DecemberPurposes of business:
1.

Provide consultation for planning, research, scheduling, and management of the procurement of raw materials,production, and distribution (supply chain) of soft drink products.

2.

Manufacture, purchase, and sell soft drinks, soft drink syrups, and soft drink powders.

3.

Purchase and sell containers (cans, plastic and glass bottles, etc.) and equipment (vending machines,

4.

All other operations related to the purposes 1, 2, and 3 above.

dispensers, their parts, etc.) for producing and distributing soft drinks.

Volume of production:

About 2 billion cases (plan for fiscal 2004)

Products sold to:

Coca-Cola bottling companies

Executive officers:
Representative Director and President
Directors

AuditorsGuy Wollaert

Kunio Sugaya

Special Advisor, Coca-Cola West Japan Co., Ltd.

Yasuyoshi Suzuki

Representative Director and President, Sendai Coca-Cola Bottling Co., Ltd.

Nanyo Hafuji

Representative Director and President, 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, Coca-Cola Central Japan Co., Ltd.

Masakazu Morito

Representative Director and President, Kinki Coca-Cola Bottling Co., Ltd.

Norio Sueyoshi

Representative Director, President and CEO, Coca-Cola West Japan Co., Ltd.

Kokichi Honbo

Representative Director and President, Minami Kyushu Coca-Cola Bottling 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.

Hiroshi Nakamura

Representative Director and Vice President, Kinki Coca-Cola Bottling Co., Ltd.

Shinichi Yamashita

Managing Director, Tone Coca-Cola Bottling Co., Ltd.

Takanori HaraDirector, Management Planning Department, Coca-Cola (Japan) Co., Ltd.

3Shareholders: 14 companies
Hokkaido Coca-Cola Bottling Co., Ltd.

5.02%

Michinoku Coca-Cola Bottling Co., Ltd.

3.54%

Sendai Coca-Cola Bottling Co., Ltd.

4.09%

Mikuni Coca-Cola Bottling Co., Ltd.

8.06%

Tone Coca-Cola Bottling Co., Ltd.

7.68%

Tokyo Coca-Cola Bottling Co., Ltd.

10.52%

Coca-Cola Central Japan Co., Ltd.

14.14%

Kinki Coca-Cola Bottling Co., Ltd.

10.49%

Hokuriku Coca-Cola Bottling Co., Ltd.

4.11%

Shikoku Coca-Cola Bottling Co., Ltd.

3.15%

Coca-Cola West Japan Co., Ltd.

14.49%

Minami Kyushu Coca-Cola Bottling Co., Ltd.

5.61%

Okinawa Coca-Cola Bottling Co., Ltd.

1.40%

The Coca-Cola Export Corp.*

7.69%(*Subsidiary of The Coca-Cola Company)
Note: Fuji Coca-Cola Bottling Co., Ltd. and Chukyo Coca-Cola Bottling Co., Ltd. are represented by theirparent company, Coca-Cola Central Japan, and Mikasa Coca-Cola Bottling Co., Ltd. by its parent company,Coca-Cola West Japan Co., Ltd.
Attachment 2Franchises and Tolls
Coca-Cola Group companies in Japan make products and procure raw materials through two methods: franchiseand toll.
Franchise:With the franchise method, the bottlers procure concentrates from Coca-Cola (Japan) Co., Ltd. (CCJC), and thenproduce and sell the products as their own. Carbonated and coffee products are based on this method.
Toll:
With the toll method, the bottlers procure and sell products manufactured by Coca-Cola Tea Products Co., Ltd.
(CCTPC). Tea, water, and new category products are based on this method. Tolls are used for rapid-growth
products, which require quick investment in new production lines, and for new products, for which correct sales
forecasts are difficult. Products in these categories adopt the toll method because they need integrated production
and plant and equipment investment plans as well as risk control from a nationwide viewpoint.

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Visions of Japan’s Coca-Cola GroupThe Coca-Cola Group in Japan has a mission to provide all people sampling our brands with refreshment andsatisfaction and to create and provide values to all parties related to our business. Our basic strategy is to reinforce
the current collaboration among all the Coca-Cola bottlers and Coca-Cola (Japan) Co., Ltd. (CCJC) and create newvalues, chiefly in the areas of consumer marketing, customer service, and supply chain management (SCM). To
this end, the Coca-Cola Group, as a leader in the soft drinks industry, is determined to shun conventional practiceand take on the challenge of drastic reforms in order to strengthen our competitive advantage on a continuousbasis.

History of Collaboration toward Reforms
Supported by the marketing mapped out by CCJC and by the production and distribution bases of the 15 bottlers
across the country, Japan’s Coca-Cola Group has maintained a well-established presence as a leader in the softdrink industry.
The Coca-Cola Group in Japan always aims to respond quickly to changing consumer needs and maximize
customer satisfaction. To achieve these aims, various measures have been taken jointly by CCJC and the bottlers
since the middle of the 1990s to meet continual changes in business environments and needs.
In 1995, 15 bottlers jointly set up Coca-Cola National Sales Co., Ltd. in an effort to enhance their services to retailchain customers operating on a national scale. Last year, they also founded a jointly operated Customer
Management Learning Center to strengthen sales proposal capabilities. Further, Coca-Cola Beverage Service Co.,
Ltd., a joint procurement company established in 1999 jointly by The Coca-Cola Company and the bottlers, is now
procuring en bloc 90% of the main raw materials and equipment used by Japan’s Coca-Cola Group as a whole.
With respect to SCM, the following initiatives took place last year. The nationwide SCM aims to reinforce anddevelop these regional activities to build an optimum joint system through close collaboration among all thebottlers and CCJC:
A joint investment line was started by Coca-Cola East Japan Products Co., Ltd., a production company
owned jointly by four bottling companies: Tokyo, Mikuni, Tone, and Coca-Cola Central Japan.
A west Japan demand and supply mechanism was launched by seven Group companies: Coca-Cola WestJapan, and Kinki, Chukyo, Hokuriku, Mikasa, Shikoku, and Minami Kyushu bottling companies.
A joint mineral water production company, Daisen Beverage Co., Ltd., was established by five bottlingcompanies: Coca-Cola West Japan, Kinki, Chukyo, Shikoku, and Minami Kyushu.

5National Supply Chain Management (SCM) Initiative
Aims:
By achieving a large cost cut by means of the national-level SCM, Japan’s Coca-Cola Group aims to reinforce theGroup’s competitive advantage over a long period of time. More specifically, it aims to:
Increase consumer satisfaction by offering high-quality, safe, and high value added products
Improve customer services through quick and flexible supply systems
Invest strategically in advanced technologies and facilities
Make maximum and most effective use of the existing facilities
Optimize inventories and reduce the costs of procurement, production, and distribution
Strategy:
In order to achieve these aims, the nationwide SCM will be constructed based on the following strategy:
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 the entire range of Group companies.
Establishment of CNBC and activities to date:
In April, 2003, six bottling companies (Mikuni, Tone, Tokyo, CCCJ, Kinki, and CCWJ) and CCJC jointly set up
CCNBC to lay the groundwork for a nationwide SCM by investigating and verifying the best organizations,operational procedures, information systems, and economic outcomes. Since then, with the subsequentparticipation of other bottlers, preparations have been under way for the new company to start operations inOctober 2003.

6Attachment 3
List of Coca-Cola Group companies in Japan(As of September, 2003)
Company nameHead office location

Coca-Cola West Japan Co.,

Fukuoka city, Fukuoka

Ltd.

pref.

Representative director
Norio Sueyoshi

Sales territory
Hiroshima, Okayama,
Yamaguchi, Shimane, Tottori,
Fukuoka, Saga, and Nagasaki

Hokkaido Coca-Cola Bottling

Sapporo city, Hokkaido

Yoshitoshi Kitajima

Hokkaido

Michinoku Coca-Cola Bottling

Shiba county, Iwate

Kunihisa Tanimura

Iwate, Akita, Aomori

Co., Ltd.

pref.

Sendai Coca-Cola Bottling

Sendai city, Miyagi

Yasuyoshi Suzuki

Miyagi, Fukushima,Co., Ltd.

pref.

Tone Coca-Cola Bottling Co.,

Noda city, Chiba pref.

Yoshimoto Aoki

Chiba, Ibaragi, Tochigi

Okegawa city, Saitama

Nanyo Yafuji

Saitama, Gunma, Niigata

Co., Ltd.

Yamagata

Ltd.
MikuniCoca-Cola BottlingCo., Ltd.

pref.

Tokyo Coca-Cola Bottling Co.,

Minato-ku, Tokyo

Keiji Takanashi

TokyoFuji Coca-Cola Bottling Co.,

Ebina city, Kanagawa

Masao Ishizaki

Kanagawa, Shizuoka,Ltd.

pref.

Chukyo Coca-Cola Bottling

Nagoya, Aichi pref.

Shigeru Hatoyama

Aichi, Gifu, Mie

Hokuriku Coca-Cola Bottling

Takaoka city, Toyama

Haruhiko Inagaki

Nagano, Toyama, Ishikawa,Co., Ltd.

pref.

Ltd.
YamanashiCo., Ltd.

MikasaCoca-Cola Bottling

Fukui

Tenri city, Nara pref.

Nobutsugu Nakajima

Nara, Shiga, Wakayama

Settsu city, Osaka

Masakazu Morito

Osaka, Hyogo, Kyoto

Shikoku Coca-Cola Bottling

Takamatsu city,

Yotaro Endo

Kagawa, Tokushima, Kochi,Co., Ltd.

Kagawa pref.

Minami Kyushu Coca-Cola

Kumamoto city,Bottling Co., Ltd.

Kumamoto pref.

Okinawa Coca-Cola Bottling

Urazoe city, Okinawa

Hiroshi Ohara

Okinawa

Coca-Cola Central Japan Co.,

Yokohama, Kanagawa

Naohisa Sotomura

Wholly holding company ofLtd.

pref.

Co., Ltd.
Kinki Coca-Cola Bottling Co.,
Ltd.
Ehime
Sachiyoshi Honbo

Kumamoto, Kagoshima, Oita,
MiyazakiCo., Ltd.

Fuji and Chukyo Coca-Cola
Bottling companies

7Company nameCoca-Cola (Japan)

Head office location
Shibuya-ku, Tokyo

Representative director
Masahiko Uotani

Co., Ltd.

Remarks
Subsidiary of The Coca-Cola Company,
engaged in the production and sale ofsoft drinks and in the planning andimplementation of marketing strategies

Coca-Cola

Minato-ku, Tokyo

Guy Wollaert

Products Co., Ltd.

Subsidiary of The Coca-Cola Company,
engaged in the manufacture, distribution
and wholesale of toll products

Coca-Cola

Coca-Cola Beverage

Beverage Service

Service Co., Ltd.

Jiro Wakasa

Joint subsidiary of The Coca-Cola
Company and the bottlers in Japan. Will

Co., Ltd.

provide services for the Coca-Cola
Group in Japan through theprocurement en bloc of raw materials
and equipment and the operation ofinformation systems.

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