Transformation of the Vending Business

「Revenue was ¥186,432 million, down ¥3,228 million, or 1.7%, from the same period of the previous year. Segment profit increased by ¥6,732 million from the same period of the previous year to ¥5,343 million, compared with a loss of ¥1,389 million in the previous year.」

「Rebuilding the earnings base in the vending business and operating with the mindset of the world's largest retailer」

「In the vending channel, although the share base built to date and effective campaigns through the Coke ON smartphone app helped expand share, the impact of poor summer weather and the volume decline in canned and bottle-canned products resulting from price revisions led to a 1% decrease in sales volume.」

「In the vending channel, price revisions improved the net selling price per case. Meanwhile, volume remained broadly in line with the same period of the previous year, despite the volume decline resulting from the price revisions, as measures to capture demand through digital initiatives, including campaigns on the Coke ON smartphone app and the expanded rollout of QR de 決済, in addition to the share base built to date, proved effective.」

「In the vending channel, although operations were affected by poor weather in March, measures to capture demand through digital initiatives, including campaigns on the Coke ON smartphone app and the expanded rollout of QR de 決済, in addition to the share base built to date, proved effective, resulting in a 1% increase in sales volume.」

「In the vending channel, although volume was affected by price revisions for small PET-bottle and canned products, the share base built to date and campaigns through the Coke ON smartphone app helped capture demand, which increased amid the extreme heat and the recovery in foot traffic, resulting in a 1% increase in sales volume. In addition, the vending channel's net selling price per case improved significantly from the previous fiscal year as a result of the price revisions.」

「In the vending channel, although volume was affected by price revisions for small PET-bottle and canned products, the share base built to date and campaigns through the Coke ON smartphone app helped capture demand, which increased as foot traffic recovered, leaving volume broadly in line with the same period of the previous year. In addition, the vending channel's net selling price per case improved significantly year on year as a result of the price revisions.」

「We will work to implement flexible pricing strategies that contribute to higher margins and transform the vending channel.」

「In the vending channel, although volume was affected by the decline resulting from price revisions, the share base built to date and campaigns through the Coke ON smartphone app helped capture demand, which increased as foot traffic recovered, resulting in a 1% increase in volume.」

「In the vending channel, although volume was affected by price revisions for small packages from October onward, the share base built to date and campaigns through the Coke ON smartphone app helped capture demand, which increased as foot traffic recovered and amid the extreme heat. Sales volume rose 3%. In addition, vending machine installations progressed faster than planned throughout the year as one of the key initiatives, increasing the number of operating machines by more than 10,000 from the end of the previous fiscal year and contributing to growth in volume and value share.」

「Vending continued to deliver steady growth by capturing the opportunities from recovering foot traffic and favorable weather, supported by the share base built to date. A stronger product assortment, increased vending machine installations and campaigns through the Coke ON smartphone app, which reached 40 million downloads, contributed to an 8% increase in volume in the third quarter and a 5% increase on a cumulative basis.」

「Vending sales volume grew 3% as the recovery in foot traffic and favorable weather provided tailwinds, while initiatives such as strengthening the product assortment, including new products, and conducting campaigns through the Coke ON smartphone app proved effective.」

「Vending grew 3% through initiatives including increasing sales volume per vending machine through a stronger product assortment, including new products, and campaigns through the Coke ON smartphone app, as well as renewed installation of vending machines at prime locations after assessing cost effectiveness, amid a certain recovery in foot traffic. Vending value share continued to grow for 36 consecutive months.」

「Vending grew 1% in the nine-month period through the third quarter, due to the delayed recovery in foot traffic and the impact of unfavorable weather in August. Although the challenging market environment continues, new products, mainly unsweetened tea and water, contributed, and vending value share continued to grow for 30 consecutive months. Results were also seen in July, when sales volume increased 11% as consumer traffic began to recover.」

「Vending grew 18% in the second quarter, partly due to the recovery in consumer traffic in April after the state of emergency had been lifted, and grew 2% in the first half. Sales per vending machine also recovered, particularly at outdoor locations. Although the challenging market environment continues, vending value share has continued to grow for 27 consecutive months.」

「Both value share and volume share in the important vending channel grew year on year, with value share growing for 24 consecutive months.」

「Vending value share continued to grow, improving year on year for 18 consecutive months. To improve share in the takeaway market, the company implemented targeted promotional investment in the fourth quarter (October–December) in line with the gradual recovery in demand.」

「Accelerate implementation of the operational structural transformation of the important vending channel and complete the rollout across all company regions 6 months ahead of schedule, by the end of the first half」

「As part of the operational structural transformation of the important vending channel, the company decided to bring forward to the first half the rollout across all company regions, based on the favorable results of the pilot test conducted in the Kinki region.」

「For the important vending channel, we aim to achieve sustainable growth by expanding the rollout of the operational process restructuring launched in the Kinki region in 2019 and increasing installations in prime, highly profitable locations.」

「In addition to our cost reduction initiatives to date, we expect to reduce costs by approximately ¥35 billion over 5 years through new initiatives, including transforming the vending business, strengthening sales and market execution capabilities, and identifying procurement and supply chain opportunities to offset expected future cost increases.」

「In addition, to revitalize the important vending channel, we established the Vending Business Division and will strengthen activities such as working with Coca-Cola (Japan) Company, Ltd. as “one team” from strategy formulation through market execution.」

「Launch of the “Vending Strategy Project” to drive renewed growth and business structural transformation in the vending (vending machine) channel」

「In addition, to build a competitively advantaged vending business model, we will strengthen efforts targeting priority issues that improve productivity and efficiency, and introduce IT solutions to expand sales.」

「In the vending channel, we actively installed the latest vending machines to expand sales and reduce environmental impact. In addition, from April we began providing the smartphone-only app service “Coke ON,” linked to vending machines, and conducted various promotions exclusive to vending machines.」

「“Transformation of the vending business: Review every business process from strategy formulation through execution management from the ground up, and build a transformation model that can continue to win even in a challenging market environment.”」

「“Transformation of the vending business: Review every business process from strategy formulation through execution management from the ground up, and build a transformation model that can continue to win even in a challenging market environment.”」