Coca-Cola Japan to integrate four Tokyo area bottlers
Coca-Cola Japan plans to integrate its bottlers Coca-Cola Central Japan, Mikuni Coca-Cola Bottling, Tokyo Coca-Cola Bottling and Tone Coca-Cola Bottling in the Greater Tokyo Region as Coca-Cola East Japan Bottling (CCEJ) in 2013.
CCEJ will represent around 47% of total annual Coca-Cola system unit case volume in the country.
The company will retain the franchise rights to produce, distribute and sell The Coca-Cola Company's brands in the territories now served by the four individual Kanto-area bottlers.
With this integration and shares owned in the four bottling companies, including the acquisition of a 22% stake in the Mikuni, The Coca-Cola Company will hold a 33% minority stake in CCEJ.
Coca-Cola Japan president Daniel Sayre, in a statement, said that with around 7,000 employees, 10 manufacturing plants and 150 distribution warehouses CCEJ will serve customers in the important Kanto region.
"This announcement represents a continued strong commitment by our bottling partners to the continuous evolution of the franchise bottling system and to sustainable growth in the Japan business, particularly in the dynamic Kanto and East regions of Japan," he added.
The proposed transaction is expected to be closed by 1 July 2013.
Established in 1957, Coca-Cola Japan offers more than 50 sparkling and still brands, including Coca-Cola Zero, Georgia, Aquarius and Sokenbicha, in Japan.