Ko 2020 Japan

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Ko 2020 Japan

  1. 1. Japan – Growth In An Evolving, Developed Market Dan Sayre President, Japan Business Unit
  2. 2. A Growing $60 Billion Business In A Mature Market 2000-2008 MM Unit Case Volume CAGR (%) Category 4,000 Nonalcoholic RTD Beverage Market 3,500 +2 Other 3,000 +11 Water +1 Energy 2,500 +3 Sports 2,000 +3 Tea 1,500 -3 Juice 1,000 +1 Coffee 500 +1 Sparkling 0 1980 1985 1990 1995 2000 2005 2008 Source: All Japan Soft Drink Bottlers Association & Nikkan Keizai Tsushinsha
  3. 3. A Growing $60 Billion Business In A Mature Market 2008 2000-2008 Percentage 2008-2020 MM Unit Case Volume CAGR (%) Category of Total CAGR (%) 4,000 Nonalcoholic RTD Beverage Market 3,500 +2 Other Other 5% 0 3,000 +11 Water 13% +2 +1 Energy Energy 2% +2 Sports & 2,500 +3 Sports 9% Wellness +1 2,000 +3 Tea 29% +1 1,500 -3 Juice Juice 11% +1 1,000 +1 Coffee Coffee 16% +1 500 +1 Sparkling Sparkling 15% +2 0 1980 1985 1990 1995 2000 2005 2008 2020 0.5 pt conversion / year = $800 MM incremental retail value / year Source: All Japan Soft Drink Bottlers Association & Nikkan Keizai Tsushinsha
  4. 4. Well Positioned To Lead Growth #1 Coffee #1 Sparkling #1 Sports Mental Renewal & Energy Uplifting & Social Occasions Replenishment & Vitality #2 Juice #2 Tea - #1 Blended Tea #1 Personal Water Purposeful Nutrition Meal Occasions & Refreshment Hydration & Detox Source: Intage and Shokuhin Marketing and $17 Bn Diversified Beverage Portfolio Japan Soft Drink Association (2008)
  5. 5. An Emerging „New Normal‟ Impacting Japan Strong Eco Mindset Rapidly Aging Society Shift of Price - Value Equation 25% Reduction New Government’s Commitment 50+ Age = 43% Of Population - ¥140 In Lunch Budget Consolidation & Blur Break-up of of Trade Channels Homogeneous Consumers New Formats = 130% Of Growth Widening Equality Gap +20% …Overlapping Long-Standing Fundamentals #2 Global Discerning & Demanding Trend Setting & Relentless Consumer Economy Consumers Fashion Oriented Innovation
  6. 6. Continued Growth Over the Past Decade KO Japan Total Unit Case Volume (In MM) 12 Month Moving Total 1,000 950 900 850 800 750 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
  7. 7. 2020 Growth Strategies Expand Portfolio To Address Underserved Age Groups Innovate Brand / Pack / Price Offerings For „New Normal‟ Invest In Hot / Cold Equipment For New Occasions Lead Industry Sustainability And Eco Initiatives Reshape Bottling System To Unlock Latent Value
  8. 8. Reigniting Profitable Growth Of Sparkling KO Japan Core Sparkling 2009 vs 2006 +5 % +15 % Unit Case CAGR* Immediate Consumption Transactions* KO Core Sparkling Volume* (MM unit cases) 278 263 252 236 2006 2007 2008 2009 +7 MM New Drinkers +3 MM Household Penetration** Sep 2009 vs. Jan 2007. Source: B3, total population *12 MMT Sept 2009 vs 2006 **Source: Intage Sept 2009 vs 2006
  9. 9. Strong Innovation Is Driving Growth +2%* +35%* 3%* Connecting Attracting Sourcing From Digitally With 40+ Year Olds Adjacent Teens Categories Coke Zero + Diet Coke in 2009 vs Diet Coke in 2006 *Sept 2006 YTD to Sept 2009 YTD CAGR
  10. 10. Diversify Georgia Pack / Price For „New Normal‟ VALUE CORE UPSIZE/ VALUE PREMIUM ¥100 ¥120 ¥120-130 ¥130 ¥130-140 ¥160 % Mix Future 5% 65% 5% 25%
  11. 11. New Georgia Campaign: Yokoso Georgia Exciting Merchandising Recognizing Hard Working Men
  12. 12. Hot / Cold Equipment For New Occasions Continue To Lead In Eco-Vending & Cashless Lead With State Of The Art Design E40 Solar Panel HFC-Free 3D Design 3D Design Freestyle 40% Less Energy Vendor Cooler Fountain More Space In More Outlets 100% Coverage By 2020 Zero Block Hot and Cold Account Specific Coolers Equipment Opportunities Today 10% 2020 100%
  13. 13. Lead in Sustainability With Eco Innovations #1 Water In Personal Packs #1 Blended Tea In Japan • Launched May 2009 • First ever tea made from plants both • Lightest package in Japan “inside and out” • #1 brand in convenience stores • 30% renewable plant-based material and supermarkets launching soon
  14. 14. Capturing More Value From A $60 Billion Industry And Inspiring The Entire System With Winning Innovation

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