The Coca-Cola system in Japan publicizes information on our...

50
Printed Edition Online Edition Structure of the Coca-Cola Sustainability Report 2010 Other Online Edition Communication Tools Coke Town Hello! Coca-Cola This website highlights the connections between Coca-Cola system products and the lives of consumers, allowing visitors to take a virtual tour of a plant and also learn about the product life cycle (from production and sales to container recycling) and our programs to contribute to local communities. Explains topics that include the production process for Coca-Cola system products, the history of Coca-Cola , environmental initiatives, efforts to promote container recycling, and contributions to local communities. Presents the products sold by the Coca-Cola system, grouped by beverage category, and allows consumers to easily view brand information for the extensive lineup of products, including Coca-Cola , Georgia , and Aquarius . Coca-Cola Japan presents information regarding corporate social responsibility (CSR) for all of our stakeholders in Japan—including consumers, business partners, employees, and local communities. We have compiled information for both the printed and on-line editions in line with readers’ perspectives and aims, and have strived to make our CSR initiatives clear to the widest range of people possible. The Coca-Cola system in Japan publicizes information on our corporate activities under the structure outlined below Website can be accessed at the URL below: Website http://cocacola.co.jp/study/coketown/ Website can be accessed at the URL below: Website http://cocacola.co.jp/corporate/publication.html Website http://cocacola.co.jp/positively/report.html Sustainability Website Product Brochure Provides information compiled with our stakeholders in mind, such as updates in real-time on CSR activities, as well as the online edition of the Coca-Cola Sustainability Report 2010 Mainly comprised of articles that present the main initiatives of the Coca-Cola system. Contains the information from the printed edition as well as more detailed information and various types of data. Website can be accessed at the URL below: Website http://cocacola.co.jp/positively/ Website can be accessed at the URL below: Website http://cocacola.co.jp/products/ 1 Structure of Sustainability Report 2010

Transcript of The Coca-Cola system in Japan publicizes information on our...

Printed Edition

Online Edition

Structure of the Coca-Cola Sustainability Report 2010

Other Online Edition Communication Tools

Coke Town

Hello! Coca-Cola

T h i s w e b s i t e h i g h l i g h t s t h e

connections between Coca-Cola

system products and the lives of

consumers, allowing visitors to take

a virtual tour of a plant and also learn

about the product life cycle (from

production and sales to container

recycl ing) and our programs to

contribute to local communities.

Explains topics that include the production

process for Coca-Cola system products,

the history of Coca-Cola , environmental

initiatives, efforts to promote container

recycl ing, and contr ibut ions to local

communities.

Presents the products sold by

the Coca-Cola system, grouped

by beverage category, and

allows consumers to easily view

b rand i n fo rma t i on f o r t he

extensive lineup of products,

including Coca-Cola , Georgia ,

and Aquarius.

Coca-Cola Japan presents information regarding corporate social responsibility (CSR) for all of our stakeholders in Japan—including consumers, business partners, employees, and local communities. We have compiled information for both the printed and on-line editions in line with readers’ perspectives and aims, and have strived to make our CSR initiatives clear to the widest range of people possible.

The Coca-Cola system in Japan publicizes information on our corporate activities under the structure outlined below

Website can be accessed at the URL below:

Website http://cocacola.co.jp/study/coketown/

Website can be accessed at the URL below:

Website http://cocacola.co.jp/corporate/publication.html

Website http://cocacola.co.jp/positively/report.html

Sustainability Website

Product Brochure

Provides information compiled with our stakeholders in mind,

such as updates in real-time on CSR activities, as well as the

online edition of the Coca-Cola Sustainability Report 2010

Mainly comprised of articles that present the main initiatives of

the Coca-Cola system.

Contains the information from the printed edition as well as more

detailed information and various types of data.

Website can be accessed at the URL below:

Website http://cocacola.co.jp/positively/

Website can be accessed at the URL below:

Website http://cocacola.co.jp/products/

1

Str

uctu

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f S

usta

inab

ility

Rep

ort

2010

1 Structure of the Coca-Cola Sustainability Report 2010

2 Contents / Editorial Policy

3 Overview of Coca-Cola (Japan) Co., Ltd.

4 The Coca-Cola System in Japan

5 Message from the President

7 “Live Positively”

9 4 Business Areas and 7 Priority Areas for Achieving “Live Positively”

11 The Same Concept for a Variety of Actions: My “Live Positively”

45 The Coca-Cola System Worldwide

47 Data on Environmental Initiatives in 2010

49 Stakeholder Opinions

13Coca-Cola Dialog (1)

What We Can Do to Help Consumers Lead Healthy and Comfortable Lives?

17 Beverage BenefitsCreating New Value in Response to Consumer Needs

25 Active, Healthy Lifestyle

Marketplace

27Coca-Cola Dialog (2)

Our Challenge of Pursuing “Sustainable Packaging”

31 Environmental Management

33 Energy Management & Climate Protection

35 Sustainable Packaging

39 Global Water StewardshipTopics

Environment

41 Community

Community

43 Workplace

Workplace

We prepared this report in order to convey to stakeholders

information on the corporate activities of Coca-Cola (Japan)

Co., Ltd. and the Coca-Cola system in Japan to help realize

a sustainable society.

* The Coca-Cola system in Japan consists of Coca-Cola (Japan)

Co., Ltd., which is responsible for manufacturing and sales of

concentrates as well as marketing of beverage products, and the

bottling partners that produce and sell Coca-Cola system products

throughout Japan. For further information on the Coca-Cola

system, see pages 3–4.

Our goal in preparing this report has been to provide

information in a systematic, easy-to-understand format, and

to this end we consulted both the Japanese Ministry of the

Environment’s Environmental Reporting Guidelines (2007

edition) and the Global Reporting Initiative’s Sustainability

Reporting Guidelines (3rd edition).

Coca-Cola (Japan) Co., Ltd. has published a report once a

year ever since our inaugural Environmental Action Report

2002. The name of the report was changed in 2005 to the

Coca-Cola CSR Report, which in turn was changed to the

Coca-Cola Sustainability Report in 2009. Information is

provided on the marketplace, environment, community, and

the workplace, which are the four primary points of contact

between the Coca-Cola system and our stakeholders.

ContentsC o c a - C o l a S u s t a i n a b i l i t y R e p o r t 2 0 1 0

Editorial Policy for Coca-Cola Sustainability Report 2010

Data presented in this report, relating to production,

distribution/transportation, and sales, was collected from

Coca-Cola (Japan) Co., Ltd. (one plant) and 12 bottling

partners (28 plants and 466 sales offices; as of December

31, 2009). The sales figures presented are for reference

purposes only.

Data is for the period from January 1 to December 31,

2009.

As a general rule, activities described in this report took

place between June 2009 and June 2010.

Scope of Data

The term “consumers” is used in this report to refer not only

to those who purchase Coca-Cola system products but

also to people in general.

“The Coca-Cola Company” refers to the headquarters in the

United States; “Coca-Cola (Japan) Co., Ltd.” or Coca-Cola

Japan refer to Coca-Cola (Japan) Company, Limited; the

term “bottling partners” refers to the 12 bottling companies

Coca-Cola Japan has designated; and “the Coca-Cola

system” includes Coca-Cola Japan and our bottl ing

partners.

Terminology

This issue was released in July 2010

2

Co

nte

nts

/ Ed

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l Po

licy

The Coca-Cola system in Japan meets the needs of consumers with a diverse product line-up that includes over 60 different brands.

Core Products

The Coca-Cola Company is the world’s largest beverage company, refreshing consumers with approximately 500 sparkling and still beverage

brands. Along with Coca-Cola , recognized as the world’s most valuable brand, the company’s portfolio includes brands that lead their

respective categories, such as Coca-Cola Zero, Fanta, Georgia, Sprite, and Minute Maid. Consumers throughout the world enjoy the company’s

beverages, with more than 1.6 billion servings consumed daily.*

Coca-Cola (Japan) Company, Limited was established in 1957 as the Japanese subsidiary of The Coca-Cola Company (head offi ce: Atlanta, Georgia, USA), marking the beginning of full-fl edged operations in Japan. Originally incorporated as Nihon Inryo Kogyo K.K., the company name changed to Coca-Cola (Japan) Company, Limited in 1958 and has been retained to this day.

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

Profi le of Coca-Cola (Japan) Co., Ltd.

Coca-Cola (Japan) Company, Limited 3.6 billion yen

June 25, 1957 as Nihon Inryo Kogyo K.K.

Changed name to Coca-Cola (Japan) Company,

Limited on March 15, 1958

The Coca-Cola Export Corporation

(Subsidiary of The Coca-Cola Company)

4-6-3 Shibuya, Shibuya-ku, Tokyo, Japan 150-0002

TEL: +81-3-5466-8000

555 (as of March 31, 2010)

Moriyama Plant (Moriyama City, Shiga Prefecture)

Manufacture and sales of non-alcoholic beverages (soft drinks)Daniel H. Sayre (Representative Director and President)

Name Capital

Established Shareholder

Headoffi ce

Employees

Plant

BusinessRepresentative

Sparkling beverages Coffee

Sports drinks

Energy drinksWater Juice Lifestyle specifi c drinks

Tea

*Quantity of Coca-Cola system products consumed worldwide based on one serving = 237ml

Coca-Cola

Aquarius

Mori-no-mizu Dayori I LOHAS Real Gold QooTottemo-Apple

QooTottemo-Orange

Minute MaidPink Grape Fruit Blend

Minute MaidCassis & Grapes

glacéau vitaminwaterpower-c

glacéau vitaminwaterxxx

Love Body

Aquarius Vitamin guard Aquarius Day-Start Sokenbicha Sokenbicha Kurosae Huang Ayataka Karada Meguri-cha Kochakaden

Coca-Cola Zero Fanta Grape Fanta Orange Sprite Canada Dry Ginger Ale GeorgiaEmerald Mountain Blend

Georgia European Georgia Vintage iily issimo

3

Overv

iew

of C

oca-C

ola

(Jap

an) C

o., L

td.

Bottling Partners Territories

1 Hokkaido Coca-Cola Bottling Co., Ltd. Hokkaido

2 Michinoku Coca-Cola Bottling Co., Ltd. Iwate, Akita, Aomori

3 Sendai Coca-Cola Bottling Co., Ltd. Miyagi, Fukushima, Yamagata

4 Tone Coca-Cola Bottling Co., Ltd. Chiba, Ibaraki, Tochigi

5 Mikuni Coca-Cola Bottling Co., Ltd. Saitama, Gunma, Niigata

6 Tokyo Coca-Cola Bottling Co., Ltd. Tokyo

7 Coca-Cola Central Japan Co., Ltd. Kanagawa, Shizuoka, Yamanashi, Aichi, Gifu, Mie

8 Hokuriku Coca-Cola Bottling Co., Ltd. Toyama, Ishikawa, Fukui, Nagano

9 Shikoku Coca-Cola Bottling Co., Ltd. Kagawa, Ehime, Kochi, Tokushima

10 Coca-Cola West Co., Ltd.Fukuoka, Saga, Nagasaki, Hiroshima Okayama, Yamaguchi, Shimane, Tottori,

Osaka, Kyoto, Hyogo, Nara, Shiga, Wakayama

11 Minami Kyushu Coca-Cola Bottling Co., Ltd. Kumamoto, Kagoshima, Miyazaki, Oita

12 Okinawa Coca-Cola Bottling Co., Ltd. Okinawa

Planning R&DConcentrate

manufacturing ProductionDistribution/

Transportation Sales Collection Recycling

Coca-Cola (Japan) Co., Ltd. Bottling Partners / Affi liates

Coca-Cola Tokyo R&D Co., Ltd. Coca-ColaBusiness Services Co., Ltd.

Coca-ColaCustomer Marketing Co., Ltd. FV Corporation K.K.

Established in January 1993, with 100% capitalization by The Coca-Cola Company. The company has been providing product development and technological support that meet the regional needs of Asia since becoming an independent company in January 1995 af ter separat ing f rom the technological development division centered in the U.S. headquarters.

Established in January 2009 through a jo int investment between The Coca-Cola Company and all of the bott l ing partners in Japan. I t is responsible for business consulting for the Coca-Cola system in Japan, the development of information systems to support such consulting, as well as related general maintenance and administrative work. The company also conducts joint procurement of ingredients and raw materials.

Established in January 2007 as a joint investment between Coca-Cola Japan and all of its bottling partners. I t serves as the central point of contact for business negotiations with major nat ional d istr ibut ion chains.

Established in May 2001 as a joint investment between Coca-Cola Japan and all of its bottling partners. It conducts sales in the vending machine business to corporations whose territories cover a wide area.

The bottling partners purchase concentrate from Coca-Cola Japan and then use it to manufacture

products for sale. There are 12 bottling partners in Japan, each with its own sales territory.

Total employees About 23,000 Affi liates 17 Plants 29Including the Moriyama Plant (manufacturing concentrates)

Vending machines About 980,000 Warehouses 466

Retail outlets About 1.13 million Sales routes About 9,300 Delivery trucks About 7,500

The Coca-Cola System in Japan

The Coca-Cola system in Japan comprises Coca-Cola Japan, which supplies, manufactures, and markets concentrates, plans and develops new products, and conducts advertising and marketing activities; our bottling partners, which manufacture and sell products throughout Japan; and other affi liated companies.The Coca-Cola system seeks further growth by optimizing our overall operations, including more efficient production, a thorough consumer-oriented approach, faster response to market preferences, enhanced customer services, and rigorous quality control.Coca-Cola Japan enjoys strong partnerships with other members of the system and collaborates closely with them in our business activities.

The Coca-Cola System in Japan

Bottling Partners1

2

3

6

4

5

10 7

8

12

11

9

4

The C

oca-C

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Syste

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Jap

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M e s s a g e f r o m t h e P r e s i d e n t

Ever since its birth back in 1886 in Atlanta, Georgia, The Coca-Cola

Company has continued to grow along with the regions in which it

has conducted its beverage business, under the slogan: “anytime,

anywhere, anyone.” Today, Coca-Cola system products are sold in

over 200 countries around the world, which exceeds the number of

UN member-nations. Even amidst the dizzying changes society is

undergoing on a global scale, which include environmental issues

and the economic situation, we have put forward our global business

guiding principle of “Live Positively” in carrying out activities that

enable us to continue achieving sustainable growth as a company.

Specifically, in the four key areas of The Coca-Cola Company’s

business (Marketplace, Environment, Community, and Workplace), we

have implemented initiatives with a focus on the following seven

central themes: Beverage Benefits; Active, Healthy Lifestyle; Energy

Management & Climate Protection; Global Water Stewardship;

Sustainable Packaging; Community; and Workplace. We will spare no

effort in continuing these efforts.

The launch of our new water brand I LOHAS is one key example of an

achievement in 2009 with regard to the themes listed above. I LOHAS

comes in the lightest 520ml PET bottle produced domestically,

weighing in at only 12g.* The bottle is produced using fewer materials

and has the unique feature of being easily crushable after use (even

by children), thereby providing consumers with a convenient and fun

way to be more considerate to the environment and enhancing their

environmental awareness. These features of the bottle have garnered

praise and led to widespread support for the brand.

This success story, which concerns the area of “sustainable

packaging” among the priority initiatives listed, was made possible

through the combined efforts of employees who are supporting the

Coca-Cola system’s business in their respective fields, including R&D,

marketing, production, and sales.

This report includes details on this and other achievements made in

2009 through our activities in the seven priority areas listed above.

In the case of some initiatives, achieving the goals set requires

persistent effort over the medium- to long-term. However, if we look

back on the history of The Coca-Cola Company, which has survived

major hardships in its 124 years of existence, we are convinced that

we will be able to overcome the great challenges we face today to

achieve our goals. We are determined to work as a single team under

the common principle of “Live Positively” so that, together with

consumers, our beverage business brings positive change to the

world and helps realize a sustainable society.

For the Realization of Social and Corporate Sustainable Growth

*I LOHAS is packaged in the lightest PET bottle in Japan for products of 550ml or smaller (as of March 2010; according to research by Coca-Cola Japan)

ザ コカ・コーラ カンパニーは1886年に米国ジョージア州アトランタ

で誕生して以来、「いつでも、どこでも、誰にでも」をモットーに清涼飲料

事業を展開している地域とともに成長して参りました。現在では、国連加

盟国数を上回る世界の200を超える国でコカ・コーラ社製品を販売して

おりますが、地球環境問題や経済状況など世界規模で目まぐるしく変化す

る社会の中にあっても、持続的成長が達成できる企業であり続けるため

に、世界共通の事業指針として「Live Positively(リブ・ポジティブリー)

-世界をプラスにまわそう-」を打ち出し、事業活動を展開しています。

具体的にはザ コカ・コーラ カンパニーの事業活動にとって最も重要な意

味を持つ「市場」「環境」「社会」「職場」の4つの領域において、「飲料

価値」「活動的/健康的な生活習慣」「温暖化防止・エネルギー削減」「サス

ティナブル・パッケージ(持続可能な容器)」「水資源保護」「地域社会」

「職場」を7つの重点分野として取り上げ、さまざまな取り組みを実施して

おり、私たちはその取り組みを継続するための努力を惜しみません。

これら重点分野における2009年度の私たちの実績の中から、ひとつ

の象徴的とも言える成果をご紹介しましょう。それは、新ウォーターブランド

「い・ろ・は・す(I LOHAS)」の導入です。「い・ろ・は・す(I LOHAS)」は

国内製造の520mlPETボトルで国内最軽量※となる12gのボトルを

採用しました。

これによって、パッケージ製造時に使用する資源を削減するととも

に、飲用後の空容器はお子様でも簡単にしぼってつぶすことができると

いう特長から気軽に、そして楽しく環境に配慮したライフスタイルを実践

する機会を消費者のみなさまに提供し、環境問題に対する意識を高めて

頂くきっかけにもなりました。こうしたことが評価され、多くの方々からの

高いご支持を得ることができました。

前述の7つの重点分野では「サスティナブル・パッケージ(持続可能な

容器)」の取り組みにあたるこの成功事例は、研究開発、マーケティン

グ、製造、販売などコカ・コーラシステムの事業活動を支えるさまざまな

領域の従業員の努力の結晶がもたらした成果でもあります。

本レポートにはこの事例以外にもこれら7つの重点分野における

2009年度の私たちの活動の詳細な報告が収められています。

中には、目標を達成するために中・長期的に粘り強い努力を必要とす

る取り組みもあります。しかし、ザ コカ・コーラ カンパニーが幾度となく

大きな試練に堪え、124年の歳月を積み重ねてきた歴史を振り返る時、い

ま私たちの目の前に広がる大きな挑戦も必ずや達成できるものと信じて

います。そして清涼飲料事業を通じて消費者のみなさまとともに世の中に

前向きな変化を生み出し、持続可能な社会を実現するため、事業指針

「Live Positively -世界をプラスにまわそう-」を柱として従業員一丸と

なって取り組んで参ります。※2010年3月時点/国内製造品550ml以下PETボトル対象(弊社調べ)

5

Messag

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Daniel H. SayreRepresentative Director and PresidentCoca-Cola (Japan) Company, Limited

6

Messag

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7

Liv

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ely

“Live Positively” in Our Activities

The Coca-Cola system views efforts toward the realization of a sustainable society as a

“community license” necessary for engaging in business activities.

We believe fulfi lling our corporate responsibility—by providing the market with safe and

reliable products, treating employees fairly, respecting the global environment we live in,

and contributing to the local community—will earn us the support of the communities in

which we operate. As part of this effort, we are implementing our global “Live Positively”

principle and supporting the health of local communities through our main business, while

paying attention to the way we utilize our resources and assets. Our wish is to see society

sustainably managed.

The most important element in the performance of day-to-day operations, from the

perspective of sustainability, is building relationships of trust through dialogue with

stakeholders. Earning the trust of consumers, business partners, local communities,

employees, and all other stakeholders enhances the corporate value of the Coca-Cola

system and leads to sustainable growth.

“Live Positively” is a guiding principle for our business adopted by the Coca-Cola system worldwide.

Through beverage production and sales, we aim to make a positive contribution, achieving sustainable growth as a corporation

together with the community.

8

Liv

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ositiv

ely

Beverage Benefits

Global Water Stew

ardship

Sustainable Packaging

Loca

l com

mun

ity

W

orkpl

ace

Energy Management & Climate Protection

Active, Healthy Lifestyle

Com

mun

ity

W

orkp

lace

Marketplace

Environment

CSR of the Coca-Cola system

Consumers

Share owners/Investors

Employees Business partners

Local community

Corporate

Go

vernanceLeg

al

Co

mp

l ia

n ce

Sustainable Society

4 Business Areas and 7 Priority Areas for Achieving “Live Positively”

CSR Framework of the Coca-Cola System

9

“Liv

e P

ositiv

ely

We strive to provide consumers with

safe, high-quality products and

make an effort to meet the changing

needs and tastes of consumers.

We a lso work in c lose, act ive

coordination with our business

partners on everything from product

manufacturing to sales.

Improved environmental initiatives

are one of the Coca-Cola system’s

most important areas of focus.

We proactively carry out programs

and projects that contribute to the

health and sustainabi l i ty of the

environment and natural resources,

as part o f the ef for t to rea l ize

sustainable societies.

We provide children and younger

p e o p l e w i t h a w i d e r a n g e o f

environmental, sports, cultural, and

educational programs. We also

coordinate with local governments

and communities to address local

needs, including disaster relief.

We continue to foster safe and

enriching workplaces that inspire

our diverse workforce and enhance

their motivation and sense of pride.

Beverage Benefi ts

To deliver safe products that satisfy the various needs of consumers,

which include refreshment, rehydration, nutrition, and enjoyment, we

spare no effort in acquainting ourselves with consumers in order to

better understand their interests and concerns.

Active, Healthy Lifestyle

To help consumers lead active, healthy lifestyles, we provide

information and encourage active lifestyles through sponsorship of

both international and local community events.

Energy Management & Climate Protection

Global warming and other aspects of climate change are potentially

very harmful to communities around the world. We will work to

lessen the impact of CO2 and other greenhouse gases by curbing

emissions from our business activities.

Sustainable Packaging

We will continue to pursue innovative technologies that will help

minimize the utilization of natural resources for packaging. And we

are also building systems to reuse recycled packaging materials in

the manufacturing process.

Global Water Stewardship

We will reduce the amount of water used in production, recycle

water used in manufacturing, and return it safely to the environment.

Our goal is to replenish as much water as we use for our products.

Community

We value our ties with local communities and have an obligation to

satisfy local needs. Our business will not grow unless the surrounding

communities are also robust.

Workplace

We aim to provide workplaces that allow all the people involved in

our business to work in diverse and open environments. We will

foster environments allowing each individual to aim for progressive

improvements and to perform to the best of their individual abilities.

Approach Priority Areas

“Live Positively” is a medium- to long-term guiding principle for our business aimed at contributing to the realization of a sustainable society by carrying out the everyday business operations to achieve business growth while at the same time contributing to people and the society at large. A priority task for the Coca-Cola system in Japan moving forward is to focus in particular on the "Marketplace" and “Environment,” which are the subject of particularly high social demand of the four business areas listed below. Our aim is to continue to pursue growth along with the community by providing consumers with products they enjoy and contributing to the preservation of the environment.

Marketplace

Environment

Community

Workplace

10

“Liv

e P

ositiv

ely

The Same Concept for a Variety of Actions: My “Live Positively”

The activities each person is involved in and the approach taken

may differ, but the “Live Positively” concept of contributing to the

community is the same. Here we look at individual initiatives

taken by Coca-Cola system employees across Japan—from

Hokkaido to Okinawa.

I take special measures to maintain proper vehicle distanceTakashi MaekawaDistribution Sales Division I, Fukushima Sales Offi ceSawayaka Logistics Co., Ltd.Sendai Coca-Cola Bottling Group Co., Ltd.Of course, I turn off my engine when s t o p p e d , r e g u l a r l y c h e c k m y t i r e pressure, and keep an eye on my engine’s RPMs, but I go beyond that by also taking into consideration my effect on cars around me. For example, I always pay attention to not drive too close to the vehicle in front of me so that the other driver does not waste gas by suddenly accelerating.

Making company

Clean Day part of my own

personal life

Kei YonamineManufacturing Section,

Procurement Planning Division

Okinawa Coca-Cola Bottling Co., Ltd.

Once a month in Okinawa Coca-Cola, we have

company Clean Day, where we clean up the

area surrounding the company. In my own

private life, I always strive to leave places like

parks cleaner than when I got there by cleaning

up my own garbage and that of others nearby. I

also use some of the lessons of teamwork

learned through my twice-weekly basketball

games with neighborhood friends to help meet

the goals in my workplace.

Bringing good feelings to local consumers through well maintained vending machines

Kazuya MoriShodoshima Branch, Takamatsu Sales Offi ce, Kagawa Annex, Business DivisionShikoku Coca-Cola Bottling Co., Ltd.

Our vending machines located throughout cities are a major part of the Coca-Cola system’s public presence. I clean the vending machines I’m in charge of every day to keep them sparkling. The other day, a customer said to me: “You’re very considerate to always keep the vending machines in front of our store clean.” These words impressed on me again that polishing our presence contributes to customer’s peace of mind and safety, and made my efforts feel worthwhile.

Inspired by highly-aware students

Hiroyuki FutakuchiManagement Division

Hokuriku Recycling Center Co., Ltd.

Hokuriku Coca-Cola Bottling Group

The student government of Matto

Junior High School, which is our local

cus tomer , has led a PET bot t le

recycling effort. Students bring PET

bottles from home to school, where

we collect them. We are surprised

and overjoyed by the dedication of

the students, who made sure to

remove the caps and labels from

the PET bottles and then properly

dispose of that waste. Their efforts

encouraged our own activities to promote

awareness.

Sharing ideas with as many coworkers as possible

Yoshimi AbeHuman Resources Group, Human Resources & General Affairs, Administration DepartmentMichinoku Coca-Cola Bottling Co., Ltd.There are eight people in the Human Resources Group

where I work. And we try to discuss ideas with as many of our coworkers as possible. This is done by actively utilizing the meeting spaces scattered throughout the office to elicit the sort of ideas that are seldom heard when working at one’s desk or in conference rooms. I am also part of the company sandlot baseball team, which offers a great opportunity to think about our relationship with the local community.

I am proud to produce

innovative packaging

Shuichi InabaManufacturing Division III, Production Department,

Sapporo Plant

Hokkaido Coca-Cola Products Co., Ltd.

Hokkaido Coca-Cola Bottling Group

The Sapporo Plant is one of a few sites in Japan

t o m a n u f a c t u r e I L O H A S b o t t l e s . M a n y

challenging technical processes are involved in

creating innovative packaging with minimal

environmental impact, so I am proud of our

m a n u f a c t u r i n g a c t i v i t i e s a n d t a k e m y

responsibilities seriously. We have established

targets for reductions in water and energy

consumption at plants so that operations are

every bit as innovative as the bottles we produce.

Proposing new active lifestyle drinks

Kenji BabaGlaceau & New Growth Platforms, Consumer MarketingCoca-Cola (Japan) Co., Ltd.

The greatest value of glacéau vitaminwater, a colorful drink promoted through a unique marketing strategy, is that it provides a variety of products benefi cial to a consumer’s lifestyle under a single brand. The six glacéau vitaminwater products offer benefits tailored to different times of the day, covering the full 24 hours of a consumer’s daily lifestyle through just one brand. I look forward to continuing to enhance the quality of consumers’ lives.

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The joy and feeling of responsibility in

creating products using the water resources we have worked to protect

Masakatsu UeyamaEnvironment & Public Relations Department

Coca-Cola West Co., Ltd.

Water is an irreplaceable and vital resource

for us as a beverage manufacturer, which

makes it our duty to serve as stewards of

water resources. In 2009, we carried out a

total of eight activities to help protect forest

water sources around the plants in which

Aquarius, providing refreshment during walking and sports activities

Masayuki SatoSports& Energy Category, Consumer MarketingCoca-Cola (Japan) Co., Ltd.

When going to work and on my days off I try to walk for 30 to 45 minutes each day, which is about 2 to 3km. Not only does that help me stay healthy, but also gives me time to think and is an easy way to relax. Aquarius is the optimal drink for quenching my thirst at such times. Fluid replenishment is also important for the activities of athletes. I look forward to continuing to contribute to fl uid replenishment awareness at sporting events such as the National Senior High School Volleyball Tournament, the All Japan High School Athletic Meet (Inter-High), and the Japan U-12 Football Championship.

Vending machines that help vitalize

the local community

Seiya Ogata Vending Machine Business Affairs,

Vending Machine Business Department

Minami Kyusyu Coca-Cola Bottling Co., Ltd.

There are two J2 soccer league club teams with close ties

to the local community in the southern Kyushu area. We

have installed vending machines in the area to support

those teams by providing them with a donation from part

of the proceeds from vending machine sales. In order to

enhance awareness of the need for fl uid replenishment,

we also go to schools to offer Aquarius lecture sessions

and at those events we can feel the intense interest

students have through the range of questions they ask. I

look forward to continuing these activities in the future.

Surveying water source areas to protect valuable water resources

Seiichi TakahashiNagoya Resident, Environment Team,

CSR Promotion Department

Coca-Cola Central Japan Co., Ltd.Implementing “eco-driving” in the way

I drive and the routes I select

Michiko YasudaHarbor Branch II, OCS Oshiage Offi ce

Tokyo Coca-Cola Bottling Co., Ltd.

I am always conscious of the environment when I drive

as part of my job duties. In addition to shutting down

t h e e n g i n e w h e n s t o p p e d a n d m i n i m i z i n g

acceleration and deceleration, I also try to limit my

use of the air conditioner. I also practice “eco-driving”

by checking where I will be going in advance and

selecting a route that minimizes the amount of fuel

and time consumed. I try to conserve water in my

daily life as well, not leaving the water running, and

using a water conservation shower head.

Initiatives with the distinctive Coca-Cola touch

Kenichi NukigawaAsset Management Division, General Affairs DepartmentTone Coca-Cola Bottling Co., Ltd.An effort has been made to incorporate environmentally friendly facilities into our workplace. In addition to adopting LED illumination and ice thermal storage air-conditioning facilities to cut energy consumpt ion, our Kashima Of f ice , which opened last year, aims for a distinctive Coca-Cola touch by incorporating environmentally conscious measures such as using materials fully recycled from PET bottles for the underfl ooring. My personal goal, as well, is to increase the number of ways in which I can contribute to the environment, such as walking to work instead of driving my car.

Thinking about environmental issues with children at Mount Akagi

Tomoya KuriharaTomo Branch, Gunma Branch Offi ce, Business DivisionMikuni Coca-Cola Bottling Co., Ltd.

I participated as an environmental instructor at the October 2009 “Coca-Cola: Learn from the Forest Ecology School” held at Gunma Prefecture’s Mount Akagi. I enjoyed thinking about environmental issues with children, thinning and pruning the woods in the morning, and playing nature-related games in a nearby nature park in the afternoon. I plan on continuing to energetically help with such activities in the future as a way to contribute to local development. I will also strive to reduce my own everyday consumption of resources.

Hisataka InoueGeneral Affairs, Second Manufacturing Section, Tama PlantManufacturing Generalization DivisionCoca-Cola East Japan Products Co., Ltd.The Tama Plant is located near a residential community, so

we work to promote communication with the local residents through our clean-up activities on and along sidewalks near the plant, our efforts to improve traffic safety, and other initiatives. The recycling ratio of our plant waste is an amazing 99.9%. Our coffee grounds are used in disposable pocket warmers and our used tea leaves for cattle feed. We use bio-gas to fuel our boilers for water treatment, and are replacing our heavy oil boilers with gas boilers. We will continue to make such improvements in the future.

Striving for communication in a form only possible for plants neighboring residential communities

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Water s tewardship is v i ta l for a beverage manufacturer. The Coca-Cola Central Japan Products Tokai Plant is ident i f y ing and survey ing water source areas in its role as a Source Water Protection pilot bottling partner. We also invite consumers each year to hands-on workshops at Kanagawa Prefecture’s Lake Miyagase, one of our water sources, as an opportunity to clearly convey our water conservation activities.

we operate. Creating products using the water resources

we have helped protect and delivering them to consumers

is a great joy and also raises our sense of responsibility.

We intend to search for ways to prevent global warming

and reduce energy consumption related to vending

machine operation.

What Do “Health” and “Comfort” Mean to Us?

Ishikawa: First let me tell you a bit about what I do. My staff and I

support athletes and the general public on food matters by providing

dietary advice and coaching and offering lectures. Through our

activities I began to realize certain elements of our support for athletes

who have undergone mental and physical strain could also be used to

help the elderly and the sick. Everyone—whether sick, healthy, or

athletes—has at some point experienced the thrill when our bodies

move in the way we want them to. To me, that’s the essence of

comfort. And once I became aware that the act of drinking is a non-

strenuous way to absorb things into the body at any time, I began to

focus on the importance of drinking.

Nakagawa: Perhaps the key to the Coca-Cola system’s aspirations in

the areas of health and comfort lies in the history of Coca-Cola. The

founder of The Coca-Cola Company, Dr. John S. Pemberton, was a

pharmacist with a deep interest in bioethical issues, as refl ected in the

careful attention he paid to ingredients right from the outset of

developing the product, which I think is a key point.

Kobayashi: I agree. Coca-Cola is celebrating its 124th anniversary this

year and the fact that consumers have continued to drink it over that

long period of time shows how they recognize the value it provides—

as a beverage they can trust that provides enjoyment, refreshment,

and a unique taste. But it’s a fact that some consumers in Japan still

hold a mistaken view of Coca-Cola. In order to encourage as many

people as possible to drink it, we have to engage in a continual effort

to convey that it is safe for everyone to drink. The Coca-Cola

system sometimes refers to such value as “well-being,” using a

broader term than “health” in order to encompass that emotional

aspect.

Ishikawa: The term “well-being” conjures up an image of the

functioning of both body and mind. My impression is it

refers to body and mind in a way that includes a

scientifi c connotation.

Kobayashi: In fact, the concept underlying the current

“Wild Health” advertising campaign for Coca-Cola Zero

is to redefi ne well-being. To deliver a beverage that is

as tasty as Coca-Cola and maintained the wild and

positive brand image of Coca-Cola , but was also

healthy, a trait previously thought incompatible, the

product was literally made sugar and calorie-free. It’s

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Hideaki Matsushita

Senior ManagerMarketing Partnerships & Licensing

Marketing Operations

Manages sponsorship agreements with

athletes and coordinates sponsorship

events.

What can we do, as a beverage manufacturer, to

help consumers lead healthy and comfortable

lives? We were pleased to welcome Offi ce LAC-U

representative Michi Ishikawa, a registered

dietitian who has been advising athletes on

dietary matters, to discuss various aspects of this

topic with associates of Coca-Cola Japan.

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also free of preservatives and artificial flavoring. The basic idea is to

deliver the healthy image and values consumers generally have of tea

and water in a way unique to Coca-Cola.

Beverages Link Body and Mind

Ishikawa: The Coca-Cola brand image conveys not only taste but also

a broad outlook. Depending on the situation, I think it’s okay for

athletes to drink Coca-Cola for refreshment or enjoyment, though I

wouldn’t suggest they drink it all the time. Too much might lead to

excess sugar and calorie levels. But rather than blame specific

products for being incompatible with health, intake has to be viewed

as a whole. Instead of trying to balance out the calories, I tell athletes

under my instruction to learn to switch themselves on and off and to

consume what is necessary for each situation. To a large degree, food

and the mind overlap. In fact, I believe it’s food that links body and

mind, which is why I never judge an item’s suitability only on its

nutritional or functional value.

Matsushita: I think comfort during leisure time is important. Unless

you’re a machine, I would say the constant pursuit of function alone

with stoic persistence is not always benefi cial. At some point, we all

need to unwind mentally.

Ishikawa: You’re absolutely right. My clients drink Coca-Cola to help

them make the most of their leisure time.

Kobayashi: I’m very happy to hear that. Coca-Cola is a very accessible

beverage that people can drink whenever they feel like it. And perhaps

it would be during their leisure time, when they want to relax, that

athletes would feel like drinking Coca-Cola.

Ishikawa: Yes. They seem to get an exhilarating feeling at those times

they drink it, in a way that is hard for a mere spectator like myself to

fully understand.

What We Can Do to Help Consumers Lead Healthy and Comfortable Lives?

Kayo Kobayashi

Senior ManagerCoca-Cola TM GroupSparkling Category

Consumer Marketing

Formulates annual plans for the

Coca-Cola Zero brand and coordinates a

number of Coca-Cola brand projects.

Shinsuke Nakagawa

Project ManagerScientifi c & Regulatory Affairs

Technical Stewardship, Supply Chain & Commercialization

Handles the appropriate scientifi cally-

based labeling in compliance with laws

and regulations, such as the JAS Law and

the Food Sanitation Act, and coordinates

with various industry organizations.

Michi IshikawaBody Refi ning Planner

Office LAC-U Representative

Mainly coaches athletes on nutrition and

provides courses and lectures to instructors,

parents and other interested parties since

1997. Also offers support for medalists and

fi nalists participating in many international

competitions, including the Olympic Games.

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What We Can Do to Help Consumers Lead Healthy and Comfortable Lives?

Health and Comfort Require “Harmony”

Ishikawa: Let’s use athletes as an example. In order to reach a state of

comfort, athletes fi rst have to acknowledge the current state of their

bodies and then set targets for how they hope to be able to move. By

setting deadlines for achieving targets, they naturally begin to see what

it is they should be doing. You could say that this particular state for

each person is the condition of “feeling good.” Translating that into

drinks, we know, for instance, there are many different kinds of tea.

The one you end up drinking depends on how you want to feel and

the condition you want your body to be in. Enjoyment and image are

also important.

Matsushita: With regard to that point, I think product images as

portrayed through advertising and packaging, for example, help

determine the images people have in their minds when they consume

beverages.

Ishikawa: In my own case, I sometimes want to drink Karada Meguri-

cha , sometimes Minute Maid . Basically speaking, eating is about

consuming foods that match the state of your body on a particular

day, rather than counting

up pluses and minuses.

That’s why I use the word

“harmony” instead of

“ b a l a n c e . ” B a l a n c e

implies you are thinking in

t e rms o f p luses and

minuses, such as : “ I

consumed calories here,

so I’ll cut back there.”

Nakagawa: Achieving

harmony sounds hard

because it means you

really need to be in touch

with your own body.

Ishikawa: It’s not diffi cult.

We’re often told when we’ve caught a cold to consume hot and easily-

digestible food, but that will not necessarily be a good nutritional

balance. The reason we recover quickly nevertheless is because such

foods suit energy-depleted bodies, which need to sweat and have

active white blood cells. When such harmony exists between food and

a person’s body, it can reach the desired condition quicker. The

Coca-Cola system already has a fine product lineup. What matters

now is how consumers decide which ones match their bodies.

Matsushita: Athletes might know what they need, but our products are

consumed by a wide range of people—from children to the elderly.

That means an important task of ours is to portray products in a way

that everyone will understand.

Ishikawa: On that point, I know there are legal rules to follow, but

instead of just listing ingredients, I think nutrition information could be

used better to navigate people toward the right products.

Nakagawa: Yes. There are various legal restrictions in place limiting

what we can say up front about the benefits of a product or its

ingredients, but provision to consumers of information on nutrition other

than lists of ingredients is going to grow in signifi cance. In order to meet

the needs of consumers, the Coca-Cola system in Japan has displayed

nutrition information on all products since around 2003, showing calorie

amounts as well as protein, fat, carbohydrate and sodium content.

Since we want to convey whatever we can to aid consumers in the

selection of products, we should think about making available more

general scientifi c knowledge in addition to nutrition information.

Kobayashi: In the case of Coca-Cola and Coca-Cola Zero, nutrition

information appears in a striking layout to spark consumer interest.

Ishikawa: Yes, it’s very easy to understand.

Nakagawa: The Coca-Cola system in Japan

deploys a broad product lineup in order to

meet the diverse needs of consumers and

the glacéau vitaminwater series is part of

that lineup. Packaging for each product in

the series features a story influenced by its

ingredients.

Ishikawa: In the Vancouver Olympic Village, glacéau vitaminwater was

available and I tried out the entire series. I explained the ingredients to

athletes and recommended situations when they might want to drink

particular products. For example I might say, “Theanine helps you

relax so this one is good at this or that time.”

Kobayashi: It’s a new approach to the energy drinks we’ve made

available so far.

Ishikawa: An interesting idea I learned through my conversations with

athletes at that time is that selecting a drink is an opportunity to refl ect

on one’s own body. This is

very important and leads to

what I mentioned before

about harmony. Refl ect on

yourself and make your

selection based on how

you want to be. I think the

process is highly benefi cial.

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Coca-Cola DIALOG 1

Supporting Healthy Bodies and Minds through Sports

Matsushita: If I might change the topic, the Coca-Cola system is very

active in supporting consumers’ physical and mental health through

sports. Activities belong to one of three main categories. The first is

sponsorship of global sporting events like the Olympic Games and the

FIFA World CupTM

. Consumers get to experience the excitement of

watching or listening to sports while enjoying Coca-Cola system

products. The second is provision of opportunities for enjoying

sporting events in Japan, such as having our products consumed at

J-League soccer matches to add excitement to those events. The

third category is broad assistance for sports in local communities.

Ishikawa: Does that involve citizens actually getting out and moving

their bodies?

Matsushita: Yes. Two events we have sponsored for many years are

Inter-High, or the All Japan High School Athletic Meet, and the Japan

U-12 Football Championship. Sponsorship of Inter-High began in

1993. Sponsorship of the Japan U-12 Football Championship began

33 years ago, in 1977. Assistance for sports at the grassroots level is

provided through the more than 70 sponsorship events that are held

each year together with the 12 bottling partners nationwide.

Ishikawa: We really do see the Coca-Cola logo a lot at many

tournaments.

Matsushita: The FIFA World CupTM

is being held this year. Soccer is an

immensely popular sport among children and many of the players they

look up to are foreigners. This makes the FIFA World CupTM

a fantastic

opportunity for those kids to get a glimpse of the wider world. The

Coca-Cola system likes to give children the chance to participate in

such priceless events as the FIFA World CupTM

and—just as we did for

the last FIFA World CupTM

—has put out a call for flag bearers who will

carry national flags on to the pitch before the games.

Ishikawa: It’s definitely a good idea to let them see the real thing. The

Olympics is another event to actually go and see. Children love it.

Kobayashi: They’ll remember it their whole lives.

Matsushita: The Coca-Cola system can provide those opportunities.

And as long as we have the ability to create opportunities for people to

experience sporting events, from the global stage right down to the

grassroots level, then that’s what we will do.

Ishikawa: Right. Because even players good enough to be in the

World Cup and Olympic athletes start out by experiencing sports

locally.

Into the Future

Ishikawa: Coming here today, I’ve been amazed at how many

products from the Coca-Cola system there actually are. In the future

approach you take toward drinking—for all age groups, from children

through to the elderly—I’d like to see you present products in ways

suited to different needs, which can vary even within a single family.

Kobayashi: Talking with you today, it really struck me when you

pointed out that human beings are able to drink from the moment

they’re born until their very last moment, even if they’re unable to eat.

As an employee of a company selling beverages, reacquainting myself

with the act of drinking could very well broaden my thinking. I have

ideal pictures in my mind of situations where whole families happen to

be drinking our products, days full of opportunities for drinking them,

and brands chosen from one situation to the next that all happen to

be products from the Coca-Cola system. And so I want to carry on

putting forward new and easy-to-understand ideas.

Nakagawa: What really left an impression on me was the idea that our

bodies and minds are so closely connected. We have a tendency to

view things from the perspective of the product brand and I’m not

sure if we’ve given much thought to the mind. I’d like to go deeper

now in our pursuit of comfort.

Matsushita: I’m of the same sentiment and was likewise impressed. I

feel that our supporting consumers’ physical and mental health

through sport and the aspects of comfort and harmony you talk about

are quite compatible, and it has given me confidence. I was reminded

how important it is, not only in marketing but also as a corporate

stance, that we continue such activities.

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Continuously Evolving Zero-Calorie Beverages

Sports Drinks for a Variety of Situations

Coca-Cola Zero, a Beverage Consumers Can Enjoy without Worrying about Calories

The Coca-Cola system has been rolling out zero-calorie beverages

as one approach to creating products that support the healthy

lifestyles of consumers. Coca-Cola Zero, which contains no sugar or

preservatives, was revamped in February 2010, adding “zero artifi cial

fl avorings” to its list of features. Consumers can enjoy the great taste

of Coca-Cola without worrying about calories, preservatives, or

artifi cial fl avorings. In April 2010, we launched Coca-Cola Zero Free,

which keeps the great taste and stimulating

carbonation of Coca-Cola Zero while taking the

“zero” concept to the next level. In addition to

containing no sugar, preservatives, or artificial

fl avorings, it is also caffeine-free.

We have also developed zero calorie versions

of Canada Dry and Fanta , conta in ing no

preservatives and made with pure water.

Aquarius Pro Recovery Shot was launched in March 2010 as the

latest addition to the Aquarius sports drink brand that fi rst appeared

in April 1983. The new product is the first case of collaboration

between Aquarius, dedicated to fl uid replenishment based on sports

science, and adidas, dedicated to athletic performance. Its focus is

on efficiently using energy during exercise. With 1,100mg of soy

peptides, it supports the body after exercise.

Aquarius Vitamin guard is a conditioning drink

with 1,000mg of vitamin C, equivalent to the juice

of 50 lemons; and it is also an isotonic food with

nutrient function claims (vitamin E), optimal not

only for sports but also for everyday refreshment.

Creating New Value in Response to Consumer Needs

The Coca-Cola system strives to create products that support the increasingly diverse values, lifestyles, and needs of consumers. We create delicious, fun new value for a wide range of people by providing them safe and reliable products.

Beverage Benefi ts

Providing Accurate Product Information

The Coca-Cola system’s iconic product, Coca-Cola , has been

completely free of preservatives and artifi cial fl avorings since it was

fi rst created back in 1886. We have worked to reinforce our lineup of

products free of both preservatives and artifi cial fl avorings, such as

our revamping of Coca-Cola Zero in 2010 to contain no artificial

flavorings. In this way, we are providing products that meet the

various needs of consumers.

Coca-Cola and Coca-Cola Zero

have a lso endeavored to c lear ly

convey product information, as with

our nutritional information labeling in

easy-to-read large print for product

packaging. We provide the information

c o n s u m e r s n e e d i n a n e a s i l y

understood form.

Sweating is an extremely effective means of regulating one’s

body temperature when exercising, but fluid loss due to

sweating results in reduced body water volume and increased

body water concentration (osmotic pressure). These changes

limit the body’s ability to control temperatures when exercising,

and impose a significant burden on the circulatory system.

Thermal dehydration results in a loss of both water and sodium,

so replenishing them is essential to restoring the body’s water

levels. Aquarius is a hypotonic fl uid including sodium which is

effective for maintaining extracellular fl uid volume and osmotic

pressure, improving athletic performance and helping prevent

heat stroke. It has been proven through countless studies that

exercise itself is effective in preventing lifestyle-related diseases,

but excessive exercise results in increased oxidant stress,

making the relief of stress after hard training a necessary part of

effective training. It would be wonderful if there were a beverage

product that could also help maintain an optimal stress level

during training.

Ryo TakamataProfessorFaculty of Human Life and EnvironmentNara Women’s University

STAKEHOLDER MESSAGE

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Beverage Benefi ts

Proposing New Lifestyles

Making the Everyday Fun—glacéau vitaminwaterThe product glacéau vitaminwater, launched in July 2009, refl ects

the demand for health and food safety by reducing calories and

using pure water, with no preservatives, artificial sweeteners, or

artifi cial colorants. Each individual fl avor of the stylish beverage from

New York contains its own blend of vitamins and minerals.

Six fl avors in total are available, such as glacéau vitaminwater xxx,

a drink that combines açaí palm, blueberries, and pomegranates and

contains vitamin C and niacin; and glacéau vitaminwater power-c,

fl avored with southeast Asian tropical fruit and dragon fruit and also

containing vitamin C and fructose. The

lineup allows consumers to replenish

fl uids in a way that suits their own moods

and lifestyles. The short blurbs on the

packaging also ref lect the brand’s

character, bringing some fun to people’s

busy lives.

Products Supporting Healthy Lifestyles

Flagship Brands Support ing Increased Health Consciousness

The Karada Meguri-cha brand, which supports health from the

inside out based on the Asian health philosophy of the body’s natural

fl ow, was expanded with the October 2009 launch of Karada Meguri-

cha On-yo Blend, a dedicated hot tea containing ginger. In February

2010, the Karada Meguri-cha brand was revamped to contain nine

Or ienta l herba l ingredients and more wol fberry .

Meanwhile, the Sokenbicha brand saw the launch of

Sokenbicha Kurosae, created in response to the health

needs of working people who required a tea that would

help them work with a clear head from the fi rst thing in the

morning. It contains a balanced blend of healthy black-

colored ingredients, such as black soybeans, black

sesame, and black rice, which all contain polyphenol, as

well as premium oolong tea, pu’er tea, and germinated

brown rice.

FOSHU Products, Contributing to HealthThe market for Food for Specifi ed Health Uses (“FOSHU”) certifi ed

by the Ministry of Health, Labour and Welfare grows every year due

to ever increasing health consciousness among consumers.

In order to meet those needs, the Coca-Cola system is working

hard to develop products that support the lifestyles of consumers

who are careful about sugar and fat consumption in their daily lives.

The concept behind Karada Sukoyaka-cha, launched in June 2009,

is to moderate sugar intake. It contains approximately 5g of dietary

fiber (indigestible dextrin) per 350ml, which helps moderate sugar

absorption when the product is consumed together with meals or

dessert.

Georgia Emerald Mountain Blend Daily Oligo Black, which went on

sale in September 2009, contains coffee bean mannooligosaccharide

(mannobiose), which is thought to control fat

absorption and reduce body fat. Because the

substance is extracted from coffee beans, its

taste goes well with coffee, and it can help

reduce both calories and sugar content by half.

Love Body, for Women Conscious of Their Beauty and HealthLove Body, a comprehensive women’s beauty and health brand,

was revamped in February 2010. The

p roduc t con ta i ns na tu re -de r i v ed

ingredients that help women with their

beauty and health concerns from the

inside out. Love Body comes in three

varieties (Protein Works, Ginger Works,

and Rose Hip Works), corresponding to

morning, noon, evening, and night so

that they can be chosen according to a

person’s daily life cycle.

Products Satisfying Exacting Tastes

Reproducing Authentic Taste in a Canned CoffeeIn June 2009, the premium espresso brand illy introduced the illy

issimo canned coffee brand, offering consumers a convenient way to

enjoy the refi ned taste of illy, born in 1933 in the birthplace

of espresso: Italy. illy issimo is loved by the world’s top

chefs and baristas, and is made with the same beans as

those used in restaurants and cafes in over 140 countries

around the world.

Providing the Added Value of “Fun”

Products that Provide New Types of FunFanta Moo Moo White , a sparkling lactic beverage launched in

February 2010, is a low-calorie lactic drink that contains as much

calcium as a cup (200ml) of milk. Its delicious

taste and unique packaging provides the

characteristic fun of Fanta . Coca-Cola in a

350ml ball-shaped PET bottle, introduced in

May, 2010, draws attention because of its

soccer-bal l shaped packaging, adding

excitement to the 2010 FIFA World CupTM and

bringing fun to parties and gatherings.

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KORE Management System In order to maintain a high level of quality, Coca-Cola system

compan ies th roughout the wor ld s ince 2010 have been

implementing the demanding standards of the KORE (Coca-Cola

Operating Requirements) requirements. The Coca-Cola system’s

previous management system, TCCMS (The Coca-Cola Management

System), also achieved progress in responding to consumer quality

concerns, but this year the new KORE requirements was introduced

as a new management system framework to continue to respond to

market changes and the high expectations of consumers.

The KORE requirements includes standards related to quality, food

safety, the environment, and safety & loss prevention for activities

ranging from raw mater ia l procurement and production to

distribution/transportation, sales, and delivery of products to

consumers.

Given the strong interest of consumers in food safety recently, we

believe that it has become more essential than ever in the current

period to forge a bond of trust between manufacturers and

consumers of the sort that cannot be expressed numerically or

scientifi cally.

We continually implement initiatives related to safety, based on the

KORE requirements, so that consumers have trust in Coca-Cola

system products, knowing they are safe, which in turn enhances

their confi dence in the corporate brand as a whole; and engage in

the rigorous manufacture of products everyday in an effort to

generate a sense of reliability based on the safety of those products.

Initiatives to Ensure “Safety” and “Reliability”In order to provide consumers with products as well peace of mind, the Coca-Cola system implements thorough quality management based on strict standards—from the procurement of raw materials to the sales of products. We believe that continually implementing safety measures builds up the reliability of the brand itself.

Process Leading up to Product Delivery to Consumers Based on KORE

Coca-Cola (Japan) Co., Ltd.

Carry out product planning,

marketing, and improvements

based on consumer feedback

Coca-Cola Tokyo R&D Co., Ltd.

Develop products and provide

technical support

Supplier selection and approval

Implement and certify audits

based on Supplier Guiding

Principles established by The

Coca-Cola Company

Examination ofraw materials

QA analytical service examines

the quality of raw materials

Production

Production based on strict

quality management, including

the quality of water used, in

line with KORE guidelines

Release of raw materials

Suppl iers and Coca-Cola

Japan test raw materials and

ship those that are acceptable

Transportation

Raw materials are transported

in a state allowing confi rmation

of sealed packages to maintain

quality and safety

Delivery

Raw materials are delivered

to bottling plants nationwide

To consumers

Please direct comments and

suggestions to the Coca-Cola

Consumer Service Center

Sales

Products delivered to convenience

stores, supermarkets, vending

machines, etc.

Confi rmation of quality of products

on the market

Check the quality of products purchased using the same channels

as ordinary consumers (convenience stores, vending machines, etc.)

0120-3( tol l free)

08509Hours: 9:30 a.m. – 5 p.m. (except weekends and public holidays)

Thorough Quality Management Based on a Consistent Framework

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Beverage Benefi ts

Fundamental KORE ConceptsKORE establishes strict voluntary standards that exceed the

requirements of ISO and applicable laws.* For example, there are

over 280 analysis items for water quality alone, with that analysis

performed on a regular basis. At least once a year a third-party

certifi cation body measures the degree to which actual performance

was in line with targets set. This objective evaluation ensures that

Coca-Cola system’s quality management system operates in a fair

and equitable way.

KORE is a governance model and management system framework

uti l ized by the Coca-Cola system, which conducts business

throughout the world, and is regularly updated by The Coca-Cola

Company. The Coca-Cola system in each region adds to the

published specifications and requirements pertaining to its own

marketplace, always striving to optimize their operations. Products

sold in limited regions follow required rules in addition to KORE,

under the responsibility of local companies.

Overall Structure of KOREKORE is composed of a structure that breaks down the categories

of Quality, Food Safety, Environment, and Safety & Loss Prevention

into the following five levels: Policies, Standards, Specifications,

Requirements/Method, and Procedures, and References. The top

four layers—from Policies to Requirements/Method—indicate what

results are required to be achieved. The Procedures and References

layers indicate how these results are to be attained, sharing the best

practices used around the world throughout the Coca-Cola system.

KORE Management System Framework Diagram

*Quality standards are largely based on ISO

9001; Food Safety standards on ISO 22000

(FSSC22000); Environment standards on ISO

14001; and Safety & Loss Prevent ion

standards on Occupational Health and Safety

Assessment Series (OHSAS) 18001

LEVEL 1

Safety&

Loss PreventionReferences

EnvironmentalReferences

Food SafetyReferences

QualityReferences

LEVEL 5

Safety&

LossPreventionProcedures

EnvironmentalProcedures

Food SafetyProcedures

QualityProcedures

Safety&

LossPrevention

Requirements

EnvironmentalRequirements

Food SafetyRequirements

QualityRequirements

LEVEL 4

Safety&

LossPrevention

Specifications

EnvironmentalSpecifications

Food SafetySpecifications

QualitySpecifications

Safety & LossPrevention

EnvironmentFood SafetyQuality

LEVEL 3

Safety&

Loss PreventionStandards/Regulations

EnvironmentalStandards/Regulations

Food SafetyStandards/Regulations

QualityStandards/Regulations

ISO 9001ISO 22000

(FSSC 22000) ISO 14001 OHSAS 18001

LEVEL 2

References

HOW

Procedures

Requirements/Methods

Specifications

Policies

WHATStandards

Systems for Preserving Quality

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Supplier Guiding PrinciplesSupplier Guiding Principles are the basic rules applied by the

Coca-Cola system throughout the world that go beyond merely

procuring high-quality raw materials to also encompass and assess

all aspects of the companies with which we do business, including

their adherence to laws and ordinances and their administration as

fair and equitable enterprises. In addit ion to requir ing legal

compliance, the program also prohibits child labor and asks

suppliers to be cognizant of human rights and global environmental

issues. This includes providing briefi ngs and training sessions when

required and also encouraging potential suppliers to understand and

share these values before we enter into contracts with them. After

business transactions commence, third parties are commissioned to

perform regular audits and verify application of the guiding principles.

Partnerships to Enhance QualityThere is a diverse range Coca-Cola system products, including

sparkling beverages, teas, coffee drinks, and juices. The Coca-Cola

system also employs KORE requirements when purchasing raw

materials, ensuring that suppliers meet those standards when

procuring such materials. In order to thoroughly maintain a high level

of quality for all raw materials we purchase, analysis certifi cates or

inspection data are issued by our Japanese or overseas suppliers to

confirm quality, and then the raw materials are inspected again by

Coca-Cola Japan. An average of 600 to 700 samples may be

inspected in any given week. Before we enter into transactions with

new suppliers, we visit their worksites and confi rm whether they use

any agrochemicals that are not approved in Japan. Furthermore, the

Coca-Cola system works in partnership with its suppliers to support

a high level quality through regular audits to confirm adherence to

the requirements of KORE.

Fostering Partnerships for GrowthWhile we impose rigorous guidelines regarding our relationship

with suppliers, we also endeavor to discover promising producers

around the world and help them to reach the levels that we require.

Since 1994, we have been in a business relationship with The

National Federation of Coffee Growers of Colombia (Federación

Nacional de Cafeteros de Colombia; FNC). We provide on-going

support to FNC-member suppliers with regard to local technical

guidance and environmental measures as well as the management

of labor resources, and have also contributed to the construction of

a system to reliably and comprehensively cover processes ranging

from the cultivation of coffee beans at the highest levels in the world

for quality and quantity to the roasting of those beans.

Security during Transportation of Raw MaterialsAs with quality control during cultivation and harvesting, the utmost

consideration is given to ensuring security during transportation. This

includes innovative packaging ideas, such as the use of tape bearing

the Coca-Cola logo for cartons and containers so that it is clear if

they have been opened. If the tape is broken, the raw materials will

not be used. We work to ensure the complete safety of raw materials

through this sort of c lose attent ion paid to transportat ion

management.

Initiatives to Ensure “Safety” and “Reliability”

Finding the Best Raw Materials and Transporting Them Safely

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Beverage Benefi ts

Obtaining International Certifi cation for Food SafetyThe 28 bottling plants located in Japan all introduced the new

KORE requirements in 2010. Moreover, in order to further enhance

product safety, the plants will obtain outside certifi cation from such

internationally standards as ISO 9001, ISO 22000, ISO 14001, and

OHSAS 18001. For the area of food safety in particular, the plants

are aiming to obtain FSSC 22000 certification, which is more

effective than ISO 22000. Currently, seven plants of the Coca-Cola

system have received FSSC 22000 certification, and they are the

only beverage plants in Japan to do so (as of July 1).

“Polishing the Water”The global water quality standards established by The Coca-Cola

Company incorporate the analytical categories and numerical values of

the World Health Organization (WHO). The Coca-Cola system in Japan

compares those standards with water quality standards in Japan and

the Japanese Waterworks Law, applying whichever is the strictest.

Bottling plants throughout Japan carry out routine testing prior to

manufacturing, including sensory testing, physical and chemical

testing, and visual inspections. This is performed by examiners who

have been certi f ied in-house. Meanwhile, annual checks of

conformity to Coca-Cola system water quality standards are also

implemented. In order to manufacture products using water that has

met such standards, the water passes through four different devices,

including a high-performance filter and activated carbon. This

process, which we call “water polishing,” results in highly-purified

water for use in products.

Plant Safety and Sanitation ManagementProducts are subject to strict sanitation management during the

manufacturing process. For tea and coffee drinks that use natural

ingredients in particular, we create aseptic filling lines to eliminate

bacteria at the filling and capping processes. Plant employees are

also subject to daily health checks, and we pay attention to

maintaining both sanitary conditions as well as occupational safety

for our employees. We also work to improve safety through the

implementation of risk assessments, which are based upon accident

prediction training. Systems are in place to regularly identify potential

risks and limit them.

For measurements and inspections to verify safety, it is important

not only to numerically indicate those results but also have processes

in place to draw conclusions from those figures. This can function

properly when the measurement equipment is accurate, the

employees in charge are skilled, and there is understanding from the

outset among those involved in the inspection regarding the

necessity of what they are doing.

We aim to ensure consumers’ peace of mind by safeguarding

safety through such harmony between the system, equipment, and

personnel. Our mission is to always seek to improve the system and

introduce new equipment to enhance productivity and stability as a

way of both maintaining the quality of our products and ensuring

good workplace conditions for plant workers.

Safety and Reliability in Manufacturing

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Internal System to Respond to Consumer Feedback

Consumers

Consumer Service Center

12 bottling partners

nationwideRelated departments

Top management,

Quality Assurance, Marketing,

and other related departments

Delivering the Best Possible Products at all TimesThe Coca-Cola system characteristically takes it upon itself to

perform distribution through to the delivery of products after

shipment from plants. In this sense, it can be said that our approach

to quality extends all the way to the point where consumers obtain

our products. For retail outlets and vending machines, where

customers are free to arrange product displays and replenish stock,

we distribute pamphlets that include information on precautions

relating to quality management. KORE governs quality management

at the transportation and sales stages as well. We engage in

ongoing, collaborative research with bottling partners on such issues

as the timing with which products should be offered for sale in

stores, heating and cooling temperatures so that products are in

their optimum state when purchased by consumers, appropriate

inventory management approaches for vending machines, and

subtle changes that can take place prior to a product being sold.

Survey of Products on SaleOne of our post-shipping quality management programs involves

surveys of products on sale. We randomly purchase about 400

samples a month and send them to the Coca-Cola system’s

research laboratory in Shanghai for detailed quality inspection. This is

done to confi rm that the products on sale in the market maintain a

high level of quality.

Responding to Consumer FeedbackThe Coca-Cola Consumer Service Center receives an average of

300 calls and e-mails each day. We carefully sort through opinions

and inquiries received from consumers on a daily basis and provide

feedback from analysis of those comments to development

departments. Product formulas are even modified on occasion

where necessary. In response to consumer inquiries, desires, and

comments, the center works with the consumer’s local bottling

partner, aiming to provide a speedy, accurate and sincere response

and information as needed. Consumer feedback is also checked

each day on our data systems, and information is shared with

relevant departments where appropriate. In addition, starting in

November 2008, we launched the Consumer Feedback Portal on

the company intranet, so that al l employees, including top

executives, can view feedback from consumers. We have created a

structure to continually improve the quality of our products and

services by sharing the perspectives of consumers throughout the

company in a timely fashion based on consumer feedback. Up to

now, this has led to numerous examples of improvements, including

easy-to-hold PET bottles and easily-removed labels.

A data system has also been set up to automatically send notices

to contact points in departments if similar comments are received

multiple times about the same product from the same plant over a

certain interval of time. This mechanism helps to ensure that nothing

is overlooked. Issues that impinge on safety, in particular, result in

immediate verifi cation and response.

Initiatives to Ensure “Safety” and “Reliability”

Support for Retailers

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Beverage Benefi ts

IMCR Structure

Under the risk-management system outlined above, and based on the detailed version of the H1N1 Infl uenza countermeasure guidelines of the

Ministry of Agriculture, Forestry and Fisheries, the Business Continuity Plan (BCP) was formulated and measures adopted. The plan foresees a

virulent or highly virulent outbreak of H1N1 influenza and examines measures to prevent an epidemic based on an evaluation of the risks of

contagion. The plan includes measures and action guidelines, including health checks for employees and the practice of hand washing and gargling.

BCP involves the following three steps: 1) conducting an analysis of the infl uence on business of an infl uenza outbreak to grasp the impact if business

is suspended and what resources are important for key operations; 2) on the basis of that analysis, examine the risks to business operations of a

virulent or highly virulent outbreak of H1N1 Infl uenza; and 3) formulate precise response measures and conduct simulations on business continuity.

COLUMN Business Continuity Plan (BCP) to Respond to an Outbreak of H1N1 Infl uenza

President

IMCR members

IMCR CommitteeIMCR Committee

Report /

Collaboration

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

IMCR coordinator

The Coca-Cola Company

President

IMCR members

Initial Assessment Team

Collect information and assess the risk

Initial Assessment Team

Collect information and assess the risk

IMCR

coordinator

Sales department

CustomersConsumers

Consumer Service Center

Incident Management & Crisis Resolution StructureIncident Management & Crisis Resolution (IMCR) is a common

global program developed by The Coca-Cola Company, and is also

employed in Japan. Once every year we conduct an assessment of

latent risks involving our business activities, including such areas as

human resources and organization, products and markets,

infrastructure information, as well as fi nancial affairs; formulate and

implement countermeasures; and then report to the headquarters in

the United States. The program seeks to minimize the impact even if

risks materialize.

For example, if there is a report connected to quality issues, the

IMCR coordinator immediately organizes an initial assessment team

consisting of representatives from relevant departments. This team

collects information, formulates initial responses, and investigates the

level and scope of risk. If it appears the problem could become more

widespread, the team is expanded to an IMCR Committee that is

responsible for developing responses as well as examining

communications approaches for consumers, customers, the media,

and other stakeholders. And bottling partners employ this same

system. The IMCR coordinator serves as the central point for

gathering and communicating accurate information so that there is a

uniform response throughout the Coca-Cola system.

The Coca-Cola Company conducts business throughout the

world, which means that a problem that occurs in one country can

rapidly spread to others. Accordingly, reports are sent to The

Coca-Cola Company’s Operations Center, which operates 24 hours

a day to coordinate actions. Risk management is not mastered

overnight. In addition to manuals, the Coca-Cola system has system-

wide training programs, including basic training courses, intermediate

level risk assessment training, and advanced simulation training

programs. These courses are offered regularly to all Coca-Cola

system companies, and case studies are shared throughout the

system. Bottling partners also conduct their own training for plants,

account managers, and newly appointed managers. This section has

outlined our mechanisms for the area of safety, but obviously efforts

to link them to improving product reliability and building unshakable

relationships of trust with consumers should always be considered a

work in progress. We will continue to implement activities aimed at

ensuring the safety and reliability of our products.

Mechanisms to Support Safety and Reliability

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Active, Healthy Lifestyle

Initiatives SupportingConsumers’ Active, Healthy LifestylesThe Coca-Cola system, as a beverage manufacturer, provides and promotes accurate information regarding fl uid replenishment in order to support healthy lifestyles. We support active lifestyles by promoting and supporting a wide range of sporting events, on both the global and local level.

Sponsors the FIFA World CupTM

Japan U-12 Football Championship

Soccer has the allure of bringing people together. People who

watch or play soccer together can refreshingly share the same sorts

of dreams as well as a sense of hope and exhilaration, regardless of

language barriers. The powerful partnership between The Coca-Cola

Company and the Fédération Internationale de Football Association

(FIFA) dates back to The Coca-Cola Company’s support for the fi rst

FIFA World Cup™ tournament, held in Uruguay in 1930. The Coca-Cola

Company began stadium advertising with the 1950 FIFA World Cup

Brazil™, and became a FIFA World Cup Official Partner when that

sponsorship program started with the 1978 FIFA World Cup

Argentina™. In 2005, The Coca-Cola Company extended its Offi cial

Partner contract to encompass the 2022 tournament, when the

company will have been an offi cial sponsor for over 70 years. This

powerful partnership will make The Coca-Cola Company the longest

standing FIFA World Cup™ offi cial sponsor. At the 2010 FIFA World

Cup South Africa™, Coca-Cola Japan highlighted the bond between

the World Cup and the Coca-Cola brand, sending out a positive

message befi tting Coca-Cola through

communication such as advertising,

hands-on events, product packaging,

and marketing activit ies, with the

overarching theme of “What’s your

celebration? Open Happiness!”

Holds the FIFA World Cup™ Trophy Tour by Coca-Cola for the 2010 FIFA World Cup South Africa™

Leading up to the start of the 2010 FIFA World Cup South

Africa™, the Coca-Cola system presented the FIFA World Cup™

Trophy Tour by Coca-Cola, displaying the one-and-only FIFA World

Cup™ championship trophy, an object of fascination to both soccer

fans and non-soccer fans alike. Prior to the start of this year’s FIFA

World Cup™, the championship trophy was showcased in 91 cities

in 85 countries around the globe, starting with FIFA headquarters in

Switzerland. In total, the worldwide events spanned a period of nine

months, allowing people far and wide to experience first-hand the

unique championship trophy. On

Apri l 23 the trophy arr ived in

Japan, where over 7,000 people

got a chance to see it up close

during the four-day event and

savor the joyful atmosphere.

Dispatches Coca-Cola Flag Bearers to 2010 FIFA World Cup South Africa™

The Coca-Cola system dispatched fl ag bearers to the June 2010

FIFA World Cup South Africa™, as it did for the 2006 tournament in

Germany, to carry the national flags of participating teams while

leading the players onto the pitch.

The 18 junior high school students

selected in a public contest to be

fl ag bearers for the three Japanese

matches returned to Japan after

t h e t o u r n a m e n t w i t h j o y f u l

memories of seeing the world from

a new perspective and of meeting

children from other countries.

The Coca-Cola system in Japan has been a special supporter of

the Japan U-12 Football Championship tournament ever since it was

first held, over 30 years ago. Since 2005, in order to support the

dreams of children who aspire to play soccer on a global level,

Coca-Cola Japan has held the Coca-Cola Soccer Dream Camp, as

part of the offi cial tournament program, allowing participating children

to experience the joy of communicating in English.

J. League and Coca-Cola Zero

Coca-Cola Japan entered a two-year contract with the Japan

Professional Football League (J. League) as an official sponsor in

January 2009. Currently, local bottling partners are involved in

sponsoring, in some form or another, 16 of the 33 J1 and J2 teams.

The Coca-Cola system’s corporate activities share much in common

with J. League’s philosophy of supporting grassroots activities,

cultivating healthy minds and bodies, and contributing to international

exchange and goodwill. By providing more people with opportunities

to come in contact with the allure of soccer, the Coca-Cola system

hopes to help cultivate and strengthen the soccer movement in

Japan.

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Active, Healthy Lifestyle

Fluid Replenishment Education during the Vancouver Olympic Winter Games

Qoo Dietary Education Project

The Coca-Cola Company has been involved in the Olympic Games

since the 1928 Olympic Games in Amsterdam, and has actively

supported the activities of participating athletes as a worldwide

partner.

For the Vancouver Olympic Winter Games held in February, 2010,

the Coca-Cola system in Japan carried out promotional activities at

the Sapporo Snow Festival and other events to raise awareness of

the importance of fluid replenishment during winter. In winter,

dryness leads peoples’ bodies to lose fluid more easily, yet their

recognition of the need for fl uid replenishment is lower in winter than

in summer. Through promotional

campaign activities for Aquarius,

which supports those who enjoy

sports in a variety of ways, the

Coca-Cola system has impressed

on people the importance of

fi tness management through fl uid

replenishment.

In addition to the Olympic Games, surveys on the

sporting activities of male and female workers in their

20s and 30s have also been carried out for Aquarius ,

providing content that stresses the importance of fluid

replenishment, including the provision of clear scientifi cally

based information on the product’s website regarding why

fl uid replenishment is important and how to best replenish

fluid when playing sports. The Coca-Cola system will

continue to highlight the importance of fl uid replenishment,

not only through a variety of sporting events but also with

regard to light exercise in daily life.

The Coca-Cola system in Japan, based on a bel ief in the

importance of conveying accurate dietary information to children, has

been offering a nationwide dietary education program for both

parents and children since 2006 via its fun-loving kids’ drink Qoo. In

order to promote a balanced diet for children, the Coca-Cola system

has published “Let’s Eat Properly Exercise with Hiromichi and Qoo”

(supervising editor: Motoko Sakamoto, M.D., Vice-President and

Professor at Wayo Women’s

University), normally called “Qoo

Dietary Educat ion Exercise.”

Through such exercise, children

learn the importance of a well-

balanced diet, of eating together,

and of en joy ing eat ing when

hungry.

Supporting the All Japan High School Athletic Meet

The All Japan High School Athletic Meet, also known as Inter-High,

brings together high school athletes from all 47 prefectures across

Japan. The Coca-Cola system has been an offi cial special sponsor

of the competition since 1993 as a way to help support the sound

development of youth through sports.

The Coca-Cola system supports fl uid replenishment of participants

through the free supply of products on a large-scale at the various

venues of the competition. Fluid replenishment does not only

contribute to supporting the performance of the participants, but is

also effective in preventing heat stroke among the teachers,

students, and volunteers at the summer event.

The Coca-Cola system provided the roughly 30,000 athletes who

participated in the 2008 Saitama Meet with official T-shirts to

commemorate the event, made of 50% recycled PET bottle

materials, in addition to installing a Recycling Station at some venues

to promote recycling awareness. The opening ceremony of the Chura

Island Okinawa Meet 2010 held at the Okinawa General Athletic

Stadium, starting on July 28, will be attended by top athletes from

high schools across Japan. The Coca-Cola system will be recruiting

Coca-Cola All Japan High School Athletic Meet Reporters from

across Japan, and sending them

to Okinawa. These special high

school student correspondents

will convey back to people in their

home countries the vibrancy and

energy of the competing high

school athletes.

The All Japan High School Athletic Meet, also known as Inter-

High, gathers top high-school athletes together for a major

competition with the most competitive events of any such event

in Japan, producing a wealth of excellent athletes. The long-

standing support of the Coca-Cola system, a global beverage

company and sponsor of the Olympic Games and FIFA World

CupTM

, is extremely signifi cant. The Coca-Cola system has not

only supported nationwide high-school competitions, such as

Inter-High, but has a strong image of continually promoting a

wide variety of sporting events spanning a great diversity of

areas and ages. It is one of the leading companies supporting

healthy living by promoting sports. I hope that the Coca-Cola

system continues to promote sports through its assistance in

maintaining and developing Inter-High as a symbolic event for

high school students across Japan.

Kazunobu UmemuraExecutive Managing DirectorAll Japan High School Athletic Federation

STAKEHOLDER MESSAGE

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Kenshi Matsuoka

Project ManagerTechnical Commercialization Package

Technical StewardshipSupply Chain & Commercialization

Responsible for product packaging and supervised

development of the lightweight I LOHAS bottle.

2

What can we do now to lessen the impact of beverage

containers on the global environment? We invited Dr. Misuzu

Asari, an assistant professor at Kyoto University’s Environment

Preservation Center whose contribution in the environmental

field primarily consists of research on waste, to discuss

“Sustainable Packaging” initiatives being advanced by the

Coca-Cola system.

C o c a - C o l a D I A L O G

Environmental Impact of Packaging and Related Initiatives

Onishi: Today’s theme is “Sustainable Packaging” and I’d like to start

by introducing the history of container-related initiatives of the

Coca-Cola system. It’s no exaggeration to say that the history of the

Coca-Cola system’s environmental activities parallels the history of

containers. In the 1970s, the Coca-Cola system ran a “Hello Beautiful

Japan!” Keep Japan Beautiful campaign to combat littering of post-

consumer containers. This was an active effort involving local clean-up

activities and donations of container collection boxes. During that time,

beverage containers underwent a transformation into PET bottles and

were made lighter. Then came the dawn of the environmental age,

and by around 2004 the concept of “Sustainable Packaging” had

emerged. One reason “Sustainable Packaging” is currently a priority

issue for management is the “Live Positively” guiding principle for our

business adopted in 2008. We’re pursuing “Sustainable Packaging” in

line with this business principle. In terms of our aims, “Sustainable

Packaging” fi rst of all has to be easy to use. It must also be compatible

with the environment. And fi nally it has to be fun, which is an element

that typifies the culture of the Coca-Cola system. The Coca-Cola

system views packaging

as sustainable when it

sa t is f ies those three

criteria.

Asari: Your explanation of

t h e b a c k g r o u n d t o

a c t i v i t i e s t h a t h a v e

continued since 1970 is

very enlightening. In the

1970s in Kyoto, where I’m

based, citizens were also

involved in deliberation on

an “empty can ordinance”

so your comments remind me of the close relationship between

packaging and waste and environmental issues. Because I work in

circles that research and act on environmental issues, I’m aware there

is some sentiment opposed to the beverage industry. But I personally

have vivid memories from when I was a child of drinking bottled

Coca-Cola on special occasions, like when we visited an inn

somewhere. I sense that part of those experiences and memories

contains the fun element of Coca-Cola. I’d like to see you continue

initiatives that stick in people’s minds in the area of “Sustainable

Packaging” too. I’ve been researching waste since my days as a

student and know how much the emergence and spread of PET

bottles has influenced the proportion of waste accounted for by

packaging and containers. But ever since I LOHAS was launched last

year, PET bottles have been assessed very differently. The well-known

life cycle assessments (LCA), conducted around 10 years ago,

showed that multiple reuse of glass bottles had the lowest impact on

the environment, followed by paper, with PET bottles near the bottom

of the list. However, the latest LCAs submitted to a review committee

of the Ministry of the Environment to which I belong found that one-

way PET bottles—assuming they are lightweight PET bottles

like I LOHAS and will preferably be recycled back into bottles—have

the lowest environmental impact. It was staggering news. And now we

have the PlantBottle. It’s amazing how things have changed over the

last couple of years. Today I hope to hear some hidden insights into

packaging development that I can help to spread.

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Kentaro Onishi

ManagerEnvironmental Performance Management Group

Public Affairs & Communications

Coordinates overall environmental measures for the

Coca-Cola system, including the formulation

of env i ronmenta l s t rategy, de l iberat ion on

environmental measures relating to areas such as

containers, packaging and waste, and support for

environmental sales and marketing.

Yukie Watanabe

Assistant ManageriMarketing

Marketing Operations

S u p p o r t s m a r k e t i n g a c t i v i t i e s t h r o u g h

administration of web-based media. Handles a

broad range of areas, from product information to

corporate matters.

Misuzu AsariAssistant Professor

Environment Preservation CenterKyoto University

Graduated from Kyoto University’s Undergraduate

School of Global Engineering (Faculty of Engineering)

and received a doctorate in engineering at the

university’s graduate school, where her research

theme centered on the issue of waste. Analyzes

household item fl ows through to the waste stage as

well as people’s behavior; and also advances social

programs such as the 3R & Low-Carbon Society Test

and “Bikkuri! Eco Hyaku-sen” environmental exhibits.

Our Challenge of Pursuing “Sustainable Packaging”

Undertaking the Challenge of Container Development

Matsuoka: The development of the I LOHAS bottle you mentioned

took about two years. The Coca-Cola system in Japan was quick to

focus on environmental considerations based on the “sustainable

packaging” concept, and now that around 70 percent of beverages

come in PET bottles, reducing the weight of those bottles has become

an important task for us. All the knowledge we’d acquired about

reducing weight in the past was brought together for the development

of the I LOHAS bottle, which got underway in 2007. We managed to

produce a 520ml bottle weighing only 12g, which is approximately 40

percent lighter than our conventional bottles.

Onishi: So we achieved the lightest weight in Japan.*

Matsuoka: The thing about “Sustainable Packaging” is it has to be

easy to use or the consumer won’t accept it. Even if a product comes

in a light container, consumers won’t buy it if the container is hard to

hold because it collapses in your hand or is diffi cult to drink from. We

set out to achieve the lightest container while retaining ease of use.

Asari: Is there a reason for each one of these indents and rises?

Matsuoka: Yes. The cross-section of this groove around the bottle is

shaped like a pentagon. An ordinary round shape would become oval

if pressure was applied so that when you went to drink it would distort

and you would spill the contents. We put a lot of thought into fi nding a

shape that was solid, and settled on a pentagon because it doesn’t

give way easily. We also shifted the topology to make it even tougher.

Asari: Not only does the bottle look good, there’s meaning behind

how it looks.

Watanabe: The fact you can twist it like a towel had quite an impact.

Matsuoka: Even if we say we’ve reduced the weight, nobody can tell

the difference just by looking at it. It’s when people see the bottle

being crushed so easily in a TV commercial that they truly understand

how light it is.

Onishi: There are other merits. Before putting empty containers out to

be recycled into new resources, we have to store them at home.

Consumers will recognize the benefi ts of containers that take up less

space, and recycling will be pushed ahead.

* I LOHAS is packaged in the lightest small PET bottle produced in Japan for products

550ml or smaller (as of March 2010; according to research by Coca-Cola Japan)

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Asari: As containers and packaging account for around 60 percent of

the volume of waste, I wish all other containers were twistable!

(Laughs) Because when they’re collected, most of what you’re

transporting is air. In that sense, this bottle creates a win-win situation

for everyone.

Matsuoka: The I LOHAS product was an enormous challenge for us

as well. And because no manufacturing company had ever made such

a light bottle before, there was disagreement even within the company

about whether we should introduce it or not. Subsequent consumer

research convinced us that consumers would be attracted to a bottle

if it was both light and easy to use.

Asari: A lot of the time nowadays it’s consumers who lead the way.

That goes for the environment, too. The question for companies is: Do

they have the courage to put out products that move one step further

ahead than that?

Onishi : That’s r ight .

The same app l ies to

opportunities to partake

in environmental activities.

Environmental activities

we can implement every

day include recycling and

energy saving.

Matsuoka: In the case of

environmentally friendly

cars and home appliances,

you might only get one

chance every few years

to buy an environmentally

fr iendly product. But

consumers have countless

opportunit ies to buy

beverages. I think it’s great that consumers can easily take part in

environmental activities.

Asari: Consumer behavior is a form of voting in a way because people

cast “votes” for products they like on a daily basis. The negative

assessment of PET bottles over the last two decades has left an

impression on consumers’ minds, but I LOHAS turned that on its

head. I see it as a major turning point. And now you’ve introduced the

PlantBottle. And if this continues into the future, it should be a major

development in terms of reducing reliance on fossil fuels.

Onishi: We can reduce weight only so far and reaching a level of “zero”

is impossible no matter how intense the competition for development.

That leaves changes to raw materials as another option. The

PlantBottle was developed using renewable plant-based materials,

which is another key word. Raw materials used include molasses, a

by-product of the processing of sugar cane into sugar. PET bottles are

usually made using 70 percent terephthalic acid and 30 percent

monoethylene glycol. In the PlantBottle, the 30 percent monoethylene

glycol component has been replaced by plant-based materials.

Despite the fact that plant-based materials are used, the strength,

durability, and permeability properties are identical to ordinary PET

bottles. The new bottle can also be 100 percent recycled using the

same methods as for conventional PET bottles.

Asari: It sounds as if it might take time before consumers can hear the

term PlantBottle and know what it means.

Watanabe: We’re conveying to consumers that it’s a new bottle

derived from plants.

Onishi: Unlike the “twistable” angle we took on I LOHAS, we have to

explain the benefits because consumers are unable to experience

them personally. This is something we have to work on.

Asari: I’d defi nitely like to see you convey that fact. As for the materials,

30 percent is the maximum for the plant-based component. Do you

intend to take that further?

Onishi: In the future we want to make a bottle entirely from plant-

based material. And while we currently use sugar cane as a raw

material, we’re conducting research based on a future vision whereby

biological materials—specifi cally wood waste, corn stems and leaves,

wheat stalks, and other plants not used for food—will be used as raw

materials.

Proposing “Enjoy Eco!” as a Fun Environmental Activity

Onishi: The Coca-Cola system in Japan is about to launch an “Enjoy

Eco!” program focusing on interactive activities together with

consumers over the entire packaging life cycle in the hope of achieving

even greater results. In the sales stage of the life cycle we will

showcase environmentally friendly Coca-Cola system products to

consumers and we also plan to develop and introduce new recycling

boxes that will add enjoyment to sorting and collection after

consumption. Their shape and design, which highlights their function

as container collection boxes rather than litter bins, will incorporate the

Coca-Cola system’s unique focus on fun.

Watanabe: Another idea for recycling or reuse that we implemented

last year was a donat ions program that made use of the

“Mobage-town” game and

social networking site for mobile

phones. For the program, a

resident of Mobage-town—a

Coca-Cola character named

Cokeski—collected avatars from

Mobage-town users after they

were f in ished with them. A

Our Challenge of Pursuing “Sustainable Packaging”

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contribution corresponding to the number collected was then made to

the NPO “green bird,” which runs town clean-up activities. Enough

funds were raised through the program to purchase recycling stations

(can crushers) that were presented to green bird.

In my department, where we handle licensed merchandise, we also

have plans to sell items made from recycled PET materials through

collaboration with Beauty & Youth United Arrows. We hope to use

merchandise in this way to help promote participation in environmental

activities as a cool thing to do.

Asari: Today’s consumers won’t buy items simply because they’re

environmentally friendly, which is only natural, but it means that products

need something extra, like a good design, a fashionable image, or ease

of use. I look forward to seeing the results being made in this area.

Our Future Challenge

Matsuoka: When we launched I LOHAS, it was the lightest product in

the Coca-Cola system worldwide. Now the Coca-Cola system in

Europe, Korea, and China have followed suit, so the whole system is

in competition with itself. Naturally, the same goes for our competitors.

This competition is probably good for the future of the global

● The “Enjoy Eco!” Program

● Eco-packaging innovation

Taste, Enjoyment, Ease of Use

Lightweight PET bottle:

PlantBottle

● Introduction of new post-consumercontainer collection boxes

Fun Sorting, Fun Collection

● Cooperation with local communitiesLocal community clean-up activitiesSupport for “green bird” and other organizations

● Sale of items made from recycled PET materials

Recycling Turns into Fashonable Items

Collaboration with a fashionable apparel brand

Sales

Production/Distribution/

Transportation

Planning/R&D

Recycling

Collection

Coca-Cola DIALOG 2

environment, but our challenge will

be to come out on top.

Onishi: The Coca-Cola system is a

global enterprise and, as one of the

biggest users of containers and one

of the biggest emitters of post-

consumer containers in the world,

we’re well aware of our enormous

social responsibility. At the same time people all around the world

know about the Coca-Cola system, which presents us a great

opportunity to communicate. This is another major attraction of our

company. And if that’s the case, we should help spread environmental

messages and values by placing them on our products. We’ll do that

by making the actual containers environmentally friendly. And we also

hope to convey the value of enjoyment that can be gained from

collection and recycling.

Watanabe: The trend in the world of marketing is also toward being

environmentally friendly, with all kinds of companies conveying

messages about their environmental efforts. Therefore, I’d like to

employ a wide range of methods for communicating the Coca-Cola

system’s distinctive way of being considerate to the environment in a

fun way, as well as our various sales promotion activities, brand

merchandise, and even auctions.

Asari: From a researcher’s perspective, I believe the trials and resulting

products generated over the last two to three years are very signifi cant.

In terms of the history of beverage containers, my impression is that

progress is defi nitely being made. I know a little time is required before

you can say so with certainty, but I’d like to see you archive that

progress, including any discussions during the development and

manufacturing processes. I think that within 10 years consumers are

going to start making more of a commitment in relation to items like

beverages they consume on a day-to-day basis, so please continue to

refi ne and communicate what you’ve already achieved.

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The Coca-Cola system views the balance between environmental

impact reduction and business growth as fundamental to achieving

sustainable corporate growth. In order to satisfy this fundamental

requirement, the Coca-Cola system is working to ensure the limited

resources avai lable to us are used effectively by lessening

environmental impact during production, distribution/transportation

and sales, primarily with regard to water, energy, packaging, and

waste. In addition to these initiatives a corporation needs to

implement on its own, we are encouraging stakeholders to pursue

collaborative efforts aimed at reducing environmental impact

For example, in addition to introducing lighter PET bottles or ones

made from plant-based materials, the Coca-Cola system is also

using various types of communication measures to promote the

collection and recycling of containers so that the everyday product

choices of consumers will lead to recycling and other “eco-actions”

to reduce the impact on the environment.

The Coca-Cola system also promotes various strategies and

initiatives aimed at achieving its medium-term targets and plans1 to

reduce CO2 emissions from all business processes2 in Japan by

approximately 360,000 tons (18.6%) by the year 2010 compared to

the 2004 level. A forest capable of absorbing that reduced amount

of CO2 emissions would have to be roughly 50% the size of Tokyo.3

Results of Environmental Impact Reduction Activities in 2009

Collection/RecyclingSales

Distribution/TransportationProduction

CO2 380,000tNOx 291tSOx 386t

INPUTResources and energy used in business activities

OUTPUTWaste generated from business activities

Recyclingof

resourcesRaw Material

1,000,000tConcentrates, coffee beans,

tea leaves, sugar, containers, etc.

Water

19,230,000m3

For rinsing containers,etc.

Solid waste

120,000tCoffee grounds, used tea leaves,

sludge, etc.

CO2

910,000tEmissions from

generating electricity

Water

2,5830,000m3

For producing beverages,

rinsing containers, etc.

Energy

7,590,000GJElectricity for operating production lines, etc.

Energy

3,760,000GJFuel for vehicles to

transport products, etc.

Energy

21,140,000GJElectricity for

vending machines

CO2 260,000tNOx 1,662tSOx 6.7t

Data Disclosure● The range of data that the Coca-Cola system discloses on its environmental impact

covers production, distribution/transportation, and sales activities

● Environmental impact at the time of sales is calculated based on the amount of CO2 emitted from electric power consumed by vending machines

● The amount of energy used during distribution/transportation is the sum total consumed for all processes, from concentrate manufacturing to transporting products to vending machines and retail outlets

● A joule (J) is an internationally recognized unit of measure used to express thermal energy amounts (1J = approx. 0.24 calories; GJ (gigajoule) = J x 10

9)

● CO2: carbon dioxide; NOx: nitrogen oxide; SOx: sulfur oxide

● The basis for calculating some of the data has been changed due to an improvement in data collection accuracy

Advancing Initiatives to Achieve Medium-term Targets

Environmental Management

Business Activities and Environmental ImpactThe Coca-Cola system in Japan, as part of our environmental measures, monitors the impact that our business activities place on the environment and strives to effectively use resources and energy. The system collects and analyzes data on the environmental impact generated from the entire product lifecycle—from production and distribution/transportation to sales, collection, and recycling—and then incorporates the results into its environmental management policies.

1. In 2009, revisions were made retroactively as far back as the base year (2004) because

of the change in the basis for calculating some of the data due to an improvement in data

collection accuracy

2. Production, distribution/transportation, sales, and offi ce operations

3. Calculations assume CO2 absorption per hectare of forest is 3.3 tons

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KORE Environmental Priority Areas

Environmental Aspects of the KORE Management System

Starting in 2010, the Coca-Cola system worldwide introduced and

began implementing KORE (Coca-Cola Operating Requirements), a

unique management system encompassing standards for quality,

food safety, safety & loss prevention, and the environment at all

stages of a beverage product’s lifecycle—procurement, production,

distribution/transportation, sales, collection, and recycling.

A feature of KORE is the inclusion—together with a set of original

requirements—of water stewardship, climate protection (action on

climate change), and sustainable packaging as common priority

areas in which Coca-Cola system companies worldwide are to make

improvements over the long term. In Japan, waste management has

been added as a priority area for improvement so that we can

contribute to the establishment of a recycling-oriented society.

The Coca-Cola system in Japan introduced a new environmental

information database (POWERS@KO) in 2009 to replace the existing

environmental information system (eIS) and raise the efficiency of

environmental performance data management for the entire system.

Environmental Priority Areas for the Coca-Cola System in Japan

Common Environmental Priority Areas for the Coca-Cola System Worldwide

Use water effectively and apply stricter

standards for wastewater emissions

than domestic standards

Key topic Page

Global Water Stewardship Project

p. 39Promotion of the Long-Term “Source

Water Protection” Project

Improving Water Usage Effi ciency p. 40

Water Stewardship

Improve energy efficiency and reduce

emissions of CO2 and other greenhouse

gases into the atmosphere

Key topic Page

Progress Toward 2010 Targets

p. 33

Expanding the Use of Hybrid Vehicles

Improving the Environmental

Performance of Vending Machinesp. 34

Climate Protection

Reduce raw mater ia l usage and

promote recycling

Key topic Page

Concept of Sustainable Packaging

p. 35Changing Lightweight PET Bottles and

the Launch of ecoru Bottle

Next-Generation Recyclable PET Bottle

De r i ved f rom P lan ts I ns tead o f

Petroleum

p. 36

Utilization of Recycled PET Materials p. 38

Sustainable Packaging

Reduce the amount of waste generated and effectively recycle resources

Waste Management

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In the manufacturing industry, measures to combat global

warming over the entire product life cycle are vital. I think it

highly significant that while many corporations set targets for

reducing emissions per unit of output, the Coca-Cola system in

Japan sets targets for reducing total CO2 emissions from

production, distribution/transportation, sales, and offi ces. In the

case of beverage companies, a large proportion of emissions

are generated during sales activities, especially via vending

machines. In this regard, the Coca-Cola system in Japan has

extremely advanced initiatives underway to maximize the

environmental performance of vending machines and ensure

the effi ciency of operations using online communications. As a

corporate partner of WWF, the Coca-Cola system is working

globally to reduce greenhouse gases and protect water

resources, and I hope to see the system make even greater

progress on reducing overall CO2 emissions by taking their

initiatives covering all business operations one step further.

Yosuke IkeharaClimate Change Project LeaderNature Conservation Offi ceWWF Japan

STAKEHOLDER MESSAGE

Energy Management & Climate Protection

Progress Toward 2010 TargetsThe Coca-Cola system in Japan has set targets to reduce total

CO2 emissions by 5.6% and the “CO2 emission ratio” (the amount of

CO2 emitted when producing 1L of product) by 10% in the

production sector by 2010, compared to the base year of 2004. The

system is also advancing various strategies aimed at achieving its

medium-term target and plan1 to reduce CO2 emissions by around

360,000 tons (or approx. 18.6%) by 2010, compared to the 2004

level, for all business processes, which in addition to production

includes distribution/transportation, sales (vending machines), and

offices. The area of forest needed to absorb 360,000 tons of CO2

would cover approximately 50% of the Tokyo area.2 CO2 emissions

in 2009 were approximately 1.6 million tons, a 7.3% reduction from

the previous year. Relative to the base year of 2004, the reduction

was 17.9%, or around 349,000 tons.

Expanding the Use of Hybrid VehiclesIn the distribution and transportation sector, we are working to

improve the effi ciency of delivery and sales distribution through the

consolidation of distribution centers and reviews of distribution

routes. Moreover, to lessen the environmental impact of our vehicles,

we are also promoting “eco-driving” and have introduced natural

gas, hybrid, and other low-emissions vehicles. At the end of 2009,

our fleet of low-emissions vehicles consisted of 242 natural gas

vehicles and 376 hybrid vehicles. We have ongoing plans to reduce

CO2 emissions both in operations and through the use of those

vehicles.

Partnership with WWFThe Coca-Cola Company participates in the Climate Savers

Program, a framework through which corporations and the World

Wide Fund for Nature (WWF) join forces to reduce greenhouse gas

emissions. Participating corporations will collectively reduce

emissions by 14 million tons by 2010 for all of the targets combined,

which is equivalent to taking more than three million cars off the road.

Improving Energy Effi ciency

Global WarmingPrevention Initiatives

Global warming prevention efforts advanced by the Coca-Cola system in Japan include striving to achieve the greenhouse gas reduction targets by 2010 (compared to the base year of 2004) specifi ed for production, distribution/transportation, sales, and offi ces.

Efforts to Reduce CO2 Emissions Reduction Targets(compared to base year 2004)

Distribution/Transportation

Improve the accuracy of supply and demand

planning, integrate distribution centers, reorganize

distribution/transportation routes, adopt low-

emission vehicles, and promote eco-driving, etc.

+6.3%(19,933t)

CO2 emission ratio3:

-4.0%

Production

Consider switching to natural gas, adopting

cogeneration systems, and introducing clean

energy sources, etc.

-5.6%(22,653t)

CO2 emission ratio:

-10%

Sales

Advance the development and introduction of

energy-saving vending machines, etc.

-30.6%(357,195t)

Offi ces

Improve temperature management, continue

with “Cool Biz” and “Warm Biz”4 campaigns,

etc.

-2.8%(1,597t)

The 2010 medium-term target

and plan for the Coca-Cola system1

Reduce CO2 emissions by approximately 360,000 tons

(roughly 18.6%) by 2010 compared to the 2004 level

1. In 2009, revisions were made retroactively as far back as the base year (2004) because of the change in the basis for calculating some of the data due to an improvement in data collection accuracy

2. Calculations assume CO2 absorption per hectare of forest is 3.3 tons3. Amount of CO2 emitted during transportation of 1L of product from production sites to sales outlets4. Campaigns advocated by Japan’s Ministry of the Environment to conserve energy by reducing

the need in offi ces for air-conditioning in the summer or heating in the winter through wearing clothing appropriate to the summer or winter

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The Coca-Cola system, aiming to fulfill its social responsibility in

establishing a recycling-based society and to heighten corporate

value as an environmental leader, is working to ensure effective

utilization of resources and proper recycling. In April 2008, Coca-Cola

West Co., Ltd., which carries out production and sales in the

Kitakyushu-Chugoku-Kinki area, commenced full-scale operation of

a newly-constructed facility specializing in intermediate processing of

vending machines, which are important assets of the Coca-Cola

system. Use of this facility—the Kitakyushu Sawayaka Recycling

Center, situated within the Kitakyushu Eco Town district (Hibiki-

machi, Wakamatsu-ku, Kitakyushu)—enables dismantling and

separation of old vending machines internally, whereas before they

had been processed by local government or private-sector facilities.

This is the first time a beverage manufacturer has independently

operated a dedicated facility of this size for intermediate vending

machine processing.

Around 980,000 of the approximately 2.5 million beverage vending

machines in operation across Japan today sell Coca-Cola system

products, serving some 20 million consumers every day.

The Coca-Cola system introduced Japan’s fi rst bottled beverage

vending machine in 1962 and since that time has continually

provided convenient and easy-to-use vending machines that offer

the enjoyment of delicious products. In addition, we are providing

vending machines that are of service to society by enhancing their

environmental performance and their value as a part of the town

infrastructure.

Switching to HFC-Free Vending MachinesWhen installing new energy-efficient vending machines, we use

environmentally friendly HFC-free machines that employ heat pumps.

We have created vending machines that incorporate both

environmental performance and temperature control functionality,

through the use of HFC-free refrigerants that have a low coeffi cient in

terms of impact on global warming and the use of heat pump waste

heat recovery systems that enable effi cient heating and cooling.

The Coca-Cola system is pushing ahead with the installation of

two types of vending machines: the ecoru/E40 , which employs

vacuum insulation for excellent air-tightness and thermal insulation

and power-saving LED illumination, thereby reducing energy

consumption by around 40% compared to existing Coca-Cola

system vending machines; and the ecoru/Solar, which is equipped

with a solar panel.

A Vending Machine with a Solar Panel—ecoru/SolarThe ecoru/Solar vending machine we developed stores electricity

during the day using a solar panel, enabling zero power consumption

for nighttime illumination. The machine is gradually being deployed

since its launch in March 2010.

A solar panel installed on top of the vending machine, a heat pump

waste heat recovery system, vacuum insulation, and LED product

display illumination linked up to motion sensors achieve the same

energy-savings as the ecoru/E40 (around 40% compared to earlier

Coca-Cola system machines). An indicator located on the front of

the vending machine displays the power generation status to give

users get an idea of the energy being saved. We aim to install more

than 1,500 ecoru/Solar machines by the end of 2010.

Energy Management & Climate Protection

Improving the EnvironmentalPerformance of Vending Machines

Operation of Recycling Center for Vending Machines Retired from Service

Coca-Cola Japan and Okinawa Coca-Cola Bottling Co., Ltd.

have been implementing an Okinawa rail (Gallirallus okinawae)

ecological survey project together with the NPO Conservation &

Animal Welfare Trust since May 2010.

Findings from the NPO’s analysis of

sounds made by the rails, as recorded

by devices installed on existing vending

machines, will be used, for example,

by the Ministry of the Environment’s

captive breeding program for the

Ok i nawa r a i l . Th i s b i od i ve r s i t y

protect ion pro ject is par t o f our

contribution to the local community.

COLUMN Beginning of the “Okinawa Rail Ecological Survey Project” that Utilizes Vending Machines

Recycling of Vending Machines Retired from Service

HFCs

Recovery/destruction

Fluorescent lights

Recycling

Battery

Recycling

Vending machine body

Sorting

Iron

Glass

Bronze

Plastic

Aluminum

Oil

Stainless steel

Recycling by material type

Vending machines retired from service

● Solar panel

● Indicator confi rming power generation status

● LED illumination for product displays

● Motion sensors allow full illumination only during use

● HFC-free and heat pump technology

● The latest vacuum insulation

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Sustainable Packaging

Aiming for Earth-friendly, People-friendly Beverage PackagingThe Coca-Cola system worldwide has been introducing the concept of “sustainable packaging” for container development. We will promote the development of packaging that, in addition to having a low environmental impact, provides ease of use and enjoyment. Our aim is “Earth-friendly, people-friendly” packaging.

In the development of product packaging, the Coca-Cola system

has introduced its own unique concept of “sustainable packaging”

based on the idea that packaging has to be Earth-friendly and easy

for people to use.

If packaging is not people-friendly, its environmental appeal is

halved. Take strength, for example, which is a major obstacle to

weight reductions. The thinner PET bottles are made, the greater the

risk they will become dented, harder to pour, or even harder to drink.

Is packaging hard to hold? Can it be stacked on top of each other

during transportation and storage? In our pursuit of container weight

reductions, the Coca-Cola system has sought to ensure ease-of-use

in all stages—from manufacturing right up to after the consumer

purchases the product and the bottle is recycled. In addition to being

Earth-friendly and people-friendly, we also promote development of

packaging that features the distinctive fun of the Coca-Cola system.

To us, sustainable packaging refers to packaging that contains a full

complement of three elements: ease of use, environmental

compatibility, and fun.

The Coca-Cola system has led efforts to reduce packaging weight

as a way to promote effective utilization of limited resources since

the 1970s. These packaging weight reduction efforts led to the

introduction in February 2009 of the ecoru Bottle Raku-mochi as a

2L PET bottle for water, weighing only 38g. The bottle was designed

for easy holding and pouring, as the name Raku-mochi (easily-held)

suggests. The lightweight yet easily-held design was recognized with

a 2009 Good Design Award. The 2L PET bottles used for Aquarius

and unsweetened tea drinks, as well, now weigh only 47g, which is

around 10g lighter than they were in 1996. In May 2009, the ecoru

Bottle Shiboru PET bottle was introduced as the container for the

new I LOHAS water brand. The 520ml bottle was around 40% lighter

than conventional Coca-Cola system water product containers

(500ml class), and at 12g is Japan’s lightest* bottle for water

products. Lightweight, strong, and designed for easy crushing after

drinking, the bottle has attracted a lot of attention and favorable

feedback has been received from many quarters.

Concept of Sustainable Packaging

Changing Lightweight PET Bottlesand the Launch of ecoru Bottle

’82

80

70

60

50

40

30

20

10

0

(g)

’88 ’94’90 ’96 ’98 ’04’03 ’09 (year)

1.5L PET bottleTea 2.0L PET bottle

Water 2.0L PET bottle

Water 500ml class PET bottle

65g

64g55g

20.5g

55g

49g

75g

12g

38g

32g

48g

65g

48g 47g

Coca-Cola

● Characteristic of the Coca-Cola system

● Universal design

Eco-friendliness Ease of use

Fun

● Reduce

● Reuse

● Recycle

Earth- and people-friendly containers

Concept of Sustainable Packaging

Timeline of PET Bottle Weight Reductions by the Coca-Cola System in Japan

* I LOHAS is packaged in the lightest small PET bottle produced in Japan for products 550ml or smaller (as of March 2010; according to research by Coca-Cola Japan)

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Plant-based Material Manufacturing Process

Sugar cane molasses

Fermentation and distillation

Ethanol

Ethylene

Sustainable Packaging

Introducing the PlantBottle:Next-Generation Recyclable PET Bottle Derived from Plants Instead of Petroleum

Effective Utilization of Sugar Refi ning By-Product PlantBottle PET bottles partially (5–30%) use raw materials like

molasses, which is a by-product of the processing of sugar cane

and other raw materials into sugar, and therefore help to reduce

reliance on petroleum, a non-renewable resource.

PET resin consists of two types of materials: monoethylene glycol

(MEG), which constitutes 30% of the weight; and purifi ed terephthalic

acid (PTA), which makes up 70%. The MEG component can be

made using plant-based materials. As plant-based material content

fl uctuates at the beginning and end of PET resin production, the ratio

of plant-based material varies between 5% and 30%.

Fully RecyclableAs PlantBottle PET bottles are identical to conventional PET bottles

in terms of shape, weight, and strength, consumers can go on

drinking the products as they always have, while the bottles can also

be fully recyclable at existing PET bottle recycling plants. The

anticipated annual reduction in petroleum usage, from 2010, as a

result of using PlantBott le PET bott les for three products

(Sokenbicha, Sokenbicha Kurosae, and I LOHAS) is 2,045kl.2 This is

equivalent to 499kl of gasoline,3 enough for a car with fuel economy

of 10km/L to drive 125 times around the Earth.4 PlantBottle PET

bottles, which were introduced overseas in 2009, have attracted a

great deal of attention as environmentally-friendly next-generation

PET bottles, for instance at venues for the Vancouver 2010 Olympic

Winter Games.

As a new initiative in sustainable packaging, the Coca-Cola system

in Japan introduced in 2010 the PlantBottle next-generation PET

bottles, which are partially (5–30%) made from plant-based materials.

PlantBottle PET bottles have been used for 500ml and 350ml

Sokenbicha and Sokenbicha Kurosae products since March 2010;

small (520ml and 280ml) I LOHAS products since April 2010; and

the product in a 1,020ml PET bottle, Japan’s lightest at 18g,1 since

June 2010.

1. As of March 2010; according to research by Coca-Cola Japan

5. Weight/content ratios vary between 5% and 30%

100%made from

petroleum-based materials

petroleum-based

materials

5‒30%made fromplant-based

materials

Current bottle PlantBottle

PlantBottle Manufacturing Process

PET Bottle Manufacturing Process

Purifi ed terephthalic acid (PTA)

Monoethylene glycol (MEG)

Imported to Japan as fl akes

PET resin

PET bottle preform, like a small test tube

Preform

Forming by injecting air into preform to infl ate like a balloon

Bottle forming using blow molding machine

Monoethylene glycol (MEG)

30%70%5

2. The ef fect for reducing the amount of petroleum used is calculated by multiplying the amount of petroleum per ton of PET resin by the sales volume in 2009 of Sokenb icha brand products. Th is calculation is based on the assumption that each PET bottle contains an average of 16.5% plant-based materials.Sources: LC I Data Repor t on Pet rochemica l Products (updated version) issued by the Plastic Was te Manage me n t I n s t i t u te (Ma rch 20 09 ); Informational Manual Calculating Greenhouse Gas Emissions (Ver. 2.4) issued by the Ministry of the Environment and Ministry of Economy, Trade and Industry (March 2009)

3. Source: Petroleum Handbook (Table 41: “Production Yields by Type of Petroleum Product”) posted on the website of Nippon Oil Corporation

4. Calculated by multiplying 499,000L by 10km and then dividing that figure by 40,000km, which is roughly the Earth’s circumferenceSource: Website of Japan Aerospace Exploration Agency

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Sustainable Packaging

Operation of Post-Consumer Container Recycling Centers

As part of our efforts to promote recycling, half of the 12 bottling

partners of the Coca-Cola system in Japan (Michinoku Coca-Cola

Bottling Co., Ltd., Sendai Coca-Cola Bottling Co., Ltd., Coca-Cola

Central Japan Co., Ltd., Coca-Cola West Co., Ltd., Hokuriku

Coca-Cola Bottling Co., Ltd., and Minami Kyushu Coca-Cola Bottling

Co., Ltd.) operate recycling centers, where collected post-consumer

containers undergo sorting, compression, and other processes.

Coca-Cola West recycles post-consumer containers alongside its

vending machine intermediate processing facility at the Kitakyushu

Sawayaka Recycling Center within the Kitakyushu Eco Town district

(Hibiki-machi, Wakamatsu-ku, Kitakyushu). The collected post-

consumer containers are sorted by the center into the categories of

steel, aluminum, PET bottles, and glass bottles. Around 5,700 tons

of post-consumer containers were recycled in 2009.

The Hokuriku Recycling Center Co., Ltd., an affi liate company of

Hokuriku Coca-Cola Bottling, has been officially registered as a

recycling business compliant with the Containers and Packaging

R e c y c l i n g L a w a n d e v e n

undertakes recycling of post-

consumer containers collected

by local government. As a result,

the center is contributing to the

recycling of not only Coca-Cola

system products, but all post-

consumer containers collected

in the region.

Kitakyushu Sawayaka Recycling Center

Hokuriku Recycling Center Co., Ltd.

Flow Chart of Post-Consumer Container Collection and Recycling

Glass bottles, building

materials, pave materials, etc.

Flakes of glass

Glass bottles (non-returnable)

Rinsed and inspected at

Coca-Cola system plants for reuse

Glass bottles (returnable)

Building materials

Fused steel

Steel cans

Recycled aluminum cans

Aluminum plate

Aluminum cans

Apparel, Green Carpet,

stationary, etc.

PET fl akes

Pet bottles

Toilet paper, paper board,

etc.

Recycled at paper factory

Papercups/packs

Bottling plants

Coca-Cola system sales

offi ces

Fast-food outlets and other

restaurants

Retail outlets, supermarkets,

convenience stores

Vending machines

Bottling plants

(rinsing and

reuse)Sorting/recyclingcenters

(affi liated)

Sorting/recycling centers

(government/private)

Collectionby the Coca-Cola

system

Collection by local

governments

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Sustainable Packaging

Utilization of Recycled PET Materials

Working with Consumers on New Eco-Action Proposals

Recycled PET Materials in Uniforms and Collection BoxesAs one element of our green purchasing efforts, whereby priority is

placed on environmentally-friendly products and services when

purchasing, we are actively purchasing and utilizing items made from

recycled PET materials, including

un i f o rms and pos t -consumer

container collection boxes. In 2009,

approximately 100,000 uniforms and

67,000 post-consumer container

collection boxes made from recycled

PET materials were purchased.

This equates to the recycling of

approximately 7.6 million 500ml PET

bottles.*

“Enjoy Eco!” ProgramConsumer interest in environmental issues is growing all the time

and the Coca-Cola system, through its core business, wishes to put

forward environmentally-friendly lifestyle solutions that will contribute

to the realization of a sustainable society.

We are developing the “Enjoy Eco!”1 program, an idea allowing

consumers to help reduce environmental impact in a fun and

effortless manner through their daily lives—starting with product

packaging, as the aspect they most often come into contact with.

The program, which is consistent with the ideas on sustainable

packaging2 that the Coca-Cola system worldwide is promoting, aims

to establish a structure through which the enjoyment of easy-to-use,

environmentally-friendly packaging naturally leads to environmental

action.

Helping to Bring About a Recycling SocietyThrough the “Enjoy Eco!” program we will suggest ways for

consumers to take action at each stage of the product packaging life

cycle. In the sales stage, we will communicate the merits of products

using packaging that is easy to use, environmentally-friendly, and

fun, while ensuring that we continue to supply the market with

products consumers will chose. After consumption, we will ask

consumers to cooperate on sorting and collection of empty

containers and promote PET bottle recycling. In order to make PET

bottle sorting and collection an enjoyable form of action, the

Coca-Cola system is developing new post-consumer container

collection boxes. Collected PET bottles are recycled into new PET

materials, which are used to make clothes and a wide range of other

items. The Coca-Cola system had already used recycled PET

materials for uniforms worn by employees, post-consumer container

collection boxes, and novelty goods, but in April 2010 we added

items that appeal to consumers through collaboration with an

apparel maker to launch designer T-shirts made from recycled PET

materials. This new idea combining fashion and environmental action

has enjoyed great popularity among consumers.

We will continue to put forward such new ideas through our

provision of beverage products to ensure that consumers and the

Coca-Cola system can jointly undertake

environmental initiatives that help bring

about a recycling society.

Recycled PET Materials in Fashion—“rPET” ProjectIn March 2010, as an initiative offering consumers a fun way to

learn about recycling while experiencing the Coca-Cola brand in a

personal way, we commenced sales of T-shirts, hats, and other

items whose materials are 50% derived from recycled PET materials

(equivalent to two to three PET bottles) from apparel and fashion

brands, including Beauty & Youth United Arrows. Products sporting

the Coca-Cola logo also have icons advocating recycling printed on

them, as a way to foster consumers’ interest in PET bottle recycling

at the same time as they enjoy fashion. In

a d d i t i o n t o a p p a r e l a n d f a s h i o n

merchandise, we plan to incorporate

additional items, such as non-apparel

textile products (interior fabrics), tableware,

and furni ture, and also increase the

number of collaborative brands as we push

ahead with activities to raise awareness.

* 500ml PET bottles (25g)

1. See related information on p. 30

2. See p. 35

There is now a strong need to review factors concerning the

economy and consumption in order to resolve a variety of

issues facing the global community that are rooted in those

factors. As part of this trend, I LOHAS has made many people

aware that even ordinary consumers—by making the right

product choices—can become “part of the solution” instead of

“part of the problem” when it comes to the environment. This

may also give consumers the hope that choosing products

made by companies who are involved in environmental

initiatives can actually lead to solutions. In other words,

consumers choosing products based on their own informed

judgment. Companies leading the way, by prov id ing

environmentally-friendly products and information, enable

consumers to engage in “green consumption” and through

products such as I LOHAS the Coca-Cola system has

embarked on a “green dialogue” with consumers. I hope this is

a starting point for the creation of consumption styles for the

21st century that will lead to solutions for such problems as

global warming.

Takejiro SueyoshiSpecial AdvisorUnited Nations Environment Programme Finance Initiative

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Global Water Stewardship

The Coca-Cola system worldwide, which produces and provides

beverages, has continued carrying out initiatives for sustainable use

of water resources as part of its corporate social responsibility. The

system has set itself the goal of being a global leader of water

resources management by the year 2015. Since 2004, it has globally

implemented the “Water Stewardship” project, which strategically

promotes the three actions of reducing water used to produce its

beverages, recycling water used for beverage manufacturing

processes, and replenishing water in local communities and nature.

The Coca-Cola system in Japan has improved the environmental

performance of its plants and has initiated water environment

conservation activit ies in various regions in Japan through

appropriate water intake, water quality management, effi cient use of

water, and wastewater treatment. We expand our water conservation

efforts outwards from the areas where our plants are located, with

the aim of harmoniously coexisting with the environment and local

communities, which will become increasingly important in the future.

Promotion of the Long-Term “Source Water Protection”

ProjectThe Coca-Cola Company, based on a commitment to water

stewardship, is pushing ahead with a worldwide Source Water

Protection project as a long-term initiative. Water sources for plants

will be identified and plans for assessing source vulnerability and

preserving sources will be formulated. Central to the project is the

planning and implementation of community programs through

coordination and collaboration with stakeholders located in the

vicinity of our plants.

In Japan, the Daisen Plant of Coca-Cola West Daisen Products

Co. , Ltd. and the Tokai

Plant of Coca-Cola Central

Japan Products Co., Ltd.,

as pilot plants, conducted

surveys of water sources in

line with the project in 2009

and confi rmed there was no

vu lnerabi l i ty in terms of

water levels and quality. The

next s tep, beg inn ing in

2010, is to draw up source

water protect ion p lans.

Partnership with WWF ExtendedThe Coca-Cola Company and the World Wide Fund for Nature

(WWF) have extended their four-year (2007–2010) partnership

through to 2012 in order to continue their collaboration on numerous

projects, encompassing water stewardship, water effi ciency, support

for freshwater conservation, and promotion of sustainable agriculture.

Some of the funds provided will go toward conservation of seven of

the world’s largest river basins currently at high risk, as well as

toward ensuring water management efficiency and reducing CO2

emissions within The Coca-Cola Company’s operations and supply

chains.

Insight gained from the two pilot plants will be used to expand the

project, with four plants manufacturing mineral water products

among the additional plants to be included from 2010. The aim is

inclusion of all domestic plants by 2012.

Global Water Stewardship Project

Global Water-related Initiatives

Water is the basic ingredient of our products, and for the Coca-Cola system, as a beverage manufacturer, it is the most fundamental resource. Precious water resources the world over are under real threat today, with many facing depletion. Initiating efforts to ensure sustainable use of clean water is thus a pressing issue for companies and local communities alike.

Strategic Framework for Water Stewardship

Technology in business activities

Wastewatermanagement

Efficient useof water

Water qualitymanagement

Water intake

Source WaterProtection

Watershedprotection

Wastewatermanagement

Efficient useof water

Water qualitymanagement

Water intake

Watershedprotection

Coexisting Harmoniously with Local Communities

I must express my admiration for Coca-Cola system-wide

efforts to pursue water stewardship at individual plants. Their

planning and implementat ion of community programs

undertaken with the cooperat ion and col laborat ion of

stakeholders in the vicinity of plants is truly groundbreaking. I

look forward to seeing progress in their two-pronged approach

of water source protection plans and community programs,

primarily through conservation of both ecosystems and local

communities. Society today demands genuine initiatives. Water

source protection efforts often focus solely on development of

watershed forests in upstream areas. But water flows from

forests into rivers and into the sea, and then returns to forests

as rain.

This water cycle nurtures a rich biodiversity in catchment areas,

even in local communities. I would very much like to see the

Coca-Cola system work to protect the rich ecosystems and

local communities in catchment areas as a global leader in

water stewardship.

Fumiaki NagaishiPart-time Professor at Faculty of Agriculture, Tokyo University of Agriculture and TechnologyBiodiversity ConsultantCre-en Inc.

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Environmental Initiatives

Global Water Stewardship

TOPICS

For the Tokyo International Film Festival in October 2009,

Coca-Cola Japan created interactive exhibits to raise

visitors’ interest in environmental matters. The exhibits

included the Green Carpet made entirely with materials

from recycled PET bottles, an artistic display constructed

us ing empty I LOHAS

bott les i l luminated by

LEDs connected to a

power-generating floor,

and benches made using

30–50% Georgia coffee

grounds.

Eco-Action Promoted at Tokyo International Film Festival

Earth Hour is an annual campaign run globally by WWF

where supporters worldwide switch off their lights en

masse for one hour to call the world’s attention to the

importance of energy conservation and global warming

prevention. The Coca-Cola system in Japan and bottling

partners, participating for the

second time after supporting

the event in 2009, switched

off l ights used for offices

and prominent ou tdoo r

adver t isements for one

hour, starting at 8:30 p.m.

on March 27, 2010.

“Earth Hour 2010” Participation

The I LOHAS mineral water brand was launched in May

2009 with new packaging that was Japan’s lightest,*

approximately 40% lighter than existing packaging. While

retaining the strength to function as a beverage container,

the packaging enables a reduction of raw materials and

helps to reduce volume in disposal because it is easy to

crush. These features were highly praised and garnered the

product 13 awards between its launch at the end of

June 2009, including the Ministry of the Environment’s

2009 Minister of the

Environment Award

for Containers and

P a c k a g i n g 3 R

Promotion and the Fuji

Sankei Group’s 19th

Global Environment

Award.

* As of March 2010; according to research by Coca-Cola Japan

Praise from All Quarters for I LOHAS Lightweight PET Bottle

Improving Water Usage Effi ciency

Wastewater Management Based on Voluntary Standards

The Coca-Cola system in Japan uses an average of 6.24L of water

to make 1L of product (according to 2009 results). Water is mainly

used to extract teas and coffees and to clean and sterilize containers

and manufacturing lines. In addition to thorough management of

water consumption in manufacturing processes at plants, the

Coca-Cola system is working hard to promote water reuse. For

example, plants retain some of the water used for rinsing containers

in order to reuse it in washing plant fl oors and cases for returnable

glass bottles.

In 2006, the Coca-Cola system worldwide updated its voluntary

guidelines on wastewater management, redoubling its efforts in that

area in all of the regions in which it operates.

All plants that manufacture Coca-Cola system products are

subject to these guidelines, which apply to all wastewater including

water to be reused (process wastewater, rainwater, cooling water,

and sewage water) and which are stricter than those established in

Japan to govern water quality. This wastewater is cleaned using

such methods as the active sludge process, which primarily uses

microorganisms.

The Tama Plant of Coca-Cola East Japan Products Co., Ltd.,

located in a residential area not far from central Tokyo, engages in a

wide range of initiatives to ensure a harmonious coexistence with the

surrounding environment. Ever since its founding, the plant has

carried out purifi cation of plant wastewater to the highest level before

discharging it into the Kurome River and other waterways. In terms

of ecosystem conservation, maintaining the water level of the spring-

fed Kurome River is vital for fi sh, birds, and other wildlife. The Tama

Plant therefore works together with the Tokyo metropolitan and

Higashikurume municipal governments to ensure that water is

returned to the river to help maintain water levels and conserve

ecosystems in the

nature-rich Kurome

River.

Water Recycling System

Recovery

processing

Water treatment

Well water, tap water, industrial water

Use in the manufacturing process

for cleaning plant floors, etc.

Wastewatertreatment

To rivers/streams

orsewagesystems

To products

Reuse

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In 2007, we launched the “Coca-Cola: Begin Your Dream for the

Future” project encouraging the younger generation to hold on to

their dreams. The project involves sending notable fi gures who are at

the global forefront in their fi elds to elementary schools nationwide to

be teachers for a day, responsible for conveying to children the

importance of having dreams for the future as well as the need to

secure the future of the Earth as the stage on which they will realize

their dreams as members of society. Currently, Frog Town Meeting

and Hockey Meeting are the two programs conducted under the

project, both aimed at enriching children’s dreams and serving as an

opportunity to increase awareness of environmental issues.

Frog Town Meeting 2009The first Frog Town Meeting 2009 event was held at the Tokyo

Tatsumi International Swimming Center, where Kosuke Kitajima, who

is sponsored by Coca-Cola Japan, broke a world record in 2008. On

September 5, 2009, 115 children from four Tokyo elementary

schools participated in a special swimming lesson of the kind only

experienced at a top-level arena. Kitajima and guest athletes also

visited elementary schools in Fukushima and Okinawa prefectures.

T h e s e v i s i t s w e r e

enjoyable opportunities

for chi ldren to receive

d i rec t coach ing f rom

Kitajima about the joys of

s w i m m i n g a n d g a v e

encouragement to the

children, who represent

the future generation.

Hockey Meeting 2009Four players from the Coca-Cola West Red Sparks Women’s

Hockey Team, including two who represented Japan at the Beijing

Olympic Games, visited an elementary school in Yamaguchi

Prefecture for Hockey Meeting 2009. Representatives of the children

spoke about their dreams for the future and what they could do to

protect the environment. The athletes discussed their own

childhoods, warmly encouraging the children to follow their dreams.

The Coca-Cola system in Japan has been promoting the

“Coca-Cola: Learn from the Forest” project since 2006 with support

from the Ministry of the Environment and the Forest Agency. This

project for children, as representatives of the future generation, aims

to foster understanding about water, an essential natural resource,

the forests that nurture those water resources, and the importance

o f nature conservat ion th rough hands-on exper ience in

environmental education. Children who pass the certif ication

test on the “Coca-Cola: Learn from the Forest” project website are

issued a “Forest Doctorate” certifi cate, and selected recipients are

invited to participate in the “Forest Doctorate” Reporters Tour to gain

insight through actual visits to natural forest areas. In 2009, tours

w e r e i m p l e m e n t e d i n

Hokkaido, Okinawa, and

Chichibu. The chi ldren

took part in environmental

quiz competitions, listened

to guest speakers, and

engaged in a variety of

activities in the forest, such

as thinning and pruning.

Community

“Coca-Cola: Learn from the Forest” Project

“Coca-Cola: Begin Your Dream for the Future” Project

Being Part of the Local Community

The Coca-Cola system, to help bring about a sustainable society, carries out numerous programs throughout Japan, centering on contributions to the nurturing of future generations and the development of local communities. The system helps to nurture future generations through a host of programs providing opportunities for learning to Japanese youths, with a focuse on the environment, sport, culture, and education. Contribution activities tailored to local communities are also actively pursued through our business activities.

Sixth year students I was in charge of last year at Harimichi

Elementary School in Nihonmatsu applied for the “Coca-Cola:

Begin Your Dream for the Future” project and the school was

selected for a visit. Through the project, the children learned

how wonderfu l i t is to have dreams and work toward

accomplishing those dreams. Harimichi Elementary School was

located in a remote mountain area which has lost a tremendous

amount of vitality due to falling birthrates. This event became

quite the topic of conversation in the area and helped foster a

greater sense of unity. The Harimichi area became a place to

be proud of. I would like to express my thanks for the energy

the Coca-Cola system has contributed to the local community.

Takahiro TamuraTeacherHarase Elementary SchoolNihonmatsu, Fukushima Prefecture

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The Coca-Cola system has been supporting “green bird,” an NPO

that organizes clean-up activities in towns across Japan, since

December 2008 in line with the “Yes! Recycling—No! Littering”

message it has conveyed since the 1970s. Annually on May 30

(“Zero Waste” Day), the Coca-Cola system and green bird teams

throughout Japan jointly conduct clean-up activities. In December

2009, the Coca-Cola system

also supported a clean-up of

Tokyo’s Omotesando avenue,

which was lit up with its first

Christmas il lumination in 10

years.

The Coca-Cola system is working together with local governments,

law enforcement, and other organizations nationwide on the use of

local vending machines and the system’s delivery trucks as tools for

making our communities safer. In addition to putting address stickers

on each vending machine, we have begun using the LED displays of

machines in some regions to broadcast crime prevention information

provided by the police. Furthermore, we are

progress ing wi th insta l la t ion of vending

machines that allow people to make donations

which are used to enrich communities and

assist action groups. We are also using our

delivery trucks to prevent crime. If a driver sees

something suspicious or a person in need of

help, they will contact the authorities or use their

truck to provide safe refuge.

The H.I.H. Prince Takamado Trophy All Japan Inter-Middle School

English Oratorical Contest is intended to contribute to the promotion

of English education, the development of Japanese culture and

internat ional goodwil l in order to cult ivate a generat ion of

internationally-minded young people. The Coca-Cola system in

Japan shares this ideal and has supported the contest since 1963.

In the fi nal of the 61st contest held in November 2009, 27 junior high

school students, selected from among the 1,938 participating

students from 1,509 junior high schools nationwide, delivered

excellent speeches in English. The Coca-Cola system presented the

top three winners with “Coca-Cola High School and University

Scholarships” and awarded the “Coca-Cola Special Award for

Environmental and Social Consciousness” to three students and

their junior high schools for outstanding speeches on environmental

issues and social contribution activities.

In line with a basic philosophy of “Healthy Active Life,” the

Coca-Cola Educational & Environmental Foundation plans and

implements activities under three main programs (1. Environmental

Education; 2. Scholarship Assistance; and 3. Sports Education). The

objective is to contribute to the nurturing of youth into members of

international society and the development of human resources to

sustain the communities they live in.

The environmental education program includes the Coca-Cola

Environment Education Awards. Also part of the program has been

the reopening of a closed down school in Kuriyama-cho, Yubari,

Hokkaido as the “Uenbetsu Shougakko Coca-Cola Environment

House,” a demonstration facil ity with accommodation used

for environmental education. The faci l ity provides a site for

hands-on group learning in a

natural environment and for

environmental education. Under

the sports education program,

“running race workshops” are

held on an occasional basis for

elementary school children.

The Coca-Cola Company has participated in NGO Ocean

Conservancy’s International Coastal Cleanup (ICC) since 1996. The

clean-up activities are implemented by the Coca-Cola system

worldwide on the third Saturday every September. In 2009, 378,000

employees in 76 countries took part. The Coca-Cola system in

Japan also held lakeside clean-up activities for the third year in a row

on October 24 and 25 at Lake Biwa, Shiga Prefecture, which is a

water source for the concentrate-producing Moriyama Plant. Some

80 people, mostly CSR personnel from Coca-Cola Japan and

bottl ing partners, as well as

members of “green bird,” turned

out and collected 1,750kg of

litter in total, including 449 PET

bott les, 199 cans, camping

items, and mattresses.

Collaboration with “green bird” in Clean-up Activities Nationwide

Expanding Role of Vending Machines

Support for H.I.H. Prince Takamado Trophy All Japan Inter-Middle School English Oratorical Contest

Coca-Cola Educational & Environmental Foundation

ICC Activity in Japan: Mother Lake Biwa Cleanup Campaign

Community

As opportunities for direct contact and communication with people

of local communities, the Coca-Cola system runs tours of 17 plants

across Japan. In 2009 over 190,000 people participated in those

tours. By expla in ing the Coca-Cola system’s h istory and

demonstrating production lines, we manage to convey to visitors the

efforts of the Coca-Cola system in implementing thorough quality

management and environmental considerations. Some plants

conduct several programs, such as providing information and forums

for learning about the environment.

Plant Tours

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Coca-Cola Japan’s mission, vision, and business targets can only

be accomplished with the help of employees. We strive to develop

the abilities of our employees so that they and the company can

realize sustainable growth together.

Peak Performance Process (Unifi ed Global System)The Coca-Cola system has in place a thorough performance

management process to ensure attainment of individual goals linked

to business priorities of the system and teams. All employees are

required to implement capability development plans they have

created through mutual consultat ion and agreement with

supervisors.

“Employee Exchange Program” and Participation in Overseas Projects

The “Employee Exchange Program” has been implemented within

the Pacific Group on a continual basis since 2008 as a way to

develop world-class human resources suited to future senior

management positions. In 2009, Coca-Cola Japan sent one

employee to Shanghai and two employees to the Philippines, and

hosted one employee from the Philippines. Program participants

learn about business outside their own market and get to share best

practices back in their home country. They also extend their personal

connections within the Coca-Cola system.

Internal Job Posting SystemThe internal job posting system aims to cultivate a corporate

environment where employees take individual responsibility and

initiative by making it possible for them to select their own career

paths. Another goal of the system is to give employees a greater

sense of purpose in building up skills and experience by clearly

delineating criteria for personnel selection in order to effectively link

human resources development to business achievements.

Coca-Cola UniversityThe in-house Coca-Cola University set up by The Coca-Cola

Company makes curriculums for different job categories globally

available, providing leadership training and the Coca-Cola system’s

very own capability building program.

Enabling employees to build a career irrespective of their gender

and pushing ahead with training of female leaders are priorities for

the Coca-Cola system in terms of business strategy. The Personnel

Development Forum held twice annually now includes a segment for

deliberating on female leader candidate training plans and discussing

progress and results.

In 2009, we introduced a fl ex-time system in order to promote a

healthy work-life balance. Childcare support and nursing care leave

options were improved as part of a “cafeteria” plan launched in

January 2010 giving individual employees flexibility in selection of

welfare programs. The Coca-Cola system also participates in a

networking event for women inaugurated in 2008. The event, which

was expanded in 2009 to include 10 participating companies,

supports the establishment of inter-company networks of female

leader candidates.

Workplace

Support for Employee CareerDevelopment

Promoting Diversity

Fostering a Great Workplace Where Diverse Values are Capitalized UponTo provide a great place to work where people are inspired to be the best they can be—this is prescribed in the vision of the Coca-Cola system. We are striving to foster an open, safe, and healthy work environment where individual employees are given suffi cient authority for them to be motivated in their work and their diverse values are upheld.

When considering diversity, I place heavy importance on

questions like “Does the company genuinely believe that

awareness of differences, there being a wide variety of people

and perspectives, is enriching?” and “Is everyone integrated

into the organization to the same degree with their differences

valued?” Another question, not limited to diversity issues, is,

“Are the issues being properly tackled, and does everyone

believe from the bottom of their hearts that this is good both for

the company and for society?” Speaking from my experience

discussing careers with a large number of people, meaningful

career support cannot be given without touching upon how

employees v iew their careers subject ively in terms of

signifi cance over the long term. It is also important to provide

quality feedback and coaching. I hope Coca-Cola Japan will

come up with brand new and unique approaches to creating an

organization where, through job duties and tutelage, employees

can continue to develop throughout their careers.

Toshihiro KanaiProfessorGraduate School of Business AdministrationKobe University

STAKEHOLDER MESSAGE

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Website http://cocacola.co.jp/positively/workplace/

Workplace

Code of Business Conduct Internal Communication

Employee Insights Survey

Workplace Rights PolicyThe Coca-Cola brand and its products have earned the trust of

people throughout the world and all our employees have a duty to

make sure that trust is retained. Acting with integrity is not only

undertaken to preserve trust in the company and its reputation, but

also helps to maintain a workplace of which employees are proud.

Serving as a guide for appropriate employee conduct, the Code of

Business Conduct was revamped in 2008, along with our Workplace

Rights Policy, to incorporate specifi cs.

The Coca-Cola Company promises to treat employees fairly and

with respect and dignity based on a belief that observance of human

rights is fundamental for doing business. The company’s Workplace

Rights Policy, which covers the areas listed below, is based on

international standards on human rights, including the Universal

Declaration of Human Rights, the International Labour Organization’s

Declaration on Fundamental Principles and Rights at Work, and the

United Nations Global Compact. Related training is implemented in

off ices worldwide to promote employee understanding and

compliance.

Coca-Cola Japan implements the Employee Insights Survey, a

global survey of all employees, every other year. Survey fi ndings are

made available to all employees and influence action plans of the

entire Coca-Cola system and individual departments. Company-wide

issues identified in the 2008 survey included “a review of welfare

arrangements to promote a healthy work-life balance and work

approach flexibility,” “coaching to assist career design,” and

“operational effi ciency.” A follow-up questionnaire was conducted in

response to these f indings to identify the welfare needs of

employees. In 2009, an improvement plan was announced and

executed. Coaching & Feedback Workshops and a cross-functional

project to improve operational effi ciency were also implemented for

all managers with employees under their supervision.

Live Positively Day (People Day & Sports Day)At People Day, a meeting of all employees held several times each

year, business strategies and plans are announced and small groups

partake in discussions. This promotes understanding among

individual employees and motivates

employees to take action. In 2009, People

Day and Sports Day were merged as Live

Positively Day. The People Day segment

featured reporting on business results and

CSR act iv i t ies, and the Sports Day

segment pitted departments against each

other in sporting competitions as a way to

promote health and improve teamwork.

Town Hall MeetingTown Hall Meetings are held

th roughout the year fo r the

purpose of sharing detai ls of

business plans and status reports

in order to improve employee

understanding. These meetings

allow for direct dialogue between

employees and management.

Café ConversationCafé Conversation is a gathering organized by Public Affairs &

Communications on an irregular basis for the purpose of dialogue,

and employees with an interest in a chosen theme are invited to

participate. The gathering is an opportunity for them to share

information and exchange ideas in a laid-back atmosphere

transcending departmental and operational boundaries. Themes

discussed during 2009 include “web marketing,” “environmental

conservation activities” and “work styles of people with children.”

Utilizing Communication ToolsThe Coca-Cola system works hard to stimulate information sharing

and heighten employee awareness. We actively employ a variety of

employee communication tools that employees can use among

themselves to share information, such as system company best

practices, which might offer hints for overcoming business

challenges. The tools also play a role in improving employee

motivation. Since May 2010, Live Positively NEWS, a newsletter

spun off the popular enjoy! in-house

magazine, has been used as a tool for

spreading business principles. Various

other methods are used to relay information

throughout the system, including the use of

intranet to communicate the latest news

and share information by video, and the

use of wall newspapers.

◎ Freedom of Association and Collective Bargaining

◎ Forced Labor

◎ Child Labor

◎ Discrimination

◎ Work Hours and Wages

◎ Safe and Healthy Workplace

◎ Workplace Security

◎ Community and Stakeholder Engagement

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Initiatives in 7 Priority AreasPromoting “Live Positively” in Countries and Regions across the Globe

The Coca-Cola System Worldwide

C a n a d aU K

U S AS o u t h A f r i c a

Active, Healthy LifestyleBeverage Benefi ts

CommunityGlobal Water Stewardship

The glacéau vitaminwater series currently sold in 16 countries

provided enjoyment and refreshment for a large number of

consumers, athletes, and VIPs, as part of an innovative

campaign at the Vancouver Olympic Winter Games, following

on from the Beijing Olympic Games held two years earlier.

Canadian athletes embodying the outlook of the glacéau

vitaminwater brand, involved in pursuits like snowboarding,

bobsleigh, and mogul skiing, were singled out for partnerships

under which their stories were communicated through the

media. The publicity, involving exposure via print media, online,

and in outdoor advertising, as well as store-based strategies,

helped to further boost the popularity of the athletes.

Coca-Cola Great Britain has joined forces with one of the

United Kingdom’s leading TV stations, ITV1, to implement the

industry’s first ever Saturday night meal-time campaign. By

teaming up with ITV1, which is synonymous with Saturday

night TV entertainment in the U.K., under the catch phrase

“Saturday night tastes better with Coca-Cola and ITV1,”

Coca-Cola Great Britain is appealing to families to get together

on Saturday nights to enjoy meal-times with Coca-Cola. TV

commercials depicting Coca-Cola as an integral part of family

life have been shown, and campaigns are run via the member-

based website Coke Zone allowing families to win gifts they

can enjoy together.

“We Are the World,” the hit song recorded to raise money to

ease hunger in Africa, was re-released in 2009, 25 years after

its first appearance, in order to help the victims of the

earthquake in Haiti. The Coca-Cola Company got involved by

leveraging its massive communication network—including

its official member-based My Coke Rewards website, the

Coca-Cola system’s fan page on Facebook, and the official

websites of celebrities and athletes who appear in Coca-Cola

system advert isements—to direct around 25 mi l l ion

consumers to the song’s official website. People were

encouraged to make quick and effective donations, such as

by downloading the song.

The Water and Development Alliance (WADA), jointly funded

by the Coca-Cola Foundation and the United States Agency

for International Development (USAID), is providing villages

around Tzaneen, South Africa with basic infrastructure for

water purif ication. The three-year project involves the

development of basic water purifi cation infrastructure in three

villages worst affected by waterborne diseases such as

typhoid fever and cholera. Workshops have also been held to

help people learn about water-related issues as well as water

and health management. This program is also benefi ting from

the Replenish Africa Initiative (RAIN) implemented by the

Coca-Cola Africa Foundation.

Image of glacéau vitaminwater Communicated through Olympic Activation

Tie-up with ITV1 for Saturday Night Meal-time Campaign

“We Are the World” Returns after 25 Years to Raise Funds for Haiti

Coca-Cola and USAID Bring Clean Water to Rural Villages

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The Coca-Cola system worldwide is seeking solutions to issues

through initiatives being advanced in seven priority areas

under the “Live Positively” slogan, using methods suited to

the characteristics of each region.

U S A

U S AU K

Workplace

Sustainable PackagingEnergy Management &Climate Protection

In 2009, for the third consecutive year, The Coca-Cola Company

was included in the list of 20 Best Companies for Leadership

released by the U.S.-based magazine BusinessWeek and the Hay

Group consulting fi rm. This year, the company was rated highly not

only for forging through the economic recession with strong

leadership, but also for efforts to retain and nurture top leaders in the

midst of increasingly tough economic conditions. The Coca-Cola

Company commented: “In order to advance our business, in line

with the 2020 Vision, our future leaders will need to effectively

navigate in a changing world in which global macro-economic factors

require a transformation in thinking, behavior, and our view of the

world.”

The Coca-Cola Company has teamed up with Emeco, known

around the world for its Navy aluminum chair series, to launch

a chair made with materials from 111 recycled PET bottles.

The chair, named 111 Navy Chair TM, was exhibited at the

2010 Salone Internazionale del Mobile, which is also known

as the Milan Furniture Fair. Recycled PET resin (rPET)

accounts for 60% of materials used for the chair, which is

modeled after the aluminum Emeco Navy Chair (#1006)

designed in 1944 for the U.S. Navy. It is expected that more

than three million PET bottles will be reused each year for this

initiative.

Coca-Cola Great Britain engages in collaborative initiatives

with business partners, one example being joint efforts with

Tesco, the United Kingdom’s largest supermarket chain, to

ensure sustainable business. In the area of sales, 21% of the

Coca-Cola system products sold by Tesco do not undergo

secondary packaging. Meanwhile, for distribution, 10% of the

system’s products transported to Tesco are sent via rail,

thereby reducing the amount of freight transported by truck.

Additionally, all Coca-Cola system coolers inside Tesco stores

are equipped with energy-saving systems and employ

refrigerants that do not use HFCs,* with the aim of reducing

energy costs and environmental impact.

The Coca-Cola Company Ranks in Top 20 of Best Companies for Leadership

Recycled PET Chair Debuts at Milan Furniture Fair

Joint Initiatives with Leading British Retailer “Tesco”

* Hydrofl uorocarbons (HFCs) replaced the use of ozone-depleting chlorofl uorocarbons (CFCs),

but they must be collected after use because of their strong impact on global warming

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Data on Environmental Initiatives in 2010

The amount of energy consumed in all the business processes

during 2009 fell 6.3% compared to the previous year, with CO2

emissions down 7.3%. This is a decrease in total CO2 emissions of

17.9% compared to the level in 2004 (base year). For production

processes, energy consumption decreased by 4.6% compared to

the previous year, while total CO2 emissions fell by 6.5% compared

to the previous year. Contributing to this were continued efforts to

switch to the use of natural gas as an energy source, which resulted

in a lower usage ratio for heavy oil A* and a higher usage ratio for

processed natural gas, natural gas, and other energy sources that

generate low CO2 emissions. However, production volume declined

6.6% from the previous year and CO2 emissions per 1L of product

increased slightly, by around 0.2%. Significant progress was made in

the distribution and transportation sector with energy consumption

and total CO2 emissions both falling 14.8% from the previous year.

This was largely due to reviews of production and distribution

operations carried out from 2009 in line with a new supply chain

management (SCM) framework.

In its sales processes, the Coca-Cola system in Japan is striving to

meet its target of reducing total CO2 emissions by 30.6% by the year

2010, compared to the 2004 level. The system is also working

together with vending machine manufacturers to develop and adopt

energy-saving models. In 2009, efforts to switch to energy-saving

machines led to a 5.5% reduction in CO2 emissions as of December

31,2009 compared to the previous year. Furthermore, as part of its

measures to help prevent global warming, the Coca-Cola system is

continuing to switch to HFC-free vending machines that do not use

alternative chlorofluorocarbon, and has introduced some 60,000

machines as of December 31, 2009. Approximately 95% of those

machines are HFC-free vending machines that employ heat pump

technology, which achieves extensive reductions in the amount of

electricity consumed. A prime example of such models is the ecoru/

E40 . In offices, energy consumption fell 1.9% and total CO2

emissions fell 2.1%, compared to the previous year.

Energy Consumption for Production (Input/Output)

Energy Consumption (in thousand gigajoules) Breakdown of Energy Consumption CO2 Emissions (in thousand tons)

LPG 2.4%Kerosene 0.2%

Electricity 44.8%

Heavy oilA

13.6%

Processed natural gas/Natural gas

39.0%

2004

7,550

2005

7,380

2006

7,560

2007

7,920

2008

7,950

2009

7,590

2004

410

2005

390

2006

390

2007

410

2008

400

2009

380

Energy Consumption for Distribution/Transportation (Input/Output)

Energy Consumption (in thousand gigajoules) CO2 Emissions (in thousand tons)

2004

4,620

2005

4,710

2006

4,570

2007

4,310

2008

4,410

2009

3,760

2004

320

2005

320

2006

310

2007

290

2008

300

2009

260

Energy Consumption for Sales (Input/Output)

Energy Consumption (in thousand gigajoules) CO2 Emissions (in thousand tons)

2004

27,260

2005

25,990

2006

24,920

2007

23,460

2008

22,380

2009

21,140

2004

1,170

2005

1,110

2006

1,070

2007

1,000

2008

960

2009

910

Energy Consumption for Production (Input/Output)

Energy Consumption (in thousand gigajoules) CO2 Emissions (in thousand tons)

60 60 60 60 60 601,250 1,220 1,230 1,230 1,260 1,240

2004 2005 2006 2007 2008 2009

7,550

4,620

27,260

7,380

4,710

25,990

7,560

4,570

24,920

7,920

4,310

23,460

7,950

4,410

22,380

7,5903,760

21,140

2004

410

320

1,170

2005

390

320

1,110

2006

390

310

1,070

2007

410

290

1,000

2008

400

300

960

2009

380

260

910

Production

Distribution/Transportation

Sales (vending machines)

Offices

● CO2 emissions originating from electrical generation are

calculated using the CO2 emissions factor of 0.421kg CO2/

kWh (level for 2004) announced by the Federation of Electric

Power Companies of Japan in 2005

● CO2 emissions originating from fuel are calculated using the

Greenhouse Gas Emissions Calculation and Reporting

Manual: Ver.2.3 (issued by the Ministry of the Environment;

Ministry of Economy, Trade and Industry in May 2008)

* Heavy oil A possesses the lowest level of kinetic viscosity of

any of the three oils in the heavy oil category (Japan

Industrial Standards)

● Numerical figures in the graphs are rounded

Energy-related Initiatives

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In 2009 Coca-Cola system plants achieved a recycling rate of 99.7%

for the solid waste generated from production processes, marking

the sixth consecutive year since 2004 to attain “zero emissions” (a

recycling rate of over 99.5%). The quantity of solid waste generated

in 2009 was 119,700 tons and the quantity of recycled waste was

119,300, both slight decreases compared to the previous year.

In 2009, the Coca-Cola system continued initiatives implemented

in the previous year for managing wastewater, preserving water

sources, and addressing water efficiency. Although, in line with a

decrease in production, the volume of water used in production

during 2009 decreased to 25.83 million cubic meters and that of

wastewater decreased to 19.23 million cubic meters, the volume of

water use ratio1 increased slightly.

In 2009, along with its other environmental initiatives, the Coca-Cola

system strived to ensure wastewater management based on

standards in l ine with The Coca-Cola Management System

(TCCMS),2 the Coca-Cola system’s global management system.

Water (Input/Output)

Amount of Solid Waste Generated and Recycling Status

Water Consumption (in thousand cubic meters)

Wastewater Discharged (in thousand cubic meters)

Breakdown of Solid Waste Generation (2009)

Breakdown of Water Consumption (2009)

Breakdown of Wastewater Discharged (2009)

Paper/Cartons 3.2%

Plastic 2.6%

Glass 1.1%

Metal 1.5%

Other 0.9%Solid waste generated(in thousand tons)

Solid waste recycled(in thousand tons)

Recycling rate (%)

99.7%99.6% 99.6% 99.7% 99.8% 99.7%

2005

122 122

2004

132 132

2006

123 123

2007

123 122

2008

131 130

2009

120 119

Coffee grounds/Used tea leaves78.2%

Sludge12.4%

Water use ratio (L/L)

6.156.126.29

6.23 6.18 6.24

2004

25,860

2005

25,670

2006

26,000

2007

27,330

2008

27,430

2009

25,830

Well water53%

Tap water19%

Industrial water28%

17,210

2004

17,390

2005

18,120

2006

19,200

2007

20,080

2008

19,230

2009

Discharged into rivers, streams and oceans

75%

Discharged intosewage systems

25%

Waste-related Initiatives

Water-related Initiatives

1. The volume of water required when producing 1L of product

2. Wastewater was managed in line with The Coca-Cola Management System (TCCMS) for

the period of January 1 to December 31, 2009, but starting in 2010 will be managed in

line with Coca-Cola Operating Requirements (KORE)

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2010

As of July 2009, there were 22,700 copies of the Coca-Cola Sustainability Report 2009 in circulation, and the website questionnaire had generated 374 responses (371 responses from the general public and three from employees of the Coca-Cola system). We look forward to hearing opinions from many more stakeholders about how we can improve the content of the report and our activities as a company.

Stakeholder Opinions

Coca-Cola Sustainability Report 2009: Readers’ Comments

Feedback from the Questionnaire Attached to the Coca-Cola Sustainability Report 2009

Too much: 18.2%

Poor: 2.7%

Poor: 2.4%

Excellent: 36.9%

Ease of

understanding

Design

Poor:7.8%

Quality of

Information

Quantity of

Information

Insufficient: 10.7%

Good: 61.2%

Good: 47.5%

Sufficient: 71.1%

Average: 31.0%

Good: 40.4%

Average: 19.3%Excellent: 30.7%

Average: 20.1%

The Coca-Cola System in Japan (34.8%)

Excellent:

40.9%

Good:

43.3%

Below average: 3.2%

Average: 12.0%

Poor: 0.5%

Consumer: 80.5%

Corporate CSR/environment officer:

0.8%

NGO/NPO employee: 2.9%

Other: 15.0%

Coca-Cola system employee:0.8%

#1

Environmental Initiatives: Water-related Initiatives (30.4%)#2

#3

#4

Environmental Initiatives: Waste Reduction (24.3%)

“Live Positively” (22.1%)

● For this year’s report, considerable feedback has been incorporated from

outside stakeholders in order to provide a multi-faceted evaluation of the

business activities of the Coca-Cola system.

● These results indicate that the stakeholders had an interest in sections

related to such topics as the corporate stance and environmental initiatives.

●We found that over 80% of respondents gave the initiatives a positive rating.

#5 Environmental Initiatives: Vending Machine Advancements (20.0%)

What is your overall impression of this report?1 Which topics most interested you?2

How do you rate the Coca-Cola system’s initiatives?3 What best describes your perspective as a reader of the report?4

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About the Sustainability Report 2009 About Sustainable Packaging

Sustainability Website: Visitors’ Messages

Many visitors to Coca-Cola Japan’s website have taken the time to relate their impressions and opinions regarding information on our business activities. We would like to introduce some of the valuable advice that we have received from stakeholders.* For reasons of space, we have edited and summarized some opinions, but remained faithful to the intent

We would like to hear from you! Please send us your ideas and opinions regarding Coca-Cola Sustainability Report 2010.

http://cocacola.co.jpWebsite 0120-308509(toll free)Hours: 9:30 a.m. – 5 p.m. (except weekends and public holidays)

Consumer Service Center

Woman in her early 20s

I would have liked to see the content of the “Environmental Initiatives” supplement to Sustainability Report 2009 actually inside the main color report.

Woman in her 40s

As a consumer, I learned a lot from the report. I have been interested in the activities of the Coca-Cola system for a long time now and look forward to reading future reports.

Woman in her early 20s

I knew nothing about the kind of initiatives being implemented by the Coca-Cola system until I read about them on the Internet. I expect most other people feel the same way. This is a shame because the great things you are doing are not visible to us and therefore do not come across. Why not be more aggressive in your publicity about initiatives?

Woman in her 30s

I did not know the Coca-Cola system was involved in such activities and my view of you has changed. I want to know more.

About Delivery/Transportation

Man in his late 20s

Selling water from Hokkaido in Kyushu and elsewhere would not be environmentally-friendly. I am concerned about unnecessary transportation from the place where the water is obtained to the place where it is consumed. I would like to see a map of the locations where you obtain water for I LOHAS.

About Community Contributions and Support for Sporting Activities

Man in his 30s

You have provided an open, coherent and detailed explanation of your contribution to local communities and your corporate social responsibility, and I am amazed and impressed by the way you have taken action. Please keep up the good work!

Man in his 30s

Please enhance sports programs for children.

Woman in her late 20s

I have always found labels on 500ml PET bottles diffi cult to remove. You have improved labels on 2L PET bottles so they do not tear, but for 500ml PET bottle labels it is hard to even find where to tear off the label! While other companies’ labels can be smoothly peeled off from the top, Coca-Cola system labels are so stiff I can never fi nd a place to start peeling and have to use scissors. I would like to see the labels improved.

Man in his 30s

Perhaps you could be doing more to spread knowledge about methods for sort ing and recycl ing waste, for instance v ia TV commercia ls , advertisements, and product packaging.

Woman in her late 20s

If you have managed to reduce the amount of resin used for I LOHAS, then perhaps you could use the same methods to reduce usage for other Coca-Cola system products, too.

About Vending Machines

Man in his 40s

I run a retail business in a provincial area. The evolution of vending machines is all very good, but the machines installed at stores in such areas tend to be ones that used to be located elsewhere so they do not have functions for younger consumers to use a mobile phone or e-money to buy beverages. Mobile phones are used by everyone and young people here are just as aware about e-money and point systems as their counterparts in the major cities, so please make an effort to install new, eco-friendly vending machines in provincial areas, too.

Man in his 30s

I suppose it takes time to make one vending machine, but please install more machines compatible with mobile phone payment systems.

WEB

The Consumer Service Center receives opinions and requests from a large number of consumers every day. On behalf of the

Coca-Cola system, we at the Consumer Service Center properly acknowledge comments from consumers and make them

known throughout the company so the system can work to improve products and services and meet the expectations of

consumers. Some of the consumers we hear from at the Consumer Service Center harbor doubts or concerns about our

products and services. Through communication with consumers, the Consumer Service Center tries to foster optimism among

consumers as a path toward realizing the “Live Positively” business principle adopted by the Coca-Cola system worldwide. We

are always eager to hear your comments.

C O M M E N T

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