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Page 1: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Digest Edition

Page 2: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Message from the President

Message from the President

Vibrant Local Communities Are Essential for Companies to Grow

The Coca-Cola Company’s long-term growth strategy “2020

Vision” outlines plans to double the scale of our global business

over the 10-year period through to 2020, and describes our strong

commitment to place even greater emphasis on our sustainability

initiatives.

Naturally, this stance is shared by the Coca-Cola system

around the world. While as a company it is, of course, important

to achieve profitability, what we must ultimately aim for is to deliver

Making a Positive Dif ference for Sustainable Growth

not only consumers, but employees and business partners. By

working together with these diverse stakeholders we will help the

communities we operate in thrive along with our business. The two

go together.

value to society and to have a positive, forward-looking influence

on the communities that surround the places where we work. In

all phases of our operations, we must always be conscious of

sustainability.

The Coca-Cola system currently operates in over 200 countries

around the world. Our philosophy in each and every one of these

locations is that our business can only grow through the vitalization

of the local community. By “community,” we refer to all the people

we come in contact with during the course of our business

activities and the locations where they live and work. This includes

Tim Brett

Representative Director and President

Coca-Cola (Japan) Company, Limited

1

Page 3: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Leading Energy Conservation Efforts through Our Vending Machine Business

Contributing Active Healthy Living through Beverage Business

For example, it is now widely accepted that companies

have a duty to reduce environmental impact through measures

such as energy conservation. For us this includes our vending

machine business which is an unusual feature of the Japanese

retail landscape—especially compared to other countries in the

global Coca-Cola system. We have been working for more than

15 years to improve our vending machines’ energy-efficiency

performance. These efforts have led to improvements, and we

take pride in the contribution our initiatives have made to energy

conservation in the Japanese vending machine business.

However, the Great East Japan Earthquake of 2011 was

a reminder that these efforts were not sufficient. In the period

directly after the earthquake, we achieved electricity savings of

more than 30% by implementing rolling power shutdowns of the

cooling systems in our vending machines in the Kanto region.

This experience also drove us to spend a year developing

and introducing “peak shift vending machines” which chill

beverages at nighttime—when electricity supply is relatively

plentiful—while consuming no power for refrigeration during the

daytime, when demand for power is at its highest. This project

was a groundbreaking initiative to respond to the needs of

Japanese society. We are proud that we were able to harness

our technology and innovation to deliver both an immediate

response following the earthquake and a longer-term solution.

Meanwhile, we are also advancing our water stewardship

initiatives. As a company in the beverage industry, securing water

resources is a critical issue. Our plants around the world deploy

new processes and technology to reduce the volume of water

used during the manufacturing process. We apply systems for

recycling water used in production and returning it to nature in

a safe, clean manner. In addition, we are working together with

experts and local communities to preserve water sources in the

regions our plants draw water from.

The Coca-Cola Company’s long-term growth strategy “2020

Vision” outlines plans to double the scale of our global business

over the 10-year period through to 2020, and describes our strong

commitment to place even greater emphasis on our sustainability

initiatives.

Naturally, this stance is shared by the Coca-Cola system

around the world. While as a company it is, of course, important

to achieve profitability, what we must ultimately aim for is to deliver

In Japan, where the population is forecast to age further in

the coming years, “health” is becoming an ever more important

keyword. We aim to deliver products targeted to meet a range

of diverse needs so that consumers can select the products

which suit their lifestyle and manage their health accordingly. We

facilitate this choice by providing consumers more information

about our products. A very visible example of this is the fact that

Continuing Support to Earthquake-affected Regions

Sharing Our Vision with All Employees

The Great East Japan Earthquake reinforced the fact that our

business cannot exist without the support of local communities.

The earthquake struck only a week after I arrived in Japan, and I

was deeply moved by how the nation’s people came together to

support their communities and overcome a time of severe crisis.

Wanting to do anything we can—however small—to help these

communities get back on their feet, the Coca-Cola system has

worked to support earthquake-affected regions through a variety

of initiatives. One such project is the installation of solar power

generation facilities in elementary and junior high schools. These

not only prepare against disaster but also help educate children

about the environment.

In addition, from 2012 we began the TOMODACHI

Program, a homestay program in which young people from

earthquake-affected regions are invited to stay with families in

the United States. We plan to offer 300 youths the chance to

participate in the program over a three year period. We believe

it is precisely at this time—when there are still many hurdles

to be overcome on the path to revitalization of the affected

communities—that the young people who will undertake this

task should be given the opportunity to gain a broad range of

experiences overseas.

To realize the Coca-Cola system’s vision in society, our

employees must first become role models.

For this to happen, our corporate mission and vision, the beliefs

behind our product creation and our stance towards sustainability

must be shared by each and every one of our employees. As the

head of Coca-Cola Japan, I believe that improving communication

with each of our employees and creating opportunities to convey

our values is of utmost importance.

Through our beverages, we aim to create a cycle of “virtuous

growth” in the community and to grow together with society in a

sustainable manner. Together with our employees, I will continue

striving to achieve this mission.

not only consumers, but employees and business partners. By

working together with these diverse stakeholders we will help the

communities we operate in thrive along with our business. The two

go together.

we have begun placing calorie information on the front of all of

our product packages.

Additionally, to support the ideal of Active Healthy Living, we

sponsor the “Inter High” Japan Inter High School Athletic Meeting,

and hold sports workshops with the help of Japan’s top athletes

to promote an active and vibrant lifestyle. We are also working

internally to help our employees lead from the front by following a

healthy lifestyle of regular exercise in conjunction with a balanced

diet.

value to society and to have a positive, forward-looking influence

on the communities that surround the places where we work. In

all phases of our operations, we must always be conscious of

sustainability.

The Coca-Cola system currently operates in over 200 countries

around the world. Our philosophy in each and every one of these

locations is that our business can only grow through the vitalization

of the local community. By “community,” we refer to all the people

we come in contact with during the course of our business

activities and the locations where they live and work. This includes

2

Page 4: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

The Coca-Cola Company

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

Name Coca-Cola (Japan) Company, Limited

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

Changed name to Coca-Cola (Japan) Co., Ltd.

on March 15, 1958

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

TEL: +81-3-5466-8000 (main line)

URL: http://www.coca-cola.co.jp

Representative Tim Brett

(Representative Director and President)

Capital 3.6 billion yen

Shareholder The Coca-Cola Export Corporation

(Wholly-owned subsidiary of

The Coca-Cola Company)

Employees 551 (as of April, 2013)

Plant Moriyama Plant

(49, Amura-cho, Moriyama City, Shiga Prefecture)

Business Manufacture and sales of beverages

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

Core Products

In addition to the world’s most valuable brand,1 Coca-Cola, and other sparkling beverages, The Coca-Cola Company offers

coffee, sports drinks, tea, water, energy drinks, juice and more than 3,500 products worldwide, making it the world’s largest

beverage company, with around 1.8 billion servings2 consumed per day.

1. Interbrand Best Global Brands 2012 2. The amount of Coca-Cola system products consumed worldwide when one serving is 8 ounces (approximately 237ml)

Sparkling beverages Coffee

Sports drinks Tea

Active lifestyle beverages

Water

Juice Energy drinks

Coca-Cola (Japan) Company, Limited was established in 1957 as the Japanese subsidiary of The Coca-Cola

Company (headquarters: Atlanta, Georgia, U.S.), marking the beginning of full-fledged 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.

The Coca-Cola system in Japan offers a wide line-up of more than 300 products in eight categories, such as sparkling beverages, in

order to meet the diversified needs of our consumers.

3

Page 5: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

1 Message from the President

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

4 Contents / Editorial Policy

5 Coca-Cola System in Japan

7 Coca-Cola System’s Sustainability Framework

9 Special Feature: Sustainability Stories

Creating a Healthy and Affluent Future for

Japan—Health Promotion Is about

Community and Human Resources

Development

Great East Japan Earthquake and an

Overseas Homestay Program—Two

Experiences Which Shaped a Woman’s

Future Ambitions

Uniting as a Company to Consider How to

Contribute to Society through Vending

Machines and Take Action

STAKEHOLDER ENGAGEMENT

Discussion on the Sustainability of

Society and Business

Bottling Partners Nationwide Unite

to Protect Water Resources

2012 Activities Report

17 BEVERAGE BENEFITS

19 ACTIVE HEALTHY LIVING

21 ENVIRONMENTAL MANAGEMENT

23 ENERGY AND CLIMATE

25 SUSTAINABLE PACKAGING

27 WATER STEWARDSHIP

29 COMMUNITY

31 WORKPLACE

33 MANAGEMENT

35 Initiatives from around the World

The Coca-Cola Sustainability Report 2013 conveys

to our stakeholders the approach to sustainability of

the Coca-Cola system, which is comprised of

Coca-Cola (Japan) Co., Ltd., its nationwide bottling

partners and other affiliates in Japan, and introduces

the Coca-Cola system’s initiatives.

The 2013 report contains a special feature outlining

the initiatives Coca-Cola system employees and

stakeholders are taking to address issues in society.

For more on the business operations and corporate

social responsibility of individual bottling partners

across Japan, please refer to their respective websites

and issued reports.

Full Edition / Digest Edition

The Coca-Cola Sustainability Report 2013 is released in a

printed edition and an online edition. The printed edition is a

digest version of the report of the Coca-Cola system activities

in 2012 that we would particularly like to share with our

stakeholders. Meanwhile, the unabridged online version

available on our website provides more detailed and specific

information.

Referenced Guidelines

Global Reporting Initiative’s

Sustainability Reporting Guidelines (Version 3.1)

Period Covered

As a general rule, activities described in this report took place

between July 2012 and June 2013.

Data is for the period from January 1 to December 31, 2012.

Scope of the Report

Data presented in this report, relating to production,

distribution/transportation, and sales, was collected from

Coca-Cola (Japan) Co., Ltd. (1 plant) and 12 bottling partners

(27 plants and 491 sales offices; according to 2012 data). The

sales figures presented are for reference purpose only.

Publication

July 2013

Scheduled issue of next report: July 2014

(previous edition: July 2012)

Terminology

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

to those who purchase Coca-Cola system products but

also to the general public.

l “The Coca-Cola Company” refers to the U.S. Headquarters

while “The Coca-Cola (Japan) Co., Ltd.” and “Coca-Cola

Japan” refers to Coca-Cola (Japan) Company, Limited.

“Bottling partners” refers to the 12 bottling companies

across Japan designated by Coca-Cola Japan. “The

Coca-Cola system in Japan” comprises Coca-Cola Japan,

its bottling partners and other affiliated companies.

Editorial Policy Sustainability Report 2013

Contents

Marketplace

Environment

4

Page 6: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Establ ished in January

1993, fully-funded by The

C o c a - C o l a C o m p a n y.

Since separating from the

technological development

division centered in the

U.S. headquar ters and

becoming an independent

company, it has provided

product development and

technological support to

meet the needs of Japan.

Establ ished in January

2 0 0 9 t h r o u g h a j o i n t

investment between The

Coca-Cola Company and

all of the bottling partners

in Japan. It 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

m a i n t e n a n c e a n d

administrative work. The

company also conducts

j o i n t p r o c u r e m e n t o f

i n g r e d i e n t s a n d r a w

materials.

Establ ished in January

2007 as a joint investment

between Coca-Cola Japan

a n d a l l o f i t s b o t t l i n g

partners. It serves as the

central point of contact for

business negotiations with

major national distribution

chains and food service

chains.

Establ ished in January

2000 as a joint investment

between Coca-Cola Japan

a n d a l l o f i t s b o t t l i n g

partners. It conducts sales

in the vending machine

business to corporations

whose territories cover a

wide area.

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

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

Coca-Cola Business Services Co., Ltd.

Coca-Cola Customer Marketing Co., Ltd.

FV Corporation K.K.

Concentrate manufacturing

The Coca-Cola system in Japan comprises Coca-Cola (Japan) Co., Ltd., which supplies concentrates, plans and

develops new products, and conducts advertising and marketing activities; our bottling partners, which manufacture

and sell products, and other af�liated companies.

At Coca-Cola Japan, we not only provide concentrate to all of our bottling partners across Japan (primarily through

the Moriyama Plant), but also lead the development of products and the formulation of marketing strategies based on

analysis of the Japanese market and our customers and consumers. We also take responsibility to ensure global quality

standards, support technology development for production processes and production technologies when introducing

new products, forecast supply and demand, offer technical advice on products, and provide support to bottling partners

so that they can ef�ciently produce high-quality, safe and reliable products. Each of our bottling partners and af�liates

engage in not only the manufacturing of products, but also transportation, distribution and sales activities at 27 plants

across Japan.

In the Coca-Cola system, Coca-Cola Japan and other members of the system promote their business-related initiatives

based on strong partnerships. We seek further business growth by optimizing our overall operations, including more

ef�cient production, a thorough consumer-oriented approach, faster response to market preferences, enhanced

customer services, and rigorous quality control.

Production Distribution/Transportation Sales Collection RecyclingPlanning R&D

Coca-Cola System in Japan

5

Page 7: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

System Overview (as of December 31, 2012)

1

2

3

4

5

6

7

8

9

10

11

12

Bottling Partners

12 bottling partners in Japan are operating business in their respective regions

(as of January 2013)

1 Hokkaido Coca-Cola Bottling Co., Ltd. Hokkaidohttp://www.hokkaido.ccbc.co.jp

2 Michinoku Coca-Cola Bottling Co., Ltd. Iwate, Akita, Aomorihttp://www.michinoku.ccbc.co.jp

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

Yamagatahttp://www.sendai.ccbc.co.jp

4 Tone Coca-Cola Bottling Co., Ltd. Chiba, Ibaraki, Tochigihttp://www.tone.ccbc.co.jp

5

Tokyo Coca-Cola Bottling Co., Ltd. Tokyohttp://www.tokyo.ccbc.co.jp

6

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

Niigatahttp://www.mikuni-ccbc.co.jp

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

Gifu, Miehttp://www.cccj.co.jp

8 Hokuriku Coca-Cola Bottling Co., Ltd. Toyama, Ishikawa, Fukui, Naganohttp://www.hokuriku.ccbc.co.jp

9 Shikoku Coca-Cola Bottling Co., Ltd. Kagawa, Ehime, Kochi, Tokushimahttp://www.shikoku.ccbc.co.jp

10 Coca-Cola West Co., Ltd.Fukuoka, Osaka, Shiga, Nara, Wakayama,

Kyoto, Hyogo, Okayama, Tottori, Hiroshima,

Shimane, Yamaguchi, Saga, Nagasakihttp://www.ccwest.co.jp

11 Minami Kyushu Coca-Cola Bottling Co., Ltd. Kumamoto, Kagoshima, Miyazaki, Oitahttp://www.minami-kyushu.ccbc.co.jp

12 Okinawa Coca-Cola Bottling Co., Ltd. Okinawahttp://www.okinawa.ccbc.co.jp

Bottling Partners Territories Bottling Partners Territories

Sales offices

Approx.

490

Total employeesExcluding temporary and

part-time workers

Approx.13,000

Vending machines

Approx.

980,000

Plants

28Including

the Moriyama Plant (manufacturing

concentrates)

Sales routes

Approx.

8,200Retail outlets

Approx.

1.1 million

Affiliates

15

Delivery trucksApprox.

14,000

6

Page 8: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Beginning from the year 2010, The Coca-Cola Company has established the “2020 Vision,” a long-term growth strategy

under which we are aiming to double the scale of our global business by the year 2020. We believe that addressing

sustainability is an essential requirement to achieve this goal.

Together with a wide range of stakeholders, including consumers, local communities, and entities representing the

global environment, we will work in close cooperation with our bottling partners and af�liates to promote initiatives in

core areas shared around the world and achieve sustainability in both society and our business activities.

Coca-Cola System's Sustainability Framework

Coca-Cola System's Sustainability Framework

Coca-Cola System's Business Activities

Marketplace

Com

mun

ity

Workpla

ceEnvironm

entCorporate G

overnanceLega

l Com

plia

nce

Beverage Benefits Active Healthy Living

Com

mun

ity

Workpla

ce

Energy and Climate

Water Stew

ardshipSustainable Packaging

Stakeholders

Consumers

Employees

Share Owners / Investors

Business Partners

Community

7

Page 9: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

7 core areas in their 4 respective domains Relevant pages

Core Areas in the Coca-Cola System's Sustainability Initiatives

pp. 17–20

p. 16pp. 21–28

pp. 29-30

pp. 31–32

2020 Vision

Beverage BenefitsWe strive to offer beverages for every lifestyle and occasion while providing quality that

consumers trust.

Active Healthy LivingAs a manufacturer of soft drinks that proposes healthy lifestyles and the well-being of our consumers, we provide beverage related information, promote awareness of dietary education and proper rehydration through beverages, and promote active, healthy lifestyles through the sponsorship of sports programs. We are proactive in carrying out a variety of initiatives that provide consumers an entryway into exercise and sports.

Energy and ClimateWe strive to reduce the emissions and resultant impact of greenhouse gases, including

CO2, and aim to be the beverage industry leader in these efforts.

Sustainable PackagingWe will continue to pursue innovative technologies that will help minimize the utilization

of natural resources for packaging. We are also building systems to reuse

post-consumer packaging materials in the manufacturing process.

Water StewardshipWe will reduce the amount of water used in production, as well as recycle water used

in manufacturing and return it safely to the environment. Our goal is to return an amount

of water equivalent to what we use in our beverages and their production.

CommunityOur business will not grow unless the surrounding communities are also robust. We

value our ties with local communities and aim to satisfy local needs by serving as a

corporate citizen.

WorkplaceWe 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 perform to the best of their individual abilities.

Mar

ketp

lace

Wor

kpla

ceCo

mm

unity

Envi

ronm

ent

Beginning from the year 2010, The Coca-Cola Company has established the “2020 Vision,” a long-term growth

strategy under which we are aiming to double the scale of our global business by the year 2020. We have set

targets related to each priority item required to achieve this vision—including the workplace, customers, profit,

products, the environment, and operational efficiency. We are also working together with our bottling partners

and affiliates in Japan to realize the “2020 Vision.”

8

Page 10: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Special Feature: Sustainability Stories

Creating a Healthy and Affluent Future for Japan — Health Promotion Is about Community and Human Resources Development

Takashi Arao, Ph.D.ProfessorLab of Exercise Epidemiology, Department of Waseda School of Sport Sciences

Takashi Arao, Ph.D.ProfessorLab of Exercise Epidemiology, Department of Waseda School of Sport Sciences

9

Page 11: Coca-Cola Sustainability Report 2013j.cocacola.co.jp/positively/pdf/2013/ccjc2013_e_all.pdfMessage from the President Message from the President Vibrant Local Communities Are Essential

Raising the Standard of Health in Japan as a Whole — Pursuing a New Population Strategy for Health Promotion

A Vision of Communities Where the Environment Is Right for Human Health —“In Addition to Business-Government-Academia Cooperation and Participation by Local Government and Residents, I Want Corporations to Use Their Resources for Health Promotion”

Professor Arao says that health promotion under a population

strategy requires health-oriented community development. Today,

it is desirable that elderly people, as long as they remain fit, get

out and play a role in the community rather than stay at home.

This is also the secret to leading a healthy life even in old age. “I

would like to create a society where elderly people can continue

to seek self-fulfillment right up to the very end. It means they will

need individual talents, but the environment is also crucial.”

In other words, the lifestyles of elderly people will have a

big influence on the quality of life of communities as a whole.

“Unless we create a new culture for the elderly to embrace, we

cannot survive through this super-aging society. As a researcher,

I hope we can build at least one model community where the

environment is the right match for our health.”

Professor Arao’s activities focus on working with local

governments to implement health promotion initiatives with

community-wide involvement. “Instead of local governments

going it alone, we will have residents taking part and sharing

responsibility right from the planning stage.” Government provides

funds and facilities; residents pool their wisdom, effort and ideas.

“Health promotion is not possible without implementation by

residents themselves. If they get involved from the planning stage,

they are likely to continue those efforts.”

Corporations also have an important role, he says. “There

used to be no contact between corporations and the community,

but corporations can make their resources available for health

promotion.” He suggests corporations ought to be open entities

playing a role in the community. “The mature approach for

corporations is taking a good look at the impact of your activities

and acting to resolve any issues that arise from that impact.”

“Japan today is going through a third period of ‘restoration’ after

the Meiji Restoration and reconstruction after the Second World

War,” says Professor Takashi Arao of Waseda University’s School

of Sport Sciences. By “third restoration,” he is referring to reform

of Japan’s super-aging society, which is like no other in the world.

“Japan is the first country in the world to become a super-aging

society and eyes are on us to see what type of society we create.

We must therefore create a model that the rest of the world can

follow.” Professor Arao conducts ongoing research into the creation

of a healthy and affluent super-aging society.

“Conventional health promotion has consisted of secondary

prevention, whereby health checkups are followed up by people

at risk seeking improvements at medical institutions. I have also

engaged in this kind of activity in the past in the community and

in corporations.” But the approach does not improve the overall

standard of health and medical costs keep rising. “Through my

association with secondary prevention, I realized that life would be

hard under this approach in a super-aging society. My involvement

on the Healthy Japan 21* strategy development panel was also

instrumental.”

“In the practical sciences, we are driven by a strong desire

to help people with their health directly.” Professor Arao also

has a doctorate in medicine. He is pursuing development of

a “population strategy for health promotion” as a new health

promotion initiative intended to raise the base standard of health

of communities and Japan as a whole.

* See embedded column in bottom right of page

Diverse expertise, particularly in the area of public health, is

vital for these activities. “Health promotion is all about human

resources development.” Establishing new partnerships between

residents and local government also requires the development,

in government and the community, of human resources who

can advance those efforts. “I have in mind a system in which

elderly people are human assets who can be employed in

the community.” This, he says, is the ultimate form of health

promotion. “People who have only just reached the mandatory

retirement age are particularly valuable assets. I always think how

good it would be to cooperate with corporations in this area.”

Many young researchers with diverse specialities who wish

for health-oriented community development have gathered under

Professor Arao’s wing. One exchange student from China has

declared that he wants to apply what he has learned from him

when he returns to China. Professor Arao says, “Japan may be the

first country in the world to have become a super-aging society,

but at some time in the near future China, with its one-child policy,

will find itself under far more strain than Japan. Our eyes are on

China as this is an international issue.”

Health promotion takes time to plan and implement and then

to achieve results. Professor Arao concludes by sharing his

expectations of the noble-minded young researchers around

him who will be the foundations for “restoration” in a super-aging

society watched by the world. “I want these students to quickly

become experts so they can then nurture researchers in this

field. I can only do so much on my own.”

Healthy Japan 21A health promotion campaign to improve the health of

Japanese citizens launched in 2000 by the Ministry of Health,

Labour and Welfare. The campaign focuses on advancing

measures to strengthen prevention of lifestyle diseases

before they occur. Coca-Cola Japan

participates in the campaign support

group, Healthy Japan 21 Council

Secretariat, and works to advance

development of a health-oriented

society through business-government-

academia cooperation.

Health Promotion Begins with Human Resources Development — Expectations Also Placed on the Efforts of Young Researchers

10

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Nothing Can Be Taken for Granted — Disaster Taught Her the Importance of Daily Routine

At 2:46 p.m. on March 11, 2011,

everything changed. “I didn’t have

school that day and I was walking to the

station on my way home after doing my

part-time job. By the time the shaking

stopped, I could no longer stand. Around

me, buildings had collapsed, sending up

a thick cloud of dust. It was as if I had

Special Feature: Sustainability Stories

Great East Japan Earthquake and an Overseas Homestay Program— Two Experiences Which Shaped a Woman's Future Ambitions

Chisato KamataDepartment of Nutrition and DieteticsFaculty of Family and Consumer SciencesKamakura Women’s University

slipped through time to a strange world,

another age,” says Chisato Kamata,

recalling her experience. She was 16 and

about to start her second year of high

school.

She spent the night at her workplace.

She had no information. “We lived not

even a minute’s walk from the sea, so

I was worried about the tsunami.” She

eventually found out via SMS text that

her family was safe and where they had

evacuated. “I was so relieved.”

Ms. Kamata was reunited with her

family the next day. “The area down by

the sea was a totally different place from

the day before. You could see the sea

from places you shouldn’t be able to…”

She says she could not stop shaking after

seeing the familiar environment where she

grew up turned upside-down. “When I

met up with my family, I clung to my father

out of relief and burst into tears.”

They lived not far from the Fukushima

Daiichi Nuclear Power Plant. As the

accident there unfolded, they moved from

one evacuation center to another before

relocating to an acquaintance’s house

in Yokohama. “In the evacuation centers,

there was no privacy and not enough

food, so we breathed a little easier after

moving to Yokohama.”

“Through the disaster, I realized you

can’t take anything for granted.” She saw

the precious value in things she had not

given much thought to before, like family,

being able to live a normal life and always

having access to food.

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Aspiring to Become a Dietitian and Improve Relief Meals So People Can Recharge during Disasters

“A Lot of Work Still Needs to Be Done in Disaster-Hit Areas. Please Give Them Your Ongoing Support.”

Knowing the World Was with Them — Eyes Opened by TOMODACHI Summer Program

Ms. Kamata first heard about the

TOMODACHI Summer 2012 Coca-Cola

Educational Homestay Program in autumn

of 2011, six months after the earthquake.

“It had been a dream of mine to travel

overseas ever since junior high.” After the

disaster, she had all but forgotten about

her dream until an ad in the newspaper

calling for applications caught her eye.

She did not think twice about applying.

“The fact that the program was for

children affected by the disaster appealed

to me. People were supporting us and it

made me happy.”

She spent around three weeks in

the United States on a homestay. The

language barrier initially made it hard

settling in with her host family, but it did

not take long for them to warm to each

other. “I kept saying, ‘easy English,’ and

they began to speak to me slowly and in

simple English so I could understand.”

She still corresponds with her host family

via email.

While in the United States, she was

asked a lot about the Great East Japan

Earthquake. “They listened with interest

and affection. They asked how I had

coped and said how hard it must have

been, and they offered encouragement

saying, ‘We’re in this together’.” She was

not alone. Nothing pleased her more

than knowing that people all over the

world were concerned and offering their

support.

“The homestay opened my eyes. Many

of the others on the program said the

same thing and we keep telling each other

how we want to go back.”

At 2:46 p.m. on March 11, 2011,

everything changed. “I didn’t have

school that day and I was walking to the

station on my way home after doing my

part-time job. By the time the shaking

stopped, I could no longer stand. Around

me, buildings had collapsed, sending up

a thick cloud of dust. It was as if I had

Since April 2013, Ms. Kamata has

been studying at university to become

a registered dietitian, a career course

stemming from her experience of

the Great East Japan Earthquake. “In

Fukushima, we were always short of

food because the nuclear disaster made

delivery of relief supplies difficult.” A

meal consisted of just one cold rice

ball the size of a ping-pong ball and so

naturally lacked nutritional balance. “We

needed to eat to be able to think and to

conjure up energy for our next activity.”

The experience really brought home the

importance of food.

Ms. Kamata had an opportunity to

think about nutrition during her stay in the

United States, too. “My host family told

me that a lot of Americans have diabetes.”

Food is a big factor in lifestyle diseases.

With knowledge about nutrition, she could

certainly be of help to the people she

cared for. This was another major catalyst

in her decision to become a dietitian.

“I particularly want to study about

menus for meals served in times of

disaster. Clever techniques for cutting

vegetables and preparing the food could

be devised to allow equal provision of

nutritious meals to everyone.” Meals

were sometimes the reason for quarrels

in the evacuation centers. Above all, she

knows food is a source of energy when

living in extreme circumstances and this

provides great motivation for realizing her

ambitions.

Disasters can occur anywhere in the

world. “I want to develop good menus

and share them with others everywhere.”

Her vision keeps growing.

slipped through time to a strange world,

another age,” says Chisato Kamata,

recalling her experience. She was 16 and

about to start her second year of high

school.

She spent the night at her workplace.

She had no information. “We lived not

even a minute’s walk from the sea, so

I was worried about the tsunami.” She

eventually found out via SMS text that

her family was safe and where they had

evacuated. “I was so relieved.”

Ms. Kamata was reunited with her

We closed by asking what she most

wanted to communicate as a person

directly affected by the disaster. “I’ve

received all kinds of support from so

many people, for which I am very grateful.

But a lot of work still needs to be done in

disaster-hit areas. Please give them your

ongoing support.”

family the next day. “The area down by

the sea was a totally different place from

the day before. You could see the sea

from places you shouldn’t be able to…”

She says she could not stop shaking after

seeing the familiar environment where she

grew up turned upside-down. “When I

met up with my family, I clung to my father

out of relief and burst into tears.”

They lived not far from the Fukushima

Daiichi Nuclear Power Plant. As the

accident there unfolded, they moved from

one evacuation center to another before

relocating to an acquaintance’s house

in Yokohama. “In the evacuation centers,

there was no privacy and not enough

food, so we breathed a little easier after

moving to Yokohama.”

“Through the disaster, I realized you

can’t take anything for granted.” She saw

the precious value in things she had not

given much thought to before, like family,

being able to live a normal life and always

having access to food.

TOMODACHI Summer 2012 Coca-Cola Educational Homestay Program

The Coca-Cola Japan Reconstruction Fund is a strategic partner of the

TOMODACHI Initiative, led by the United States and Japanese governments

and the U.S.-Japan Council. As an additional form of reconstruction aid, this

educational support is to be implemented over the three-year period from

2012 to 2014. The homestay program gives

high school students from areas affected

by the Great East Japan Earthquake the

opportunity to visit the United States and

spend three weeks on homestays in various

cities. In 2012, 60 students took part and 120

students will take part in each of 2013 and

2014.

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Tomohide TabataGeneral ManagerVS Planning DepartmentSales & Marketing Planning Division*Coca-Cola Central Japan Co., Ltd.

Uniting as a Company to Consider How to Contribute to Society through Vending Machines and Take Action

Special Feature: Sustainability Stories

* Position at the time of interviewing

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Rolling Suspension of Cooling Achieved through Cohesive Efforts as One Link in the Coca-Cola System

Efforts Recognized by Energy Conservation Grand Prize — Vending Machines Harbor Great Potential

The Coca-Cola system has not let up in its efforts to improve vending machine energy efficiency since. Besides introducing LED illumination, the Coca-Cola system has developed “peak shift” vending machines that run cooled for a maximum 16 hours a day, cutting power consumption by up to 95%. The machines are

being deployed from fiscal 2013. These efforts were recognized in January 2013 with the Coca-Cola system receiving the Energy Conservation Grand Prize for excellent energy conservation equipment sponsored by the Ministry of Economy, Trade and Industry. “I was delighted as the award acknowledged our unified and forward-looking efforts in addressing a very complicated issue. It meant we had done the right thing.”

“There is a lot we can do for the local community and society at large through vending machines besides power saving,” Mr. Tabata adds. The Coca-Cola system has already incorporated a wide range of initiatives, including showing information on digital displays in times of disaster; offering beverages inside vending machines covered by disaster relief pacts for free in the event of a major earthquake; and affixing address labels to vending machines, with the help of the police, to allow identification of a place if an incident or accident occurs. “Vending machines are no longer just machines for buying a beverage. Now they are also tools providing information and safety. We are extremely pleased about this, too.”

“Our rolling suspension of vending machine cooling during summer 2011 was a first for us and we carried it out tentatively,” says Tomohide Tabata. Responsible for coordinating vending machine sales activities, his department set about implementing measures to save electricity.

The catalyst was the power shortage resulting from the Great East Japan Earthquake and associated accident at the Fukushima Daiichi Nuclear Power Plant. “Following a request from the Japanese government, the area serviced by the Tokyo Electric Power Company (TEPCO) went into full power-saving mode.” Vending machines were up against the tide of public opinion at the time. “Some customers who had installed our vending machines were asking us to turn off the machines out of consideration for consumers.”

The Coca-Cola system had been working to enhance the environmental friendliness of vending machines even prior to the disaster, for example by introducing a peak-time energy reduction function that shut cooling off during hours of peak power usage and through improvements to the properties of machine materials. But given the circumstances, bottling partners advanced an additional measure—rolling suspension of vending machine cooling functions between 9 a.m. to 8 p.m.—to reduce power consumption over the summer period, when power usage traditionally jumps.

“Many people, including general retail operators and even people within the Coca-Cola system, did not fully understand the difference between electric power, the amount of electricity and the cost of electricity.” To be able to explain to customers and have them cooperate with rolling suspension of cooling, unified knowledge and information was required in-house.

Coca-Cola Central Japan serves a broad area encompassing Kanagawa, Shizuoka, Yamanashi, Aichi, Gifu and Mie prefectures and the initial reception to power-saving efforts was very different in areas serviced by TEPCO and those that were not. “Cross to the other side of the Oi River and the response was completely different. Ours was a company-wide effort and we proposed rolling suspension of cooling for all areas.”

As a result, rolling suspension of cooling for some 55,000 vending machines in the sales territories of Coca-Cola Central Japan began on July 1, 2011. In Kanagawa and Yamanashi prefectures, customer cooperation was almost 100%.

“With only about a month’s preparation, we wouldn’t have achieved what we did if it were not for the cooperation of customers and the cohesion of the Coca-Cola system. I believe we all felt the same way about it, as one link in the Coca-Cola system, and of that I’m proud.”

“Everyone understood that wasteful use of electricity wasn’t acceptable as environmental concerns have been voiced over many years. But the experience of the Great East Japan Earthquake really brought it home.” More than two years on from the disaster, it might be expected that such awareness would wane. But, “Japan as a nation is starting to take the view that power-saving efforts are required as a matter of course.” And that means, “we will be called upon to put forward selling methods that do not waste electricity.”

Mr. Tabata closes by saying it is important to continue using a variety of opportunities to raise awareness in society. “The Coca-Cola system is Japan’s leading soft drink manufacturer and operates the most vending machines, and because of that we need to act based on a mindset of contributing to the local community and society at large, not just selling beverages. I believe this is the approach of the entire Coca-Cola system. The crucial element here is continuity.”

As Leading Soft Drink Manufacturer the Coca-Cola System Must Propose Energy-efficient Selling Methods and Possess a Mindset of Contributing to Environment, Community and Society

Peak Shift Vending MachinesVending machines that run cooled for a maximum 16 hours

during the daytime, cutting power consumption by up to 95%. Installation started in January 2013. By improving the overall cooling system, as well as airtightness and insulation performance, peak shift vending machines can dispense cold beverages even when the cooling system is shut off during the daytime, when power demand increases. The machines also provide greater convenience for users such as of�ces and hospitals as the hours that the cooling shuts off can be adjusted so that cooling takes place at a time when noise is not a concern.

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Achieving Sustainable Growth

Making the Most of Diverse Values Leads to Sustainability

STAKEHOLDER ENGAGEMENTDiscussion on the Sustainability of Society and Business

The panel discussion gave us the opportunity to hear a wide

range of comments and opinions on the Coca-Cola system’s

activities.

Commenting on health-related initiatives, Mr. Miyachi explained

that “health is fundamental to the sustainability of the planet,”

and said, “the Coca-Cola system should be commended for its

efforts in encouraging consumers to make the right decisions by

displaying calories and nutritional information on products.” Also

expressed were expectations that the Coca-Cola system, as a

corporate entity, will play a role in the national health promotion

strategy for Japan announced in 2012 given that collaboration

among consumers, corporations and government will be crucial.

In regard to the environment, the Coca-Cola system was

commended for its water stewardship activities. Mr. Taniguchi

also explained that “we are now in an age when companies are

called out if their activities are not realistic.” He suggested that

environmental activities needed to be strengthened even more.

“People with the power to spread information and people with

purchasing power undeniably go for companies that make an

honest effort to address environmental issues.”

There were also calls for the Coca-Cola system, as a global

corporation, to do more to promote diversity. Ms. Sasaki said,

“In the future, achievements of corporations won’t be measured

solely in terms of short-term sales and the extent to which they

make people happy will be examined. Companies need to be

popular and respected, and diversity is the key to achieving

long-term growth.”

The panel discussion ended with the following statement:

“When discussing sustainability, it needs to be asked, ‘How

can corporations be of service to society?’ By inquiring about

a broad range of values, assimilating those values and giving

back to society in any way possible, corporations can fulfill their

responsibility and help guarantee the sustainability of society.”

Professor Kusunoki kicked off the program with his keynote

speech. He explained, “corporations care about a number of

important aspects, like profit, market share, customer satisfaction

and employee satisfaction, and they are all linked. To be able

to achieve a sustainable profit, a corporation has to make a

contribution to society.”

The keynote speech was followed by an introduction to the

Coca-Cola system’s sustainability strategy. The Coca-Cola

system has achieved business growth by providing employment

opportunities and contributing through partnerships to

development in local communities where its products are sold.

Specific ways in which we help to preserve the health of the

environment and of communities, as is fundamental to business

growth, were explained. They include water stewardship, climate

protection, programs promoting empowerment of women

entrepreneurs, and support for reconstruction efforts in the wake

of the Great East Japan Earthquake.

Event Outline

Theme Date Hosted by Program

The Sustainability Strategy of a Global LeaderSeptember 19, 2012Nikkei Inc. Digital Business BureauKeynote Speech: Competitive Strategy as a Narrative Story—Succeeding as a Corporation

Ken Kusunoki, Professor, Graduate School of International Corporate Strategy, Hitotsubashi University

Speech: “The Coca-Cola System’s Approach to Sustainability”

Panel Discussion: “Sustainability Strategy for Global Corporations of the Future”

Tetsuya Taniguchi, Nikkei Ecology

Motohiko Miyachi, National Institute of Health and Nutrition

Kaori Sasaki, ewoman, Inc.

Joanna Price, The Coca-Cola Company

Yumi Goto, Coca-Cola (Japan) Co., Ltd.

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I Look Forward to Source Water Protection Activities Matching Local Conditions

STAKEHOLDER ENGAGEMENTOutline of Source Water Protection Group Training

I found the groundwater seminar

very interesting. I think the information

that was presented will be useful when

talking to people in the community and

backs up our activities with scientific

evidence. Because all employees

need to take a greater interest in water

resources, I would like to share what I

learned with the rest of the company

and encourage participation in water

stewardship activities.

Toyama has an abundance of water

and feelings about the importance of

water run deep in the local community.

Hokuriku Coca-Cola Bottling runs a

forest development program as a way

to cultivate watersheds and I sense

that local government and community

residents really do want corporations

to play a role. I would like to carry

out sustained activities together with

the community to ensure that future

generations will continue to have access

to water resources.

Bottling Partners Nationwide Unite to Protect Water Resources

The drying up of water resources

is a worldwide issue and Japan is not

exempt. Japan tends to be viewed

as a country with abundant water,

but precipitous topography means

rivers are short and the volume of

water resources per capita is small

compared to other nations.

In order to protect water resources,

it is important that you first identify where the water you use

is actually coming from. It is wonderful that the Coca-Cola

system has already finished surveying water sources and is now

advancing watershed cultivation initiatives, having set a lofty target

of being water neutral by 2020.

A region’s water resources are valuable assets and it is

therefore vital that you maintain communication with people in

the region with whom you share that water. As well as disclosing

information as appropriate, it is important that you strengthen

awareness of water resources and engage in detailed dialogue

on an ongoing basis. During the training, I spoke in general terms

and the actual issues differ from region to region. Each company

has to consider the best action in the context of the situation in

its region and I believe advancing water stewardship activities

that match local circumstances will lead to continual growth for

both community and company.

Date Venues

Participants

Program

April 18–19, 2013Taishogura, Wakatsuru Shuzo Co., Ltd.Tonami Plant, Hokuriku Coca-Cola Products Co., Ltd.52 employees of Coca-Cola Japan and bottling partners and other affiliates nationwide Day 1: Water resources seminar by outside lecturer — Participate in a seminar on groundwater by an outside lecturer in order to gain basic knowledge and skills relating to water resources for use in promoting water stewardship according to regions

Day 2: Field trip to region with hydrological features — Observe the topography of an alluvial fan (where groundwater accumulates) and groundwater welling up downstream from the alluvial fan

Makiko NakanishiPublic Relations & CSR

Promotion Group*Public Relations &

Environment DepartmentHokuriku Coca-Cola

Bottling Co., Ltd.

Toshimitsu Takahashi

Environment Team Manager Public Relations & CSR

Administration Department*Coca-Cola Central Japan

Co., Ltd.

Kenji ItoNissaku Co., Ltd.

* Position at the time of interviewing

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Our MissionIn response to the diverse lifestyles of consumers, we are dedicated to offering products for every drinking occasion based on

thorough quality management that consumers can trust.

Our products offer a wide range of value for consumers’ lifestyles, from such functional value as rehydration to the emotional

value of enjoyment and refreshment. We will continue to listen to the opinions of consumers and respond to their needs by

discovering innovative new value.

2012 Goals 2012 Results Current Goals¡ Enrich product portfolios

¡ Maintain safe and reliable ingredients and management structure

¡ Maintain and manage product quality consumers can trust

¡ Added new products, including Schweppes British Lemon Tonic, Taiyo no Matecha, Aquarius Zero and burn, to the product portfolio

¡ Confirmed, through internal and external audits, the conformity of ingredients and product quality levels to KORE and Supplier Guiding Principles

¡ Expand product portfolios by introducing products to meet consumers’ needs

¡ Maintain safe and reliable ingredients and product quality conforming to KORE and Supplier Guiding Principles

BEVERAGE BENEFITS

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Communication with Consumers

Currently, the Coca-Cola system’s product lineup spans

more than 300 products for every kind of consumer lifestyle and

preference, ranging from sparkling beverages, to coffee drinks, sports

drinks, tea beverages, water, energy drinks, juice, and “active lifestyle

beverages.” In 2012, the lineup was expanded with the introduction

of products such as Schweppes British Lemon Tonic, a sparkling

beverage for adults in their 40s or older; Taiyo no Matecha, a new tea

category based on mate tea, the immensely popular drink in South

America where the diet is meat-centric; Aquarius Zero, a sports drink

supporting health management; and new energy drink brand burn.

The Coca-Cola system performs operational management

based on the Coca-Cola Operating Requirements (KORE), a

proprietary management system used throughout its global

operations. The system’s strict standards are also applied to

product quality management. KORE encompasses all of the

standards for quality, product safety, the environment, and

occupational health and safety for every operational process,

starting with ingredients procurement, through production,

distribution, transportation, and sales, and ending when

our products reach consumers. The KORE system satisfies

the requirements of ISO standards and applicable laws and

regulations, and even includes more stringent voluntary

standards.* Certification bodies assess our performance against

the various standard requirements at least once a year. This

objective evaluation from a third-party organization ensures that

the Coca-Cola system’s KORE management system operates in

a fair and equitable way.

* Quality standards are based on ISO 9001; Product Safety standards on

FSSC 22000; Environment standards on ISO 14001; and Occupational

Health and Safety standards on Occupational Health and Safety Assessment

Series (OHSAS) 18001

A Diverse Lineup to Meet Needs and Tastes of Our Consumers

Initiatives to Ensure Safety and ReliabilityPreserving Quality with the KORE Management System

Using Consumer Feedback to Improve Our Business

Procurement of Ingredients and Production

Distribution and SalesThe Coca-Cola system in Japan takes responsibility for all

post-production processes—from shipment from the plant to

delivery—in order to ensure that the Coca-Cola system’s quality

standards are instilled until the product reaches the consumer’s

hand. We make painstaking efforts to manage the quality of our

products during transportation and sale according to the KORE

management system requirements. Even after shipment, we

purchase and conduct surveys of products on sale to confirm

that the level of quality expected of Coca-Cola system products

is being maintained in the market.

Internal System to Respond to Consumer Feedback

The Coca-Cola system in Japan declared in November 2007

that the entire system is now compliant with ISO 10002, the

international standard that provides guidance on complaints

handling. This declaration represents our commitment to

incorporating consumer feedback into the way we manage our

business and increasing consumer satisfaction by providing safe

and reliable products and services.

ISO 10002 does not have a third-party certification system,

and so, while any company can self-proclaim that it complies

with the standard, the Coca-Cola system in Japan declared its

compliance after receiving an independent compliance audit.

As a way to govern our ISO 10002 management system, we

verify and revise operating conditions of the system in a biannual

meeting of managers from the consumer service center, which

handles feedbacks from consumers.

In addition, Coca-Cola Japan set up a Consumer Feedback

Portal to allow all of its employees to view all consumer feedback

received by the Consumer Service Center. In fiscal 2012, around

73,000 questions and comments were received by the Consumer

Service Center and distributed via monthly reports as feedback to

the relevant departments.

The Coca-Cola system requires its global supply chain to

operate in compliance with its Supplier Guiding Principles, a set

of standards for ensuring that ingredients are of a high quality and

for evaluating the integrity of ingredient suppliers. When procuring

ingredients for products, inspection certificates and data for the

ingredients submitted by Japanese and overseas suppliers are

confirmed. Coca-Cola Japan also re-inspects the ingredients. To

secure product quality, we also take maximum precautions when

it comes to security during transportation.

In addition to implementation of the KORE management

system, all 28 plants of the Coca-Cola system in Japan are making

progress in obtaining certification for international standards such

as ISO 9001, ISO 14001, and OHSAS 18001. Particularly with

regard to product safety, we led the industry with FSSC 22000; as

of March 31, 2011, all of our bottling plants have obtained FSSC

22000 certification.

Consumers

12 nationwide bottling partners

Consumer Service Center

Executives / Quality Assurance / Marketing /

Other related departments

Related departments

Coca-Cola Japan

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2012 Goals 2012 Results Current Goals ¡Start Healthy Japan 21 Active Healthy

Lifestyle Project

¡ Improve information disclosure on product labels

¡Enhance brand portfolio towards health- conscious consumers

Our MissionAs a beverage company, the Coca-Cola system aims to propose healthy and sound lifestyles. To achieve this, we not only

provide consumers with information on our beverages, but also promote activities to educate consumers about proper

rehydration and diet. Additionally, we sponsor sporting activities and provide an array of opportunities for people to enjoy

exercise and sports as ways to support their active and healthy lifestyles.

ACTIVE HEALTHY LIVING

¡Held seminar and dietary education event as part of Healthy Japan 21 Active Healthy Lifestyle Project

¡Started displaying calorie information on front of product packaging

¡ Introduced new products for health- conscious consumers, including Taiyo no

Matecha and Aquarius Zero

¡Promote better provision of product-related information based on scientific facts

¡Expand product portfolios for health- conscious consumers and promote better

prov is ion o f in format ion to suppor t consumers’ product choices

¡Promote lifestyles incorporating physical activity

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Provision of Accurate Knowledge and Product Information

The Coca-Cola system supplies numerous beverage products

for which a wide range of ideas supporting the active and healthy

lifestyles of consumers, from product concepts to ingredients

used, are incorporated into the manufacturing and sales process.

In Japan, the lineup comprises more than 300 products across

eight categories. Some representative products are Coca-Cola

(no preservatives or artificial flavoring) and Coca-Cola Zero (zero

sugar, preservatives and artificial flavoring), as well as

Fanta Grape and Fanta Orange (no artificial flavoring or colorant)

and Minute Maid Qoo Waku Waku Orange (no preservatives or

artificial colorant). Consumers can choose from an extensive

range of products depending on their preferences, lifestyle and

health-consciousness.

Coca-Cola system products are also supplied in packaging of

various sizes to meet the diverse needs of consumers, who drink

in different situations and have varying preferences.

Transparency of Information on Beverages and Active Healthy Living

Health awareness is high and there is strong interest in the

ingredients and nutritional value of food and beverages that

people consume. Recognizing our responsibility as a soft drink

manufacturer to respond to consumer interest in health, the

Coca-Cola system works to provide accurate information useful

to healthy living and promote greater understanding. We provide

information on product ingredients through packaging and our

websites, improving and revising our disclosure methods as

needed in order to make the information easier for consumers to

understand. In 2012, we started displaying calorie information

on the front of product packaging to help consumers choose

products best suited to their needs.

Promoting Correct Knowledge about Rehydration

One important function of beverages is fluid replacement. The

Coca-Cola system communicates information about rehydration

using the Aquarius sports drink, and makes available related

educational content developed together with experts, such as a

simple and fun website learning program. Employees are taught

correct knowledge about the topic through an in-house learning

program. The Coca-Cola system also has an active involvement

in collaborative initiatives between business, government and

academia aimed at raising the quality of life. For example, we

team up with media organizations and expert authorities like

Healthy Japan 21 and the International Life Sciences Institute

Japan (ILSI Japan) to hold seminars.

Providing Products that Meet Consumers’ Needs

Promoting Active, Healthy Living through Sports

The Coca-Cola system provides support for global sporting

events such as the Olympic Games (a partner since the Amsterdam

1928 Olympics), the FIFA World Cup (since 1978) and the Special

Olympics for people with intellectual disabilities (since 1968), as well

as numerous sporting events in Japan. We also carry out initiatives

that draw upon the unique characteristics of individual brands to

support the active, healthy lifestyles of consumers. For example, the

sports drink Aquarius is used to deliver correct knowledge about

rehydration and the juice Minute Maid Qoo promotes “Kana-Kana

Aerobics,” an education program for parents and children.

Contributing to Healthier, Happier Lives On May 8, 2013, The Coca-Cola Company commemorated

the anniversary of Coca-Cola by announcing the following four

global business commitments. In the more than 200 countries

where we do business, we will endeavor to contribute to healthier,

happier communities by partnering with business, government

and civil society on efforts to promote active, healthy living.

1) Offer low- or no-calorie beverage options in every

market

2) Provide transparent nutrition information, featuring

calories on the front of all of our packages

3) Help get people moving by supporting physical

activity programs in every country where we do

business

4) Market responsibly, including no advertising to

children under 12 anywhere in the world

Product Portfolio of the Coca-Cola System in Japan

Sparkling beverages

28.4%

Other 2.0%Water 12.1%Energy drinks1.1%

Sports drinks15.4%

Tea 21.7%

Coffee 16.1%

Juice 4.8%

(Volume share in 2012; according to research by Coca-Cola Japan)

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As global environmental objectives to be achieved by 2020, The Coca-Cola Company aims to be the global leader in

sustainable water resource use, and the industry leader in packaging, climate protection and energy efficiency.

Based on this policy, the Coca-Cola system in Japan has established medium-term environmental targets (2015 Environmental

Targets) and is implementing initiatives to meet the targets together with nationwide bottling partners.

Core Areas of Environmental Performance

The Coca-Cola system has specified “energy and climate,”

“sustainable packaging” and “water stewardship” as three

core areas of environmental performance in which the system,

as a beverage manufacturer, seeks long-term improvements.

The Coca-Cola system in Japan additionally addresses “waste

management” as a core area requiring improvements to

contribute to the development of a recycling-oriented society.

The Coca-Cola system in Japan also operates a proprietary

database to efficiently manage the environmental performance

data of the entire system in Japan, keep track of progress and

revise the plan when necessary.

ENVIRONMENTAL MANAGEMENT

Environmental Impact in 2012

Water23,020,000m3

For producing beverages,

rinsing containers,

etc.

Energy7,820,000GJElectricity for

operating production lines,

etc.

Energy3,350,000GJ

Fuel for vehicles to transport products,

etc.

Energy1,170,000GJ

Electricity and other energies used in

building air conditioning(heating and cooling),

lighting and other systems

Recycling of resources

Raw Material910,000t

Concentrates, coffee beans,

tea leaves, sugar, containers, etc.

CO2 380,000t

NOX 294t

SOX 277t

Solid waste110,000t

Coffee grounds, used tea leaves,

sludge, etc.

CO2

50,000t

Energy16,650,000GJ

Electricity for vending machines

CO2

710,000t Emissions

from generating electricity

INPUT Resources and energy used in business activities

Water17,160,000m3

For rinsing containers, etc.

CO2 230,000t

NOX 1,476t

SOX 6t

OUTPUT Waste generated from business activities

Distribution/Transportation

Production Off ices Collection/Recycling

Sales

Data DisclosureThe range of data that the Coca-Cola system discloses on its environmental impact covers production, distribution/transportation, offices, and sales activitiesEnvironmental impact at the time of sales is calculated based on the amount of CO2 emitted from electricity consumed by vending machinesThe 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

The joule (J) is an internationally recognized unit for measuring an amount of heat1J = Approx. 0.24 calories; 1GJ (gigajoule) = J×109

CO2: carbon dioxide; NOx: nitrogen oxide; SOx: sulfur oxideThe basis for calculating some of the data has been changed due to an improvement in data collection accuracy

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Working toward the Medium-Term Targets

The Coca-Cola system believes that the basic requirements

for its sustainable growth as a company are the achievement of

both a reduction in its environmental impact and the expansion of

its business. On the basis of this approach, the system is currently

promoting initiatives to achieve its medium-term environmental

plan with 2015 as the target year. The medium-term targets

are a comprehensive set of environmental performance goals

for reducing environmental impact across the entire supply

chain, from production to distribution and transportation, sales,

collection and recycling. They cover the four action areas of

energy, packaging, water, and waste—the largest sources of

environmental impact in a beverage business.

In 2013, we will conduct an interim review of the Coca-Cola

system’s environmental performance targets for 2015 based

on progress made and commence formulation of a further set

of medium- to long-term targets to achieve by 2020. The entire

Coca-Cola system will work together to advance initiatives to

achieve these environmental targets. The Coca-Cola System’s Medium-Term Targets for 2015

2012 Performance Results: Targets and Results for Energy (CO2 emissions reduction)

Energy (CO2 emissions

reduction)

Water

Packaging

Waste

Area CategoryTargets

Numerical Target (Aggregate)

100% implementation of Source Water Protection projects at all plants

Source Water Protection

Further reduce packaging weight compared to 2004 to realize industry top levels

Start mechanical bottle-to-bottle (B to B) recycling* to turn used PET bottles into new PET bottles

Recycling and reuse

Achieve zero waste at all plantsIndustrial waste reduction

High value-added reuse of waste

-30.3% (compared to 2004)System total

Production

Distribution

Sales (vending)

Of�ces

Lightweight packaging

-10% (compared to 2004)

-5% (compared to 2004)

-45.5% (compared to 2004)

-3% (compared to 2004)

(Completed at existing natural mineral water plants by 2010)2011: Implement at plants that use well water2012: Implement at plants that use industrial and municipal tap water

Reduce packaging weight

Review technical assessment and operational models

Promote waste recycling

Explore possibilities of high value-added reuse of waste, such as biomass recycling

Shift energy source in plants; introduce cogeneration systems; switch to roll-fed label systems; use steam and compressed air more ef�ciently; etc.

Expand introduction of energy-ef�cient vending machines; replace existing vending machines; enhance lineup of HFC-free vending machines with heat pump systems

Switch to LED lighting, replace and update air conditioning systems

* Mechanical recycling: The process of turning used containers into new container material (recycled resin) by shredding and washing them, and then removing impurities from the recovered material by treating it under high temperature, reduced pressure, or other conditions for a set period of time

Measures

Production

Distribution

Sales

Offices

Reduction

Reduction Need more efforts

On-track

On-track

On-track

On-track

Reduction

Reduction

Reduction

Total for the Coca-Cola system

2012 Targets (compared to 2004) 2012 Results (compared to 2004) Results

-8.3% 33,453tCO2 -5.5% 22,362tCO2

-5.0% 15,785tCO2 -27.6% 87,155tCO2

-33.9% 396,154tCO2 -38.9% 454,484tCO2

-2.0% 1,143tCO2 -9.5% 5,599tCO2

-24.4% 475,188tCO2 -29.3% 569,599tCO2

Increase transport ef�ciencyRevise supply network, increase direct delivery from plants, improve accuracy of order transactions, promote modal shifts

Increase vehicle fuel ef�ciencyReplace low-ef�ciency vehicles with hybrids and other high-ef�ciency vehiclesEncourage eco-driving habits by installing digital tachographs, etc.

Replace existing vehicles with hybrids

22

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Our MissionThe Coca-Cola system advances initiatives based on the acknowledgment that achieving environmental impact

reductions concurrently with business growth is a basic requirement for the sustainable growth of the company.

We are currently making efforts to reduce CO2 emissions in all business operations, including production, distribution

and transportation, sales and of�ce operations, as we aim for medium-term targets set for 2015.

2012 Goals 2012 Results 2015 Targets (compared to 2004)

¡Reduce energy consumption and CO2

emissions in all operations ¡Conduct research and share information

on advanced environmental measures¡Contribute to solving environmental issues

o f l oca l commun i t i e s t h rough t he establishment and implementation of environmental measures by bott l ing partners corresponding to the unique characteristics of each community

¡Reduce total CO2 emissions across all operations by 30.3%

¡Reduce CO2 emissions in production by 10%

¡Reduce CO2 emissions in distribution by 5%

¡Reduce CO2 emissions in sales (vending machines) by 45.5%

¡Reduce CO2 emissions at offices by 3%

¡CO2 emissions reductions (compared to 2004): 5.5% in production; 27.6% in distribution; 38.9% in sales

¡Announced “peak shift” vending machines that reduce energy consumption at hours of peak power usage

¡Held seminar on advanced environmental initiatives of Coca-Cola system

ENERGY AND CLIMATE

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The Coca-Cola system is striving to meet its targets for 2015

primarily through greater productivity improvements. Initiatives

include switching from heavy fuels to natural gas or processed

natural gas as an energy source, mainly for plants, as well as the

introduction of cogeneration systems and making efficient use of

steam and compressed air.

As of the end of 2012, we had switched to natural gas or

processed natural gas at 20 plants across Japan and had installed

cogeneration systems at seven plants. CO2 emissions at the end

of 2012 were 380,000 tons. This was a 5.5% reduction from 2004,

but needing a further 2.8% reduction we fell short of the 2012 goal

due to an increase in product output.

In order to contribute to the establishment of a recycling-

oriented society, the Coca-Cola system maintains a waste

management policy by which it minimizes the use of ingredients

throughout its business, reuses materials wherever possible,

and recycles post-consumer containers into resources with the

highest possible added value.

We appropriately manage and process solid waste generated

by our business activities to comply with laws and regulations

as well as the Coca-Cola system’s KORE management system

requirements.

Solid waste in the Coca-Cola system in Japan consists largely

of coffee grounds, used tea leaves, and sludge from plants, and

containers and vending machines from sales offices. We recycle

all waste that is recyclable.

Production

As a medium-term target, the Coca-Cola system aims to

achieve, by 2015, a 5% reduction in CO2 emissions from 2004

in distribution and transportation. Measures include improving

efficiency in distribution for procurement and sales through

consolidation of distribution points and revision of distribution

routes; modal shift; promotion of eco-driving practices through the

use of digital tachographs and drive recorders and driving courses;

and the introduction of smaller vehicles and low-emission (primarily

hybrid) vehicles. As of the end of 2012, a total 942 low-emissions

vehicles were being used across the Coca-Cola system.

As a result of these initiatives, CO2 emissions at the end of 2012

were 230,000 tons, a 27.6% reduction from 2004.

Distribution and Transportation

SalesImproving the Environmental Performance of Vending Machines

In addition to a medium-term target to reduce CO2 emissions

from sales operations 45.5% by 2015 compared to 2004, the

Coca-Cola system in Japan has set a goal of making all vending

machines in the market HFC-free by 2020.

As part of those efforts, all new can and PET bottle vending

machines purchased after 2011, except for some special models,

have an HFC-free heat pump system,1 and all new cup vending

machines purchased since 2012 are HFC-free. Every newly

purchased machine also features LED lighting as standard.

CO2 emissions at the end of 2012 were 710,000 tons,2 a

38.9% reduction from 2004.

Efforts made over the past 15 years or more to develop

vending machines with superior energy efficiency have managed

to reduce the annual energy consumption of the latest models

to one third the level consumed by models of 15 years ago.

We actively develop and deploy environmentally friendly models

such as ecoru/Solar vending machines fitted with solar panels

that consume no energy for nighttime lighting,3 and “green roof”

vending machines, which have a sheet of greenery affixed to the

roof to shut out heat and curb increases in surface temperature.

In November 2012, Coca-Cola Japan unveiled the “peak shift”

vending machines that were jointly developed with Fuji Electric

Co., Ltd. as a way of reducing energy consumption during hours

of peak power usage, a measure necessitated by consequences

of the Great East Japan Earthquake. Deployment of the machines

began in January 2013 with a target of 25,000 installations in the

first year.

1. Vending machines that use HFC-free refrigerants with low global warming

potential and are equipped with a heat pump waste heat recovery system

for efficient heating and cooling

2. Emissions from generating electricity

3. Conditions (theoretical values) for solar-powered illumination of nighttime

lighting:

(A general target of) 20 hours of direct sunlight or more over a six-day period

is needed for illumination of lighting (assuming 30 beverages are sold during

the night). This varies according to factors such as the actual installation

environment.

Waste ManagementOur Mission

The Coca-Cola system in Japan has continually worked to

recycle solid waste produced by our plants in order to achieve

a “zero waste” goal for plants. In particular, coffee grounds and

used tea leaves, which account for around 76.5% of solid waste,

are 100% recycled for uses such as livestock feed and agricultural

fertilizer, and we will continue efforts to find effective uses for these

resources.

For example, the Tokai Kita Plant of Coca-Cola Central Japan

Products Co., Ltd. operates a methane fermentation processing

system, which ferments coffee grounds, used tea leaves and

sludge from wastewater treatment and converts them into an

energy source. This reduces the weight of solid waste to one

tenth, helping to lower the environment impact.

Furthermore, the Ibaraki Plant of Coca-Cola East Japan

Products Co., Ltd., has been supplying plant-generated coffee

grounds as biomass fuel to the Kashima Thermal Power Station

of Nippon Steel & Sumitomo Metal Corporation since 2009,

helping the power station reduce its fossil fuel consumption and

CO2 emissions. The company’s Ebina Plant has been supplying

coffee grounds for use as fuel to Kawasaki Biomass Electric

Power Corporation since 2012, contributing to a carbon-neutral

energy supply that uses no fossil fuels.

Effective Use of Solid Waste from Plants

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Our MissionThe Coca-Cola system maintains a “zero waste” vision for packaging, which is a valuable resource, and advances initiatives

in line with a global strategy. As well as promoting the 3Rs (reduce, reuse, recycle) throughout the lifecycle of products—from

ingredient procurement to collection and recycling—we strive to develop product packaging that fulfills the basic

requirements of ease of use and safety for consumers and representation of the brand’s underlying philosophy. We call this

approach “sustainable packaging.”

2012 Goals 2012 Results 2015 Targets ¡Continue to reduce packaging weight as

leading beverage company

¡Research on feasibility of mechanical bottle to bottle (B to B) recycling*

¡Promote and achieve further packaging weight reductions as leading beverage company

¡Start mechanical B to B recycling

¡Reduced weight of 1.5L sparkling beverage PET bottles from 48g to 42g

¡Researched mechanical B to B recycling

* Mechanical recycling: The process of turning used containers into new container material (recycled resin) by shredding and washing them, and then removing impurities from the recovered material by treating it under high temperature, reduced pressure, or other conditions for a set period of time

SUSTAINABLE PACKAGING

25

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’82 (year)’83 ’84 ’94 ’95 ’96 ’03 ’04 ’08 ’09 ’10 ’11 ’12 ’13’98’88 ’90

As a new initiative in sustainable packaging, the Coca-Cola

system in Japan introduced in 2009 the PlantBottle

next-generation PET bottles, which are partially (5–30%) made

from plant-based materials. Retaining the shape, weight and

strength of conventional bottles, PlantBottle packaging is 100%

recyclable at existing recycling plants. It is used for water brand

I LOHAS and flavored water products I LOHAS Mikan and

I LOHAS Ringo in all sizes (280ml, 340ml, 555ml, 1,020ml and

1,555ml), as well as for the new coffee brand launched in May

2013, LUANA.

Use of PlantBottle packaging has led to a reduction in

environmental impact equivalent to a 4,800kl2 reduction in crude

oil consumption between 2009 and the end of 2012.

2. The amount of crude oil required to produce 1 ton of PET resin

multiplied by the 2012–2011 sales volume of products using

PlantBottle. This calculation is based on the assumption that each PET

bottle contains an average of 22.6% plant-based materials.

Sources: LCI Data Report on Petrochemical Products (updated version)

issued by the Plastic Waste Management Institute (March 2009);

Manual for Calculating and Reporting Greenhouse Gas Emissions (Ver.

2.4) issued by the Ministry of the Environment and Ministry of Economy,

Trade and Industry (March 2009)

Five bottling partners and an affiliated company of the

Coca-Cola system in Japan operate recycling centers, where

they sort, compress, and process collected post-consumer

containers. One of them, Hokuriku Recycling Center Co., Ltd., is

registered as a recycling business compliant with the Containers

and Packaging Recycling Law and undertakes recycling of not

only containers for Coca-Cola system products, but also those

collected by local governments.

Post-Consumer Container Collection and Recycling

The Coca-Cola system proactively adopts a range of

business products, including office goods, post-consumer

container collection boxes, and uniforms, made from recycled

PET materials. In 2012, we purchased 72,000 post-consumer

container collection boxes and 57,000 uniforms system-wide,

which converts to around 8.3 million 500ml PET bottles. We also

actively promote PET bottle recycling through local community

cleanup initiatives and public relations campaigns encouraging

the sorting and collection of post-consumer containers.

Promotion of Recycling

Lightweight Containers and Next-Generation MaterialsPackaging Weight Reductions and Designs

The Coca-Cola system in Japan has been developing

lightweight containers and packaging since the 1970s as a way

to promote the effective use of limited resources. Water brand

I LOHAS, a product exemplifying our use of lightweight packaging,

uses ecoru Bottle Shiboru, which is designed to crush easily after

drinking. In 2012, we reduced the weight of 1.5L PET bottles for

sparkling beverages from 48g to 42g, the lightest in Japan for that

size.1 Labels are also lighter. In 2011, we introduced roll-fed labels

for large sparkling beverage PET bottles, reducing label weight

from 1.5g before the change to 0.5g.

We have also developed bottles that, besides being light,

have designs making them easy to hold and pour, such as the

ecoru Bottle Raku-mochi for 2L water, sports drink and tea

products.

And in April 2012, we introduced a PET bottle with a new size

and design, the 1.25L Smart Bottle, for some products in the

Hokkaido area.

1. As of April 2013; according to research by Coca-Cola Japan

Timeline of Packaging Weight Reductions for the Coca-Cola System in Japan

0

10

20

30

40

50

60

70

80(g)

75g

37g

14g 13g

36g

29g

64g

65g

32g

65g

35g

55g

27g

20.5g

49g 48g

42g

55g

48g

34g

12g

38g

47g35g

12g

Coca-Cola1.5L PET bottle

Tea2.0L PET bottle

Coffee190g can

Water500ml class PET bottle

(I LOHAS size since 2011 is 555ml)

Water2.0L PET bottle

Coca-Cola350ml can

Made Using Renewable PlantBottlePlant-based Materials

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Our MissionThe Coca-Cola system worldwide has a common goal of becoming the global leader in sustainable water resource

management by 2020. To achieve that goal, we are advancing water stewardship projects comprising three elements:

“reduce” the amount of water used in production processes; “recycle” water used in production by returning it to the natural

environment after proper treatment; and “replenish” water resources through watershed cultivation.

2012 Goals 2012 Results 2020 Goals¡Reduce water use ratio (volume of water

used for producing 1L of product) at plants¡Achieve 100% compliance with wastewater

management requirements of Japanese laws and KORE

¡Complete water source identification, risk evaluation, and protection plans for all system plants

¡Study and promote watershed cultivation measures for each area

¡Achieve water neutrality by returning to nature the same amount of water used in production processes, essentially using no water

¡Reduced water use ratio of plants by 5.9% (from previous year)

¡Achieved 100% compliance with wastewater management requirements of Japanese laws and KORE

¡Promoted watershed cultivation measures by bottling partners in their respective areas with aim to achieve water neutrality

WATER STEWARDSHIP

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The Coca-Cola system’s plants across Japan promote the

efficient use of water during production while complying with

the quality standards of the KORE global management system.

In 2012, the amount of water used during production was

23,020,000m3, a reduction of 840,000 tons, or 5.9%, from

the previous year. The Coca-Cola system in Japan has also

improved water use efficiency by around 15.7% over the last five

years, currently using an average 5.25L of water to produce 1L

of product (2012 actual data).

Water is mainly used to extract tea and coffee and to clean and

sterilize containers and production lines. We closely manage the

amount of water used in production and reuse used water. For

example, water used for cleaning during the production process

is purified by removing impurities with a special filter called a

reverse osmosis (RO) membrane and then reused to clean plant

floors and returnable glass bottle cases. At the Tonami Plant of

Hokuriku Coca-Cola Products and the Sapporo Plant of Hokkaido

Coca-Cola Products, electron beam sterilization systems using

no chemicals and enabling dramatic reductions in water used for

cleaning have been introduced to bottle sterilization processes.

Reduce Water Use in Production

REDUCE

As part of its global water stewardship project, the Coca-Cola

system conducts surveys to identify water sources for plants and

their vulnerabilities and promotes efforts to protect water resources

around the world.

In Japan, we enlist the help of expert authorities to identify the

water sources of plants through scientific surveys and assess the

vulnerability of those water sources before formulating Source

Water Protection plans. By the end of 2012, we had completed

water source surveys and protection plan formulation at all 28

plants of the Coca-Cola system in Japan. Source Water Protection

plans are drawn up with the purpose of ensuring that natural

watershed environments can continue to nurture water resources

into the future. Plans incorporate methods for protecting water

resources as determined with the assistance of experts and

people in the local community based on the characteristics of the

land and natural environment of the watershed area.

By the end of 2012, we had implemented Source Water

Protection activities for water sources of plants in 20 locations

nationwide, including Mt. Shirahata in Sapporo, Hokkaido, and

we have commenced participation in management of forests

and rice terraces in Ena, Gifu Prefecture, as well as in a rice

paddy flooding project through an agreement with Kumamoto

Prefecture. Future water resource management will involve such

initiatives reflecting local characteristics. We will also carry out

other activities contributing to the cultivation of water resources

through programs such as environmental education programs

and the Coca-Cola “Learn from the Forest” project.

Through these efforts to reduce water use in production,

manage plant wastewater and protect source waters of plants,

the Coca-Cola system aims to achieve its goal for 2020 of water

neutrality, by returning to nature the same amount of water used

in production processes, essentially using no water.

Protect Water Resources

REPLENISH

Manage Plant WastewaterRECYCLE

Recovery processing

Water treatment

Reuse

Well water, municipal water, industrial water

Use in the manufacturingprocess for cleaning

plant floors, etc.

To products

Wastewater treatment

Water Recycling System

Five Elements of Water Stewardship by the Coca-Cola System

Wastewater from Coca-Cola system plants, including water

used for cleaning or cooling containers and equipment, is

discharged into sewage systems or rivers and streams after

appropriate treatment. Plants that discharge water into sewage

systems release the water after removing suspended solids,

adjusting the pH level and performing other processes in order

to meet standards established by law or requested by local

sewage authorities. Plants that discharge water into rivers and

streams treat the water on plant premises using the activated

sludge process, with microorganisms, or another method and

manage the release in compliance with the Coca-Cola system’s

own KORE management system, which sets higher water quality

standards than required by the Water Pollution Control Act and

other Japanese laws.

Through these wastewater management measures, we

maintain 100% compliance with related Japanese laws and

KORE.

Water Stewardship

Water intake

Water quality management

Efficient use of water

Wastewater management

To rivers/streams

or sewage system

s

Water Stewardship

Wastewater management

Water intake

Efficient use of water

Water quality management

Returning to nature the water we use

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Our MissionThe Coca-Cola system makes an effort to contribute to local communities, recognizing that a business is not sustainable

unless the community is healthy.

Besides implementing disaster relief, crime prevention, community development and other activities through our business

using vending machines and delivery trucks, and in collaboration with local governments and law enforcement agencies

nationwide, we engage in a wide range of activities in the community, such as providing support for local sporting and cultural

events, and education programs for children.

2012 Goals 2012 Results Current Goals ¡Continue activities in conjunction with

Coca-Cola system’s environmental and active healthy living initiatives

¡Continue activities of Coca-Cola Japan Reconstruction Fund supporting recovery of areas affected by Great East Japan Earthquake

¡Continue activities in conjunction with Coca-Cola system’s environmental and active healthy living initiatives

¡Continue and expand activities of Coca-Cola Japan Reconstruction Fund supporting recovery of areas affected by Great East Japan Earthquake

¡Promoted environmental education and practical activities in communities, primarily relating to water stewardship

¡ Implemented program in which top athletes communicate importance of dreaming for the future and joys of exercise

¡ Installed solar power generation and storage facilities at public elementary and junior high schools and implemented homestay program

COMMUNITY

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Fostering the Generation of Tomorrow through Sports

The Coca-Cola system in Japan actively supports the

development of safe and secure communities using its highly

accessible vending machines and delivery trucks.

As of the end of December 2012, we had installed nationwide

around 8,000 vending machines with disaster relief functions. In

times of disaster, such as after an earthquake, these machines

can supply products free of charge and provide disaster-related

information on pre-installed digital displays. For crime prevention,

we place address stickers on vending machines and also

collaborate with local law enforcement agencies by transmitting

crime-prevention information on the digital displays. Individual

bottling partners support environmental preservation and local

development initiatives advanced by NPOs or the community

through operation of vending machines with community support

functions.

Delivery trucks used for transporting and restocking cooperate

by reporting suspicious activity and helping people in need along

their routes. They are also used to transport relief supplies in times

of disaster.

Since the 1960s, the Coca-Cola system in Japan has carried

out local community cleanup and post-consumer beverage

container collection activities. In the 1970s, we launched a

beautification and cleanup campaign featuring the slogan “Keep

Japan Beautiful,” and in 1998 we promoted container recycling

awareness with the slogan, “Yes! Recycling—No! Littering.” We

commenced support for “green bird,” an NPO that organizes

community cleanup campaigns, in 2008. In 2012, the Coca-Cola

system and green bird launched a project to retrieve discarded

materials from Japan’s “100 famous mountains,” thereby

expanding the scope of activity from towns to mountain areas.

Worldwide, Coca-Cola system employees participate in

the International Coastal Cleanup Campaign run by Ocean

Conservancy, an environmental NGO supported by The

Coca-Cola Company. In continuation to efforts in 2011,

employees of the Coca-Cola system in Japan supported the

campaign by collecting and disposing of flotsam in 2012 on

Shichigahama beach, Miyagi Prefecture caused by the Great

East Japan Earthquake.

Contributing to Local Communities through Vending Machines and Delivery Trucks

The Coca-Cola system is helping communities in northeastern

Japan rebuild by financing projects with the help of the Coca-Cola

Japan Reconstruction Fund, a fund established soon after the

disaster with a gift of 2.5 billion yen from The Coca-Cola Company.

In 2012, a total 23 public elementary and junior high schools were

selected as recipients of a second stage of grants for solar power

generation system installation. School buses were also donated to

three prefectural high schools and two special education schools

in Iwate Prefecture as a form of direct assistance to municipalities.

In addition, a total 78 junior high and high school students took

part in an overseas homestay program, immersing themselves in

another culture in the United States or the United Kingdom.

Coca-Cola Japan Reconstruction Fund

Environmental Activities Beautification and Cleanup Activities—Thinking Globally, Acting Locally

“Aquarius—Begin Your Dream for the Future” Project

“Coca-Cola—Learn from the Forest” Project

In 2006, Coca-Cola Japan launched the “Coca-Cola—Begin

Your Dream for the Future” project encouraging children to hold

on to their dreams. Under the project, specialists at the forefront

of a variety of fields are dispatched nationwide to draw on their

experience and expertise in interactive programs teaching children

the importance of having dreams for the future, setting and

working toward targets, and always taking on new challenges.

The project has been implemented as the “Aquarius—Begin Your

Dream for the Future” project since 2011.

In 2012, swimmer Kosuke Kitajima took part as instructor

for day-long swimming classes on two occasions: in Tokyo and

Miyagi Prefecture.

Fostering the Generation of Tomorrow through Education and CultureSponsoring the All Japan Inter-Middle School English Oratorical Contest

In support of the contest’s mission of furthering English

education to raise internationally minded youth and, in so doing,

promote Japanese cultural development and international

goodwill, the Coca-Cola system in Japan has sponsored the

H.I.H. Princess Takamado Trophy All Japan Inter-Middle School

English Oratorical Contest every year since 1963. At the 64th

finals competition held in December 2012, junior high school

students selected from among 1,867 participants from all 47

prefectures of Japan delivered outstanding English speeches.

The Coca-Cola system in Japan has been implementing the

“Coca-Cola—Learn from the Forest” project as an environmental

education program for children, our leaders of tomorrow, since

2006 with bottling partners nationwide and the backing of the

Ministry of the Environment and the Forestry Agency. The project

teaches children about the relationship between water—which

is essential for life on Earth—and forests through nature

observation and games. Tree planting, forest thinning and other

fieldwork activities contributing to cultivation of water resources

are also carried out as part of the Coca-Cola system’s global

water stewardship initiative. The project has its own website,

providing information on forests and nature along with activity

reports. A special website for elementary and junior high school

students, “Forest Doctorate,” provides a study program on forest

ecosystems and global warming.

In 2011, we launched a new program, “Letters to the Forest,”

to gather letters on protecting the natural environment through a

special website. For every letter submitted, the program provides

one pencil made from Japanese wood produced through

forest-thinnings to nationwide elementary schools taking part in

environmental activities.

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Our MissionEveryone who engages in our business serves as the face of the Coca-Cola system.

The Coca-Cola Company values the relationship it has with its employees and strives to provide rewarding work environments

based on the belief that the success of the Coca-Cola system’s globally operated business hinges on its employees.

Coca-Cola Japan, in accordance with this global policy, aims to be a company that inspires its employees to realize their

maximum potential by fostering safe, healthy, and diverse work environments that give individual employees sufficient control

to feel motivated in their work.

2012 Goals 2012 Results Current Goals ¡Continue thorough implementation and

progress management of action plans

¡Make ongoing efforts to foster supervisors

¡ Implement global human resources development program in Japan and implement mentoring program

¡Bolster and promote various kinds of diversity

¡Provide ongoing support for development of Japanese leaders

¡Continue and bolster efforts to foster female leaders

¡Promote rewarding workplace creation through employee awareness surveys, work efficiency improvements and introduction of flexible working arrangements

¡Conducted supervisor feedback survey and formulated action plan

¡ Implemented new programs, including “visionary career” workshop, and made available global career development tools

¡Held event with full female employee participation to raise gender diversity awareness

WORKPLACE

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Coca-Cola Japan adopts basic workplace policies common to

the Coca-Cola system worldwide—the Workplace Rights Policy,

which guarantees the same rights for all employees, and the

Code of Business Conduct, which serves to guide the actions of

employees.

The Coca-Cola Company vows to treat all employees fairly,

with dignity and respect based on the principle that respecting

human rights forms the foundation for conducting business.

Our Human Rights Statement and Workplace Rights Policy are

based on international human rights standards 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.

Basic Approaches and Policies of Human Resources

The Coca-Cola system in Japan implements health and safety

initiatives at workplaces system-wide based on the KORE global

management system. Coca-Cola Japan’s Moriyama Plant strives

to promote employee awareness and maintain safe working

environments by performing employee health checks before

work each morning and by issuing reminders and conducting

inspections to prevent accidents. To ensure employee safety

in times of disaster, we store emergency equipment, food and

beverage supplies and hold regular emergency evacuation drills.

Coca-Cola Japan’s health management initiatives include

regular health check-ups and vaccinations, while mental health is

promoted through a support program. Employees and contract

employees can receive free, anonymous counseling from an

outside organization. The privacy of employees in relation to

consultations—which are conducted face-to-face, by phone or

by e-mail—is protected even from the company.

Occupational Health and Safety

The Coca-Cola system is committed to creating truly diverse

workplaces, and promoting the employment, skills development

and career advancement of women is put forward as an important

management strategy in the 2020 Vision, our global strategy for

growth to be achieved by 2020.

As part of our initiatives to create diverse workplaces, we

at Coca-Cola Japan also strive to develop the skills of female

employees, foster female leaders, and create workplaces which

raise motivation. Women represent 36% of all employees (not

including Moriyama Plant) and 25% of managers at Coca-Cola

Japan as of December 31, 2012. We will continue to actively

promote female employees to managerial positions.

Creating Rewarding WorkplacesEmpowering Female Employees

At Coca-Cola Japan, employee performance targets are set

by breaking down goals for the company as a whole into goals for

individual employees so that each employee’s accomplishment

of personal goals contributes to the accomplishment of

company-wide goals. Employees are required to talk with

their supervisor and reach agreement concerning their annual

performance targets, career plan, and skills development plan,

and then translate their goals into actions. Performance targets

are managed through globally consistent processes and systems,

and the year-end evaluations are finalized after supervisor and

department-level reviews, and a company-wide evaluation

meeting.

Career Development SupportEvaluation System

To support career and skill development, Coca-Cola Japan

offers employees educational programs through Coca-Cola

University, a virtual in-house global university established by The

Coca-Cola Company. Employees can receive training, participate

in educational programs, and take e-learning classes according

to a globally set curriculum or learning path designed for various

occupational areas.

Programs are developed and implemented each year

according to the need of employees and the organization. In

2012, we implemented new programs, including a “visionary

career” workshop, cross-cultural communication training and “7

Habits” training.

Coca-Cola University

Supporting Flexible Work Styles

As part of our effort to create rewarding work environments,

Coca-Cola Japan offers a flextime work option (not including

employees at Moriyama Plant), childcare leave, family nursing care

leave, and other programs to help employees come up with their

own flexible work styles. We also started trialing a home-based

work system in March 2013. Additionally, we help employees lead

physically and mentally healthy, fulfilling lives, for example, through

the provision of welfare programs that employees can select

according to their own life stage, and support for employee club

activities.

Coca-Cola (Japan) Co., Ltd. Shibuya Head Office, Moriyama Plant, and Coca-Cola Tokyo R&D Co., Ltd.

2010

415

176

591

2011

398

172

570

2012

386

179

565

Male

Female

Total

Employees by gender

2010

5

2011

11

2012

20

Employees seconded to bottling partners

2010

505

86

591

2011

482

88

570

2012

471

94

565

Shibuya Head Of�ce, Tokyo R&D

Moriyama Plant

Total

Employees by workplace

Employee Numbers

3432

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Coca-Cola Japan’s Management Committee, comprising

senior executives, meets weekly to review progress against

business plans and to discuss and make decisions on

management issues. For some business issues, the Management

Committee delegates authority to internal departments to enable

swifter, more flexible responses to the various issues that arise in

day-to-day operations.

Corporate Governance StructureCorporate Governance of Coca-Cola Japan

MANAGEMENTAs a member of The Coca-Cola Company, a corporation conducting business in over 200 countries worldwide, Coca-Cola Japan

manages its business activities in accordance with the various policies and rules of conduct established by The Coca-Cola Company.

These include the Code of Business Conduct, Supplier Guiding Principles, and Workplace Rights Policy. Our governance system

administers these policies and rules by enabling employees to consult and receive direction from their immediate supervisor or the legal

department of their respective business units at any time.

Our Basic Policies

Corporate Governance

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

The Coca-Cola Company’s mission is to refresh and inspire

moments of happiness to all people in countries where it

operates and endlessly strive to create new value and make

a positive difference to the world through its business. To

accomplish this mission, all employees involved in carrying out

business activities in the Coca-Cola system are required to act

with honesty and integrity in all matters as prescribed by The

Coca-Cola Company’s global Code of Business Conduct. The

Code of Business Conduct, in addition to legal compliance,

defines rules and policies for six key categories of conduct,

including avoiding conflicts of interest, safeguarding information,

and dealing with customers and suppliers. Certain actions

referenced in the Code of Business Conduct require the written

approval of Local Ethics Officers appointed to business units in

each country.

Code of Business Conduct

The Supplier Guiding Principles communicate these values to

suppliers and serve as a foundation for promoting them together

with The Coca-Cola Company through its global operations.

In addition to compliance with each country’s applicable laws

and regulations, they require suppliers to observe 10 additional

principles that include prohibition of child labor, prohibition of

forced labor, freedom of association and collective bargaining,

healthy and safe work environments, and environmental

responsibility. The Coca-Cola system in Japan enters into new

business agreements with suppliers after first explaining the

Supplier Guiding Principles and making sure they understand

it. After we begin trading activities with suppliers, we conduct

third-party audits as needed to verify that they are conforming to

the principles.

Supplier Guiding Principles

The Coca-Cola system formulates and carries out annual

business plans for each country in line with global business goals.

In Japan, we operate business according to annual business

plans agreed upon by the presidents of Coca-Cola Japan and its

nationwide bottling partners. The system holds various meetings

and conferences as needed throughout the year depending on

the nature of the business matter, including presidents meetings

and national meetings, to share and discuss information and reach

agreements on matters significant to the system’s operation.

Governance of the Coca-Cola System in Japan

Workplace Rights PolicyThe Coca-Cola Company formulated its Workplace

Rights Policy based on international human rights standards

such as the Universal Declaration of Human Rights and the

United Nations Global Compact as a guide for creating positive

work environments. Coca-Cola Japan also observes this policy.

The Workplace Rights Policy comprises the items below.

Third-party audits are conducted annually to confirm the

company’s conformity with the Workplace Rights Policy.

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Coca-Cola Japan strives to ensure ethical behavior and legal

compliance in the workplace by providing all employees access

to information and guidance on compliance-related issues at any

time. If an employee discovers a violation of the Code of Business

Conduct established by The Coca-Cola Company, the employee

can anonymously call or e-mail the Ethics Hotline, The Coca-Cola

Company’s global online and telephone information and consulting

service, to seek guidance or make a report.

Internal Reporting System

Once a year, the Coca-Cola system in Japan assesses 300

categories of potential risks relating to its business activities and

examines the risks in order of priority before reporting to The

Coca-Cola Company.

In the event that a risk is actualized during daily business

activities, a risk management coordinator promptly assembles

an initial assessment team comprising representatives of the

relevant departments to gather information, take initial action

and assess the risk level and scope in accordance with the

IMCR global risk management program. If the problem seems

likely to spread, a risk management committee is convened to

discuss responsive measures and consider what and how to

communicate to consumers, business partners, the media, and

other stakeholders. Bottling partners use the same procedures,

thus unifying risk management procedures across the Coca-Cola

system.

IMCR Structure

The Coca-Cola system in Japan regularly implements

system-wide risk management training to prepare itself to

appropriately handle events involving risk at any time. During

2012, 100 risk management personnel from Coca-Cola Japan

and its bottling partners and other affiliates participated in

workshops before returning to their respective companies with

programs which they then implemented.

Risk Management Training

Coca-Cola Japan maintains a policy of protecting the

Coca-Cola brand, and thereby contributing to business success,

through consistent and effective management of risks to

information assets. Information security management is carried

out in keeping with this policy and in accordance with information

protection provisions established by The Coca-Cola Company

and applicable laws and regulations. An information security

committee comprising legal affairs, IT, human resources and risk

management personnel coordinates the activities and conducts

audits on a regular basis. The committee also implements

in-house training to ensure that employees handle personal

information and classified corporate information in an appropriate

manner during performance of their duties.

Information Security Management

As a foundation for compliance at Coca-Cola Japan, employees

are asked to practice sound judgment in accordance with The

Coca-Cola Company’s Code of Business Conduct and applicable

laws and regulations.

The Code of Business Conduct can always be referenced in a

handbook distributed to all employees or via the intranet.

Systems are also in place allowing employees to consult and

seek direction from their immediate supervisor or legal affairs

department at any time they have ethical or legal concerns or are

hesitating over a decision during the performance of duties.

Our Basic Policies

Legal Compliance

Our Basic Policies

Risk Management

Coca-Cola Japan is a member of The Coca-Cola Company’s

Ethics & Compliance Committee. Together with personnel in

legal affairs, our human resources and financial departments

participate in cross-functional committee activities to promote

legal compliance in Japan. In the event of an incident potentially

in violation of the Code of Business Conduct—which is the

foundation of compliance—occurring during the business

activities of Coca-Cola Japan, legal affairs personnel head an

inquiry by relevant departments into the circumstances of the

incident and action is taken accordingly.

Compliance Organization

Coca-Cola Japan implements training programs, including

in-house workshops and e-learning programs, as needed to

enhance employees’ understanding of compliance. In 2010, the

Coca-Cola system globally implemented a process for verifying

that employees understand the Code of Business Conduct and

are complying with its rules, requiring all employees to participate

in online training and demonstrate their compliance.

Compliance Training

The Coca-Cola Company groups its assets into the following five

categories: people and organizations, products and marketing,

information, infrastructure, and financial assets. These assets,

along with such intangible assets as the image and reputation of

our organization and business, are protected using the global

Incident Management & Crisis Resolution (IMCR), which the

Coca-Cola system in Japan also adopts to manage its assets. As

a global program, IMCR has two primary functions: one for

managing risks in normal situations, and the other for resolving

crises when they arise.

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Initiatives from around the WorldThe Coca-Cola system conducts business in more than 200 countries worldwide and seeks a sustainable balance between

business activities and communities in each country through a variety of initiatives.

These efforts are also concerned with the demands and issues of the global community, such as the core subjects of ISO

26000 issued in 2010, and the U.N. Millennium Development Goals.

This section introduces programs being run by Coca-Cola system companies around the world.

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The Tram Chim National Park is a remnant of Vietnam’s Plain

of Reeds, a vast wetland area once covering more than 1.7

million acres where natural resources, such as bountiful fisheries

supported by the annual floods of the Mekong River, used to

be abundant. Much of the Plain of Reeds was converted to rice

paddies, diminishing the amount of resources that could be

obtained from this ecosystem. With the support of The Coca-Cola

Company and the World Wide Fund for Nature (WWF), Tram Chim

National Park has established six Sustainable Resource User

Groups that co-manage natural resources with local communities

Former teacher Lelani Abutay says her old classroom used

to remind her of a pigsty or a chicken coop. It was small and

cramped. The floor was made of mud. And there was no furniture

or teaching materials. The students could not move around freely

and had to stay where they were seated the whole time.

Today, the children in Trento, a town in the Philippines

Agusan del Sur province, have a proper school building, built

through Coca-Cola Philippines’ Little Red Schoolhouse program.

Launched in 1997, the program works to improve education for

In Colombia’s largest cities, young people have hardly any

sporting spaces or access to recreational programs that may lead

to healthy habits. An experimental new soccer league program

that also allows participants to develop social skills is changing

that.

Fútbol para la Esperanza (Football for Hope) will reach out to

the families of 14,000 young people between the ages of five and

18 in the capital Bogota and Cali. The children will not only play

soccer, but will also develop social skills and learn about staying

A Bright Future for People, Nature and Business

Vietnam

Building Better Rural Schools

Philippines

Hope in the Shape of a Soccer Ball

Colombia

to enable sustainable harvesting of firewood, fish, eels, grasses,

water lilies, lotus flowers, vegetables and shellfish. The aim is

to achieve balance between protecting the park’s rich habitat

and ecosystem and maintaining the economic viability of local

communities.

Nearly 3,000 local people have joined the Sustainable

Resource User Groups to date, raising their awareness about

conservation. Use of more environmentally friendly fishing

practices has led to stable sources of income, improving the

livelihoods of communities. Also, water flow improvements in

the wetlands have helped to triple the area of grassland and

increase bird populations fivefold since 2001.

children in impoverished areas by replacing substandard school

buildings with new ones. The program has built schools in 93 rural

communities so far in partnership with the Philippine Business for

Social Progress.

Enrollment in most Little Red Schoolhouses increases from

45% to as much as 200% in the school year immediately after its

completion, and attendance remains at almost 100%.

Former students are also now contributing to the community,

for example as nurses, police and skilled workers.

healthy, both physically and emotionally. They will experience the

connection and camaraderie of being part of a team and learn that

there are alternatives to violence, drugs and crime. Psychologists

and social workers will support the program, filling roles as crucial

as that of coaches.

Coca-Cola Colombia is a proud sponsor of the program along

with FIFA, the Colombianitos Foundation, the Inter-American

Development Bank, local governments, and others. Program

outcomes will be used for future efforts to reduce violent behavior

among youth.

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For inquiries concerning this report:

Coca-Cola (Japan) Company, Limited4-6-3, Shibuya, Shibuya-ku, Tokyo, Japan 150-0002Consumer Service Center: 0120-308509 (Toll free)

http://www.cocacola.co.jp (Japanese only)

COCA-COLA, COCA-COLA ZERO, GEORGIA, LUANA, SOKENBICHA, KARADA MEGURI-CHA, AYATAKA, KOCHAKADEN, TAIYO NO MATECHA, AQUARIUS, AQUARIUS ZERO, VITAMIN GUARD, FANTA, SPRITE, REAL GOLD, QOO, MINUTE MAID, MORI-NO-MIZU DAYORI, I LOHAS, BURN, and REAL are trademarks of The Coca-Cola Company.SCHWEPPES is a registered trademark of Atlantic Industries.CANADA DRY is a registered trademark of Canada Dry Corporation Limited.©The Coca-Cola Company

Published: August 2013Public Affairs & CommunicationsCoca-Cola (Japan) Company, Limited

The Coca-Coca Sustainability Report 2013 is produced from FSC®-certified paper, vegetable ink and VOC-free ink using a waterless printing method.