Coca-Cola

Sustainabilit y
Repor t 2017
Digest Edition (English)
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Our Mission,
Vision & Values
Our Mission
Prologue 1 To refresh the world
2 To inspire moments of optimism and happiness
3 To create value and make a difference

Growing Sustainably Together with Local Communities

Nine core areas in three domains. The Coca-Cola system views sustainability as Our Vision
a prerequisite for business growth and the scope of our sustainability initiatives
is broad, our activities diverse. However, there is a common element in all People Partners
of them—the community. Precisely because we are the Coca-Cola system, Be a great place to work where people are Nurture a winning network of consumers,
inspired to be the best they can be business partners, and suppliers,
manufacturing and selling products throughout Japan, from Hokkaido to Okinawa,
together we create mutual, enduring value
we seek to tackle issues alongside people in communities so that we may grow
together with them in a sustainable manner. Portfolio Planet
This printed report zeroes in on the lives of people tying in with three particularly Bring to the world a portfolio of quality beverage brands Be a responsible citizen that makes a difference
important themes of our diverse sustainability activities. Through them we that anticipate and satisfy people's desires and needs by helping build and support sustainable communities
uncover the motivation behind individual activities and hopes for the future.
Please enjoy the three stories herein as they contain the essence of the
Coca-Cola system’s sustainability approach. Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.

Our values are…

Leadership Collaboration
The courage to shape a better future Leverage collective genius

Passion Diversity
Committed in heart and mind As inclusive as our brands

Integrity Quality
Be real What we do, we do well

To live our values…

Focus on the market Act like owners

Work smart Be the brand

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Sustainability Report 2017 Company Profile 03

Company Profile
Index
Coca-Cola (Japan) Company, Limited was established in 1957 as the Japanese subsidiary of The Coca-Cola
Company (headquarters: Atlanta, Georgia, United States), marking the beginning of full-fledged operations
p. 03 Company Profile in Japan.
pp. 04–05 Commitment from Top Management — Together with Consumers for 60 Years: 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.
As a Good Neighbor of the Community

pp. 06–07 Sustainability Framework — Sustainability Framework of the Coca-Cola System Profile of Coca-Cola (Japan) Co., Ltd.

pp. 08–13 Sustainability Activities in Numbers Name Coca-Cola (Japan) Company, Limited Representative Jorge Garduño
(Representative Director and President)
pp. 08–09 “me” — Enhancing Personal Well-Being Established June 25, 1957, as Nihon Inryo Kogyo K.K. Capital 3.6 billion yen
pp. 10–1 1 “we” — Contributing to Communities Changed name to Coca-Cola (Japan) Co., Ltd.
on March 15, 1958 Shareholder The Coca-Cola Export Corporation
pp. 12–13 “world” — Achieving Environmental Sustainability (100%)
* Subsidiary of The Coca-Cola Company
Head Office 4-6-3 Shibuya, Shibuya-ku, Tokyo 150-0002, Japan
pp. 14- 27 Coca-Cola Sustainability Report 2017 Special Content Employees 487 (as of March 31, 2017)
Tel: 03-5466-8000
pp. 16–19 Content 1 Bringing Happy Moments to Japanese Consumers for 60 Years URL: http://www.cocacola.co.jp Plant Moriyama Plant (49, Amura-cho,
Moriyama, Shiga Prefecture)
pp. 20–23 Content 2 Ambitions of Women Entrepreneurs Are the Ambitions of the Coca-Cola System
Business Manufacture and sales of beverages
pp. 24–27 Content 3 Coca-Cola Products Are Packed with Friendliness to the Environment

p. 28 Third-Party Opinion
UN SDGs & the Coca-Cola System 1

The Coca-Cola System in Japan 2

The Coca-Cola system in Japan includes Coca-Cola (Japan) Co., Ltd., 1 Hokkaido Coca-Cola Bottling Co., Ltd.
3
which supplies concentrate and undertakes the planning, 2 Michinoku Coca-Cola Bottling Co., Ltd.
About This Report
4
development, and marketing of products; five bottling partners that 3 Coca-Cola Bottlers Japan Inc.
engage in such activities as product manufacturing and sales; and 4 Hokuriku Coca-Cola Bottling Co., Ltd.
affiliates. Nationwide, the Coca-Cola system employs around 20,000 5 Okinawa Coca-Cola Bottling Co., Ltd.
people and operates 22 plants (including the Moriyama Plant).
Editorial Policy About the Digest and Detailed Editions of the Report 5

The Coca-Cola Sustainability Report 2017 The Coca-Cola Sustainability Report 2017 is
conveys the approach to sustainability of released as a printed report, as well as online. The
Coca-Cola Japan and bottling partners and printed report is compiled as a digest edition with Bottling Partners in Japan
affiliates in Japan, and reports on specific special features covering activities in 2016 that we
activities and accomplishments stemming consider were particularly important. The online
from that approach. version includes a detailed edition of the report
The 2017 report contains special features containing data and information on other activities. Hokkaido Coca-Cola Michinoku Coca-Cola Coca-Cola Bottlers Hokuriku Coca-Cola Okinawa Coca-Cola
Bottling Co., Ltd. Bottling Co., Ltd. Japan Inc. Bottling Co., Ltd. Bottling Co., Ltd.
on activities that the Coca-Cola system
considers were particularly important in a Period, Scope, and Referenced Guidelines
format that even general readers will find Coca-Cola (Japan) Co., Ltd. Bottling Partners / Affiliates
easy to follow. Period: January 1, 2016–March 31, 2017
Other activities and detailed data are Scope: Coca-Cola Japan and five bottling partners 日本コカ･コーラ（株） ボトラー各社・関連会社
reported on in three separate categories— and affiliates Planning R&D
Concentrate
Production
Distribution/
Sales Collection Recycling
manufacturing Transportation
“me,” “we,” and “world”—in line with the Referenced guidelines: Global Reporting Initiative
sustainability framework being advanced 企画 研究開発 原液製造 製品製造 物流・輸送 販売 回収 リサイクル
G4 Sustainability Reporting Guidelines
by the Coca-Cola system worldwide. Publication: August 2017
コカ･コーラ
Coca-Cola Integrated
アイ･ビーエス（株）
Business Systems Co., Ltd.

（株）コカ･コーラ コカ･コーラ コカ･コーラ カスタマー （株）エフ･ヴィ･

Terminology 東京研究開発センター
Coca-Cola Tokyo ビジネスソーシング（株）
Coca-Cola Business マーケティング（株）
Coca-Cola Customer コーポレーション
FV Corporation
R&D Co., Ltd. Sourcing Co., Ltd. Marketing Co., Ltd. Co., Ltd.
• 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.
• “The Coca-Cola Company” refers to the U.S. headquarters while “Coca-Cola (Japan) Co., Ltd.” and Sharing happiness with Doing business in
“Coca-Cola Japan” refer to Coca-Cola (Japan) Company, Limited. the world for Japan for
“Bottling partners” refers to the five bottling companies across Japan as designated by The Coca-Cola
Company.
“The Coca-Cola system in Japan” comprises Coca-Cola Japan, its bottling partners, and other affiliates. 131 years 60 years

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Sustainability Report 2017 Commitment from Top Management 05

engages in activities to enhance personal well-being, working with our bottling partners to reduce water
Commitment from Top Management from product development through to sales activities. usage as much as possible, properly manage water
discharge, and replenish water resources through
forest cultivation and appropriate use of rice fields.
Together with Consumers Contributing to Communities (we)
Coca-Cola has been placing increasing importance on
We also started a project in 2013 in collaboration with
Nippon Paper Industries Co., Ltd. to cultivate and
women, who play an important role in building sustainable manage forests in various locations. From 2015, we
for 60 Years communities. We provide programs globally to empower
women involved in our business value chain. Our “5by20”
started work on a long-term project with Ebino City
of Miyazaki Prefecture to protect forests and water
initiative aims to empower 5 million women across 64 resources. Through these activities with support from
—As a Good Neighbor countries by 2020 by supporting economic independence
and active roles in society. The project was introduced to
the local community, we were able to achieve water
neutrality by the end of 2016, ahead of the 2020 goal.
of the Community— Japan in 2014 on tea and dairy farms where we procure
ingredients for our products. We held classes on the
For Energy and Climate, the Coca-Cola system aims
to reduce the carbon footprint of “the drink in your
principles of sustainable agriculture and encouraged the hand” (CO2 emissions over the product lifecycle) by
Jorge Garduño creation of a network where female farmers could share 25% compared to 2010.
Representative Director and President, Coca-Cola (Japan) Co., Ltd.
knowledge and improve their understanding. From the For Sustainable Packaging, the Coca-Cola System
end of 2016, we began a new program to support female aims to introduce sustainable materials to all products.
entrepreneurs in collaboration with the Cabinet Office and The Coca-Cola system will procure agricultural
several NPOs. As a result, 1,250 women had participated ingredients for beverages and containers in total
in these programs since the start in 2014 as of the end compliance with the Sustainable Agriculture Guiding
of 2016. We will continue to support women in local Principles (SAGP).3 Since the end of 2015, our tea
communities. leaves and coffee beans have been
Another important factor for sourced in total compliance with the
contributing to communities is the SAGP.
reconstruction of communities In addition to mitigating our
The Coca-Cola system will continue to provide beverages to Japanese consumers across all ages as it has up that have been affected by natural environmental burden in our supply
until now, growing together with the local community disasters. More than 2.5 billion yen chains, our Shibuya head office, which
was donated as the Coca-Cola opened for business in July 2016,
Reconstruction Fund shortly after also features environmentally-friendly
This year marks the 60th year of Coca-Cola business effort in the area of sustainability. This is because the Great East Japan Earthquake architecture. This building received
in Japan since Tokyo Coca-Cola Bottling Co., Ltd. we believe that, as Coca-Cola business is supported in 2011, and we also installed the highest level certification of LEED
delivered product to Tokyo American Club on May 8, by individual consumers and local communities, solar power systems and storage Platinum. LEED (Leadership in
1957. Over the past sixty years, the Coca-Cola system sustainable corporate growth is not possible without batteries at 55 elementary and junior Energy and Environmental Design)
in Japan has been providing various types of beverages pursuing shared value.2 high schools in three prefectures is an environmental rating system
born from innovation based on unique and advanced of the Tohoku area as a donation. devised by the U.S. Green Building
Japanese technology. Our business has grown at The Coca-Cola system divides its sustainability Immediately after the Kumamoto Council that gives ratings based on
almost the same speed as the economic growth initiatives into three areas, which are all deeply Earthquake in April 2016, Coca-Cola water and energy efficiency, in-house
in Japan. The Coca-Cola system has been driving connected with its business as a beverage West began to offer products free facilities, and the use of sustainable
Japanese consumer lifestyles through cutting-edge manufacturer. These are “me”—individuals (enhancing of charge from the company’s materials. Our head office received
communication, with TV commercials that are always a personal well-being); “we”—community (contributing disaster-relief vending machines and high scores in the areas of water- and energy-efficiency
step ahead of the times. to communities); and “world”—environment (achieving provided the local governments of Kumamoto and Oita and in-house facilities, and hard work throughout
environmental sustainability). Prefecture with products such as Mori-no-Mizu Dayori the planning and construction was also rated highly,
All associates of the Coca-Cola system in Japan have (2L PET bottle) and I LOHAS (555ml PET bottle). We resulting in the highest Platinum Certificate.
a deep appreciation for the consumers and customers donated approximately 600,000 bottles in total. The
Enhancing Personal Well-Being (me)
who enjoy our products. We also remain grateful to our Coca-Cola system plans to continue supporting these Although we still have a long way to go, the
predecessors for establishing the basis of Coca-Cola The Coca-Cola system provides a broad product communities. Coca-Cola system will remain resolute, continuing to
business here. Our forerunners built a unique network portfolio consisting of more than 800 products. As Our employees are the closest to local communities, provide value to consumers and building a sustainable
called the “Coca-Cola system,” comprising Coca-Cola consumers become more health-conscious, we have and we also consider their health and well-being to be society through our business activities.
Japan and its bottling partners. Over the past 60 years, been proactively developing low- and no-calorie an important issue. We actively engage in activities
the structure and sales areas of the Coca-Cola system products. One example is the launch of Karada for workplace safety and well-being, whether physical,
have since evolved to reflect changes in market needs Meguri-cha Advance and Canada Dry Ginger Ale emotional, social, or financial.
and the business environment. Among these, the Plus as Foods with Function Claims at the beginning
biggest change is the merge of Coca-Cola West Co., of 2017 and the launch of the first Food for Specified
Ltd. and Coca-Cola East Japan Co., Ltd., which was Health Uses (FOSHU) product in the Coca-Cola
Achieving Environmental Sustainability (world)
announced in 2016. The new company, Coca-Cola lineup, Coca-Cola Plus, in late March. The Coca-Cola system produces beverages using
Bottlers Japan Inc. (CCBJI)1, aims for sustainable We also clearly display calorie information on the front natural resources from the Earth, and so we consider the 1. Founded on April 1, 2017
2. Initiatives allowing us to fulfill our responsibility to society and to achieve
growth through friendly competition together with our of packaging in addition to the legal requirement on the achievement of a sustainable global environment to be a growth while helping find solutions to social problems through our business
other bottling partners. back to improve consumer understanding. very important issue. We issued the 2020 Environmental 3. The unique authentication system that defines high management standards
sought by Coca-Cola in such domains as the workplace environment,
As a mark of respect for the role of parents in their Goals in 2015 in Japan with the four core areas of Water human rights, environmental conservation, and agricultural management
children’s diets, the Coca-Cola system engages in Stewardship, Energy and Climate, Sustainable Packaging, systems
Our Business Grows Sustainably by Creating Shared
responsible marketing worldwide, meaning that we do and Agriculture.
Value with Local Communities not market directly to consumers under the age of 12
Jorge Garduño—Born in 1969, Jorge Garduño was awarded an MBA from
For Water Stewardship, the goal is to return the same the University of Texas at Austin in 2001. He joined The Coca-Cola Company
The Coca-Cola Company (U.S. headquarters) and do not sell our products at elementary schools. amount of water used during the production process in 1992 and has served as regional general manager for Spain, Portugal,
and Andorra at Coca-Cola Iberia. He became Representative Director and
expresses its strong commitment to exert even more In this way, the Coca-Cola system consistently back to the Earth. In order to achieve this, we have been President of Coca-Cola Japan in 2017.

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06 Sustainability Framework Sustainability Report 2017 Sustainability Report 2017 Sustainability Framework 07

Activities of Priority in Each Domain

me Individuals
(Consumers)
Enhancing Personal Well-Being

Sustainability Framework Beverage Benefits

We strive to offer beverages for every lifestyle and
Active Healthy Living
As a manufacturer of soft drinks that proposes
occasion while providing quality that consumers trust. healthy lifestyles and well-being for our consumers,
we provide beverage related information, promote
Sustainability Framework of the Coca-Cola System Provision of a broad product portfolio to expand options awareness of dietary education and proper
for consumers
rehydration through beverages, and promote active,
Quality management for ensuring product safety and reliability healthy living through the sponsorship of sports
Activities Provision of accurate product information, including functions, programs. We are proactive in carrying out a variety
of ingredients, and nutritional information
of initiatives that provide consumers an entryway
priority Promotion of active, healthy living into exercise and sports.
Display of calorie information on the front of packaging
Responsible marketing

we we Community Contributing to Communities

Community Workplace
Our business can only grow if the local community We aim to be a great place to work where all the people
is healthy. We value our ties with local involved in our business are able to work in diverse and open

me world
communities and aim to satisfy local needs by environments. We will foster environments allowing each
serving as a corporate citizen. individual to perform to the best of their individual talents.

Community contribution activities

Women
Activities Occupational safety and respect for human rights
We support the economic empowerment of women in the workplace
of
through our “5by20” program. Our target is to offer
priority Support for the economic empowerment of women
this program to 5 million women worldwide by 2020.
Support for community revitalization

world Environment Achieving Environmental Sustainability

Water Stewardship Sustainable Packaging

We will reduce the amount of water used in production, We will continue to pursue innovative technologies that
as well as recycle water used in manufacturing and will help minimize the utilization of natural resources for
return it safely to the environment. Our goal is to return packaging. We are also building systems to reuse
The Coca-Cola Company (headquarters: Atlanta, Georgia, United States) an amount of water equivalent to what we use in our post-consumer packaging materials in the
operates in more than 200 countries and everywhere we tailor our business beverages and their production. manufacturing process.
to the nature of each region. This reflects the understanding that a healthy
community is the basis for healthy business. Energy and Climate Sustainable Agriculture
Our vision for achieving sustainability entails cooperation with a wide range We strive to reduce the emissions and resultant impact of Through joint efforts with suppliers, we are working
of stakeholders in the countries we do business to make a positive greenhouse gases, including CO2, and aim to be the toward achieving 100% sustainable sourcing of key
difference to the world and create value for communities. Together with beverage industry leader in these efforts. agriculture ingredients for beverages by 2020.
bottling partners and affiliates we advance initiatives in domains with a
particularly strong connection to the operations of a soft drink manufacturer, Water replenishment Post-consumer packaging collection and recycling
namely “me”—individuals (consumers); “we”—community; and “world”— Activities
Reduction of water use in production and Packaging weight reductions and next-generation
environment. Activities are undertaken in nine core areas shared worldwide of
wastewater management material development
priority
and are aligned not only with global targets, but also local issues. Reduction of greenhouse gas emissions Sustainable procurement of agricultural products

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08 Sustainability Activities in Numbers - me Sustainability Report 2017 Sustainability Report 2017 Sustainability Activities in Numbers - me 09

Sustainability Activities in Numbers

me Enhancing Personal Well-Being

280+
water quality parameters
We carry out strict safety management in regard to water quality, analyzing a list of more than 280
parameters independently adopted by Coca-Cola worldwide in addition to the 50 water quality

800+ products
standards specified under Japan’s Water Supply Act.

in Japan
Calorie information ...kcal
on the front of packaging
Calories per 100ml or calories per package are
displayed on more than 800 products.

Approx. 1,245
OLYMPIC MOVES participants in 2016
We helped to address physical inactivity among junior high school students and improve their fitness
through five specially developed games that are enjoyable even for children who are not so good at
sport. All the games are based on Olympic sports.

50+ brands in Japan

No. 1
• Soft drink sales volume
980,000+
vending machines deployed
12 years or under
Target of responsible marketing
• Sparkling beverage, canned coffee,
We do not advertise directly to children out of respect for the role of parents and guardians.
and sports drink sales volumes
Nor do we place commercial advertising in elementary schools.
• Number of vending machines deployed

in Japan

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10 Sustainability Activities in Numbers - we Sustainability Report 2017 Sustainability Report 2017 Sustainability Activities in Numbers - we 11

Sustainability Activities in Numbers

we Contributing to Communities
36+ years
of ongoing assistance to the National Federation of the Physically
Disabled and their Parents Associations (Zenshiren)

Grants for installation

of solar power systems
Approx. 30,120
Coca-Cola “Learn from the Forest”
and storage batteries project participants (2006–2016)
provided to
We continually arrange events where participants interact

55
with nature through tree planting and nature programs
while learning about the riches of forests, connections
between people, and the importance of water.

public elementary and

junior high schools
in three prefectures 2,232
2.5+ billion yen
affected by the Great people have graduated from university with scholarships from
East Japan Earthquake The Coca-Cola Educational & Environmental Foundation
(As of December 2015)
(As of March 2017)

1,250
total assistance from the Coca-Cola Japan Reconstruction Fund
to communities affected by the Great East Japan Earthquake

+
Approx. 8,000+
disaster-relief vending
machines deployed
(2016)
FREE FREE FREE 5by20 In
Japan
participants so far

We implement a wide range of initiatives

aiming to empower 5 million women
worldwide by 2020. The program was

180,000
introduced to Japan in 2014. Activities
organized include seminars and social
events for female farmers involved in the

Approx. cultivation of agricultural products like tea.

Since 2016, we have also been running
activities supporting women entrepreneurs.
(Cumulative total as of December 31, 2016)
participants on plant tours

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12 Sustainability Activities in Numbers - world Sustainability Report 2017 Sustainability Report 2017 Sustainability Activities in Numbers - world 13

Sustainability Activities in Numbers

world Achieving Environmental Sustainability

Percentage of water used for

products returned to nature
nationwide

115%
We have achieved water neutrality by
reducing water use in production, managing
CO2 emissions reduction target of wastewater properly and protecting source

25.0%
waters of plants.
(2016 result)

approx. in 2020
The Coca-Cola system in Japan carries out activities with a medium-term target to achieve a 25.0% reduction in total CO2
emissions by 2020 compared to 2010.

Water use efficiency improved by

28.9%
In total more than 6.1 billion I LOHAS products have been packaged
in PET bottles highly effective in reducing use of petroleum compared
to earlier Coca-Cola products approx.
This is equivalent to the gasoline required for since 2011

6,405 trips around An average 3.97L of water is used to

produce 1L of product.

the globe
(2016 result)
approx. 2011 2016

(2009–2016 result)
(Gasoline reduction benefit calculated based on 10 kilometers per liter fuel efficiency)

170,000+ Use of plant-based materials

leads to

“peak shift” vending machines deployed nationwide

We make ongoing efforts to install vending machines that use less power
during the day, when electricity demand is at its peak.
approx. 13,355kL
(As of December 31, 2016)
reduction in crude oil consumption
(2009–2016 result) 2009 2016

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14 Special Content Sustainability Report 2017

Coca-Cola Sustainability Report 2017 Special Content

Three Stories about Individuals, Communities, the Environment, and the Coca-Cola System

Be a Good Neighbor,
Be a Good Company Coca-Cola

The town he lives in . . . the school she goes to . . .

Dad’s company . . . Grandma’s hometown . . .
The Coca-Cola system has stayed closely connected to many different scenes
in the lives of consumers over a long period of time.
We have taken all kinds of steps to bring sustainability to communities and society.
Be a Good Neighbor.
Be a Good Company.
Here are three stories about the Coca-Cola system in Japan, where it is celebrating
60 years of business.

Note: “The Coca-Cola Company” refers to the U.S. headquarters while “Coca-Cola (Japan) Co., Ltd.” and “Coca-Cola Japan” refer to Coca-Cola (Japan) Company, Limited. “Bottling
partners” refers to the five bottling companies across Japan as designated by The Coca-Cola Company. “The Coca-Cola system in Japan” comprises Coca-Cola Japan, its bottling
partners, and other affiliates.

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Sustainability Report 2017 Special Content 1 17

me 2017 marks the 60th year of operations for Coca-Cola Japan. There are currently more
than 800 Coca-Cola products across more than 50 brands on sale in Japan, so from a
global perspective, there is no more active country or region than Japan in regard to
beverage product innovation. Khalil Younes, Executive Vice President of Marketing and
New Businesses at Coca-Cola Japan, explores the reasons behind this as he takes a
look back at the company history.

The Coca-Cola history in Japan goes back to the To thrive in this challenging marketplace, the
Taisho Period (1912–1926). The name “Coca-Cola” Coca-Cola system in Japan had to evolve into a
even appeared in written works of the time, including model that is unique globally.”
a poem by Kotaro Takamura titled “Kyosha no Shi” To meet expectations, the Coca-Cola system in
(Poem of a Madman) in his poetry book “Dotei” Japan had to build robust product development and
(Journey), and in correspondence from Ryunosuke marketing capabilities, able to support a sustained
Akutagawa to his fellow writer Mosaku Sasaki. demand over years.
At the time, the Coca-Cola drank in Japan was “Coca-Cola operates in more than 200 countries
always imported. Full-scale manufacture and sale of and regions globally, but it would be fair to say that
Coca-Cola started in Japan when Nihon Inryo Kogyo Japan is high on the list when it comes to
K.K. (currently Coca-Cola (Japan) Co., Ltd.) was innovation. It is widely accepted that Japanese
Special Content 1 established in 1957 as a supplier of Coca-Cola people embody the spirit of craftsmanship, and in
concentrate. fact this search for perfection is culturally ingrained
That was 60 years ago. Starting with two sparkling in everything they do. This extends beyond

Coca-Cola Japan’s product lineup, fronted by soft drink Coca-Cola, Products designated “Food with Function Claims” state effects and
has been growing all the time and has something for all tastes and benefits such as, settling stomachs, helping people with high blood
scenarios pressure, and relieving tension

Bringing Happy
beverages, Coca-Cola and Fanta at the time, the self-improvement, to also commercial and industrial
product lineup has increased dramatically over the innovation, across manufacturing, agriculture,
years, to now include popular still beverage brands commerce, and services.”
such as I LOHAS mineral water, Ayataka green tea, Over the past 60 years, Coca-Cola Japan has

Moments to Georgia coffee and Aquarius. Currently, Coca-Cola

Japan produces more than 50 brands and more
than 800 types of product. But why has the
produced many unique beverages through a unique
cycle of innovation. The first of these innovations
was the Georgia canned coffee product launched in
company’s range of products expanded so much? 1975. Georgia coffee has since evolved into a

Japanese Consumers Khalil Younes, Executive Vice President, Marketing

and New Businesses at Coca-Cola Japan, believes
long-time best-selling brand, which is currently
popular both in Japan and in selected markets
that “one critical factor is Japanese consumers’ outside of Japan.

for 60 Years
unique behaviors.” “Since the Georgia coffee launch in 1975, the
“To outside observers, the product proliferation in beverage product range of Coca-Cola Japan has
the Japan market may be surprising, but it is just grown dramatically over the decades, through the
normal to Japanese consumers. Indeed, when you 80s, the 90s, and the 2000s. To illustrate,
actually connect with Japanese consumers, you Coca-Cola Japan launched Aquarius sports drink in
— Moving with the Times: understand how usual it is to have such a variety of 1983, Sokenbicha blended tea in 1993, Ayataka
products here. Japanese consumers have a variety green tea in 2007, and I LOHAS mineral water in
of beverage needs that must be met by an 2009. The increasing diversity of Japanese
The History and Future of adequately broad portfolio. Japanese consumers consumers’ lifestyles and the related diversification
are very conscious of trends and are therefore of needs to satisfy fueled the growth. Rapid
always looking for the latest product innovation. At development of sales channels, including vending
the same time, they do expect the utmost machines, supermarkets and convenience stores
Coca-Cola Japan’s uncompromising quality and they also look for played a major role in the penetration of our
product differentiation with an element of surprise. products into our consumers’ lives.”

Product Development

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18 Special Content 1 Sustainability Report 2017 Sustainability Report 2017 Special Content 1 19

Celebrating Coca-Cola Japan’s 60th Anniversary

Kiyomi Kai, Japan Soft Drink Association

As a group representing the soft drink industry, we opposite, bringing in all kinds of information from
have been operating as an incorporated association overseas. It is extremely beneficial for the industry
since 1955. Coca-Cola Japan was established two as a whole to have a company with different
years later and so our organizations have existed perspectives to other industry players. I expect
through roughly the same times. Coca-Cola Japan to keep livening up the soft drink
Over the last 60 years or so, soft drink production industry as it has in the past.
in Japan has increased around 60-fold. The variety
of soft drinks is extensive, too. There are currently
around 6,000 different soft drink items on the
domestic market, with around 1,000 items being
replaced each year.
Innovation by industry participants has been vital
for the growth of the market. Coca-Cola Japan, in
particular, has propelled the industry with one
groundbreaking move after another. In the past, it
was vending machines for glass-bottled products
and pull-tabs for canned products. The company has
also worked enthusiastically to reduce the weight of
packaging and develop new vending machines, and
is one step ahead in providing services linking to
social media.
Today, there is a tendency among leading Kiyomi Kai—The Chief of Public Office, Public Relations
contains indigestible dextrin, a dietary fiber that expect from us.”
Japanese beverage manufacturers to make forays Department of the Japan Soft Drink Association (JSDA). She controls the increase of triglycerides in the blood The wide variety of soft drinks in Japan, becoming
joined JSDA in 2010 after working as editor/writer for a beverage
into overseas markets. Coca-Cola Japan, on the industry journal. She is also involved in editing the JSDA’s
after meals. But development was far from easy. more sophisticated over generations in close
other hand, is part of a global network and does the quarterly soft drink report (Sei-in-sai). The challenge was to provide FOSHU functionality connection with the lives of Japanese people, has the
while maintaining the unique Coca-Cola taste, a potential to evolve even further within the global
taste that has been protected and handed down network.
through generations over more than 130 years. According to Khalil Younes, “In truth, the
“We experimented with more than 100 different Coca-Cola DNA actually overflows with
formulas in a development process which took six entrepreneurial spirit. TCCC colleagues are always
Coca-Cola Japan was able to achieve these taste. With the launch of a Food for Specified Health years, before we were able to design the right taking on new challenges somewhere in the world.
results by successfully understanding and capturing Uses (FOSHU) product under the Karada product. This is a reminder once again that superior By exchanging ideas with colleagues, collaborating
consumers and customers’ needs in response to Sukoyaka-cha tea brand, and Food with Function innovation is not something that happens overnight. and learning from each other, we are able to secure
major societal changes in Japan. But it also came Claims products under the Karada Meguri-cha and It is something that is achieved through a continued ideas for the Japanese innovation pipeline. The
down to a unique corporate mindset, simply not Sokenbicha tea brands, Coca-Cola Japan has process of trial and error.” reverse has also been true, with Coca-Cola Japan
accepting the status quo and not accepting to be left strived to offer an expanded set of options based on So if it takes such a long time, where does the innovation being a useful reference for development
behind by potentially more agile local competitors. its existing brands to suit consumers’ goals. This drive to persevere with development come from? in other business units. No doubt innovation is
There is an increased focus on health and effort has also encompassed product development “Japanese consumers choose and enjoy beverages tough, but it is also fun and exciting. Going forward,
well-being around the world. To respond to this, specifically under the Coca-Cola trademark, with the according to their lifestyle and daily life activities. A we remain committed to collaborating within the
there has been a corresponding increase in product 2017 launch of world-first FOSHU Coca-Cola Plus. single consumer will drink different beverages at entire Coca-Cola system to develop outstanding
development to offer additional value on top of great Developed specifically for Japan, this product different times and in different situations throughout new propositions and products that not only provide
the day. Without continued efforts to innovate, we our Japanese consumers with delighting taste, but
would never have been able to continue offering also enable them to share this fun and excitement.”
value-added products like we do, products that meet
the wide range of consumer needs.”
With Japan being the third largest market globally
after the United States and China, what does
Coca-Cola Japan has to do to maintain its products
appeal to consumers?
“Coca-Cola Japan’s product development process
has always been based on thorough qualitative and
quantitative market research. Above all, that means
an outstanding capability to capture insights, to
understand what customers are looking for and,
through continual improvements, steadily working
toward unlocking new value.
“Right now, our business is rapidly transitioning Khalil Younes—Executive Vice President, Marketing and New
Businesses at Coca-Cola Japan since 2014. He is very
from mass marketing to mass personalization. To knowledgeable about the market situation in Japan and overseas
match the individual preferences of the billions of and is also involved in the establishment of new businesses.
people on our planet, we need to provide them with
Page 18 (left to right): Coca-Cola was Japan’s first canned
personalized beverages and refreshing taste. To sparkling beverage (1965); Marketing success fueled popularity
achieve this, we must collaborate with suppliers, (1962); Large “home size” bottles appear (1964)
customers and business partners and continue our Page 19 (top): The Coca-Cola system continues to make healthy,
safe, and tasty products while placing importance on bringing
efforts to deliver those great tasting products at the about innovation in all areas, including packages and packaging.
highest level of quality that everyone comes to That stance will never change.

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Sustainability Report 2017 Special Content 2 21

we At the second 5by20 Symposium for Women Entrepreneurs in March 2017, Atsuko
Asayama captured the attention of the entire audience as she spoke of the appeals of
starting a business. Today Asayama is representative director of NPO Key Person 21.
But before she started her own business she was a housewife, run off her feet raising
three children. What was it that spurred her to become an entrepreneur?

At forty, doubt disappears, as the saying goes. to realize the same kind of thing was happening all
Atsuko Asayama was your average housewife. And over Japan.
then on her 40th birthday, she made a decision that “I thought there must be so many children out
would change her life forever—she was going to help there like my son who could become motivated if
realize “a society where all children across Japan adults changed the way they interacted with them.
could lead vibrant childhoods while imagining the That’s when I learned of an entrepreneurship
work they would do in the future.” Circumstances very seminar for women nearby organized by the city of
close to home were what prompted her to set out for Kawasaki and decided to go along. There I
a goal that perhaps seemed too big for a housewife. encountered women who were already in business
Special Content 2 “It is nearly 20 years ago now. The junior high and women looking to start their own business, and I
school my eldest son was attending suffered a was amazed in the same way my son had been.
breakdown in classroom discipline. Some students There were so many people out there trying really
wanted to take their classes seriously, but others hard and I didn’t even know it. I was worried about
made that impossible by causing a disturbance. And my son, but it was actually me who knew nothing

The many participants at the second 5by20 Symposium for Women The Coca-Cola system’s 5by20 project aims to support 5 million
Entrepreneurs listened intently to the people up on stage women worldwide and 7,500 women in Japan by 2020

then my son came out and declared he wasn’t going about the outside world.”
on to high school and that there was nothing he really It is the same for adults and children. Unless you
wanted to do. As a housewife and a mother, I had venture outside your own self into the wider world,
only one job—to raise my children. But if he didn’t go you won’t come across anything that interests you.
to high school, it meant him supporting himself and Asayama understood this only after stepping out of
my job was done. I asked him, ‘If you say you can get her own capacity as a housewife.
by on your own, you can go live somewhere else. But just because she was now out there did not
What do you say?’ I let him think it over.” mean the path to entrepreneurship was waiting for
Two days later, Asayama’s son told her he wanted her. Having married right after graduating from
to give high school a try. It was a new step forward university, Asayama had no work experience or
for him. The summer holidays after making the connections. Nor did she have any business plan for
decision to go on to high school, he started balancing the books. All she had was an enthusiasm
attending cram school, coming into contact with a for bringing about a social transformation she
world outside the classroom. envisaged herself. And it was in those
“Seeing his classmates engaged in study, he circumstances that she established Key Person 21
realized there were people at the cram school who as an unincorporated organization in 2000.
Ambitions of Women Entrepreneurs Are were trying really hard. Until then, all he had was the
narrow perspective of the classroom and so it’s not
“One day, a housewife discovered how things
were. If my son hadn’t said, ‘I’m not going to high
surprising he was under the impression school life school,’ I wouldn’t have started a business and I

the Ambitions of the Coca-Cola System was meant to be boring.”

Now that her son had started thinking for himself,
he began to approach his studies with a sense of
would have kept living the same way I always had. I
came up with the initial idea myself, without any
assistance, but in talking to others about what I was
purpose. But at the time, Asayama did not believe trying to accomplish, all kinds of people offered to
— Coca-Cola System Activities Supporting Women Entrepreneurs her son’s newfound optimism alone would be the
end of the problem. Seeing in the news how
help me out.”
Supporters with a wealth of practical experience in
classroom chaos was tormenting society, she came corporations set about laying foundations and

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22 Special Content 2 Sustainability Report 2017 Sustainability Report 2017 Special Content 2 23

cementing operational and organizational what is required is the ability to tell others who
basics. Meanwhile, Asayama viewed her own you are and what you do. It is precisely because
lack of job experience as an advantage and you know yourself well that you can make the
sought throughout to revise entrenched ideas most of who you are out in society.”
about careers from scratch. Even so, knowing yourself is not easy. It’s hard
Key Person 21 was made a nonprofit enough for adults, so how do you get children to
organization in 2001 and afterward continued to do it?
gradually expand its career education services “When you are operating within boundaries
for children. A large number of unique career defined by someone else, you are not your true
education programs emerged along the way. For self. I think your true self begins to shine through
example, interesting working adults were invited when you are genuinely having fun or when you
to schools as instructors; participants were made realize there is something you wish to treasure.
to write articles about inspiring people they At such times, you can’t help feeling excited and
interviewed; and a bingo and “job map” activity taking action. I call this driving force that moves
allowed children to discover that things they people into activity the ‘wakuwaku engine’
enjoyed linked to actual jobs. And it wasn’t just (excitement engine). If you can find it, you will
for children. Educational training and corporate know where to direct your own energy and be
training programs were created for adults. able to advance confidently in the direction you
Programs were initially deployed at schools in wish to head. Everyone has a wakuwaku engine
Kawasaki, but have since been adopted by and the search for it is at the heart of our
schools, local governments and corporations programs.”
nationwide, though primarily in the Tokyo The social impact of Key Person 21’s activities
metropolitan area. So far more than 30,000 keeps growing. In January 2017, the NPO won
children and 5,000 adults have taken part. an excellence award in the small- and
“Common themes throughout are learning medium-sized enterprises category in the 7th
about yourself and learning about society. In an Career Education Awards run by the Ministry of
age where all kinds of people collaborate, coming Economy, Trade and Industry. And in March,
together across industry and national boundaries, Asayama took the podium as an experienced

entrepreneur for a panel discussion at the innovation, even if it is on a small scale. In a

second 5by20 Symposium for Women jumbled age of increasing diversity, what counts
In View of Coca-Cola’s 5by20 Project Entrepreneurs, a project promoting women’s is the degree to which you can feel excitement
empowerment organized by Coca-Cola Japan. and act on your own initiative.”
Yumiko Okawauchi, Cabinet Office Gender Equality Bureau “In our education programs, we do try to Asayama, herself, feels excited trying to
communicate the attractions of entrepreneurship propagate her wakuwaku engine throughout
Coca-Cola’s 5by20 project is an initiative on a I believe collaboration between public and
scale the world has never seen before. As part of private sectors enables better support for women as a career, but we are a small organization, Japan. No one would consider her goal too big
that project, Coca-Cola Japan hosts the 5by20 entrepreneurs. Taking advantage of our respective which limits what we can do. Coca-Cola Japan anymore.
Symposium for Women Entrepreneurs. It is a strengths, I would like us to work together to help engages in activity on a large scale, with its
wonderful activity in the sense that, in addition to its bring about a society where women are empowered. 5by20 project, and so the hope is that teaming
main purpose, it presents to Japanese corporations up with them to nurture entrepreneurs will lead
Yumiko Okawauchi—Director,
one means of empowering women. I took part in the General Affairs Division, Gender to more people in Japan starting businesses.”
symposium myself and was very inspired by the full Equality Bureau, Cabinet Office. Coca-Cola’s 5by20 project aims to help
extent of what was on offer, including the chance Received senior management
5 million women worldwide become active
training for women at a
to learn all about owning a business, from the private-sector company where she participants in business by 2020. Coca-Cola
basics through to practical business matters, and gained experience putting forward
an opportunity to interact with experienced women business proposals. She has been Japan, too, organizes related events, such as
entrepreneurs. Those women taking part who were
in her current job since 2016. Her seminars for women engaged in tea leaf
duties cover the “Declaration on
looking to start a business would certainly have Action by a Group of Male Leaders production and networking opportunities to
gone away very encouraged. Who Will Create a Society in which enable interaction between female farmers. The
Women Shine” and the Liaison
Women’s entrepreneurship is vital for realizing Conference for the Promotion of 5by20 Symposium for Women Entrepreneurs,
a society where women can fully express their Gender Equality. at which Asayama also took the stage, is held Atsuko Asayama—Born in Kanagawa Prefecture, she was
individuality and capabilities as they wish. The activities The Women's Empowerment Principles (WEPs) to make women aware that starting a business a housewife in 2000 when she established unincorporated
organization Key Person 21 and became representative director
of women entrepreneurs also bring innovation to are a set of seven principles put together by is a career option, too. Among the participants on its incorporation in 2001. To date, she has provided career
society. The Cabinet Office’s Gender Equality Bureau the United Nations Global Compact and the
were some very dedicated women who stayed education to more than 30,000 children.
United Nations Development Fund for Women
supports women entrepreneurship by disseminating (UNIFEM; now UN Women). Their aim is to behind after the event to talk with the
information, such as about related case examples, stimulate corporate activity and growth by getting Page 23 (top): Besides provision of programs and learning
consulting services, and low-interest loans available corporations to take the initiative in the areas of experienced entrepreneurs. support for children and creation of places where children can
at start-up, as well as by holding business matching
gender equality and women's empowerment, “On one side I want to let people know that feel they belong, Key Person 21’s activities include training for
positioning them as core business management
events to help expand business between women themes. In 2014, The Coca-Cola Company won a starting a business is one work option, but I am adults to help them give proper support to children during their
development and provision of support for education-related
entrepreneurs and medium to large corporations. WEPs Leadership Award. also of the view that entrepreneurs are not the CSR activities of corporations
only ones who instigate innovation. I hope that in Page 23 (bottom): Based on the view that building horizontal
the coming generations all people working for networks for sharing problems and ways to solve them is a
organizations like companies, schools and local crucial part of supporting women entrepreneurs, opportunities
for interaction were introduced to the symposium, resulting in
governments will keep generating their own many new encounters

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Sustainability Report 2017 Special Content 3 25

world
The Coca-Cola system’s efforts in environmental sustainability include not only activities
for achieving environmental sustainability, such as reducing energy use and protecting
water sources, but also initiatives for realizing sustainable agriculture, whereby agricultural
products used as ingredients are procured from sustainable sources. Takeshi Nakatani,
whose family has been growing tea for generations, is one producer who has also taken up
the challenge of achieving sustainable agriculture. We visited him at the origin of Coca-Cola
Japan’s green tea products, a place surrounded by lush green hills.

Even a veteran of 47 years worries about it every Nakatani pointed to a bridge straddling the river the
year—that is, the quality of the ichibancha, or first plantation looked down on.
flush of the year’s tea harvest. Takeshi Nakatani, a “That’s a one-way bridge. Every couple of hours,
tea producer in Japan’s biggest tea-growing region, at even-numbered hours, the direction of traffic
checks the quality of his green tea leaves with his changes. At midday, we cross to the other side in
senses of sight and smell, and even taste. He plucks the truck to take the fresh leaves to the factory for
S p e c i a l C o n t en t 3 off fresh leaves from the season’s first shoots and initial processing. Then once the leaves have been
eats them, chewing well. steamed and rolled there, they are dried, producing
“Mm…deliciously mellow. Even the stalks have a aracha (crude tea), the state we ship them to tea
tea taste, not just the leaves. We had a lot of cold manufacturers and others.”
days this year and so the first flush has arrived later Every day during plucking season, Nakatani’s
than usual, but the quality is good.” schedule is governed by the hours he can cross the
Nakatani's expression was one of relief as he bridge. Between eight and ten o’clock in the morning,
immediately set about preparing for the plucking he does his first pick and transports the leaves to the

Lush green freshly picked leaves from the first flush grown in Tea plucking at the hillside plantation. The scent of tea fills the air as
Nakatani’s plantation. A gentle rise in temperature from winter into the leaves are cut. This is due to sap issuing from the cuts.
spring is said to produce a fine crop.

operation. At his plantation, sitting on the sloping face factory. Shortly after ten he returns to the plantation
of a hill, the job is carried out in pairs using portable for the second pick. At midday, he once again takes
“clipper-type” plucking machines. Nakatani pairs up the leaves to the factory then has lunch and does
with his wife, Sumie. The husband-and-wife team, other errands until the direction of traffic switches
now in their 40th year of marriage, are in perfect sync. back at two o’clock. It is after four in the afternoon
Each holding one end of the plucker, first they set when he sets off for the factory having completed the
the blade against a row at the height they wish to cut third pick. In other words, he does three return trips
it. Set the blade too shallow and you won’t harvest between plantation and factory each day.
as much. Set it too deep and you will cut the older He could take a longer route, crossing a different
leaves, too. Once the plucker is switched on, you bridge, and not worry about the time as he worked,
have to keep it at the same height and move along but it wouldn’t be as efficient. Worse still, it would

Coca-Cola Products Are Packed

at a consistent speed. Paying attention to the other's affect the quality of the freshly picked leaves.
movements, the mind sometimes wandering to what Freshness is everything when it comes to leaves
to eat for dinner that night, the pair slowly, carefully for green tea. The sooner they are taken to the
cut into the new shoots. processing factory after picking, the better.

with Friendliness to the Environment “Today was still just a selective harvesting. We cut
about seven to eight centimeters of new shoots from
fast-growing bushes. The shoots on many of the
The factory, in the hills upstream, is shared by
Nakatani and other tea growers. In the past, all tea
growers had their own factories, but costs couldn’t
bushes are still too short, so we have to wait a little be covered and the system of sharing spread.
— Realizing Sustainable Agriculture: Making Ingredients longer yet before we really get going.” Arriving at the factory, Nakatani unloaded the
A gentle spring breeze blew through the rows of freshly picked leaves onto an automatic conveyor.
trees and all at once the new shoots reaching straight Once that is done, he can finally have a rest. What
up started swaying, a wave passing over the whole he looks forward to most during the break is lunch
for Green Tea Products of Coca-Cola Japan plantation. The scent of tea wafted downwind from and green tea made using aracha that has just been
the leaves had been harvested. It was going on noon. rolled in the factory.

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26 Special Content 3 Sustainability Report 2017 Sustainability Report 2017 Special Content 3 27

In View of the Sustainable Agriculture Guiding Principles

Takeo Tanaka, Tokyo 2020 Organising Committee

Coca-Cola Japan’s Sustainable Agriculture Guiding Tokyo 2020 Medal Project: Towards an Innovative
Principles (SAGP) are a progressive set of guidelines Future for All is an initiative aiming to manufacture
taking into account labor aspects affecting producers medals for presentation to athletes using metal
as suppliers, not just environmental concerns. We recovered from unwanted electronic devices such
have been referencing the principles, too, as we aim as mobile phones. It would be wonderful if people
to run our event in a sustainable way. come away with an interest in recycling as a result
When it comes to a major event such as the of activities like this.
Olympic and Paralympic Games, there are so many
items and services we have to procure, from meals
at venues through to fences inside the venues.
And in procuring them, we have to fulfill our social Page 27 (top left): Tea leaves are unloaded on arrival at the shared
responsibilities. The procurement principles we are factory. Outside shoes used to be worn inside the factory, but now all
putting together will request legal compliance, as well workers change into indoor shoes in line with JGAP and SAGP standards.
as considerations in the areas of energy savings, Page 27 (top right): Delivered tea leaves are carried into the shared
promotion of the 3Rs and biodiversity conservation, factory using an automatic conveyor and processed into aracha, or
crude tea. The volume of tea leaves is measured by subtracting the full
and also consideration toward the labor environment weight of the truck after delivery from its full weight prior to delivery.
of producers, which is what SAGP does.
We hope that our procurement principles will
be adopted by various local bodies and for major Takeo Tanaka—Senior Director of Sustainability, Games
events. Once the concept of sustainability has spread Operations Bureau, Tokyo Organising Committee of the Olympic
throughout society as a whole, we will be able to say and Paralympic Games. Previously involved in environmental
affairs at a private-sector corporation, Tanaka took up his current
our efforts were a success. job in April 2015. He considers his main mission is to make as
Members of the public can also get involved. The many people aware of sustainability as possible.

other green tea products of Coca-Cola Japan. Through for maintaining good balance among all industry
SAGP, Coca-Cola aims to promote ideas about workplace players, in production, processing, and distribution.”
environments and human rights, environmental protection, There is also some good news. A number of
and farm management systems in agricultural operations students from Nakatani’s former high school are
“Freshly rolled tea leaves aren’t marketed. It’s a luxury needed a common system for maintaining a consistent worldwide. starting to think seriously about joining the tea
you only get to enjoy at the factory.” quality. Nakatani and the others decided to acquire Japan “The old system entailed conducting follow-up investigations industry, inspired by a school visit by female tea
In the days when tea growers had factories at home, Good Agricultural Practice (JGAP) certification for all the to determine causes after problems had actually occurred, producers organized by Coca-Cola Japan.
they used to roll the leaves with their own hands. The growers’ plantations. JGAP certification is awarded to whereas GAP and SAGP look to take action before problems “In view of growing health consciousness, too,
way they rolled it differed from person to person and they farms addressing issues such as hygiene management, occur. Certification is a good thing for us, too, as it proves that I believe unsweetened tea is going to make a
each had a particular style of tea they wanted to create. pollution prevention and legal compliance according to the tea shipped from our shared factory is safe and reliable. comeback. Depending on the type of tea, there is
But sharing a factory has changed all that. What is farm management methods for producing agricultural I guess it’s only natural in a world of heightened consumer still room for expansion. And there is still leeway
looked for now is not the outstanding skill or uniqueness products that consumers want. And since 2014, they have awareness that initiatives such as these are called for.” for developing sales routes overseas. I really do
of individuals, but a high standard as a factory. It has been acquiring certification under Sustainable Agriculture The tea industry and agriculture as a whole, too, are want to see a whole lot of young, ambitious people
transformed from an age of “each to their own” to an age Guiding Principles (SAGP), an initiative independently reaching a major turning point, but Nakatani is simply taking take an interest.”
of team play. created by Coca-Cola. Tea leaves picked from the first the developments in his stride. After all, he has personally It is an industry where opportunities remain. As
For that reason, all the growers sharing the factory flush at Nakatani’s plantation are used in Ayataka and witnessed a number of turning points as a tea grower over long as delicious tea leaves are made in this region,
the years. growers shouldn’t give up on passing on the baton
Nakatani grew up in a family that had been tea growers to the next generation.
for generations and immediately became one himself—the
seventh generation—after graduating in tea production from
high school. The tea industry was performing well as a whole
at the time and a lot of growers were well-off. But now the
times are at a juncture. “I imagine fewer people drink green
tea nowadays. Many homes don’t even have a teapot. Sales
by producers have dropped to around one third compared to
the good times.”
Alongside changes in consumer preferences was the
shortage of successors. Fewer new young people wanted to
grow tea and, at the same time, the old-timers were aging.
More than just a few tea growing associations had closed the
factories they shared.
“From our point of view, sustainable agriculture means, first
Takeshi Nakatani—After graduating in tea production from high
and foremost, that producers are sustainable. It’s important school, he became a tea grower, inheriting the family business.
to produce diverse types of tea, not stick to making premium He has been doing this job for 47 years now. Besides growing tea
in a number of plantations, he also serves as director to the local
products. For instance, I grow tea both on hilly land and on the agricultural cooperative.
flat. Although the harvest comes late in the hills, as opposed
to the early harvest on the flat, the scent of the hills comes Page 26: Nakatani’s tea plantation. The plantation was originally
used by relatives until Nakatani took it over. Incidentally, the fans
through in the tea. It’s crucial that we, the producers, create on tall posts you see in tea plantations are installed to help prevent
such variation and I think that perhaps we need a framework frost settling on the tea leaves.

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28 Third Party Opinion / UN SDGs & the Coca-Cola System Sustainability Report 2017

Memo

Third-Party Opinion
An outside expert's analysis and evaluation of
the Coca-Cola Sustainability Report 2017
Solutions for Addressing Japanese Society Today from this report is the true diversity of perspectives from
and Its Challenges Are Described which the Coca-Cola system in Japan contributes to
Japanese society.
As a whole, the report is good as an easy-to-
The three activities are solutions presented by the
understand summary of activities in the nine core areas
Coca-Cola system in Japan for addressing Japanese
of the three sustainability domains addressed by the
society today and the challenges it faces and they
Coca-Cola system in Japan: “me”—enhancing personal
demonstrate the diversity of the Coca-Cola system's
well-being, “we”—contributing to communities, and
approach to social contribution activities in Japan.
“world”—achieving environmental sustainability. This
In your next report, you might like to consider including
year, Coca-Cola Japan is celebrating its 60th
a CSR action plan. Setting goals, providing a summary
anniversary. As mentioned in the president’s message,
of CSR activities actually implemented and ascertaining
Coca-Cola Japan has remained true to its stance of
the level of target attainment each year as part of a
“contributing to the creation of sustainable communities
PDCA cycle ought to be useful for the ongoing
while creating shared value with consumers” through its
advancement of activities by the Coca-Cola system in
business activities throughout the past 60 years despite
Japan. Social contribution activities that are very
the environmental changes the times have brought. CSR
characteristic of Coca-Cola Japan are progressing well
activities that are integrated into the company's main
and so I look forward to an even fuller report next year.
business are highly likely to endure and surely illustrate
the Coca-Cola Japan's strong sense of responsibility to Mika Takaoka—Professor, Rikkyo University
society. To begin with, I applaud Coca-Cola Japan on its College of Business. She holds a doctorate
CSR stance. in economics, and her fields of expertise are
retail management theory, franchise
The special features cover the topics, “The History and systems theory, sustainable communication,
Future of Coca-Cola Japan’s Product Development” and consumer behavior. Her roles include
(me), “Coca-Cola System Activities Supporting Women participation in the Global Environment
Entrepreneurs” (we) and “Realizing Sustainable Subcommittee Evaluation and Verification
Working Group (Commitment to a
Agriculture: Making Ingredients for Green Tea Products Low-Carbon Society follow-up) of Japan’s
of Coca-Cola Japan” (world). The point I commend most Industrial Structure Council.

UN SDGs & the Coca - Cola System

The Coca-Cola Company sees the value meeting the
Sustainable Development Goals (SDGs) will bring to the
world, business, and most importantly, to those afflicted
by poverty. The Coca-Cola Company is committed to Sustainable Development Goals (SDGs)
supporting meaningful programs and partnerships that The SDGs comprise 17 goals and 169 targets that must be met for humanity and
help communities achieve these necessary goals, the planet to enjoy enduring prosperity. Heads of state from more than 150 member
building a better world for 2030 and beyond. nations took part in their selection.

p28
 COCA-COLA, COCA-COLA ZERO, COCA-COLA ZERO CAFFEINE, COCA-COLA PLUS,
GEORGIA, SOKENBICHA, KARADA MEGURI-CHA, ADVANCE, KARADA SUKOYAKA-CHA,
AYATAKA, NIGORI HONOKA, TSUMUGI, KOCHAKADEN, TAIYO NO MATECHA,
AQUARIUS, AQUARIUS ZERO, FANTA, SPRITE, REAL GOLD, QOO, MINUTE MAID,
I LOHAS, MORI-NO-MIZU DAYORI, YOGUR STAND, WORKS, and DR PEPPER
are registered trademarks of The Coca-Cola Company.
CANADA DRY and SCHWEPPES are registered trademarks of Atlantic Industries.
GLACEAU is a registered trademark of Energy Brands Inc.
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Published: August 2017
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