Coca-Cola Japan eyes new business strategy

The Associated Press The Japanese unit of The Coca-Cola Co. plans to strengthen its four main products through advertising campaigns and develop health drinks and other new products to respond more quickly to changing beverage trends.

Officials said the new business strategy for Coca-Cola Japan, announced Thursday, centers around working more closely with its 14 bottling partners and affiliates in a new effort to save costs and beef up efficiency within the group.

Coca-Cola Japan President Masahiko Uotani told reporters his company continues to dominate the Japanese market -- controlling 80 percent of the cola market and 32 percent of the overall bottled beverage market -- and is winning people over with its four core brands: Coca-Cola, Georgia coffee, Sokenbicha tea and Aquarius sport drink.

"Expanding on our four major brands is key to our strategy," Uotani said. "How to gain momentum for future growth makes up our challenge for 2004."

Sales in Japan, totaling 1.25 trillion yen, were down 3 percent in case shipments last year due to an unusually cold summer that depressed soda consumption, he said. Demand has picked up recently, although he declined to give a regional breakdown on profits.