Four pillars of the 2023 commercial strategythrough strategic growth partnerships with our business partners. We achieved the most significant sales growth in the online channel. This was due in part to the expansion of labelless products lineup against the backdrop of changing consumer behavior amid the COVID-19 pandemic.In addition, we revised the prices of large PET bottle products in May, ahead of others in the industry, and of small packaged products in October the same year. We did this in Expand PortfolioAs social activities resume, the vending channel will become an increasingly important commercial channel. In 2023, we are leveraging the growth foundation we have built to engage in new installation activities, enhance product lineups. Moreover, we are working on further DX projects and improving the user experience through Coke ON as well as increasing efficiency by ● Focus on core categories of sparkling, coffee, tea, and water to increase presence in each category● Introduce sustainable innovation to the market● Capture changing consumer needs for different occasionsmachine by leveraging Coke ON and strengthened the product lineup● Increase the number of units in operation by installing in high-quality locations● Improve operational efficiency further through DXGrowth ThroughVending Channel● Maximize sales per ● Implement the May 2023 price revisions● Ensure profitability-focused commercial activities, and monitor efficient use of marketing investmentsorder to strengthen our revenue base, as well as address rising raw material and energy prices along with the adverse impact of foreign exchange rates. It was a difficult decision to make in a severely competitive environment. However, decisive management based on strong determination and thorough execution in the market have produced results, contributing significantly to increased revenue per case and higher profitability.Growth Through Vending Channel, Profitability-Focused Pricing, and Strong Market Execution.Profitability-FocusedPricingperforming sales person operations online.As part of our profitability-focused pricing strategy, we implemented price revisions in May of this year. This was on the heels of revisions carried out last year. The revisions were carried out in response to cost increases arising from external factors and to strengthen our revenue base. We will also strive to thoroughly implement profitability-focused commercial activities and marketing investments emphasizing effectiveness and efficiency.As for market execution measures, we will strengthen relationships with our business partners by conducting multifaceted customer management through a cross-functional commercial system. We will also work to further enhance our S&OP process to meet the needs of our customers and business partners through the stable supply of products and improvement of service quality.Aiming to become a healthier and more profitable company, we will execute profitability-focused commercial activities as we continue to deliver happy moments to customers and business partners.● Cross-functional commercial structure to strengthen customer engagement● Further advance S&OP process to achieve higher service levels● Collaboration with Coca-Cola Japan to leverage our strength as Japan’s Coca-Cola SystemStrong MarketExecution26Aiming to restore revenue and establish a sustainable profit structure based on the four pillarsIn 2023, we are promoting commercial activities based on the four pillars of our commercial strategy: Expand Portfolio, Focusing on seizing opportunities for further growth and executinga profitability-focused commercial strategyIn 2023, we are implementing a profitability-focused commercial strategy based on the results and lessons learned from 2022. To expand our portfolio, we are focusing on the core categories of sparkling, coffee, tea, and water. We are also developing appealing new products, utilizing our proprietary technology, such as Aquarius New Water and Kocha Kaden Dessert Torokeru Peach Tea, along with Jack Daniel’s & Coca-Cola in the alcohol category. In addition to marketing activities at the time of launch, we are focusing our attention on product proposals tailored to new drinking habits. These proposals are designed to seize opportunities presented by the resumption of social activities.
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