Annual Review2021
20/48

Coke ON is an official Coca-Cola smartphone app that is both great value and convenient. Users can earn free drinks by collecting stamps through the app. Since its launch in April 2016, we have added a number of new functions and services to the basic service of collecting stamps to receive a free beverage ticket. These services and functions provide great value and convenient beverage experience, and include Coke ON Walk in 2018, where users can receive stamps by walking and cashless payment function Coke ON Pay in 2019.In April 2021 we launched Coke ON Pass, a subscription (flat-rate service) that gives users access to their favorite beverages for a fixed monthly fee, and in December 2021, we launched a service where users can save their most frequented vending machines in the app. Users can then check their saved vending machines for new products and popular products at any time. Looking ahead, we will continue to expand new services that are even more appealing to our customers. *As of the end of March 202219Commercial ActivitiesOfficial Coca-Cola app Coke ON exceeds 35 million* downloadsInitiatives by Main Channel■Vending (Vending Machines)The vending channel is a retail channel through which we sell products directly to consumers through our approximately 700,000 vending machines. We are working to improve the vending experience by installing new machines, effectively introducing new & core products, as well as exclusive drinks. This ensures an assortment that reflects the character of the installation location. We also implement effective marketing programs using the smartphone app Coke ON.In 2021, we focused on vending machine allocation with an eye toward profitability, such as by utilizing existing assets while curtailing investments including purchases of new vending machines. In addition, we worked to increase the number of vending machines compatible with Coke ON and grow the service. We also worked to improve the efficiency of vending machine operations by bringing vending machines online and utilizing digital tools.While the vending machine market continues to face challenges due to changes in consumption trends in the wake of the COVID-19 pandemic, our market share in 2021 grew from the previous year thanks to our work to strengthen our business foundation and flexible efforts in accordance with changes in the environment. Launch of the New Culture Model Project to lead the strengthening of the vending channelʼs organizational capabilities.The Vending Business Management Division is working to fundamentally transform its business model to achieve sustainable growth. We launched the New Culture Model Project in October 2021 as part of this effort to form a sustainable and strong organization. This project is focused on the human resources and organizational aspects that will drive transformation efforts, with the theme of Free, Flat, Fun. Our activities are based on the following principles: respecting the free-minded ideas and opinions of project members; ensuring that everyone, regardless of position, age, or gender, has an equal perspective and position; and ensuring that each individual has the mindset of being a change maker. Focusing on issues such as creating a culture of praise, flat communication, and developing role models and middle managers, we are working on specific actions.

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