Hokkaido Coca-Cola Bottling

Basic Information

Stock Code: 2573
Industry: Food Products
Category Detail: Beverages, Tobacco & Luxury Foods
Prefecture: Hokkaido
Establishment Year: January 1963
Listing Year: August 1973
Official Website: https://www.hokkaido.ccbc.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Coca-Cola BJH, Life Drink Company, Fruta Fruta, Suntory Beverage & Food, DyDo Group Holdings, Ito En, Key Coffee, Kagome, Okamura Food, Trust HD

Overview

Hokkaido Coca-Cola Bottling is a dedicated Hokkaido bottler for the Coca-Cola brand, founded in 1963. With support from the Dai Nippon Printing Group, it engages in regionally focused manufacturing and sales of soft drinks.

Current Situation

Hokkaido Coca-Cola Bottling recorded standalone sales of approximately 51.1 billion yen and consolidated sales of approximately 55.3 billion yen for the fiscal year ended December 2019, holding a solid market share in the Hokkaido region. In addition to manufacturing and selling its mainstay soft drinks, it also undertakes contract production of related beverage products, leveraging its strength in regionally integrated business operations. Production facilities are consolidated primarily at the Sapporo Plant, achieving efficient line operations through the introduction of the latest aseptic filling multi-PET line. It maintains a stable capital base backed by management support from the Dai Nippon Printing Group and emphasizes sustainability, including manufacturing with groundwater and the adoption of environmentally friendly packaging materials. As a growth strategy for the 2020s, it aims to strengthen regional market competitiveness, diversify products, and improve profitability by maintaining an efficient production system. It also enhances brand promotion through collaboration with local media and promotes coexistence with the community. Moving forward, it plans to increase its presence in the Hokkaido market through collaborations with competitors and development of new channels.

Trivia

Interesting Facts

Hokkaido's only official Coca-Cola bottler
Packaging technology from the 1950s is pioneering in the industry
High brand loyalty in delivery areas
Manufacturing facilities adapted to Hokkaido's harsh climate
Deploys regional market strategies different from major national players
Produces Hokkaido-exclusive Georgia Max Coffee
Holds approximately 40% share of Hokkaido's soft drink market
Handles local production of diverse Coca-Cola products
Abundant unique promotions in collaboration with local media
Sapporo Plant is a key production base for Tokyo Stock Exchange-listed bottlers
Emphasizes beverage quality using local water sources
Successfully strengthened customer relations through regional-limited campaigns
Initiatives to promote use of Hokkaido-sourced ingredients
Reputation for community contributions through CSR activities
Actively addressing climate change

Hidden Connections

Strong manufacturing technology and marketing collaboration backed by Dai Nippon Printing's capital support
Hokkaido-exclusive Georgia Max Coffee is an iconic part of regional culture
High community integration through sponsorships of Sapporo streetcars and joint regional events
Capital and sales collaboration with peer Coca-Cola Japan Holdings
Products using Shirahatayama groundwater strengthen regional brand value
Implements consumer-participatory marketing through environmental awareness video production
Sapporo Plant's aseptic filling multi-PET line is cutting-edge in the industry
Extensive logistics and sales channel collaboration through group affiliates

Future Outlook

Growth Drivers

Expansion of soft drink market in Hokkaido
Increased demand for functional beverages amid health trends
Improved market evaluation of eco-friendly products
Expansion of digital sales and promotion channels
Deepening of regionally focused marketing
Enhanced cost competitiveness through manufacturing efficiency improvements
Strengthened stable supply system including disaster resilience
Challenges into new beverage categories and product expansion
Improved customer service through logistics optimization
Operational efficiency gains through strengthened affiliate collaboration
Promotion of consumer-participatory promotions
Brand strategy emphasizing coexistence with local community

Strategic Goals

Achieve share expansion in Hokkaido market on an ongoing basis
Elevate sustainability standards to industry-leading levels
Ensure financial soundness through improved profit margins
Further efficiency and utilization improvements for aseptic filling lines
Strengthen brand value through deepened community collaboration
Comply with domestic highest standards for environmental impact reduction goals
Accelerate product development speed aligned with customer needs
Promote digitalization of manufacturing and sales via IoT
Reduce logistics costs and optimize delivery networks
Employee development and creation of comfortable work environment

Business Segments

Bulk Beverage Supply

Overview

Conducts stable bulk beverage supply to the food service industry and retailers

Competitiveness

Efficient logistics and deeply rooted sales network in the Hokkaido region

Customers

Restaurants
Convenience Stores
Vending Machine Operators
Event Management Companies

Products

Carbonated Beverage Bottles and Cans
Carton Beverages
Canned Coffee Beverages
Sugar-Free Tea Beverages

Contract Manufacturing

Overview

Handles contract manufacturing of soft drinks for regions outside Hokkaido while maintaining high quality

Competitiveness

Technical support and production equipment from the Dai Nippon Printing Group

Customers

Coca-Cola Related Bottlers
Beverage Manufacturers in Other Regions

Products

Soft Drinks in General
Cans and PET Bottles

Logistics Services

Overview

Focuses on logistics efficiency to achieve cost reductions and improved delivery services

Competitiveness

Regionally focused operations and stable delivery with large vehicle fleet

Customers

Coca-Cola Group Companies
Related Retailers

Products

Beverage Logistics
Inventory Management
Delivery Optimization

Marketing Support

Overview

Contributes to brand awareness through regional promotion support

Competitiveness

Content creation capabilities of the Dai Nippon Printing Group

Customers

Dai Nippon Printing Co., Ltd.
Local Advertising Agencies

Products

Advertising Planning
Sales Promotion
Regional Event Sponsorships

Environmental Services

Overview

Promotes initiatives for sustainable resource circulation

Competitiveness

Trust and collaboration networks in the region

Customers

Local Governments
Environmental Organizations

Products

Recycling Collection
Environmental Awareness Activities

Competitive Advantage

Strengths

Regionally integrated manufacturing and sales system
Stable capital from Dai Nippon Printing Group
State-of-the-art aseptic filling equipment
Utilization of Hokkaido-specific groundwater
Diverse sales channel deployment
Strong ties with regional media
Diverse product portfolio
Stable bulk supply network
Robust R&D capabilities
Strong sales network
Environmentally considerate production processes
High brand recognition
Trusted relationships with local community
Long track record in the market
Efficient logistics system

Competitive Advantages

Exclusive market position limited to Hokkaido
Quality control supported by Dai Nippon Printing Group's technology
Comprehensive product lineup addressing wide customer needs
Production efficiency and safety ensured by latest equipment
Rapid customer response and brand loyalty through regional focus
CSR enhancement via manufacturing processes mindful of environmental impact
Powerful promotions leveraging regional events and media
Stable management maintained by solid financial base
Broad market touchpoints secured through diverse sales channels
Revenue diversification achieved through contract manufacturing
Product development rooted in regional consumer preferences
Enhanced cost competitiveness through logistics network optimization
Improved brand loyalty through collaboration with local community
Product differentiation enabled by high-quality groundwater
Customer retention via unique marketing strategies

Threats

Intensified market competition from nationwide competitors
Risk of cost increases due to raw material price fluctuations
Demand fluctuations from diversifying consumer preferences
Increased manufacturing and distribution costs from stricter regulations
Impact of natural disasters on production and logistics
Burden of responses to growing societal demands for environmental consideration
Regional market shrinkage due to population decline
Heightened competition from low-priced imports and similar products
Impact on sales channels from social changes like pandemics
Rising packaging material costs from crude oil price surges
Risk of market fragmentation from new entrants

Innovations

2022: Introduction of Aseptic Filling Multi-PET Line

Overview: Installed a line at the Sapporo Plant capable of mixed production for carbonated beverages, fruit juices, and tea beverages.
Impact: Significantly improved manufacturing efficiency and enabled product diversification.

2023: Expansion of Environmentally Friendly Bottle Adoption

Overview: Expanded promotion of easily recyclable PET bottles and reuse initiatives.
Impact: Contributes to reduced environmental impact and higher customer satisfaction.

2024: Development of Groundwater Utilization Optimization Technology

Overview: Introduced new technology to efficiently utilize Shirahatayama spring groundwater, achieving both quality maintenance and energy savings.
Impact: Achieved stable product quality and reduced energy costs.

2021: Sales Promotion System Linked to Vending Machines

Overview: Introduced real-time sales data analysis through integration with IoT vending machines.
Impact: Realized sales efficiency and optimized inventory management.

2020: Launch of Environmental Awareness Video Project

Overview: Promotes eco-activities and consumer environmental awareness through videos likening housework to competitions.
Impact: Contributed to improved brand image.

Sustainability

Regional collaboration activities for groundwater conservation
Promotion of renewable energy adoption
Ongoing efforts to reduce plastic usage
Improved recycling rate for waste
Regional rollout of environmental education programs
Adoption of low-environmental-impact transportation systems
Strengthened green procurement
Sustainable water resource management
Employee environmental awareness training
Collaborative environmental conservation activities with local community
Biodiversity conservation initiatives
Promotion of eco-design for containers and packaging