Two of Japan’s largest Coca-Cola bottling firms have agreed to merge next year to create a company with combined annual sales of $9.95 billion, according to a Nikkei report.
Tokyo-based Coca-Cola East Japan and Fukuoka-based Coca-Cola West bottle and distribute the majority of Coca-Cola’s products in Japan. A combined company would have 90% of domestic market share for Coca-Cola products and would aim for greater efficiency and pricing power, Nikkei reports.
A spokesperson for Coca-Cola West said: “We have mostly agreed to a business integration. As announced on April 26, we are in discussions regarding a potential integration but have not reached the final agreement and have made no further announcements”.
Coca-Cola East Japan was established on July 1st 2013 through the merger of four regional bottlers, expanding further on January 1st 2016 though the integration with Sendai Coca-Cola Bottling Company. The company then worked with 50 brands, accounting for annual sales revenue of $5.5 billion.
Source: Nikkei / FoodBev / Coca-Cola East Japan