Coca-Cola West (CCW) and Coca-Cola East Japan (CCEJ) have agreed to integrate their businesses and form a combined and new Coca-Cola bottling company.

The new company will be known as Coca-Cola Bottlers Japan (CCBJI), and will be established on 1 April, 2017.

The new CCBJI will operate in Tokyo and 37 other prefectures.

"The new CCBJI brings together the know-how and best practices of CCW and CCEJ."

It will serve more than 110 million customers and deliver approximately 86% of the total volume sold by the Coca-Cola system in Japan.

It is estimated that the new company will earn more than JPY1 trillion ($9.8bn) based on the combined sales of CCW and CCEJ in 2015.

CCW president and representative director Tamio Yoshimatsu said: “The new CCBJI brings together the know-how and best practices of CCW and CCEJ, the two largest bottlers in Japan, who have driven bottler consolidation in their own regions to establish a competitive market advantage.

CCEJ president and representative director Calin Dragan stated: “I am pleased that we have come to this important milestone in our two companies’ transformational journeys. I am confident that the foundation created over the last three years at CCEJ in terms of speed, simplicity and positive change will only accelerate under the leadership of Yoshimatsu-san and in partnership with the Coca-Cola Company as we work to accelerate growth in a dynamic and fast-changing market.”

The new company’s board of directors will consist of nine members. The Coca-Cola Company has supported this business integration.

Image: Executives of Coca-Cola West (CCW) and Coca-Cola East Japan (CCEJ). Photo: Courtesy of  Business Wire.