Coca-Cola Co. (NYSE:CO) Launches “Coke On Pass” Vending Machines Subscription In Japan To Spur Sales

Coca-Cola Co. (NYSE:CO) has launched a vending machine subscription service in Japan as it moves to revive sales at the omnipresent but overlooked drink dispensers. For over a hundred years, the machines have been ubiquitous in the country, offering everything from toys and snacks to beer and pet food.

Coca-Cola introduces “coke On Pass” vending machine subscription

The machines are common in the Shenmue or Yakuza games. Over the past year, the COVID-19 pandemic impacted vending machine sales by more than 35% as people stayed indoors and avoided crowded areas. To invigorate sales, Coca-Cola is preparing to launch a subscription option through the Coke On smartphone app that allows customers to have one drink per day for $25 (2,700 yen) per month from the more than 340,000 vending machines in the country. This means that consumers will pay around a buck per drink cheaper than the rates one could conventionally pay at a vending machine for a soda, but it is expensive compared to buying 12 packs.

Although this might seem like a lot of carbonated sugar for an individual, it is important to note that the company offers other beverages including, unsweetened black coffee and tea. The “Coke On Pass” service will launch in May with promotional offers of $12.40 (1,350 yen) in a bid to get more people on the app, which as of January, had over 25 million downloads.

Coca-Cola seeing vending machines sales volume rebound in japan

The pandemic affected Coca-Cola sales last year, but since the beginning of this year, as vaccinations continue to grow, the company has seen a rebound in sales volume. James Quincey, the company’s CEO, said that during Coca-Cola’s Q4 earnings, the near-term sales volume recovery will continue to be impacted by the coronavirus presence in some markets. In Japan, the company reported soft traffic in sales at vending machines. The company reported a 5% drop in net revenue to $8.6 billion in the fourth quarter, while net income was down 28.7% YoY to $1.456 billion.