P&G, Coke in Japan alliance

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Procter & Gamble Co., Cincinnati, and Coca-Cola Co., Atlanta, have entered a strategic alliance in Japan for joint retail promotions and are nearing an agreement that would allow P&G to sell small cans of Pringles through every Coca-Cola vending machine in the country. The linkup is an example of how P&G's new market development organizations will be able to more easily forge external marketing alliances under the company's reorganization, said Bob McDonald, VP-general manager/Japan for P&G, in a video presentation to P&G's annual shareholders' meeting Oct. 13. If the distribution deal via Coca-Cola vending machines goes through, "I think we will quintuple our Pringles business [in Japan] overnight," Mr. McDonald said. P&G has reached similar alliances with Coca-Cola in Ireland, Lithuania and Portugal.

Copyright October 1998, Crain Communications Inc.

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