Good afternoon. This is Gomi, Head of Investor Relations for Coca-Cola Bottlers Japan Holdings. Thank you for joining us today for the second quarter 2024 earnings presentation for analysts and investors. Today, we have President Calin Dragan, CFO Bjorn Ulgenes, and Coca-Cola Japan CMO Su Choi. We are also joined by Executive Officer and President of the Retail Company Alex Gonzalez, Executive Officer and President of the Food Service Company and Chief Business Strategy Officer Maki Kado, Executive Officer and Chief Supply Chain Officer Andrew Ferrett, and Executive Officer and Chief Human Resources Officer Yuki Higashi. Following prepared remarks, we will be happy to take your questions. Simultaneous interpretation in both Japanese and English is being provided for both today's call and the Q&A. Before we begin, let me remind you that today's presentation contains forward-looking statements and should be considered together with cautionary statements contained in our presentation.
With that, I'd like to turn the call over to Calin Dragan. Calin, sir, please.
Good afternoon, everyone. This is Calin Dragan. Thank you for joining our earnings briefing today, and I will begin by sharing today's highlights. Please turn to slide three. I'm happy to report on our good performance in the first half, where we have increased business income by JPY 4 billion compared to the previous year. The positive trends were accelerated, with second quarter business income improving by JPY 2.4 billion, exceeding first quarter gains. We remain on track to achieve our annual business income target of JPY 10 billion. Top line growth and transformation have contributed significantly to this profit results. Fully renewing Ayataka and strengthening market execution in each channel for the summer season, have delivered significant results for our top line growth. We grew volume and improved wholesale revenue per case, resulting in a 1.8 year-over-year sales revenue increase.
Our transformation delivered cost savings of JPY 2.1 billion in the first half. Initiatives are progressing as planned, and we are on track to generate JPY 6 billion of annual benefits this year. We are seeing results in both short-term gains and in building a solid business foundation for medium to long-term growth. Such efforts are leading to profitable growth and with a renewed sense that will be key to achieving our strategic business plan, Vision 2028. Further drive this important transformation forward, we have announced a strategic sales equipment service collaboration. While details will be shared later, this partnership aims to achieve cost savings over the medium to long term and enhance value for our stakeholders. Although the hurdles for the second half are high, we will intensify commercial activities to capture summer demand and remain focused on profitability.
Maintaining strong momentum in the third quarter, which generates the majority of the year's profit, is crucial, and we will accelerate the measures that have been producing results while implementing sustainable growth strategies for the coming years. Now, let me hand over to CFO, Bjorn Ulgenes, to provide you with detailed results.
Thank you, Calin. Hello, everyone, this is Bjorn. Please turn to slide five for the first half P&L. In the first half of this year, we saw earnings improvement trends continue. Increases in both revenue and profits, making two consecutive quarters of improved earnings this year. Sales volume grew 1% compared to the previous year, despite the impact of price revisions. Revenue increased by 1.8% due to these revisions, which boosted wholesale revenue per case. Gross profits rose by 2.5%, outpacing revenue growth. Improvements in wholesale revenue per case, driven by price revisions, enhanced the overall gross profit margin. Business income improved by JPY 4 billion from the previous year, driven by top-line growth and transformation benefits. The quarterly increase in business income shows an upward trend, with second quarter improvements exceeding that of the first.
These factors behind this change in business income will be detailed on the following page. Operating income increased by JPY 7.7 billion from the previous year. This is largely due to the rise in business income and the booking of other income from the sale of fixed assets. That's part of our efforts to optimize the balance sheet. Consequently, with the improved operating income, net income rose by JPY 3.7 billion from the previous year. Please turn to slide six for our primary business income drivers. On the left-hand side, you will see volume, price, and mix. These represent a year-over-year change in marginal profit of JPY 3.2 billion from commercial activities. This was primarily driven by the series of price revisions, improving wholesale revenue per case, and from sales volume growth.
Our focus on profitability in commercial activities has made top-line growth a consistent driver of profit expansion, continuing the positive trend. Moving to transformation, our initiatives are on track and have generated JPY 2.1 billion in benefits in the first half. Significant improvements have been made in the supply chain, and the effects of the vending transformation also began to emerge in the second quarter. We remain on course to meet our annual goal of JPY 6 billion in cost savings from transformation. Marketing expenses decreased by JPY 1.1 billion from the previous year. This reduction stems from strengthened commercial activities and leveraging new products, such as Ayataka, combined with cost-effective marketing activities as we prepare for the peak demand season. Next is commodity and utility costs, which decreased by JPY 1.2 billion, despite the continued challenging cost environments.
Effective raw material and energy cost controls helped offset the impact of the weak yen. This is the result of a procurement strategy that leverages the strengths of the Coca-Cola system. In manufacturing, costs increased by JPY 0.6 billion from the previous year due to reduced manufacturing volume from inventory optimization. Other costs rose by JPY 3 billion compared to the previous year, driven by higher sales equipment costs and other-related expenses, while labor costs were reduced. This year, we plan to use costs appropriately to achieve sustainable growth. Please turn to slide seven for volume performance by channels and categories. Sales volume in the first half increased 1% from the previous year, despite the impact of price revisions. This growth was supported by effective commercial initiatives and a 2% increase in sales volume in the second quarter, with contributions from the April full renewal of Ayataka.
We accelerated the year-over-year sales volume growth rate while continuing to improve wholesale revenue per case. In supermarkets, despite efforts to expand the sales space by fully leveraging new products, volume declined, mainly in large PET bottles, due to significant impacts from price revision. However, wholesale revenue per case improved by more than JPY 8 from the previous year. In convenience stores, volume increased 6%, despite continued intense competition. This growth was due to new product launches, expansion and strengthened customer-exclusive products, and effective marketing tailored to the sales space. In vending, sales volume maintained flat, while wholesale revenue per case continued to improve. Despite the pricing revision impact, this was achieved through our established market share base built to date, as well as measures to capture demand through digital efforts, such as Coke ON and expanded QR payment options.
In retail and food service, volume increased by 5% from the previous year, with traffic recovery at restaurants and tourist spots. In online, volume grew by 18% year-over-year, thanks to successful promotions in collaboration with customers. By category, sparkling volume grew 2% year-on-year from increased Coca-Cola sales in restaurants and online. For tea, the successful introduction of Ayataka, fully renewed for the first time in seven years, resulted in volume growth for more than 20% year-on-year for the brand in the second quarter. This contribution from Ayataka drove overall category growth, with overall tea category volume up 4% in the first half. Negative growth in coffee and water was due to the impact of price revisions. Minute Maid contributes to the fruit juice category, mainly in restaurants. Slide eight highlights market share and retail price trends.
Here we can see that our profitability-focused commercial activities are growing value share and maintaining price premiums. In market share, total channel value share grew by 0.3 points from last year. The value share of vending returned to growth in the second quarter, driving overall share growth. In the OTC channel, volume growth from new products, such as Ayataka, has improved the market share trend. Convenience stores also continued to show value share growth. Our products' OTC retail price continued to maintain a price premium to the industry average. For large PET, the price revisions implemented in October of last year resulted in the continued recovery trend. Please turn to slide nine. To capture demand during the summer, our most important season, each channel has focused on executing growth strategies in the markets.
In vending, we strengthened activities in the sparkling and tea categories, leveraging campaigns for Coca-Cola and the fully renewed Ayataka. We also stimulated demand through cross-channel campaigns, utilizing the Coke ON app, and expanding new features, such as the Coke ON Wallet. In the OTC channel, such as supermarkets and convenience stores, we fully leverage renewed Ayataka to its maximum potential, securing significant sales space. As a result, the initial delivery of Ayataka renewal has been a remarkable success. In convenience stores, on top of strengthening the rollout of core products, including Ayataka, we have focused on introducing exclusive products that meet customer and consumer needs, and have strategically launched double-branded products and limited edition flavors. In the food service channel, demand is expanding due to traffic recovery and increased inbound travel.
We expanded the number of our products carried by customers by strengthening Coca-Cola Zero, which has significant growth potential, and leveraging the assets of the Coca-Cola system, including the Olympics. We also focused on acquiring new accounts, particularly in growing and new business categories. As described, we have tailored growth strategies to each channel's characteristics, achieving results in sales acquisition for the first half, and preparation for the peak demand period. We are confident that this growth pace will lead to top line and profit growth in the third quarter onwards. Slide 10 focuses on our transformation efforts. As mentioned earlier in the financial results, we are making good progress in generating benefits and building a solid business foundation. In vending, we have improved operational efficiency and reduced the number of routes by optimizing routes and visit frequency.
Although still in the testing phase, we are also working on measures, such as Piece Picking Model, to enhance work efficiency on the routes by pre-sorting products for each vending machine. We are also improving our portfolio of vending machines by visualizing the profitability of each machine. While many of these initiatives are expected to yield medium to long-term benefits, some efficiency gains were realized in the second quarter. DX promotion efforts are also on track with the expansion of QR code payments, which are favored by tourists visiting Japan, and the deployment of smart modems in vending machines progressing as planned. In the supply chain, we are pursuing initiatives to optimize the entire end-to-end process and are prepared for the summer season.
In manufacturing, we are continuing to build a system for high-mix, small-lot production in each area to promote the local production for local consumption model, based on the concept of manufacturing products close to the place of consumption. In addition, through productivity improvement efforts at each location are contributing to the expansion of manufacturing capacity. To enhance our logistics network, we are expanding collaboration with customers while reducing transport distances and the number of touches. We are also improving the accuracy of the sales and operation planning process, with a particular emphasis on ensuring a stable supply during the summer months, when shipment volume peaks. For the next slides, I would like to ask Su from the Coca-Cola Japan to share the marketing updates. Su, please.
Thank you, Bjorn. Hello, this is Su from TCJC. Allow me to take you through a review of second quarter of 2024, and highlights of our marketing initiatives for the third quarter of this year. Starting with the second quarter performance of 2024, the business grew ahead of the market. Our value share in the soft drink market increased, driven by strong renewals and activations in the core, and new innovations to successfully attract new drinkers. First, we continue to focus on and strengthen the core by revitalizing our core brands through renewals. Specifically, on green tea, we relaunched Ayataka in April, the new taste, design, and volume, making its first major revamp in seven years as one of the key priorities of this year.
Ayataka focuses on replicating the taste of the first cup of freshly brewed tea to meet contemporary needs, while maintaining the authentic tea taste that it has been known for. Beyond the product relaunch, we also introduced a new brand message, "Live to your own rhythm," aimed at encouraging people who aspire to live lightly and maintain their identity amidst daily noise. Thanks to this relaunch, Ayataka has successfully regained strong growth momentum by attracting new drinkers. Moving on to the innovations. We launched Yakan no Koi Barley Tea in April as foods with function claims. Product for daily hydration, with the added ingredient of body fat reduction efficacy. This launch captures older consumers group, who prefer a richer taste and also have the consistent need for metabolism improvement.
In marketing experiences, we are gold partners of Osaka Kansai Expo, and plan to leverage this opportunity to grow our consumers, customers, and coverage. To commemorate the one-year countdown to the Osaka Kansai Expo, scheduled for 2025, we launched a new portfolio promotion in April, toward a total of 200,000 winners, with Coke ON drink tickets and Osaka Kansai Expo tickets by drinking the Coca-Cola products. The campaign fully leverages the Coke ON platform, one of our unique assets. Next, I would like to share with you the key initiative highlights in the third quarter of this year. To accelerate Ayataka's momentum and encourage more drinkers to enjoy the new Ayataka, we launched a summer campaign with a comprehensive program, including tour tickets for Hikaru Utada, our new brand ambassador.
For the Coca-Cola, we launched the Coke with Meat summer campaign, covering everything from media to storefront, with bi-channel promotion to expand brand users during the peak season by capturing family requirements of summer meal occasion. In innovation, to capture dietary therapy needs in case of heat strokes and dehydration, we renewed the packaging and communication of Aquarius ORS in June, after obtaining the labeling approval as an official food for medical use. This renewal aimed to alleviate consumers' concerns over heatstroke, which is becoming a growing problem every year due to extreme hot summers. In the brand Fanta, we have expanded beyond and above fruit sparkling into lactic segment, with the launch of Fanta Yogurt Rush Marble Orange in July, a new carbonated beverage that combines real yogurt and orange-flavored jelly. This innovation is characterized by the mildness unique to dairy products, that only real yogurt can provide.
It is aimed at capturing the lactic SSD market. In marketing experiences, to capture the excitement of the 2024 Paris Olympics and Paralympic Games, we fully leverage their unique assets by launching a new portfolio promotion. This initiative offers a chance to win original Coca-Cola Olympics and Paralympic goods for up to 10 million winners by drinking Coca-Cola products through the Coke ON platform, aiming to maximize their sales and share during the peak summer season. That is it from my end, and thank you for listening. I'll pass it over to Calin.
Thank you, Su, for your presentation. This is Calin again. Slide 15 shows our outlook for the second half of the year and onwards. Although the third quarter possess a hurdle due to the benefit we gained from last year, hot weather, we will accelerate the momentum from the first half through the top line growth and cost savings initiatives to achieve strong profit growth. To achieve the top line growth center on maximizing profits, we will continue to maximize commercial activities, leveraging new products and campaigns to capture summer demand. In July, we were able to grow sales volume strongly by 3%, despite the cycling of the previous year, hot summer and weather impact. So we are off to a good start for the third quarter.
With respect to price revisions, we will work to maintain the revised shipping prices, minimize volume and channel mix impact, and maximize the benefits of the revisions. Preparations will also be made for the price revisions in October of this year, announced at the time of our previous financial results. In terms of costs, we will accelerate our transformation and intensify activities to materialize the benefits of JPY 6 billion for the year and to generate benefits in the coming years. And for the marketing investment, we plan to step up investment in the second half of this year to achieve sustainable profit growth, but we will do so appropriately while keeping an eye on the market environment and cost benefits. Although the impact of commodity market, Forex, and utilities remain uncertain, we will strive to contain them by leveraging The Coca-Cola Company system's procurement advantages and other measures.
We have achieved profit growth for two consecutive quarters this year and are well-prepared for the peak demand period. By continuing and accelerating the strong first half momentum in this most crucial third quarter, which generates the majority of the year's business income, we will achieve strong profit growth and meet our full-year business income target. Slide 16 shows the recently announced reorganization plan for our sales equipment services. Working with Thinkrun and Genpact, we aim to create further value in this field. We have been fundamentally transforming our business for future sustainable growth and have achieved solid results. This reorganization will transfer our group's sales equipment installation, maintenance, repair, and quality control functions to long-term business partners and change to a partnership-based collaboration structure.
Our two partners are Thinkrun, which has supported Coca-Cola System logistics and sales equipment operations in Japan for over 50 years, and the global professional service solutions company, Genpact. The joint venture between Coca-Cola Bottlers Japan and Thinkrun Holdings will manage field operations. A new company, 100% owned by Genpact, will handle planning and administration. We will continue to oversee investment and deployment planning, technical quality development, asset management, and contract management for our sales equipment. This initiative is a key part of our commercial transformation in our Vision 2028 strategic business plan. With our strong partnership under this new structure, we will enhance sales equipment service processes to provide high-quality, competitive services. This will increase value for our stakeholders and save costs in the medium to long-term perspective. Please see slide 17 for the summary of today's presentation.
I am confident that we have made significant progress in the first half of the year, both in business performance and in advancing key initiatives. Our business income has built up steadily, driven by top-line growth from profitability-focused commercial activities and transformation benefits. For the second consecutive quarter this year, we have achieved increase in both revenue and income. The business income improvement in the second quarter surpassed that of the first quarter, accelerating basically our profit growth trend. These results affirm the effectiveness of our consistent commitment to profitability-focused activities. The second half of the year, particularly the third quarter, presents a hurdle from the previous year. However, the progress made so far gives us confidence that we can overcome these challenges. We have entered the peak demand period and are approaching the summer season well-positioned, maintaining the recent trend.
By maximizing our performance during the peak demand period and building on our profit momentum, we aim to achieve our ambitious full-year business income target of JPY 10 billion. Finally, as the first year of Vision 2028, we want to emphasize that we have made great strides towards and forward with important measures such as price revisions and transformation. These efforts are foundational for our sustainable profit growth outlined in Vision 2028. We are committed not only to achieving this year's performance target, but also to making substantial progress towards achieving the goal of Vision 2028 by advancing key measures with a medium to long-term perspective. That concludes our presentation today. Thank you very much. Now let me invite back Gomi-san to take us through the question and answers.
Thank you, Calin-san. This Q&A session is for analysts and investors. For members of the media, please refrain from asking questions at this time, as we will have a separate time provided today. Due to interpretation, please ask only one question at a time. Now, I would like to start the Q&A session. Operator, please begin. If you would like to raise your question request, please press hash seven.
... If you press hash seven again, you are going to cancel your request, so please be careful. Also, during the Q&A session, you can press hash seven to raise your request at any time. So now please press hash seven if you have any question.
We have received requests for questions, and we would like to begin the Q&A session. We will now call the name of those who wish to ask a question. When speaking, please state your company name and your name before the question. We will now welcome the first person with a question. We will unmute you. UBS Securities, Ihara-san, please go ahead.
Thank you very much for the presentation. This is Ihara from UBS Securities. Thank you, Ihara-san. Thank you. I have two questions. My first question is about the reasons for the improvement in the business income.
In the second quarter, looking at the volume and price mix, what is the reason for the growth there? The volume has grew by 2%, and the revenue per case is going up as well. But Q2, looking at the mix here, only JPY 400 million here for the volume price mix. What is the background for this? And is this only like a temporary situation? Is this the correct understanding? And also for the second half, you are going to hit, business income JPY 10 billion at the end of the year. Is that really going to be possible? So what is, your explanation around the volume price mix background?
Thank you, Ihara-san. So, BI, with the BI, what is the background of the volume price mix impact? So Bjorn-san would like to provide the answer.
Thank you, Ihara-san, and thank you for kicking us off. As we said in the prepared remarks, we believe we had a very strong first half of the year, and also a very strong second quarter. But let me give you some breakdowns of the second quarter performance. Overall, both volume and price increased for the quarter, so the volume channel mix impact was positive, over JPY 1 billion. The price impact continues to remain very strong, more than JPY 3 billion. And we have invested both in our vending business and in Ayataka, that you heard earlier, driving significant positive results for the quarter, which we also believe will give significant knock-on positive impacts into Q3. So these are the three main drivers or four main drivers, sorry, of the performance for the second quarter. Thank you.
[Foreign language] Ihara-san, would that be the answer for your question?
I see. So vending machine Ayataka investment is, some of the factors, and due to that, the Q2, gross profit looks smaller. But in Q3, you're going to recover, you're gonna get the return on it, and therefore, in the second half, at the end, it's going to be JPY 10 billion. So is that the correct understanding?
Well, thank you for the additional question. So the investment is heavy in Q2, but from Q3 on, you are going to get the return back on the investment, and that will be positive impact for the volume price and mix. So Bjorn-san again.
Ihara-san, yes, we're very confident we're gonna reach our JPY 10 billion target for the year. Thank you.
I see. Thank you very much. My second question then. So Ayataka is like a smash hit, I'll say, and due to that, the market share has grew. Excluding Ayataka, what is the situation? Have you analyzed the case? From next year, the Ayataka impact, maybe it will finish the cycle, and the impact might not be that large, but next, the following year, is there any additional things that you're going to do to maintain the momentum of Ayataka?
Thank you for the question. Ayataka is a big hit right now, but excluding Ayataka, what is our evaluation in terms of products, in terms of channels? So Alex-san would like to answer that question.
Ihara-san, so first of all, we're very pleased with the performance of Ayataka. What we're seeing is a very strong and comprehensive renewal behind the taste profile, the positioning, which is driving a significant uplift in our volumes, transactions, but more importantly, the consumer base and the trial and repeat. So we're very positive. We are also seeing great progress in the rest of the portfolio, particularly Coke trademark is performing very well, so we're pleased with the overall performance of the portfolio. Thank you for it.
[Foreign language] Well, thank you very much, Ihara-san, for the questions, and that was our answer. Okay, thank you very much. Operator, let's move on to the next question.
Next question. I'm going to unmute the next person. Next person is Morgan Stanley MUFG, Miyake-san, please go ahead.
... Thank you very much. This is Miyake speaking. I would like to ask about the market conditions and the view on the market condition from you. When you look at the tea category, Ayataka is trending very strong, and we understand that. And all the other competitors were also relaunching this category. So, in this context, we are seeing the private label also launching some products. We know that some people say that the consumer has a weak sentiment, so I would like to have your view on this PB and the entire market. Also, I would like to understand what's your view on the PB in other categories, too. Also, my second question is, the price revision in October, what do you think about the reaction from the market?
I believe that the other competitors are also doing the price revision in coming October. In that context, how do you see the market condition going into the October with this, all this price revision?
Thank you, Miyake-san, for your questions. For the first question, this is about the market conditions, particularly green tea, private brand, and other than tea category. I would like Alex to pick up on the first question.
Hey, Alex here. What we are, as repeating myself, we are very positive with the performance of Ayataka despite private brands. I think it's clear that we are seeing a certain impact on more consumer-sensitive parts of the market. But in the overall, we are able to drive growth for Ayataka brand. Thank you.
[Foreign language] So, I hope that answered your first question, Miyake-san.
Okay, if that's the case, I wanted to see, what's your view on this market? Do you believe that the private brands are growing its share in the market, or you think that it's kind of coming to the kind of stable stage, and that you still think that your Ayataka brand is driving the share very strongly?
Thank you for your question. So, I would like Alex to pick up on this PB brands, PB shares in the market.
Miyake-san, in the short term, we're seeing obviously still private brands taking an effect. We'll continue to monitor the impact of the trends and see how this pans out. What I can tell you is our focus is really on building the brand power of our portfolio and really addressing from a full all the levers to actually drive transactions growth and value growth in the market.
[Foreign language] Thank you. So, so just before, towards to October's price revision, in comparison to the previous conference call, is there any changes in your assumption? Thank you for the second question. Is there any change in the assumption for the market condition for the October price revision?
At this point, we don't see any material changes in consumer behavior. Thank you.
Okay, understood. Thank you.
So let's move on to the next question.
I will unmute the next person with the question. Mizuho Securities, Saji-san, please go ahead.
Thank you very much. I have one question regarding Ayataka package strategy. That's what I'd like to ask about. So Ayataka is working very well in the market, and the 650 ml package, for example, or 300 ml package and the multipack of 650. So there are a variety of packages that you put in the market. And regarding the package, what do you think worked best so at the renewal? You know, I'd like to know the details. And also, all the manufacturers try to do the same in terms of price strategy and also increasing the quantity of the package. And in that case, your success in Ayataka in the package strategy, do you think it will continue to work?
Saji-san, thank you for your question. Regarding the package strategy of Ayataka, and, it is working, but, there are a variety of packages, and, how-
...What kind of a strategy we have regarding the package? So Alex will answer the question.
We place the success and the remarkable success of Ayataka in the whole comprehensive set of initiatives that we have placed out in the market. It's not one single item, but rather the full combination of the positioning, the product, and the new visual identity together with our packaging architecture that follows a very specific channel by channel location and a specific strategic objective. So all in all, everything is working towards the resounding success that is driving new users, expand the user base, and trial and repeat into the brand. So we're confident on the outlook for Ayataka.
[Foreign language] And Su-san, we answer at this, your question additionally. So in that case, your answer is, for example, the individual package strategy, it's not, the package strategy worked well, so by package, by channel, so variety of the strategy worked together. And then, so you were able to have the competitive advantage over the competitors. Is my understanding correct?
Thank you for your additional question. So instead of the individual strategy, the combination of variety of the strategy worked well. So Alex will answer the question.
Right. It's a full combination of all the levers working in tandem and in synergy to drive the growth of the brand.
[Foreign language] So thank you. Thank you very much. Operator, could you go to the next person in question?
We still have some time left, so if you have additional questions, please put forward your request. Thank you. If you want to ask a question, please press sharp seven and wait. If you press sharp seven again, your question will be canceled, so please be careful. We are waiting for your request. We will unmute the next question. SMBC Nikko, Takagi-san, please go ahead.
Hello, this is Takagi. Can you hear me?
Yes, we hear you.
Thank you. Two questions, please. My first question is about channel mix and package mix. And both in the second quarter is negative. It's going down, I think, and especially the channel mix. So how do you evaluate this channel mix deterioration? What is your thought around that? And the revenue per case at the convenience store channel for the second quarter, it's negative. In this trend, what's going to happen in the future with this trend, is I'm wanting to ask about? So both channel mix, the package mix is deteriorating, and what is your forecast on that? So that's my first question.
Thank you very much. Would you like to take one by one? So first question is about channel mix and package mix, the trend, what is our evaluation in the future, and especially at the convenience store channel, the revenue per case is going down, so what is the reason for that as well? Alex-san would like to answer.
Thank you, Alex here. First, I just wanna say that we're pleased with the fact that we're growing our revenue base and our volume base in the first half of the year, particularly to the effect of mix in the second quarter. This is probably on the back of the recovery of Large PET volume after the industry players follow on the Large PET in May that we implemented in the quarter four of last year.
[Foreign language] Sorry, there was another question. It was about the convenience store, and the revenue per case is going down, and any... What is our understanding of that? Alex-san, please.
On convenience, again, we're pleased to see the performance of top-line growth in convenience and the fact that we're expanding value share. This is coming on the back of the effect of the focus on the core portfolio and innovation with some of the exclusive products with some of our customers. Particularly on price mix, what we're seeing is in convenience. The effect of the price increase that obviously we have experienced in some of the channels is waning down in in CVS as a fact that we have not implemented any other price increase, major price increase after Q4 of 2022. And this is reflected.
In addition, the listing of I LOHAS 1 L PET by a major customer had an impact of mix that although it had an impact of mix it would was critical in driving volume and revenue growth in the channel. Takagi-san [Foreign language]
Okay, thank you very much. So the package, I guess, it's a package impact, that we don't have to worry about the revenue per case going down at the convenience store? Correct. And sorry, additionally, package, large package reduction is kind of easy. So in the second quarter, the large PET was minus six, the small PET is, like, plus five. So I don't think what you're saying matches what I see in the deck. Well, Q2 large PET volume and the S-PET volume is your question, right? Yes. Alex, please.
Yes, and Alex here. The effect that you're seeing in Large PET in the second quarter is primarily because of the price increase that other players in the industry follow through in May. So, what we are seeing sequentially within the quarter is an improvement in the volume trends. Therefore, we're confident that that's leveling out as price differentials are normalizing.
[Foreign language] Okay, and one more question. So after October, are you planning for another price revision, and what is going to be the impact of that? And all the major players in the industry, they have announced that they're going to raise the price, and also they have announced the impact they are expecting from the price revision. And clearly, your company, Coca-Cola, seems that the impact scale that you're expecting is extremely small. And related to that, so you mentioned that the market trend has not changed, but, you know, Ayataka is doing very well, and it's really contributing positively to the business. So, you know, once again, what is your assumption going to be on the impact that you will see? Is there any updates related to that?
Takagi-san, thank you very much.
From the price revision that will be planned in October, it seems that the business is going very well right now, but is there any change in the impact that we are forecasting? Bjorn-san, please.
Thank you, Takagi-san, for the question. The short version of the answer is no, we are not changing our outlook for the impact of the price revision in October, JPY 7 billion-JPY 10 billion annualized. The little longer version is that this is our sixth price increase into the market, which we're executing. And as you heard earlier from Alex, and also the prepared remarks, the consumer sentiment is stable and welcoming, and we continue executing in the market and now going into our main selling season. So as of today, no changes in the estimates. Thank you.