Coca-Cola Amatil Submission
COCA-COLA AMATIL SUBMISSION Select Committee into the Obesity Epidemic in Australia
6 July 2018
CONTENTS
OVERVIEW 3 EXECUTIVE SUMMARY 4 COCA-COLA AMATIL & THE AUSTRALIAN BEVERAGES MARKET 5 Coca-Cola Amatil in Australia 5 Trends in the Australian NARTD market 6 THE PREVALANCE OF OVERWEIGHT AND OBESITY IN AUSTRALIA AND ITS CAUSES 8 THE ROLE OF THE BEVERAGE INDUSTRY IN ADDRESSING THE ISSUE 10 Reformulation 10 Portion sizes 11 Improved information 11 Nutritional guidelines 11 Marketing and promotion 12 Product quality 13 OUR ACTIONS IN INDIGENOUS COMMUNITIES 14 THE WAY FORWARD 15
Appendices 1. Coca-Cola: Wellbeing 2. Sugar Reduction: Our Actions in the Australian Marketplace 3. Coca-Cola: Our Actions in the Marketplace 4. Promoting Choice 2018 - Health Services 5. Promoting Choice 2018 - Workplaces 6. Promoting Choice 2018 - Education
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OVERVIEW
On 10 May 2018, the Senate resolved that the Select Committee into the obesity epidemic in Australia be established on 16 May 2018.
The closing date for submissions is 6 July 2018.
The committee is to report on 14 August 2018.
The Select Committee into the obesity epidemic in Australia, established on 16 May 2018 to inquire into and report on 14 August 2018, on the following matters:
a. The prevalence of overweight and obesity among children in Australia and changes in these rates over time; b. The causes of the rise in overweight and obesity in Australia; c. The short and long-term harm to health associated with obesity, particularly in children in Australia; d. The short and long-term economic burden of obesity, particularly related to obesity in children in Australia; e. The effectiveness of existing policies and programs introduced by Australian governments to improve diets and prevent childhood obesity; f. Evidence-based measures and interventions to prevent and reverse childhood obesity, including experiences from overseas jurisdictions; g. The role of the food industry in contributing to poor diets and childhood obesity in Australia; and h. any other related matters.
COCA-COLA AMATIL SUBMISSION Coca-Cola Amatil’s submission does not address each of the matters of concern to the select committee but provides information and commentary on areas for which it have market knowledge and is within the remit of its commercial activities that we think will be useful to the Select Committee in its deliberation.
FOR FURTHER INFORMATION ON THIS SUBMISSION PLEASE CONTACT:
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EXECUTIVE SUMMARY
Coca-Cola Amatil welcomes the opportunity to provide a submission to the Select Committee into the obesity epidemic in Australia. We recognise that obesity is a major social challenge in Australia, a nation which ranks in the top five obese countries in the world. It is of concern that 63 per cent of Australian adults are overweight or obese, a significant increase on the rate from 20 years ago, and that one in four children in Australia are overweight or obese.1
With this level of obesity comes higher incidences of non-communicable disease, including diabetes, stroke and heart conditions. The Australian Institute of Health and Welfare reports that at least 7 per cent of the total health burden in Australia is caused by being overweight or obese.2
As a major Australian beverages company, we understand the role that diet plays in health and wellbeing. Australians are eating more and moving less, so we need to be more conscious of the kilojoules we take in. For Coca-Cola Amatil, we know we must play our part to address the issues and effectively contribute to positive change, and we are.
In recent years we’ve worked closely with Coca-Cola Australia to introduce smaller pack sizes, make sure all ingredients and calories are clearly labelled, reduce sugar content across our beverage range and adhere to voluntary bans on marketing to children established by the beverages industry and The Coca-Cola Company. In June 2018, we were one of the inaugural signatories to the Australian Beverages Council’s voluntary industry pledge to reduce average sugar per 100ml by 20 per cent across our portfolio of sales by 2025. We work closely with non-government organisations, customers, communities and governments to encourage healthy consumption and maximise consumer choice.
We want to encourage a wider, well-informed debate. Such a debate will recognise that while we have a real issue with the health effects of obesity and overweight as a community, awareness and behaviour has changed. There has been a material shift away from sugar sweetened beverages over time, which suggests the full suite of activities across the whole community to raise awareness about the role of sugar sweetened beverages in diets has had an effect.
The Australian Bureau of Statistics data has shown a consistent trend away from added sugar intake in Australia over the last 20 years. This includes a six per cent drop in adult consumption, and a 23 per cent drop for children.3 Separate market research about consumer purchasing patterns has found that health has also become a significant consideration for consumers as they make decisions in relation to non-alcoholic beverages.4
This long-term reduction in sugar consumption from beverages, suggests measures underway across the total community and general consumer trends are already doing the work that proponents of a beverage-based sugar tax say would be achieved. We ask that this trend is considered against another reality - that taxing one sector of the food and beverage industry will negatively impact manufacturers resulting in higher consumer prices, ultimately impacting cost of living and the cost of manufacturing in Australia. Consider, an independent study into the New South Wales container deposit scheme (CDS) introduced in December 2017 found the impact of the CDS has had an inflationary effect on all impacted categories, which has meant increased costs to consumers. 5 In contrast, while there is no doubt too much sugar is not good for anyone, the evidence for a beverage-based sugar tax is far from conclusive when it comes to reducing obesity rates. Reducing obesity rates is complex and, as such, addressing obesity requires a multifaceted approach. There is no simple solution and results take time.
We encourage the Select Committee to take a broad view of the obesity challenge. This includes consideration of recommendations that would refocus debate about obesity on healthy lifestyles, including portion sizes, consumer information and kilojoule intake regardless of the source. We are supportive of public policy that is designed to improve the health and wellbeing of Australians, but a beverage-based sugar tax is the wrong area of focus for effective public policy because Australian consumers are already consuming less sugar from beverages.
1 https://www.oecd.org/els/health-systems/Obesity-Update-2017.pdf 2 A Picture of Overweight and Obesity in Australia, AIHW. November 2017 3 4364.0.55.011 – Australia Health Survey: Consumption of added sugars, 2011-12: Children leading the way in falling sugar consumption. Australian Bureau of Statistics, 13 December 2017. 4 IRI Aztec Consumer Health: Unlocking the Growth Opportunities, September 2017 5 IRI – The Impact of the NSW Container Deposit Scheme (CDS) on Grocery and Liquor, June 2018.
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COCA-COLA AMATIL & THE AUSTRALIAN BEVERAGES MARKET
COCA-COLA AMATIL IN AUSTRALIA Coca-Cola Amatil is one of the largest bottlers and distributors of non-alcoholic and ready-to-drink (NARTD) and alcoholic beverages in the Asia Pacific region, and one of the world’s larger bottlers of The Coca-Cola Company’s range of products.
As both brand partner and brand owner, we operate across six countries – Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa – to manufacture, distribute and sell an unrivalled range of beverages, coffee and ready-to eat food snacks. With decades of experience, we do this safely and responsibly, and are proud of the products we make that delight millions of people every day.
Our Australian Beverages business produces, sells and distributes 25 non-alcoholic beverage brands to approximately 115,000 customers. In addition to the Coca-Cola family of products, our portfolio includes Sprite, Fanta, Lift, Kirks, Deep Spring, Mount Franklin, Pump, Powerade, Barista Bros, Fuze Tea, Keri Juice Blenders, Monster and Mother.
Headquartered in Sydney and with manufacturing and/or distribution facilities across the country, we have invested heavily to support small and large businesses in Australia where NARTD is a key contributor of sales and profits. Our wide portfolio means we tailor offerings to all of our customers for everything from football finals to the corner store, delivering a great experience and sales to their doors.
We directly employ approximately 4,000 people across Australia, the majority of whom include our sales team in the field and our supply chain team at our production facilities and warehouses. We operate 17 production facilities and 18 warehouses across Australia and continue to invest in the Australian manufacturing sector.
IMAGE: COCA-COLA AMATIL AUSTRALIAN FOOTPRINT
Note: Alcohol & Coffee figures represent this business’ global footprint
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For every direct Australian job that we create there are up to four jobs generated elsewhere in the Australian economy to produce and distribute our non-alcohol beverages. 6 Of our non-alcoholic beverages, 99 per cent are made in Australia and we spend more than $1.3 billion on Australian-supplied intermediate goods and services per annum, contributing approximately $3 billion to the Australian economy.
IMAGE: THE COCA-COLA SYSTEM IN AUSTRALIA – INDIRECT EMPLOYMENT
Source: ACIL Allen Consulting
TRENDS IN THE AUSTRALIAN NARTD MARKET
The NARTD beverage industry in Australia is at a mature stage, increasingly fragmented and evolving rapidly, marked by consumers embracing new trends. Current themes shaping the industry are outlined below. • Consumer demand trends and opportunities: healthier choices, value, convenience, innovation in packaging and reformulation, technology, environmental and social sustainability, and growth in ‘boutique’ brands. • Competition: intensified competition between beverage companies and development of private label brands by retailers • Changing trade environment: relationships with retailers, retail consolidation and growth, stronger non- traditional channels, and technology. • Changing regulatory environment: container deposit schemes.
The composition of the Australian NARTD industry has significantly changed over time. Since 2009, packaged water growth has outpaced growth in other beverage categories leading to increased share of the measured NARTD market. In the same period, regular cola's (sugar sweetened cola beverages) share of the measured NARTD market fell from 20 per cent to 13 per cent, representing a 15 per cent reduction in actual volume of litres sold.
6 ACIL Allen Consulting, November, 2016. The Contribution of The Coca-Cola System to Australia.
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MARKET COMPOSITION BY BEVERAGE CATEGORY NARTD Volume Share
Percentage Share of Australian NARTD Measured Markets*
Source: Aztec IRI Australia Grocery Weighted Ex Aldi & Australia Convenience Scan. Historical Data Sources. *Grocery and Convenience & Petrol only, the standard beverage industry measure of Australian NARTD market share. Grocery assumes 85% of sales and C&P assumes 65% of sales in Aztec, therefore values have been extrapolated accordingly
This shift that has occurred across beverage types, reflected in the table above, can also be seen in the per capita NARTD beverage consumption trends of Australians. Consumption of soft drinks, particularly sugar sweetened beverages, has been in decline on a per capita basis for the last 10 years. Packaged water has been the key driver of NARTD per capita consumption growth in the last five years:
• Per capita consumption of sugar sweetened NARTD beverages fell by 14 per cent between 2009 and 2017 • Per capita consumption of diet/low sugar/low fat NARTC increased by 37 per cent between 2009 and 2017
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THE PREVALANCE OF OVERWEIGHT AND OBESITY IN AUSTRALIA AND ITS CAUSES
We acknowledge and understand the public health concerns about obesity in Australia. A record 63 per cent of Australian adults are overweight or obese, up from 57 per cent 20 years ago. One in four children are overweight or obese. Australia is in the top five nations in the world when it comes to obesity.7
The problem is most acute, but not exclusive, to certain groups of the population. The OECD identifies that social inequalities are strong in overweight and obese groups, especially for women, with less educated women found to be two to three times more likely to be overweight than those with a higher education. The divide between different socio- economic groups in Australia, and other OECD countries, on this issue is clear.8 In Australia this includes the indigenous population, where more than two-thirds of indigenous adults were overweight and obese in 2012-13.9
Obesity brings ill health and disease, including diabetes, stroke and heart conditions. The Australian Institute of Health and Welfare has reported that at least seven per cent of the total health burden in Australia is directly caused by overweight or obesity.
The causes of this rapid rise in overweight and obesity in Australia are multifactorial. Changes in lifestyle, working patterns and types of jobs, environmental factors, diet (including portion sizes), energy expenditure and genetics have all been contributing factors.
In relation to diet, it would be incorrect to point to just one ingredient, sugar, in one product type, beverages, as the cause for this, especially when the Australian Bureau of Statistics data has shown a consistent trend away from added sugar intake in Australia over the last twenty years.10
While sugar-sweetened carbonated sparkling beverages (soft drinks) account for a significant proportion of Australians’ sugar intake, overall they are a much smaller contributor to average Australian energy intake than in the past. Less than two percent of the average Australian’s kilojoule intake comes from soft drinks11 and that proportion is falling. In 2017 the Australian Bureau of Statistics reported consumption of added sugar had declined since 1995, driven by a six per cent drop in adult consumption, and a 23 per cent drop for children.12
Our view is that this effect is a combined effort of people changing both their habits and those of their children by cutting back on the daily intake of sugar from soft drinks, as well as breakfast cereals, milkshakes, and ice cream.
The Australian food industry has responded to consumer demands by producing more low- and no-sugar options in foods and beverages. Total market data from grocery, convenience and petroleum (C&P) sales (the measurable market) demonstrates a consistent increase in the amount of diet, low or no sugar beverages sold as a total picture of non-alcoholic beverages (NARTD) as shown in the chart on the next page.13
7 https://www.oecd.org/els/health-systems/Obesity-Update-2017.pdf 8 https://www.oecd.org/els/health-systems/Obesity-Update-2017.pdf 9 A Picture of Overweight and Obesity in Australia, AIHW. November 2017 10 4364.0.55.011 – Australia Health Survey: Consumption of added sugars, 2011-12: Children leading the way in falling sugar consumption. Australian Bureau of Statistics, 13 December 2017. 11 Australian Health Survey: Nutrition First Results – Foods and Nutrients, 2011–12 — Australia, Tables 9.1 and 9.2, released May 2014 (accessed 18 May 2015) 12 4364.0.55.011 – Australia Health Survey: Consumption of added sugars, 2011-12: Children leading the way in falling sugar consumption. Australian Bureau of Statistics, 13 December 2017. 13 IRI Australia Grocery Weighted ex Aldi 2009-2017, IRI Convenience Scan 2007-2017
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COMPARITIVE TREND BETWEEN SUGAR SWEETENED BEVERAGES AND LOW/NO SUGAR AUSTRALIAN NARTD
Total Retail (Litres) 80% Diet vs Regular NARTD 68% 68% 66% 70% 64% 62% 60% 59% 56% 60% 53%
50%
40% 44% 47% 41% 40% 30% 36% 38% 32% 32% 34% 20%
10%
0% Year Year Year Year Year Year Year Year Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 Regular NARTD Diet/Low Sugar/Fat
Source: IRI Australia Grocery Weighted ex Aldi 2009-2017, IRI Convenience Scan 2007-2017
This decline in proportion of sugar sweetened beverages in the market is also reflected in Coca-Cola Amatil’s purchases of sugar as an ingredient in our products over time, which has reduced in actual weight by 18 per cent in the 10 years since 2008.
Despite these changes, the news is negative on obesity rates. Sugar consumption across the food and beverage industry is down on 20 years ago, but obesity rose from 19 per cent to 26 per cent of Australians over the same period. United States data is similar. US obesity rates have more than doubled between 1990 and 2015, while sugar intake fell. On the facts, it seems reasonable to conclude that neither sugar, nor drinks sweetened with sugar, were the major cause of this obesity rise. It is too simplistic to argue that the consumption of sugar and sugar sweetened beverages is the major cause of increasing rates of obesity and their removal a panacea to the problem.
US SUGAR INTAKE VS. OBESTITY PREVALENCE, 1980 - 2013
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THE ROLE OF THE BEVERAGE INDUSTRY IN ADDRESSING THE ISSUE
Coca-Cola Amatil’s future is linked with the choices of our consumers. For all consumers we provide variety in both portion size and kilojoule count, clearly understood information and responsible marketing.
We have heard the message from consumers and community leaders on the need for a focus on health and wellbeing and this is driving innovation across our beverage range. Insights from market research find that health is a consideration for 62 per cent of people when they are grocery shopping.14 As a consumer-led business, we have been moving over a number of years to match this trend to offer choices in both portion sizes and variety of beverages, through a wider portfolio.
With Coca-Cola Australia, we work closely with government and consumers to address community concerns in relation to consumer wellbeing and we support the World Health Organisation (WHO) recommendation of no more than 10 per cent of daily energy from added sugars. 15
In 2017, Coca-Cola Amatil committed to reducing sugar in our Australian non-alcoholic beverages portfolio by 10 per cent by 2020 and have begun tracking our progress against this target, which will be reported annually in our Sustainability Report and online. In June 2018, we were one of the inaugural signatories to the Australian Beverages Council’s voluntary industry pledge to reduce average sugar per 100ml by 20 per cent across our portfolio of sales by 2025.
Working with Coca-Cola Australia, our commitment to sugar reduction is being fulfilled by a suite of actions that includes reformulation of existing products to remove the amount of sugar, introduction of smaller sized bottles to help people manage portion sizes and ensuring that new products we release have a lower sugar content in line with established guidelines. We work with our customers to provide them with information about the nutritional qualities of the products we sell and encourage our customers to provide a range of product choices and sizes so consumers have the options to make a decision that is right for their needs.
REFORMULATION Today, 61 of the NARTD products in the portfolio we offer for sale in Australia are low- or no- kilojoule and all of Coca- Cola’s core brands are offered in low- or no- kilojoule varieties. From the existing portfolio, 22 products were reformulated between 2015 and 2017 with a sugar reduction as high as 38.6 per cent (Goulburn Valley Fruity Drink). The chart below outlines the products and the reduction in sugar achieved through reformulation to date.
SUGAR REDUCTION INITIATIVES ACROSS THE COCA -COLA AMATIL PORTFOLIO OVER TIME Note: Arrows indicate the percentage sugar reduction by beverage type
14 IRI Aztec Consumer Health: Unlocking the Growth Opportunities, September 2017 15 4 March 2015 ¦ Geneva - WHO guideline recommends adults and children reduce their daily intake of free sugars to less than 10% of their total energy intake. A further reduction to below 5% or roughly 25 grams (6 teaspoons) per day would provide additional health benefits.
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PORTION SIZES We are committed to providing consumers with more choice so they can enjoy our beverages in the amount that is right for them. For the last five years Coca-Cola Amatil has been actively expanding the range and availability of small pack sizes. In 2013 we increased our investment in our 200ml mini-can share pack to help promote its availability and drive consumer demand. Since then we have launched a 250ml can, introduced the 390ml PET bottle and launched the 250ml PET bottle. The purpose of this activity has been to provide consumers with a size that is right for them.
We have increased the range of small packs across more locations. Between 2013 and 2016, sales of our small packs grew by 75 per cent. The 250ml bottle is now available in an estimated 95 per cent of grocery stores, with 100 per cent distribution of 200ml cans or bottles. Distribution of the 250ml bottle is at 96 per cent in convenience stores and petrol stations.16
IMPROVED INFORMATION Coca-Cola Amatil, together with Coca-Cola Australia, is committed to providing easy access to information about ingredients and recommended serving sizes for products. We aim to equip our consumers with the awareness and information they need to make confident choices that are right for them. This means we are an enthusiastic participant in government-led initiatives that support clear nutritional information and education.
We have adopted the daily energy intake icon on all packs, which is part of the Government’s Health Star Rating program. This on-pack “per cent” Daily Intake Guide label on all our products provides clear information about both the number of kilojoules per serve and what this represents as a percentage of an adult’s total daily energy intake.
From February 2017, we introduced new serves-per-pack information on our larger multi-serve bottles to inform consumers on how many serves are in a bottle. Consumers also have access to the online information provided by our brand partner, Coca-Cola Australia, which includes detailed nutrition and product comparison information.17 We have also introduced links to nutrition information on our vending machines, so consumers can access ingredient information about our products prior to purchasing a drink through this channel.
We work with our customers (retailers, food outlets etc) to provide them with information about the nutritional qualities of the products we sell and encourage our customers to provide a range of product choices and sizes so consumers have the options to make a decision that is right for their needs. In 2016 we introduced promotional guidelines for use with our customers on promoting low- and no-sugar beverage information, particularly on menu boards and point of sale.
For example, where we invest in menu board signage at a customer’s outlet, we will only promote beverages in a meal bundle that results in the combined kilojoule content not exceeding 50 per cent of kilojoule recommended daily intake (4350kJ) per person and ask that 50 per cent of the promoted beverages are low- or no-kilojoule.
Our customer ordering platform, myCCA.com, supports our customers to make informed choices about the products they are purchasing. Through this platform we provide information about our products' ratings against government nutritional guidelines as a resource for our customers to inform themselves about our products.18
NUTRITIONAL GUIDELINES Apart from the regulatory requirements of Food Standards Australia and New Zealand (FSANZ), there are currently 19 different nutritional guidelines issued by governments across Australia for different settings such as hospital and education services as well as workplaces. The nutritional determinations in these guidelines for different products are not entirely consistent across the country. There is an opportunity here for the Federal Government to lead alignment between these guidelines.
We have taken proactive action to ensure compliance with government guidelines, commissioning Nutrition Australia (VIC Division) to assess our total Australian portfolio of drinks against the 19 health guidelines across Australian jurisdictions for different settings. The outcome of this work has been the development of catalogues for use by our sales team and customers explaining what of our products can be ranged in controlled settings such as education and health services. The catalogues are updated quarterly to maintain currency with government guidelines and new products we release.
16 Aztec scan data for the period 3/3/18 to 03/06/18. 17 https://www.coca-colajourney.com.au/compare-products 18 https://www.mycca.com.au/en/pages/segments/schools
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CATALOGUES OF COCA-COLA AMATIL PRODUCT RATINGS ACCORDING TO GOVERNMENT GUIDLEINES
Coca-Cola Amatil also has registered products with the NSW School Canteen Buyers’ Guide, produced by the Healthy Kids Association and supported by the NSW Ministry of Health. Led by the NSW Department of Education and contributed to by the NSW Ministry of Health, the Catholic Education Commission NSW and the Association of Independent Schools, this is an initiative in support of the NSW Government Premier’s Priority initiative to reduce childhood obesity and overweight by five per cent by 2025. It includes our products, among products from across the food and beverage sector and seeks to provide an informative tool for canteen managers to select healthy food and beverages for schools.
MARKETING AND PROMOTION We understand that marketing and promotion is a key communication channel to explain the nutritional qualities of the products we sell and an avenue to provide a range of suitable beverage choices.
Coca-Cola Amatil is a signatory to the Responsible Children's Marketing Initiative in Australia and is aligned with The Coca- Cola Company’s Responsible Marketing Policy and Global School Beverage Guidelines. Our marketing communications do not target children under 12 years of age in Australia. We do not commercially advertise in primary schools, and only offer products for sale when requested by the primary school for staff rooms or special events where adults are present.
NUTRITIONAL INFORMATION AND PRODUCT PORTFOLIO IN VENDING In 2017 Coca-Cola Amatil commenced a “Refreshing Choices” vending project to help business consumers identify refreshing choices within the vending machine. This project supplements work we have been doing in the health sector for nearly a decade. The objective of the project is to range at least 60 per cent sugar free products. Consumers are able to identify choices including:
• Green Zones – “Lower Sugar choices” o These are non sugar or low kj drinks sugar as Mount Franklin Mineral Water or Coca-Cola No Sugar. • Purple Zones – “Treat Yourself” o These are drinks that contain 8g or more sugar per 100mL, clearly driving a message of moderation through the use of ‘treat’ in the category name
Separate to customer led initiatives such as the one described above, Coca-Cola Amatil has been specifically working with health authorities and hospital administrations on the regulation of sugar sweetened beverages available for purchase in health services such as hospitals. This includes a three-month sugar free trial at Westmead Hospital, NSW in 2017. Since that time the NSW Government has introduced a ban on sugar sweetened drinks in hospitals and similar regulations are being enforced in other jurisdictions. We have updated our ranging and are reviewing new products that are suitable for vending, such as Asian teas, which will meet these guidelines, but have already changed the ranging in our vending machines to meet appropriate guidelines for these settings.
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PRODUCT QUALITY The quality of our food and beverages is a given and we adhere to all required standard including FSANZ on security, quality and nutrition of food. Coca-Cola Amatil responds not just to government initiatives but is an active participant with global guidance and trends. We adhere to stringent quality requirements, including regular audits, by our major brand partner The Coca-Cola Company.
We monitor developments in understanding the health impacts of our products and ingredients and follow World Health Organisation guidelines on food and ingredient safety. Increasingly our customers, consumers and other stakeholders are seeking information on the provenance of our ingredients and we are committed to mapping this, including a focus on the extent of local ingredients supply.
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OUR ACTIONS IN INDIGENOUS COMMUNITIES
We acknowledge that there are entrenched unhealthy behaviours is some sectors of the community that warrant dedicated effort, including the indigenous community.
We are proactively working with customers in particularly challenging areas including remote indigenous communities and urban precincts with overconsumption of sugar sweetened drinks to shape consumer choice and promote low- and no- sugar products.
Health and wellbeing issues in Australia’s indigenous communities are complex, with no single cause or remedy. We work with our customers in remote indigenous communities to proactive play our role in addressing this issue in a way that is sustainable for consumers and for the local store owner. In these communities, actions are taken on price, product and promotions to help shape consumer choice.
Specifically, we work with customers to:
o Offer price reductions for bottled water and low- or no-sugar carbonated soft drinks o Offer a choice of low and no-kilojoule products and help to shift consumption habits o Develop culturally appropriate marketing materials that put a spotlight on low- and no-kilojoule products for promotional activities in communities
We partner with major retailers with coverage in 132 stores across South Australia, the Northern Territory, Far North Queensland and Western Australia to deliver this program. We are working to strike the balance between supporting informed choices without removing people’s essential freedom of choice to make decisions about their own diets.
In 2017 Coca-Cola Amatil renewed our partnership with Outback Stores for three years, covering 37 stores located in the Northern Territory, South Australia and Western Australia.This partnership builds on a shared vision to actively support indigenous communities by contributing to their health and wellbeing. Joint initiatives have included promotion of $1 bottled water available at the front of the store and allocation of at least 50 per cent of product space to low- and no-sugar products that are 25 per cent cheaper than full-sugar options.
Developing an integrated marketing approach to support these initiatives is vital. All promotions and meal deals prioritise low- and no-kilojoule carbonated soft drinks and bottled water. We also provide easy to understand nutrition information to empower all our consumers with the knowledge to make the choice that is right for them. Our portfolio diversity and focus on wellbeing enables us to deliver on our business objectives to create real change in these communities.
In 2017 Coca-Cola No Sugar launched in Australia. This product represented a significant opportunity to help shape choice in remote indigenous communities. Working with our customers in remote indigenous communities, we identified the need to create tailored, culturally appropriate marketing materials in their stores to ensure Coca-Cola No Sugar would resonate with consumers in Australia’s remote indigenous communities.
The subsequent tailored marketing materials enabled us to implement a program for specific point-of-sale materials, which will extend to menu boards and other in-store items during 2018. Initiatives to date include:
o Fridge Kits – signage in lights, bottom panel and side panels o Shelf strips promoting Coca-Cola No Sugar inside fridges o Stickers to be placed inside fridge doors.
In 2018 Coca-Cola Amatil signed a three-year partnership with Arnhem Land Progress Association (ALPA), operating in 29 stores in remote Northern Territory and North Queensland. The vision we share with ALPA is to actively demonstrate support for indigenous communities by contributing to their health, wellbeing and to be commercially viable.
At ALPA stores the focus is on promoting water, layout of products in fridges that prioritise low and no sugar beverage options, the only marketing promotion being for Coca-Cola No Sugar or Mount Franklin Water and marketing responsibly.
Other customer driven community-based retail trials include only chilling Coca-Cola No Sugar and limiting the size of Coca- Cola Classic products sizes to a maximum of 600ml per pack. Coca-Cola Amatil continues to work with customers servicing remote indigenous communities to track success, identify challenges and share positive learnings, guided by our customers and health and nutrition experts on the ground with lived experience of the unique characteristics of remote communities.
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THE WAY FORWARD
Reducing obesity rates is complex and, as such, addressing obesity requires a multifaceted approach. There is no simple solution and results will take time. Based on the evidence, the solutions to tackle obesity should:
• address both activity and diet; • tackle calorie intake in general (including the role of discretionary food), not just sugar and sugar sweetened beverages; • focus on proven methods and interventions to effectively address obesity; • prioritise support to specific socio-economic and demographic groups (e.g. disadvantaged areas; indigenous population); and • provide broad-based education and information about effective and balanced measures to maintain a healthy lifestyle or reduce weight.
There is very little evidence that taxes targeting sugar sweetened beverages actually work. Research by the McKinsey Global Institute in 2014 examined 16 popularised options for obesity prevention and found that portion control, product reformulation and consumer education were consistently in the top five for effectiveness. Sugar taxes ranked near the bottom of the list at number 13.19
McKINSEY GLOBAL INSTITITUE ANALYSIS OF EFFECTIVE MEASURES TO REDUCE OBESITY
19 Overcoming Obesity: An initial economic analysis, McKinsey Global Institute, November 2014.
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The Mexico soft drinks tax is a case in point. In 2012 a total of 71.2 per cent of Mexicans were overweight or obese. A soft drinks tax was introduced, to help bring that obesity rate down. Yet by 2016 the national overweight and obesity rate was 72.5 per cent.20 Meanwhile, the new taxes had cost jobs, closed businesses down and forced poorer families to pay more.
In the case of the UK, while the commencement of a sugar tax in April 2018 compelled the beverage industry to implement a program of sugar reduction across most of their portfolio in the 18 months prior to its introduction, time will tell if this has a positive impact on community obesity and overweight.
In Australia, Medibank Private released survey findings that rates of obesity had marginally declined year-on-year.21 While this result was quite rightly described as a glimmer of hope, should this improvement be retained next year and even increased, it suggests current voluntary action in the marketplace by companies such as Coca-Cola Amatil may be starting to have an effect – without a beverage-based sugar tax being implemented in this country.
Four years ago, with our brand partner Coca-Cola Australia, we made commitments to help address obesity in Australia.22 We’ve worked closely with NGOs, the community, our customers and government to deliver against these commitments. We have made meaningful progress and are keen to participate in a wider, well-informed debate. Coca- Cola Amatil is responding to changing consumer tastes and preferences as we have always done in Australia and hope this submission makes clear our genuine commitment to supporting a healthier lifestyle for Australians.
Governments need to carefully consider the costs of public policy responses in relation to their effectiveness. We argue that similar impacts as those experienced in Mexico could be expected in Australia – a beverage-based sugar tax would cost jobs in farming, manufacturing and retail, while generating little to no return in obesity reduction. Objective data demonstrates that sugar consumption is declining in Australia and, arguably, the measures already in place from all parts of the community, including governments, and voluntarily being undertaken across the food and beverage sector, are achieving the outcomes in sugar consumption that might be sought by introducing measures such as a beverage-based sugar tax. To go further public policy should focus on measures that are wholistic and effective rather than support regressive measures that target one sector of the economy.
20 http://oment.uanl.mx/overweight-and-obesity-update-in-mexico-ensanut-2016/?lang=en 21 Medibank Health Index, 2018. https://www.medibank.com.au/content/about/media-centre/2018/06/data-offers-glimmer-of-hope-in-worsening-obesity- crisis.html 22 http://www.coca-colajourney.com.au/announcing-our-commitments-to-help-address-obesity
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APPENDIX 1
Coca-Cola: Wellbeing
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WELLBEING
30 Coca-Cola Amatil Limited Sustainability Report 2017 OUR COMMITMENT The wellbeing of our consumers – physical, We will also increase choice in all product mental and social – is at the heart of our categories and build on our commitment vision to delight millions of consumers to responsible marketing, and promotion every day. We are open and responsive to of consumer awareness of the impact of changing consumer tastes and preferences their choices on health and wellbeing. and aligned with global health guidelines To achieve this vision we will work closely and United Nations Sustainable with our partners, industry experts and our Development Goals. customers and start to measure, set targets We will offer choice and information. and report on our wellbeing initiatives. We will measure the sugar intensity of We are successful when we have a our non-alcoholic beverages portfolio in all diversified and growing consumer base that countries of operation and reduce total sugar enjoys our products regularly and in the right intensity by 10 per cent in Australia and New amount, who can make confident choices Zealand.1 We will also have the nutrition and and who trust our brands. responsible consumption information that our consumers want, conveniently available.
OUR APPROACH Material aspects and priorities have wellbeing of our consumers. We also adhere been identified in our Coca-Cola Amatil to The Coca-Cola Company’s Responsible Group-wide Wellbeing Strategy Choice Marketing Policy, Global School Beverage and Information and we also ensure Guidelines and local industry voluntary that each Business sets their own commitments such as the Responsible objectives and priorities on these aspects Children's Marketing Initiative in Australia, considering the needs of their business, and New Zealand’s Voluntary Schools partners, consumers, customers and Agreement. Quality performance is other stakeholders. The Board Risk monitored via regular internal and external & Sustainability Committee oversees audits including audits conducted by The the Group-wide Wellbeing Strategy Coca-Cola Company to ensure we meet commitments and achievements. stringent Quality, Safety and Environment requirements. Our wellbeing initiatives, including quality standards, are guided by regulatory We are committed to World Health requirements and relevant company policies Organisation Guidelines on recommended including the Coca-Cola Amatil Group-wide daily intake of added sugar. We also Human Rights Policy and Alcohol support The Coca-Cola Company's Advertising and Marketing Standards, Nutrition Guidelines for all new product which confirm our commitment to the development and reformulations.
1 Based on portfolio-wide weighted volume average total sugar content (g/100ml). All targets are for 2020 compared to 2016 unless otherwise specified.
Wellbeing 31 CHOICE
2017 —— Together with Coca-Cola South Pacific and Coca-Cola Oceania reduced sugar and kilojoules through PERFORMANCE reformulations of 22 non-alcoholic beverage products in Australia and six products in New Zealand since 2015 —— With Coca-Cola South Pacific and Coca-Cola Oceania launched Coca-Cola No Sugar in Australia and New Zealand, our biggest launch of a new Coca-Cola in the last decade —— Launched affordable small sparkling range in Indonesia, with a 250ml size of Coca-Cola, Fanta, and Sprite, and also the health-focused Minute Maid Nutriforce, featuring eight vitamins and three minerals —— Introduced and continued to expand the availability of lower carbohydrate or lower alcohol options such as Vonu Export, Rekorderlig Low Sugar cider, Miller Chill lager, Jim Beam Black, and Jim Beam Devil’s Cut —— Continued the rollout of SPC ProVital and Perfect Fruit ranges
OUR PROGRESS Our progress in 2017 to offer improved In New Zealand Non-Alcoholic Beverages choice includes: —— Since 2015 we have worked with We are focused on ensuring that our Coca-Cola Oceania to reduce sugar and beverage and food product portfolio, product In Australian Non-Alcoholic Beverages kilojoules by reformulating six products, development program, and ranging and —— Since 2015 we have worked with and in 2017 we launched the following distribution strategy are responsive to Coca-Cola South Pacific and products with no- or reduced sugar: growing consumer desires for choice. We are reformulated and reduced sugar and committed to World Health Organisation kilojoules in 22 products in Australia, —— Coca-Cola No Sugar was our Guidelines on recommended daily intake with all top-sellers offering a low biggest launch of a new Coca-Cola of added sugar and agree that too much kilojoule alternative. In 2017 we in the last decade sugar and excess kilojoules are not good launched the following products with —— Limited edition Coca-Cola for anyone. We are working to ensure that no- or low-kilojoules or reduced sugar: Raspberry, which has 25 per cent people have options in terms of product —— Coca-Cola No Sugar, a brand-new less sugar compared to Coca-Cola formulations and pack sizes in front of them sugar-free Coca-Cola variant with Classic when they make their selection, with a the great taste you would expect —— New Zealand’s number one juice suitable beverage option for every occasion from Coca-Cola, without the sugar. brand Keri launched Keri 50 per and a nutritious, high-quality food range. In some markets Coca-Cola No cent Less Sugar Fruit Drink with We support The Coca-Cola Company's Sugar is replacing Coca-Cola Zero. half the kilojoules and sugar from Nutrition Guidelines. These are based on —— Limited edition Coca-Cola fruit juice compared to regular Keri the national guidelines and targets set by Raspberry with 25 per cent less Everyday Juices and Fruit Drinks leading health authorities, such as the sugar compared to Coca-Cola —— Deep Spring Light, which is a World Health Organisation, setting targets Classic carbonated fruit drink sweetened for new formulations on energy, sugar, total —— Coca-Cola with Stevia (replacing with stevia and juice fat, saturated fat, protein, sodium and Coca-Cola Life) with 50 per cent —— Barista Bros Mocha has 28 per caffeine, and providing guidance of having less sugar and kilojoules compared cent less sugar compared to less than or equal to 7.9g sugar per 100ml, to Coca-Cola Classic Barista Bros Iced Coffee excluding 100 per cent fruit juice. —— Limited edition Coca-Cola Plus —— Fanta Grape with a 23 per cent We have made a commitment in 2017 Coffee No Sugar reduction in sugar compared to 1 to measure the sugar intensity of our —— Pump+ with natural electrolytes original Fanta Grape recipe non-alcoholic beverages portfolio in all from coconut water, which is low in —— Powerade ION4 with a 20 per cent countries of operation and reduce total kilojoules, and has no preservatives reduction in sugar compared to sugar intensity by 10 per cent in Australia —— Mount Franklin Lightly Sparkling original Powerade recipe and New Zealand between 2016 and 20202. 250ml cans with a hint of Lime, —— Sparkling Duet Raspberry with We believe that this measure most Raspberry or Mango and containing an 18 per cent reduction in sugar accurately reflects how our portfolio is no sugar, sweeteners, artificial compared to original Sparkling changing over time in response to consumer flavours or preservatives Duet Raspberry recipe choices and health professional expectations and guidance. —— Keri Juice Blends using natural —— Fanta Raspberry with an 18 per ingredients, with no added sugar cent reduction in sugar compared and preservative free to original Fanta Raspberry recipe —— Our small3 packs are available in —— Keri Kids as Keri Fruity Drink with 95 per cent of grocery stores and 30 per cent reduction in sugar around 70 per cent of convenience —— Our small packs are available in 95 per stores and petrol stations cent of grocery stores, 100 per cent of petrol stations and 83 per cent of convenience stores
32 Coca-Cola Amatil Limited Sustainability Report 2017 “ In Indonesia and Papua New Guinea —— We expanded the availability Non-Alcoholic Beverages of Miller Chill, a lower carbohydrate WE HAVE MADE —— We have committed to measuring the lager, with the introduction of a can sugar intensity across our portfolios format as an alternative to glass and continuing the rollout of lower bottles across Australia A COMMITMENT sugar options and smaller pack sizes —— In Australia we are providing more —— Our 2017 product launches in Indonesia choice in our premium ready-to- IN 2017 TO included: drink range, reducing alcohol in —— ‘Affordable small sparkling Jim Beam Black, from six per cent MEASURE THE packaging’ range, a 250ml size to five per cent alcohol by volume, of Coca-Cola, Fanta, and Sprite and launching new premium SUGAR INTENSITY varieties, some higher strength, —— Minute Maid Homestyle, with a but in smaller pack sizes, to higher content of real juice, available OF OUR NON- meet consumer preferences in Orange and Guava flavour, and 300ml and one litre sizes —— In Fiji, we are growing sales ALCOHOLIC and distribution of our lower —— Frestea Jasmine Masterblend, carbohydrate beer Fiji Gold a Jasmine flavoured tea blend BEVERAGES that suits Indonesian tea consumer In SPC preferences, with all Frestea in —— We continued the rollout of SPC PORTFOLIO IN ALL Indonesia using real tea leaves ProVital range, improving wellness and being carefully brewed and nutritional outcomes for the COUNTRIES OF elderly and patients in aged care —— Minute Maid Nutriforce, featuring facilities and hospitals. This Health eight vitamins and three minerals Star-rated range has been specifically OPERATION including vitamins B12, C, and D developed in conjunction with health and zinc and available in 290ml care professionals and aims to provide Tetra Pak packaging a more accessible fruit snack for In Alcohol & Coffee consumers with fine motor skill ” —— Across all our regions, we continue difficulties, including the elderly and to innovate and build our portfolio to hospital patients. The range utilises THE WORLD HEALTH provide a better choice of beverages cold fill technology to lock in fruit ORGANISATION’S 2015 GUIDELINE: for all occasions. This includes a variety goodness in recyclable packaging Coca-Cola Amatil and The Coca-Cola of pack types, and premium quality, —— We are also expanding the distribution Company support the World Health higher and lower strength, and lower of Perfect Fruit soft-serve. Made from Organisation’s 2015 Guideline: Sugars calorie alcohol beverages 100 per cent Australian fruit, it is intake for adults and children which —— In 2017 we launched Vonu Export, dairy free, fat free and has less than recommends reduced intake of free an ultra-low carbohydrate and low 75 calories. sugars throughout life. In both adults gluten beer in Australia and Fiji, and children, the intake of free sugars and Rekorderlig Low Sugar cider should be reduced to less than 10 per in Australia cent of total energy intake. A further reduction to below 5 per cent of total energy intake would provide additional health benefits.4 1 Based on portfolio-wide weighted volume average total sugar content (g/100ml). 2 Moving Annual Total (MAT) 1 January 2016 to MAT 31 December 2020. 3 Small packs are defined as equal to or less than 300ml. 4 World Health Organisation Guideline: Sugars intake for adults and children (2015).
Wellbeing — Choice 33 As part of our wellbeing programs Coca-Cola Amatil proudly supported the Under 15 Girls Michael Long Cup in Darwin
Case Study: WELLBEING ACTIONS IN REMOTE INDIGENOUS COMMUNITIES
Health and wellbeing issues in Australia’s Joint initiatives have included promotion Working with our customers in remote Indigenous communities are complex, with of $1 bottled water available at the front indigenous communities, we identified no single cause or remedy. We work with of the store and allocation of at least the need to create tailored, culturally our customers in remote indigenous 50 per cent of product space to low- and appropriate marketing materials to promote communities to proactively play our role no-sugar products that are 25 per cent Coca-Cola No Sugar in their stores. in addressing this issue in a way that is cheaper than full-sugar options. Coca-Cola Amatil and Coca-Cola South sustainable for consumers and for the local Developing an integrated marketing Pacific developed a proposal to ensure store owner. In these communities actions approach to support these initiatives Coca-Cola No Sugar would resonate are taken on price, product and promotions is vital. All promotions and meal with consumers in Australia’s remote to help shape consumer choice. deals prioritise low- and no-kilojoule indigenous communities. Price carbonated soft drinks and bottled We were delighted that the tailored We work with customers to offer price water. We also provide easy to understand marketing materials enabled us to reductions for bottled water and low- nutrition information to empower all our implement a program for specific or no-sugar carbonated soft drinks. consumers with the knowledge to make point-of-sale materials such as: the choice that is right for them. Product —— Fridge Kits – signage in lights, bottom We offer a choice of low- and no-kilojoule David Box, Coca-Cola Amatil’s State panel and side panels products and help to shift consumption Business Manager in the Northern habits. Territory said, “Our portfolio diversity and —— Shelf strips promoting Coca-Cola focus on wellbeing enables us to deliver No Sugar inside fridges Promotions on our business objectives to create real —— Stickers to be placed inside We develop culturally appropriate change in these communities.” fridge doors. marketing materials that put a spotlight on low- and no-kilojoule products for Outback Stores Chief Executive Officer, In 2018 this program will extend promotional activities in communities. Michael Borg, said the strategies we can to menu boards and other in-store items. implement together prioritise wellbeing in Partners Recognising this opportunity, a commercially viable way. “In 2017 these We partner with major retailers ALPA, a number of customers have driven their strategies of price and product contributed Mai Wiru, Outback Stores and Community own community-based trial such as: to a sugar reduction in consumed drinks Enterprises Queensland, with coverage of 2.2 per cent. It’s thanks to partnerships —— Making Coca-Cola No Sugar in 103 stores across South Australia, the with suppliers like Coca-Cola Amatil that available chilled in the refrigerator Northern Territory, Far North Queensland we’re able to support these outcomes and and Western Australia. —— Making Coca-Cola Classic only we look forward to ongoing collaboration available on shelves Outback Stores and Amatil in with them.” Remote Indigenous Communities —— Making Coca-Cola No Sugar available Coca-Cola No Sugar in In 2017 Coca-Cola Amatil renewed our in pack sizes up to 1.25L, but Indigenous Communities partnership with Outback Stores for three restricting Coca-Cola Classic to a In 2017 Coca-Cola No Sugar launched years, covering 37 stores located in the maximum of 600ml per pack. in Australia. This product represented Northern Territory, South Australia and a significant opportunity to help shape Coca-Cola Amatil continues to work with Western Australia. choice in remote indigenous communities, these customers to track success, identify This partnership builds on a shared thanks to a taste profile more like challenges and share positive learnings vision to actively support Indigenous Coca-Cola Classic, but with no sugar. as appropriate. communities by contributing to their health and wellbeing.
34 Coca-Cola Amatil Limited Sustainability Report 2017 Examples of Australian Non-Alcoholic Beverages Reformulation and Percentage reduction in Sugar (g/100ml)
2016 & 2017 Lift Deep Spring Deep Spring Deep Spring Fanta Fanta Hard Hitting Orange Orange Orange Sprite Raspberry Grape Lemon Mango Passionfruit Lemon Lime
-14% SUGAR -19% SUGAR -23% -23% SUGAR SUGAR -26% -26% -26% SUGAR SUGAR SUGAR
Examples of New Zealand Non-Alcoholic Beverages Reformulation and Percentage reduction in Sugar (g/100ml)
2016 & 2017 Sparkling Duet Fanta Powerade Fanta Keri Fruity Raspberry Raspberry ION Grape Drink
-18% -18% SUGAR SUGAR -20% SUGAR -23% SUGAR
-30% SUGAR
Wellbeing — Choice 35 Case Study: COCA-COLA NO SUGAR: SAY YES TO THE TASTE YOU LOVE
Coca-Cola Amatil’s and Coca-Cola A major marketing campaign was kicked flavour to be brought to life from the South Pacific's target to reduce sugar off with a Coke truck sampling activation Coca-Cola No Sugar line-up. in our Australian Beverages portfolio by in Sydney where consumers had the To promote this new product, Coca-Cola 10 per cent by 2020 is supported by opportunity to see US singer Kelly South Pacific teamed up with The Urban introducing new recipes with less sugar, Rowland perform and be the first to List, collaborating to showcase Coca-Cola offering smaller and more convenient taste Coca-Cola No Sugar in Australia. Plus Coffee with some favourite food packaging and increasing our marketing The campaign featured a television outlets across Sydney. investment in no-sugar and low- commercial introducing “Say Yes to the kilojoule drinks. Taste You Love” and supported by the The launch results have been very largest sampling program undertaken in positive. Coca-Cola No Sugar penetration Coca-Cola No Sugar – a brand new Australia, with two million samples of and brand awareness has continued to sugar-free Coca-Cola innovation from Coca-Cola No Sugar given to consumers. grow. Brand awareness is now at 59 per The Coca-Cola Company – was launched cent – a very good figure for a product in in June 2017. After five years of research, Then a new member of the Coca-Cola its first year in the market. And one in five recipe mixing and consumer trials, family arrived – Coca-Cola Plus Coffee consumers have purchased a Coca-Cola Coca-Cola No Sugar delivered a great No Sugar – bringing together two taste No Sugar in the last six months. In some tasting sugar-free beverage with a new sensations in Coca-Cola No Sugar and markets the launch of Coca-Cola No recipe closer to the taste of the original Australia’s favourite hot beverage, coffee. Sugar has seen the phase out of Coca-Cola. This was the first specialty rotational Coca-Cola Zero.
2018 In Non-Alcoholic Beverages PLANS FOR —— Ensure that all new Coca-Cola innovations in Australia and New Zealand are reduced, low- or no-sugar only IMPROVEMENT —— Continue to follow The Coca-Cola Company’s Nutrition Guidelines in Australia and New Zealand —— Undertake 12 reformulations in our Australian portfolio to reduce sugar in 2018 and 2019 —— Undertake seven reformulations in our New Zealand portfolio to reduce sugar in 2018 and 2019 —— Continue driving smaller pack-size availability in all distribution channels and countries —— In Fiji we plan to launch Coca-Cola No Sugar and Sprite Zero, and reformulate Diet Coca-Cola to further promote trial and acceptability of our non-sugar portfolio. Additionally, Fiji will locally produce Powerade Zero to provide choice in the rapidly growing Sport category. Fiji will also launch a limited edition Coca-Cola Raspberry, which has 25 per cent less sugar compared to Coca-Cola Classic —— Improve measurement and tracking of choice within our portfolios, including changes to sugar intensity and pack size availability In Alcohol & Coffee —— Trial sugar reductions across our alcoholic ready-to-drink products in the Pacific region In SPC —— Continue to expand the availability of health focused food ranges including SPC ProVital and Perfect Fruit
36 Coca-Cola Amatil Limited Sustainability Report 2017 INFORMATION
2017 —— Continued our commitment to availability of information for our non-alcoholic beverages via online product PERFORMANCE comparison tools and myCCA customer ordering platform, on-pack information and point-of-sale —— Delivered our commitment as a signatory to the Responsible Children's Marketing Initiative in Australia, and New Zealand’s Voluntary Schools Agreement, and our alignment with The Coca-Cola Company’s Responsible Marketing Policy and Global School Beverage Guidelines —— Continued our focus on demonstrating our quality production processes and facilities in Indonesia by conducting a free-of-charge Coca-Cola Tour of our manufacturing facilities for over 75,500 members of the public —— Implemented a new Coca-Cola Amatil Group-wide Alcohol Advertising and Marketing Framework and continued our Australia-wide Responsible Service of Alcohol accredited training for all employees working with alcohol —— Launched a Designated Driver campaign to help New Zealanders make safe and responsible choices
Our progress in 2017 to offer improved —— Continuing Coca-Cola Amatil’s OUR PROGRESS information includes: commitment as a signatory to the Responsible Children's Marketing In Non-Alcoholic Beverages in Australia Coca-Cola Amatil is committed to providing Initiative in Australia, and New & New Zealand easy access to information about ingredients Zealand’s Voluntary Schools and recommended serving sizes for —— Ensuring every product's nutrition and Agreement, and alignment with The products. We aim to equip our consumers ingredient information is available via Coca-Cola Company’s Responsible with the awareness and information they our online product comparison tool Marketing Policy and Global School need to make confident choices that are Beverage Guidelines. Our marketing —— Continuing to offer products that right for them. We market responsibly and communications are designed to not align to health guidelines for school are extending the coverage of responsible directly appeal to children under 12 canteens across Australia and service programs in our region. years of age in Australia or 14 in New New Zealand The quality of our products is a given. Zealand, and we will not commercially —— Implementing Promotional Guidelines We adhere to all required standards advertise in primary schools, and only with key controls such as multi-serve including Food Standards Australia offer products for sale when requested bundles stating they are for multiple and New Zealand and the Indonesian by the school people/occasions; and featuring meal Government Regulation No. 28/2004 —— Providing total transparency on all and snack bundles only where combined on security, quality, and nutrition of food. our health and wellbeing partnerships, kilojoule content is less than 50 per cent We also adhere to the stringent quality research, and any individuals receiving of the Daily Intake for energy requirements, including regular audits, funding support from the Coca-Cola of our major brand partner The Coca-Cola —— Voluntarily introducing the “per cent” system, dating back to 2010 Daily Intake Guide label on all our Company. We monitor developments in —— In Australia, on our customer ordering products which provides clear understanding the health impacts of our platform myCCA, providing information information on both the amount of products and ingredients and follow World about our products' ratings against kilojoules per serve and what this Health Organisation guidelines on food green/amber/red lighting systems to represents as a percentage of an and ingredient safety. ensure our customers are informed adult’s total daily energy intake Increasingly our customers, consumers about our products —— Working to ensure our kilojoule and other stakeholders are seeking —— Highlighting serves-per-pack on the information is always available via information on the provenance of our labels of our larger multi-serve bottles pack or point-of-sale. Vending decals, ingredients and we are committed to to inform consumers how many 250ml new dispensed cup artwork and menu mapping this, including a focus on the serves are in a large bottle boards are being updated to deliver extent of local ingredients supply. against this commitment. Recently, we —— Launching the Coca-Cola Designated introduced nutrition information panels Drivers campaign in New Zealand to on our vending machines, reaching celebrate ‘Kiwis looking after their 75 per cent by the end of 2015 mates’ and helping New Zealanders make safe and responsible choices during the festive summer period
Wellbeing — Information 37 In Alcohol & Coffee —— Implementing a new Coca-Cola Amatil Group-wide Alcohol Advertising and Marketing Framework and tracking our compliance with it —— Maintaining our long-term position as official signatory to the Australian Alcohol Beverages Advertising Code and DrinkWise Australia, an independent, not-for-profit organisation whose primary focus is to help bring about a healthier and safer drinking culture —— Expanding the use of voluntary responsible consumption and pregnancy warning messaging in all our marketing and communications materials, including print and digital —— Continuing our membership and funding agreement with new pan- Case Study: industry body Alcohol Beverages Australia to support initiatives that WELCOMING CONSUMERS TO OUR COCA-COLA PLANTS encourage responsible consumption Quality and transparency is vital for The tour starts with a safety briefing, of alcohol and contribute to an consumer confidence in our products. followed by videos on the history of informed discussion on alcohol Coca-Cola Amatil Indonesia created Coca-Cola and on the production and beverage issues the Coca-Cola Tour, a half-day program distribution process. Visitors are then —— Continuing our Australia-wide inviting consumers to see how our guided through the plant and also Responsible Service of Alcohol products are manufactured and how presented information on our product accredited training for all employees we support customers and communities portfolio and sustainability initiatives. working with alcohol beyond those across Indonesia. The tour, which takes up to three hours, who may be serving alcohol concludes with a product tasting and Through the Coca-Cola Tour program, question and answer session. In Indonesia and Papua New Guinea people can inspect our strict quality —— Continuing our alignment with system, the ingredients that go into Coca-Cola Amatil Indonesia’s Ida The Coca-Cola Company’s Responsible our world-class beverage and how our Lukitowati, said “The Coca-Cola Tour Marketing Policy and Global School products are manufactured and packed. program is an important communication Beverage Guidelines tool for people to understand how our Coca-Cola Tours are currently available —— Conducting a free-of-charge public products are made and our focus on in Medan, Lampung, Cibitung, Sumedang, Coca-Cola Tour of our manufacturing quality assurance.” Semarang, Pasuruan, and Bali. facilities in Indonesia, to provide In 2017, over 75,500 people have had transparent information and The Coca-Cola Tour enables visitors the Coca-Cola Tour experience. Most demonstration of our quality to discover the production process, and tour participants are high school and production processes and facilities. also acquire knowledge of the company university students, but throughout the In 2017 over 75,500 people enjoyed history, corporate social responsibility year we have also conducted the tour the Coca-Cola Tour experience initiatives, and facts on our products. for key customers, media and The tour is facilitated by our Public government officials. Affairs and Communications team and guided by our Quality Assurance team.
38 Coca-Cola Amatil Limited Sustainability Report 2017 Case Study: NEW ALCOHOL ADVERTISING AND MARKETING FRAMEWORK – AUSTRALIA, NEW ZEALAND, SAMOA AND FIJI
As an industry leader, we are committed There are three elements to the new the system captured a five-fold to best practice in the responsible Alcohol Advertising and Marketing increase in submissions, compared service, promotion, and consumption Framework: to the corresponding period in 2016. of alcohol. In 2017, we implemented This integrated approach provides ease 1. New set of Coca-Cola Amatil Group a new Coca-Cola Amatil Alcohol of use, reporting, scalability and security Standards for Alcohol Advertising Advertising and Marketing Framework benefits. The system is now being and Marketing for the marketing and with a new set of Group-wide standards, expanded by Coca-Cola Amatil’s promotion of our alcoholic beverage a training manual and program as well Australian Beverages Business for use portfolio in all the countries in which as a compliance framework and alcohol across our non-alcoholic beverage our Alcohol & Coffee Business operates marketing approvals process. Our portfolio. – Australia, New Zealand, Fiji and Samoa Alcohol Compliance Committee will be – for all channels. “It feels good to be taking the lead in the tracking our performance annually as industry in Fiji with responsible alcohol part of this framework. 2. Training manual and annual program, marketing. The approval process and including an interactive workshop, Further demonstrating our commitment, feedback from the approvals committee providing specific requirements of the we have also become an official has also challenged us to recreate brand Alcohol Beverages Advertising Code and signatory to the Alcohol Beverages messages that keep our brands, our real-life examples for our staff and key Advertising Code and DrinkWise employees and consumers safe by agency and brand partners. Eighty Australia. The Alcohol Beverages ensuring we promote responsible employees from Australia, Fiji, and Advertising Code is a voluntary system consumption and service of alcohol.” Samoan-based marketing and sales of compliance, running since 1998, that — Rowena Taito, Head of Marketing and teams have been through the training encourages industry to adhere to the New Product Development, Paradise process, with sessions also run for 20 Responsible Alcohol Marketing Code. Beverages, Fiji people from four key agency partners. Negotiated with the Australian Federal Government, it is funded by the alcohol 3. A new internal approvals process industry, but all complaints are handled to ensure all material confirms to our independently. DrinkWise Australia is an standards. The Marketing Approvals independent, not-for-profit organisation Committee for Coffee and Alcohol brings providing national information and together representatives from legal, risk, education campaigns and practical brand and public affairs teams to provide resources to help inform and support a fast and effective weekly approvals the community about a healthier and forum that accepts online and hard safer drinking culture. copy submissions. In December 2017,
2018 In Non-Alcoholic Beverages —— Support voluntary industry-led initiatives to reduce portfolio sugar intensity and provide information PLANS FOR on progress IMPROVEMENT —— Track the reach of our wellbeing information —— Maintain our commitment to supporting the Responsible Children's Marketing Initiative in Australia, and New Zealand’s Voluntary Schools Agreement, The Coca-Cola Company’s Responsible Marketing Policy and Global School Beverage Guidelines In Alcohol & Coffee —— Take the lead in the creation and introduction of Responsible Service of Alcohol training and responsible consumption messaging in the Pacific region In all Businesses —— Ensure our consumers are confident about their choices, by supporting responsible suppliers and mapping where our ingredients are sourced. This includes mapping the provenance of priority ingredients and tracking the products and brands where our key ingredients are sourced locally —— Track the number and impact of wellbeing locations in communities, schools, and hospitals where we invest in the promotion of healthier food and beverage options
Wellbeing — Information 39
APPENDIX 2
Sugar Reduction: Our Actions in the Australian Marketplace
Coca-Cola Amatil 7
Our actions in the marketplace WE’RE ACTING ON SUGAR REDUCTION IN AUSTRALIA
2020 Target We are on track to meet our commitment to reduce sugar from % our total Portfolio sales by 10 10% By 20201
1. INNOVATION: WE’RE ACTIVELY ENCOURAGING AUSTRALIANS TO CHOOSE REDUCED OR NO SUGAR DRINKS
Coca-Cola No Sugar - Coca-Cola with Stevia Our biggest launch of a which contains new Coca-Cola in the last decade 50% All Coca-Cola innovations will be years in development Less sugar And Kilojoules than reduced or no sugar only, like Research, recipe mixing & 5 Coca-Cola Classic Coca-Cola Plus Coffee and consumer trials Coca-Cola Raspberry
2. R EFORMULATION: WE’VE REDUCED SUGAR AND KILOJOULES IN 2 22 PRODUCTS SINCE 2015 WITH MORE REFORMULATIONS PLANNED FOR 2018
Percentage reduction in sugar (2015-2017)
Kirks Kirks Fuze Tea Fuze Tea Sprite Cascade Fanta Fanta Powerad e Fanta Lift Hard Lift Hard Deep Deep Deep Fuze Tea Fuze Tea Fuze Tea Fuze Tea Goulburn Goulburn Coca-Cola Creaming Lemonade Apple and Rooibos Dry Ginger Orange Raspberr y ION4 Grape Hitting Hitting Spring Spring Spring Mango and Green Tea Black Tea Black Tea Valley Fruity Valley Fruity With Soda Lemongrass Raspberry Ale Lemon Lemon Orange Orange Orange Chamomile Peach Lemon Peach Drink Drink Stevia Hibiscus Fountain Mango Passionfruit Lemon Lime Orange Apple (From Blackcurrant Coca-Cola Life)
0 -4.9% -5.5% sugar sugar -5 -9.2% sugar -11% sugar -10 -14.9% sugar % -17.3 % -15 sugar -18.7 % sugar -19.3 % sugar -20.5 % % % sugar -23.4 -23.6 -23.6 sugar sugar sugar -20 -26% -26% -26.6% sugar sugar sugar -25 % % -31.7 -31.7 % sugar sugar -32.8 %
% decrease in sugar content (g/100mL) -30 sugar -33.3 % sugar -34.1 sugar
-35 -38.6% sugar
-40 -44.3% sugar -45
Today out more 80% 3 of 5 than 33% Of our 25 brands across our of our core Coca-Cola of our Coca-Cola volume (litres) portfolio offer no added sugar or products are reduced , comprises either ‘no sugar’ or low kilojoule3 alternatives low or no sugar low kilojoule varieties4
1. Based on volume weighted average sugar content (g per 100mL) - this calculation accounts for the relative volume sold of each product. Reduction from 2016 to 2020. Coca-Cola South Pacific (CCSP) and Coca-Cola Amatil Australian Beverages (CCA) portfolio: Carbonated soft drinks, fruit drinks, fruit juice, iced tea, water and flavoured waters, sports drinks, energy drinks and flavoured milks. On track at time of publication: June 2018. 2.Sugar and kilojoule ( kJ) reduction after reformulation (based on total sugars content g/100 mL and kJ /100 mL) 3. Low kilojoule (kJ) is less than 80 kJ per 100 mL. 4. Aztec Grocery excluding ALDI Calendar Year To Date, May 2017. Low kilojoule (kJ) is less than 80 kJ per 100 mL. . 3. SMALL PACK SIZES: WE’RE INCREASING AVAILABILITY IN MORE LOCATIONS
From July 2016 with the launch of the 250mL bottle, All of our small packs are now offered in 95% of grocery stores, and in 70% of convenience stores and petrol stations5 hero sparkling brands are sold in small packs6 95% 70%
We reduced our 450mL Approximately HALF of all bottle to stockists of 450mL now 390mL stock 390mL instead
4. RESPONSIBLE MARKETING: HARNESSING OUR MARKETING CAPABILITIES
We’re highlighting energy We promoted and sugars on nutrition our actions information panels through mainstream media in May 2018 to further demonstrate 90% our of our marketing spend commitment will now feature or hero to our goals a low or no kJ Coca-Cola
WE’RE CONTINUING TO INCREASE OUR RANGE OF REDUCED AND NO SUGAR DRINKS Today our portfolio consists of more than 180 products and 25 brands with ALL top sellers7 now offering a no sugar alternative
Diet Coke Pump Water Coke Zero Glaceau Powerade Zero Fanta Zero Glaceau SMARTWATER Fanta Zero Vitaminwater Coke Zero (Re-launched) Glaceau (1st launched) Vanilla Fruitdropwater
1983 2000 2005 2008 2011 2014 2016
1980s 2004 2006 2009 2012 2015 2017
Mount Franklin Sprite Zero Pump flavoured Mount Franklin Mother Sugar Free FUZE TEA Coca-Cola Still Water Water Lightly Sparkling (4 From 6 are No Sugar Natural & Lemon Low k)
5. Aztec Grocery excluding ALDI Calendar Year To Date, May 2017. 6. Hero sparkling brands include Coca-ColaTM, Sprite, Fanta and Lift. Refers to single small pack <300mL. 7. Coca-Cola, Sprite, Fanta, Powerade and Mother.
Content is Australian and accurate as of June 2018
APPENDIX 3
Coca-Cola: Our Actions in the Marketplace
Coca-Cola Amatil 8
June 2018 We’ve come a long way since 1937 when the first Coca-Cola production facility was set- up in Australia with just ten staff and four fleet trucks. Today, The Coca-Cola Company portfolio in Australia has grown to offer more than 180 products over 25 brands and we’re proud of our progress in innovation. Importantly, our journey to becoming a total beverage company includes supporting the World Health Organization (WHO)’s recommendation that people limit added sugars to 10 per cent of their daily energy intake.
The Coca-Cola Australia and Coca-Cola Amatil portfolio We have set ourselves a clear goal for 2020 to reduce by includes Fanta, FUZE Tea, Keri Juice Blenders, Mount 10% the average amount of sugar in the portfolio we sell. Franklin Lightly Sparling, Powerade, Pump, Sprite and ZICO Coconut Water. This will involve building on our ambitious reformulation and new product innovation program, and also harnessing These and many other brands of The Coca-Cola Company our marketing capabilities to encourage more people to are manufactured and distributed right across the country choose our lower kJ and no sugar beverages. by Coca-Cola Amatil, the Australian listed bottler and manufacturer. Together as part of the ‘Coca-Cola system’, The launch of Coca-Cola No Sugar, a new and improved Coca-Cola Amatil and Coca-Cola South Pacific directly sugar-free Coca-Cola, is a key part of our strategy to help employ almost 4,000 people nationwide. Australians reduce their sugar intake. It took more than five years of development to achieve a taste as similar to Coca- Since Diet Coca-Cola was launched more than 35 Cola as possible, as we know taste is key. We are pleased at years ago, we’ve continued to focus on new product how positive the response has been. innovations. Today, all of our top sellers now offer a low or no kJ alternative. We are increasing the focus in our marketing campaigns with 70 per cent of our Coca-Cola marketing spend to We’ve also invested heavily in our reformulation efforts, feature or hero a low/no kJ Coca-Cola. This will be further reducing the sugar in 22 products since 2015. Today, supported by increasing the availability of low and no around 30 per cent of all the drinks we sell in Australia kJ variants of other brands such as Sprite, Fanta and are either low kJ or no sugar. Powerade.
But we recognise we need to do more for the wellbeing Our progress against our 2020 sugar reductions targets will of Australians. Beyond our innovation and reformulation be published on our Coca-Cola Journey Australia website efforts, we continue to work with a range of health and and in Coca-Cola Amatil’s annual Sustainability Report and nutrition experts and align with guidelines from leading website. We are committed to being visible in our actions, health authorities like the World Health Organisation on ensuring we deliver this change and continue to build on sugar. the progress we are making.
Vamsi Mohan, President,
3 New Product Innovations Coca-Cola No Sugar (June 2017)
Aim: To actively encourage more Australians to choose a no-sugar Coca-Cola
Coca-Cola No Sugar was created to taste just like classic Our innovation team is focused on creating new recipes and products with Coca-Cola – but with no added sugar. It plays a key role in no or lower sugar content, along with great taste. Examples of our recent achieving our sugar reduction target as our insights found Only 41% of classic Only 7% of classic that a sizeable proportion of consumers are looking for a innovations created for Australian consumers are included below. Coca-Cola consumers Coca-Cola consumers new, great tasting no sugar Coca-Cola alternative. associate Coke Zero with associate Coke Zero containing no sugar4 with tasting great4
Coca-Cola with Stevia (April 2017) 5 Years in Development The new recipe is SIGNIFICANTLY PREFERRED WHAT: Coca-Cola with Stevia recipe in just a few months. The journey began in 2012 where the R&D team based in A new recipe, Coca-Cola with Stevia as an evolution of Recipe development using Stevia with the Coca-Cola Atlanta was tasked with creating a Coca-Cola that is sugar BY COCA-COLA DRINKERS & equally loved by Coca-Cola Life. Company tracks back to 2010 with the first stevia in free and tastes more like classic Coca-Cola. For the next Coke Zero drinkers in Australia (vs current Coke cola drinks in Argentina, followed by the USA in 2012, five years, R&D trialled dozens of recipes and undertook Zero formulation)5 WHY: Great Britain in 2014 and Germany just last year. multiple consumer trials in different markets, eventually To continue to reduce the sugar content without creating our best tasting no sugar Coca-Cola. impacting on taste. From 35 percent less sugar to 50 per cent less sugar than classic Coca-Cola.
To make it easier for consumers to understand the key ingredient by changing the name to Coca-Cola with Stevia. Research showed that Australians are familiar Our biggest launch of a new Coca-Cola in the with stevia as a common natural sweetener in food and drinks. % last 10 years 50less sugar and kilojoules than
classic Coca-Cola HOW: Our technical team built on the eight years of learning and development with Stevia to create the new
3 % increase 1 million+ 1.3 2 In mix of no or low sugar just Keri Juice Blenders (June 2017) free samples have been taken eight weeks after Coca-Cola No up by consumers Sugar launched6 WHAT: “This is the first time we’ve introduced a For the very first time we have introduced vegetables in vegetable blend in Australia, with our new to the portfolio, as seen in the Keri Juice Blenders line. Keri Juice Blenders range being locally Crafted using natural and unique ingredients this new created as an important addition to the range is part of our investment in meeting the needs of today’s consumers by offering new juices with: portfolio.”
• No added sugar – George Droumev, Technical Director, Coca-Cola 42% 74 % 80% 33% of Coca-Cola of carbonated soft drink of Coca-Cola of our Coca-Cola volume • Preservative free drinkers intend to consumers are aware of classic drinkers (litres) comprises of either • Smaller pack size than Goulburn Valley purchase 7 are aware of ‘no sugar’ or ‘low or no kJ’ • Great taste the no sugar alternative Coca-Cola No Coca-Cola No varieties 8 WHY: Sugar 7 Sugar 7 The new juice offering supports our wider sugar reduction strategy. The smaller packs sizes of 300mLs are a reduction from the Goulburn Valley 500mL pack size. Current offerings include no added sugar. What we’ll do next
HOW: Keri Juice Blenders were locally developed with the From 2017 our ambition is for all new Coca-Cola innovations to be reduced, support of a ‘Master Juice Blender’ who supported the Research and development (R&D) team to create each low or no sugar only new recipe.
5 Reformulation Introduction of company nutrition guidelines To help ensure our product development team have the Our guidelines include: information and guidance to drive the reformulation and new product development program, we introduced 7 TARGETS: ‘Nutrition Guidelines’ in March 2016. They are based on Energy, Sugar, Total Fat, Saturated Fat, Protein, Sodium & As part of our commitment to sugar reduction, we’ve reduced sugar and the Australian Dietary Guidelines guidelines and targets Caffeine. 9 set by leading health authorities, such as the World Health kilojoules in 22 products since 2015. CATEGORY TARGET REQUIREMENTS: “When it comes to sugar Organisation. We’ve been carrying out a sugar reduction program of Specific to each beverage category e.g. regular soft drinks our current range of beverages over many years. We reduction, our goal is to gradually These guidelines are updated annually based on and flavoured milk. are doing this in two ways: regular reviews and evaluation of new science, nutrition reduce sugar content over time by SUGAR GUIDELINES: recommendations and our global research and • ≤ 7.9g sugar per 100mL (excludes 100% Fruit Juice) 1. Reducing sugar content over time, reducing the a variety of methods, including development program. overall sweetness profile - eg Lift hard hitting Lemon, the use of sweeteners from • ‘No Added Sugar’ - 100% Fruit Juice Powerade ION4 natural sources.” 2. Reducing sugar and replacing with non-nutritive – Coral Colyer, Scientific & Regulatory Affairs sweeteners, including Stevia - eg Sprite, Fanta Manager, Coca-Cola Raspberry Deep Spring Mineral Water (2016)
WHAT: CAMPAIGN: Reduced sugar content of Deep Spring Mineral Water The July 2016 launch was supported by a national Range by 26%. marketing campaign that included outdoor, digital and Percentage reduction in sugar and kilojoules (2015-2017)9 experiential including a giant colour-by-numbers street- WHY: art activation. Our research found that younger consumers (25-39 years) are increasingly seeking out beverages with full Kirks Kirks Sprite Fanta Powerade Fanta Lift Hard Deep Deep Deep Goulburn favour and a not-so-sweet taste profile. Creaming Lemonade Raspberry ION4 Grape Hitting Spring Spring Spring Valley Fruity Soda Lemon Orange Orange Orange Drink Passionfruit Mango Lemon Lime HOW: Our innovation team reduced the sugar content by 26% with no addition of alternate sweeteners and maintaining great taste.
The team also created a newcomer to the range, Peach 0 and Raspberry. Each Deep Spring fruity sparkling -5% -5% sugar sugar mineral water contains no artificial colours and favours. -5 4 5 less kJ less kJ -10 -14% sugar % -15 -19 % sugar -20 % % 14 sugar -23 -23 less kJ sugar sugar -20 19 % % % 18 less kJ less kJ 22 21 -26 -26 -26 less kJ less kJ sugar sugar sugar -25 -30% 2 2 2 sugar less kJ less kJ less kJ
decrease in sugar content (g 100mL) -30 33 less kJ
RS RS RS What we’ll do next RS RS + + RS + RS RS RS RS RS
RS Reduced sugar only 12 reformulations in our portfolio are planned for sugar reduction10 from August 2017 to December 2018 RS Reduced sugar + added Stevia +
7 Smaller Pack Sizes
We’re committed to providing consumers with more choice by providing a range of smaller packs and more convenient sizes across our portfolio. And importantly, making sure we increase the availability of these small packs in more locations.
Our journey Between 2013 to 2016, sales of small packs grew by
2013 2014 2015 2016 3 200mL mini-can 250mL can 390mL PET bottle 250mL 75% share packs launched as switched from PET bottle increased hero pack 450mL launched investment
We’re increasing the range of small packs (< 300ml) in more locations
With the launch of the 250mL bottle in July 2016, small packs are now offered in95% of grocery stores and in 70% of convenience stores and petrol stations3.
95% 70%
We Approximately reduced half of all our stockists of 450mL 450mL now bottle to stock 390mL 390mL instead
9 Responsible Marketing Responsible marketing policy In keeping with our long-standing policy, the Coca-Cola System in Australia does not aim or direct any media marketing activity from Under 12s any source to children under the age of 12. The We are committed to harnessing our marketing capabilities to drive intent of this policy is to impose limitations and • We do not directly target children under 12 in any media for behaviour change towards low and no sugar options through innovative conditions on marketing to children under 12 and any brand messaging to prevent interference with parental guidance • Do not show children under 12 in advertising or promotional campaigns, collaborative point-of-purchase promotions and changing the with regard to diet. way we do vending. materials consuming the company’s beverages In addition, since 2009, we adhere to voluntary • All company-sponsored sampling events will be directed to industry-wide marketing practices which include people over the age of 12 specific guidelines for advertising to children. At least one In October 2016 Coca-Cola launched major “In the Right Amount” campaign to These practices include the Australian Food • We will not promote our brands to children under 12 in schools % and Grocery Council’s Responsible Children’s marketing encourage and will respect their classroom as a commercial-free zone campaign per consumers to drink Marketing Initiative (RCMI). ‘the right amount 70 year to hero of our Coca-Cola marketing for them’ and hero spend will now feature or hero low kJ the 250mL mini- a low/no kilojoule Coca-Cola products bottle Westmead Hospital Vending Trial
Coca-Cola promotional guidelines WHAT: hospital to help consumers make healthier choices e.g. From March - May 2017 Coca-Cola collaborated with colour coded products (green or amber) in the vending the Population Health Division at Sydney’s Westmead machines, educational posters, and badges given to A key priority for us is to provide consumers with the clearest They include: Hospital, along with retailers including Zouki, as part of staff ambassadors. possible information about our beverages, helping them to Promotion around menu boards, snack bundling and the Rethink Your Drink trial. choose the best option for themselves and their families. promotions. OUTCOMES: Removed sugar-sweetened soft drinks from Westmead Sales data was compared Our new promotional guidelines were introduced in 2016 • kJ information available in-store Hospital (all vending machines & retail outlets) and to the same time period to our retail customers to help promote and market our educated consumers on beverage choices. in 2016 with some key products responsibly. • low kJ and no sugar beverage choices highlighted on menu boards findings: WHY: To encourage beverage choices among hospital staff, • Increase in vending patients and visitors. machine sale volumes across water, milk and HOW: fruit juice categories, Driving our water portfolio through innovative campaigns 1. Sugar sweetened soft drinks were removed from the hospital’s vending machines and food outlets. In March 2017, PUMP was announced as the new official • Increased volume sales particularly the state of 2. Sugar sweetened soft drinks were replaced with a water of the AFL. The partnership was supported Victoria drove strong volume growth across the range of alternative drinks, including water (which made by an engaging campaign – PUMP Up Your Team – ‘Convenience & Petrol’ channel and ‘Grocery’ channel up 50% of vending machine choices), flavoured milk and encouraging fans to show their team support during the 100% fruit juice (‘No added sugar’ varieties only). Diet 2017 Toyota AFL Premiership Season. • Positive sentiment and engagement across digital & drinks were also included. social channels As part of the campaign, PUMP featured all 18 AFL 3. Promotional materials were placed throughout the team names on pack. These limited-edition packs enabled fans to select PUMP as their water of choice whilst cheering for their team. The campaign was successful in generating awareness, support and Collaboration between health stakeholders, retailer and industry was key to the success of this trial: volume sales. “It was really great to work with Population Health on this trial RESULTS: and achieve results through collaborative planning and action • Strong national awareness of the partnership … As a supplier we can provide lots of alternative drinks amongst the target audience (AFL fans, 20-39 years) that fit within the policy and gain insights to shift behaviour.” – Kristen Geromboux, State Business Manager – Health, Coca-Cola Amatil
11 Adoption of Health Star Rating (HSR) system ENERGY Global School Policy Guidelines To assist consumers in making informed choices, we have adopted the We are committed to adhering to our global school policy guidelines which were introduced in 2010: Government’s HSR system. The beverage category is part of the integrated HSR 428kJ • In primary schools, we do not offer our beverages for • In secondary schools, we work with school authorities to approach which allows for packs to display the energy (kilojoules) icon. sale unless requested by a school authority, e.g staff rooms ensure our products sold adhere to relevant state policies 5% DI* and special events such as school fetes where adults are and guidelines – this includes water, juices and other present. beverages in both regular and low or no-kilojoule versions. PER 375mL PACK
We’re committed to ensuring compliance with all the relevant State and National school guidelines around Australia.
From February 2017, we’ve Promoting Choice 2017 Project: Workplaces, Schools & Health Services introduced new serves-per- pack labelling on our larger We’ve been working with Nutrition Australia (Vic We’ve prepared reports based on this work to inform multi-serve bottles (e.g. 1.25L Division) to help provide the options and information our customers of product classifications based on so Australians can manage their sugar intake. Nutrition each jurisdiction’s guidelines. By communicating each = 5 serves) to Australia has independently reviewed more than 150 of product’s classification, our aim is to make it easy for inform consumers our beverages and classified each product according customers to make an informed choice about the drinks on how many to 19 State, Territory and National food and drink they choose to supply in food outlets and vending serves (250mL) 5 guidelines – for workplaces, schools and health services. machines. are in a bottle.
250mL SERVES PER PACK GUIDELINES Brand Pack size Variant SA NT WA VIC TAS ACT QLD NSW
600ML PET Water Mount Franklin 350ML Small PET Water Bottle
400ML Lightly Sparkling
Mount Franklin 450ML Lightly Sparkling Berry PROMOTING ‘Lightly Sparkling’ 450ML Lightly Sparkling Lemon 450ML Lightly Sparkling Lime
‘Pump’ 750ML PET Water
‘Peats Ridge’ 600ML PET Water
300ML Orange CHOICE 300ML Cloudy Apple ‘Keri Juice’ 300ML Carrot, Orange, Apple Lemon & Ginger
300ML Apple, Beetroot, Blackcurrent, Pomegranate & Hibiscus 300ML Apple, Pear, Cucumber,PROMOTING Kale 500ML Iced Chocolate Flavoured Milk Secondary School
Primary School#
2017 ‘Barista Bros.’ 500ML Double Espresso Flavoured Milk Secondary School HEALTH SERVICES Primary School# 500ML Iced Coffee Flavoured Milk Secondary School
CHOICE# PROMOTING Primary School ‘Appletiser’ 250ML Appletiser
Should not Primary schools & Gold Silver and Bronze GREEN Best option AMBER Select carefully RED Limited BLACK be sold RED secondary schools AMBER secondary schools *Supply should be limited in schools (For NSW, VIC, QLD and SA - red products are permitted on two occasions per term) #Note - In primary schools we do not offer our beverages unless requested by the 2017school authority. More information about this guide. CHOICE Coca-Cola Australia have engaged Nutrition Australia Vic Division to independently review approximately 150 drinks against 19 State, Vending Machines: “Refreshing Choices” Project Territory and National government guidelines. Within this guide, the productsSCHOOLS have been assessed against the following guidelines. State/territory Guideline/policy/strategy name Author
National Healthy School Canteen (NHSC) ACT Australian Government Department of Health, 2010 guidelines The NSW Healthy School Canteen NSW NSW Ministry of Health, 2017 2017 Strategy Northern Territory Canteen, Nutrition and NT Northern Territory Government, Department of Education, 2013 This innovative project commenced in early 2017 to help business consumers identify WORKPLACES Health Eating Policy Smart Choices – Healthy Food and Drink Queensland Government, Department of Education and Training, QLD Supply Strategy for Queensland schools 2005 (updated 2007, Ready Reckoner revised 2016). refreshing choices within the vending machine. It supplements work we have been Right Bite: healthy food and drink supply Government of South Australia, Department of Education and SA strategy for South Australian schools and Children’s Services, 2008. preschools TAS Tasmanian School Canteen Handbook Tasmanian School Canteen Association Inc., 2014 Victorian Government Department of Education and Training, doing in the health sector for nearly a decade. Healthy Canteen Kit – School canteens VIC December 2006 (updated July 2012, for the purpose of layout and other school food services policy and design). Government of Western Australia, Department of Education effective WA Healthy Food and Drink policy February 2014 (updated August 2015). WANT TO KNOW MORE? The objective of the project is to make the ranging atleast 60% sugar free. Consumers Contact your Coca-Cola Amatil Representative or call 13COKE (132653) are able to identify choices including;
Green Zone = “Lower Sugar choices”:
• No sugar or low kJ drinks e.g. Mt Franklin Mineral Water and Coca-Cola No Sugar
• Other drinks (<8g sugar/ 100mL): Fuze Ice Tea and Coca-Cola with Stevia
Purple Zone = “Treat Yourself”: Nutrition Australia has independently reviewed more then 150 of our beverages and • Drinks ( ≥ 8g sugar/100mL) e.g. Coca-Cola, Sprite and Barista Bros favoured milk classified each product according to 19 National, State & Territory guidelines
13 Impact to Date: Today our portfolio consists We’ve increased our range of no sugar and of more than 180 products low kJ varieties and 25 brands with ALL top sellers11 now offering a no sugar alternative
1983
Diet Coke 1980s
Mount Franklin 2000 Still Water
Pump Water 2004
2005 Sprite Zero
Coke Zero Fanta Zero 2006 (1st launched)
Pump flavoured 2008 Water
Glaceau For more information please contact: Vitaminwater 2009 Christine Black Director, Public Affairs and Communications Mount Franklin Coca-Cola South Pacific 2011 Lightly Sparkling t: +61 414 934 541 Natural & Lemon e: chblack@coca-cola
Powerade Zero Liz McNamara Coke Zero Group Head of Public Affairs and Communications Vanilla 2012 Coca-Cola Amatil t: +61 405 128 176 Mother Sugar Free e [email protected] 2014 Mount Franklin Lightly Sparkling Flavours Or visit:
Fanta Zero www.coca-colajourney.com.au/health-and-wellbeing (Re-launched) 2015
References
1Based on volume weighted average sugar content (g per 100mL) – this calculation accounts for the relative volume sold of each product. Reduction 2016 FUZE TEA from 2016 to 2020. Coca-Cola South Pacific (CCSP) and Coca-Cola Amatil Australian Beverages (CCA) portfolio: Carbonated soft drinks, fruit drinks, (4 from 6 are fruit juice, iced tea, water and favoured waters, sports drinks, energy drinks and favoured milks. low kJ) 2Mix in Coca-Cola TM vs. Prior Year 3Compass Data August 2017. (Data referencing small packs = < 300mL) Glaceau 4Brand Health Tracking, Australia Oct 2015 - April 2017 (Includes exclusive classic Coca-Cola drinkers) SMARTWATER 5Sensory Performance Research, Colmar Brunton, December 2016 2017 6Mix in Coca-Cola TM vs. Prior Year Glaceau 7Wave 3 TNS Pulse Survey Fruitdropwater 8Aztec Grocery excluding ALDI calendar year to date, May 2017 Coca-Cola 9% decrease in sugare (g/ 100mL) & kJ content (kJ/ 100mL) No Sugar 10Formulations Include: Ready-to-Drink, Post Mix and Frozen (all these formulations have unique recipes with different sugar reduction strategies) 11Coca-Cola, Sprite, Fanta, Powerade and Mother
15 South Pacific
Content is Australian and accurate as at August 2017, introduction updated June 2018
APPENDIX 4
Promoting Choice 2018 - Health Services
Coca-Cola Amatil 9
PROMOTING CHOICE 2018 HEALTH SERVICES We recognise that too much sugar and excess kilojoules are not good for anyone. We are working to help provide the right options and information so Australians can better manage their sugar intake. Nutrition Australia has independently reviewed over 240 of our beverages and classified each product according to 20 State, Territory and National food and drinkguidelines. This guide has been designed to help Australian health services make informed choices about our products. Health services policies and guidelines can apply to settings where staff, volunteers and visitors are provided food and drinks and can include food outlets, vending machines, catering, fundraising, rewards and incentives. Refer to your own state policies and or guidelines fordetails. We offer solutions that align to health policies and guidelines for health services across Australia. We offer: • clear guidance on how our products are classified according to different policies and guidelines • a variety of ‘healthy’ branded equipment to suit your needs • competitive pricing on our market leadingproducts • direct delivery to your chosen location to ensure ease and efficiency • online ordering usingmyCCA.com.au.
WANT TO KNOW MORE? Contact your Coca-Cola Amatil Representative or call 13COKE (132653) PRODUCT OPTIONS
WATER AND FLAVOURED WATER
750ML 600ML 450ML 15L
SOFT DRINKS ENERGY DRINKS
250ML -375ML 500ML
JUICE SPORTS DRINKS
250ML -375ML 500ML CLASSIFICATIONS – HEALTH SERVICES Classifications accurate as at 24/05/18. Visit https://www.mycca.com.au/~/media/Images/myCCA/pages/segments/Landing%20pages/schools/15685%20CCA_WellbeingProgram_A4_Hospitals_V8.ashx?la=en for the most up to date catalogue, or check product classifications against the relevant guidelines.
Brand Packsize Variant T
C
SW
NT SA
WA
VIC
A
QLD N
Mount Franklin 600ML PETWater
400ML Lightly Sparkling MountFranklin ‘Lightly Sparkling’ 450ML Lightly Sparkling Berry 450ML Lightly Sparkling Lemon 450ML Lightly Sparkling Lime
‘Pump’ 750ML PETWater
‘Peats Ridge’ 600ML PETWater
‘Neverfail’ ALL NeverfailWater
‘Coca-Cola’ 250ML Coca-Cola No Sugar 250ML Coca-ColaZero 250ML DietCoca-Cola 375ML SpriteZero 375ML Kirks Sugar Free Lemon ‘KirksFlavours’ 375ML Kirks Sugar Free Lemonade 375ML Kirks Sugar Free CreamingSoda 500ML Monster Absolutely Zero Energy 500ML Monster ZeroUltra 500ML Mother SugarFree 600ML Powerade Zero Berry Ice ‘Powerade Zero’ 600ML Powerade Zero Mountain Blast 600ML Powerade Zero Lemon Lime 300ML Orange
‘Keri Juice’ 300ML CloudyApple 300ML Carrot, Orange, Apple Lemon & Ginger 300ML Apple,Beetroot,Blackcurrent,Pomegranate&Hibiscus 300ML Apple, Pear, Cucumber,Kale
‘Appletiser’ 250ML Appletiser
More information about this guide Coca-Cola Australia have engaged Nutrition Australia Vic Division to independently review approximately 240 drinks against 20 State, Territory and National government guidelines. Within this guide, the products have been assessed against the following guidelines. Note: TAS does not have a food and drink policy / guidelines relevant to health services at time of publishing.
State/territory Guideline/policy/strategy name Author Classifications legend
ACT Healthy Food and Drink Choices Policy ACT Government, ACT Health, Dec 2013 Best choice Select carefully Limit
Healthy Food and Drink in NSW Health NSW NSW Ministry of Health,2017 Everyday Occasional Does not meet Facilities for Staff and Visitors criteria Framework NT Healthy Choices Made Easy Policy Northern Territory Best Select Limit Choose carefully – adult Government, December choice carefully facilities Not to be available - 2014 paediatric facilities
Queensland Government, Healthier Less QLD Best Practice Guide: healthier drinks for Queensland Health, 2016 healthy healthcare facilities and (made publicly available should online 2017) not be sold
Healthy Food and Drink Choices for Government of South Australia, Best choice Choose carefully Limit Choose carefully – adult Not SA Staff and Visitors in SA Health Department of Health, 2011 facilities permitted Limit - paediatric facilities Facilities(policy)
Victorian Government Best choice Choose Limit VIC Healthy choices: policy guidelines for Department of Health & carefully hospitals and health services Human Services, December 2016 Healthy Options WA: Food Fill the menu Select carefully Occasionally WA and nutrition policy for WA WA Department of Health, 2015 health services and facilities
WANT TO KNOW MORE? Contact your Coca-Cola Amatil Representative or call 13COKE (132653)
APPENDIX 5
Promoting Choice 2018 - Workplaces
Coca-Cola Amatil 10
PROMOTING CHOICE 2018 WORKPLACES We recognise that too much sugar and excess kilojoules are not good for anyone. We are working to help provide options and information so Australians can better manage their sugar intake. Nutrition Australia has independently reviewed over 240 of our beverages and classified each product according to 20 State, Territory and National food and drinkguidelines. This guide has been designed to help Australian workplaces make informed choices about our products. Workplaces policies and guidelines can apply to settings where staff, volunteers, visitors and or customers are provided food and drinks and can include food outlets, vending machines, catering, food vans, fundraising, rewards and incentives. Refer to yourown state policies and or guidelines fordetails. We offer solutions thatalign to healthpoliciesand guidelines for workplaces across Australia. We offer: • clear guidance on how our products are classified according to different policies and guidelines • a variety of ‘healthy’ branded equipment to suit your needs • competitive pricing on our market leadingproducts • direct delivery to your chosen location to ensure ease and efficiency • online ordering usingmyCCA.com.au.
WANT TO KNOW MORE? Contact your Coca-Cola Amatil Representative or call 13COKE (132653) PRODUCT OPTIONS WATER AND FLAVOURED WATER
750ML 600ML 450ML 15L SOFT DRINKS SPORTS DRINKS
250ML -375ML 600ML
JUICE
250ML -375ML CLASSIFICATIONS - WORKPLACES Classifications accurate as at 24/05/18. Visit https://www.mycca.com.au/en/pages/segments/schools for the most up to date catalogue, or check product classifications against the relevant guidelines.
Brand Packsize Variant S
A
SW
WA
VIC
T
N ACT
Mount Franklin 600ML PETWater
400ML LightlySparkling
Mount 450ML Lightly Sparkling Berry Franklin ‘Lightly Sparkling’ 450ML Lightly Sparkling Lemon
450ML Lightly Sparkling Lime
‘Pump’ 750ML PETWater
‘Peats Ridge’ 600ML PETWater
‘Neverfail’ ALL NeverfailWater
250ML Coca-Cola No Sugar
‘Coca-Cola’ 250ML Coca-ColaZero
250ML DietCoca-Cola
375ML SpriteZero
375ML Kirks Sugar FreeLemon ‘KirksFlavours’ 375ML Kirks Sugar Free Lemonade
375ML Kirks Sugar Free CreamingSoda
600ML Powerade Zero Berry Ice ‘Powerade Zero’ 600ML Powerade Zero Mountain Blast
600ML Powerade Zero Lemon Lime
300ML Orange
300ML CloudyApple ‘Keri Juice’ 300ML Carrot, Orange, Apple Lemon & Ginger
300ML Apple, Beetroot, Blackcurrent, Pomegranate & Hibiscus
300ML Apple, Pear, Cucumber,Kale
‘Appletiser’ 250ML Appletiser
More information about thisguide Coca-Cola Australia have engaged Nutrition Australia Vic Division to independently review approximately 240 drinks against 20 State, Territory and National government guidelines. Within this guide, the products have been assessed against the following guidelines. Note: QLD, SA and NT do not have food and drink policy guidelines relevant to workplaces at time of publishing.
State/territory Guideline/policy/strategy name Author Classifications legend ACT Public Sector: Healthy Food Best choice Select carefully Limit ACT and Drink Choices Policy ACT Government, July 2016
and ACT Government, Dec 2014 ACT Public Sector: Healthy Food and Drinks Choice Policy: Vending Machine Management Get Healthy at Work – Healthier Everyday Occasional Does not meet criteria NSW Food and DrinksGuide NSW Government,2018
TAS Healthy Workplace Nutrition Guidelines Tasmanian Government, Work Safe Tasmania, March 2013 Everyday Select carefully Occasional
Healthy choices food and drink Victorian Government Department of Health & Best Choose Limit VIC classification guide (retail outlets Human Services, September 2014 choice carefully and vending machines)
and
Healthy Choices: healthy eating Victorian Government Department of Health & Choose policy and catering guide for Avoid Human Services, December 2016. Best carefully workplaces Choice Healthy Choices Healthy Futures The Fill the Select Occasionally Healthy Handbook – the ultimate Government of Western Australia, Department of WA menu carefully guide to healthier food and drink in Health and supported by the WA School Canteen your workplace Association Inc., February 2015.
WANT TO KNOW MORE? Contact your Coca-Cola Amatil Representative or call 13COKE (132653)
APPENDIX 6
Promoting Choice 2018 - Education
Coca-Cola Amatil 11
PROMOTING CHOICE EDUCATION 2018 We recognise that too much sugar and excess kilojoules are not good for anyone. We are working to help provide options and information so Australians can better manage their sugar intake. Nutrition Australia has independently reviewed over 240 of our beverages and classified each product according to 20 State, Territory and National food and drinkguidelines. This guide has been designed to help Australian primary and secondary schools make informed choices about our products. School policiesand guidelines can apply to settings where students, staff, volunteers and visitors are provided access to food and drinks and can include food outlets, vending machines, catering, fundraising, rewards andincentives. Refer to your own state policies and or guidelines for details. We offer solutions that align to health policies and guidelines for school canteens across Australia. We offer: • clear guidance on how our products are classified according to different policies and guidelines • a variety of ‘healthy’ branded equipment to suit your needs • competitive pricing on our market leadingproducts • direct delivery to your chosen location to ensure ease and efficiency • online ordering usingmyCCA.com.au. In primary schools we do not offer our beverages unless requested by the school authority. This includes for staff rooms and special events such asschool fetes where adults are present. WANT TO KNOW MORE? Contact your Coca-Cola Amatil Representative or call 13COKE (132653) PRODUCT OPTIONS
WATER AND FLAVOURED WATER
750ML 600ML 350ML 15L
450ML
JUICE
250ML -375ML CLASSIFICATIONS - SCHOOLS Classifications accurate as at 24/05/18.
Visit https://www.mycca.com.au/en/pages/segments/schools for the most up to date catalogue, or check product classifications against the relevant guidelines.
T S
Brand Packsize Variant C
A
SW
NT SA
WA
VIC
T
A
QLD N
600ML PETWater MountFranklin 350ML Small PET WaterBottle
400ML LightlySparkling MountFranklin ‘Lightly Sparkling’ 450ML Lightly Sparkling Berry
450ML Lightly Sparkling Lemon
450ML Lightly Sparkling Lime
‘Pump’ 750ML PETWater
‘Peats Ridge’ 600ML PETWater
‘Neverfail’ ALL NeverfailWater
300ML Orange
‘KeriJuice’ 300ML CloudyApple
300ML Carrot, Orange, Apple Lemon & Ginger
300ML Apple, Beetroot, Blackcurrent, Pomegranate &Hibiscus
300ML Apple, Pear, Cucumber,Kale
‘Appletiser’ 250ML Appletiser
#Note - In primary schools we do not offer our beverages unless requested by the school authority. More information about this guide Coca-Cola Australia have engaged Nutrition Australia Vic Division to independently review approximately 240 drinks against 20State, Territory and National governmentguidelines. Within this guide, theproducts have been assessed againstthe following guidelines.
State/territory Guideline/policy/strategyname Author Classifications legend
ACT Public School Food and Drink Policy ACT ACT Government, Education Directorate, 2015 Always on the canteen menu Select carefully Not recommended on the canteen menu
The NSW Healthy School NSW Canteen Strategy NSW Ministry of Health,2017 Everyday Occasional Does not meet criteria
School Nutrition and Healthy Eating Policy NT Northern Territory Government, Department of Always on the canteen menu Select carefully Not on the menu Education, Oct 2017
QLD Smart Choices – Healthy Food andDrink Queensland Government, Department Have plenty Select carefully Occasional Supply Strategy for Queenslandschools of Education and Training, 2005 (updated 2007, Ready Reckoner revised 2016)
Right Bite: Healthy Food and Drink Supply SA Strategy for South Australian schools and Government of South Australia, Choose plenty Select carefully Occasionally Not preschools Department of Education and Children’s Services,2008 permitted
TAS Tasmanian Schools CanteenAccreditation Tasmanian Department of Health and Human Always on the canteen menu Select carefully Not recommended on the canteen Not recommended on the Program Services, Department of Education and the Tasmanian menu canteen menu – primary & School Canteen Association Inc. gold secondary schools Select carefully – silver and bronze secondary schools
VictorianGovernment Department VIC Everyday Select Occasionally Healthy Canteen Kit – Schoolcanteens of Education and Training, and other school food servicespolicy December 2006. Second edition carefully releasedJuly 2012.
Government of Western Australia, Department Fill the menu Select carefully Off the menu WA Healthy Food and Drinkpolicy of Education effective February 2014 (updated August 2017)
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