Stakeholder Progress Report 2016 Delivering sustainable business growth Our Cover: Our cover features Lucía Pérez Segura, a waitress at Bar Escuela, part of a Lizarran franchise, in Madrid. Since 2012, through The Coca-Cola Foundation in Spain, we have supported the GIRA Youth programme in Spain, which improves the social skills and employability of young people. Since 2013, people from the GIRA project team have been placed at the Bar Escuela to learn skills in the kitchen, bar, and as wait staff for three- month placements. Lucia helps support the people from the GIRA project, giving them advice so they can get the best of themselves during their training. A time of opportunity A TIME OF OPPORTUNITY When I became CEO of Coca-Cola European Partners partnerships that we have developed (CCEP) one year ago, two motivations propelled me. First, with our suppliers and customers. In particular, we have: I wanted to grow this new company in a way that fulfilled • Reduced the calories per litre across its potential while respecting its shared heritage. Second, our portfolio by 7.9 percent since I wanted to do it in a way that would make me proud along 2010. Together with The Coca-Cola with all our employees and every one of our stakeholders. Company, we are working to transform our entire portfolio so that we can offer an even wider We have created the world’s us taking a lead on our packaging, the range of drinks to our consumers. largest Coca-Cola bottler and put sugar and calories in our beverages sustainability, in its broadest sense, and the impact we have on our • Reduced the carbon footprint of at the heart of the business. From communities. We are hard at work our core business operations – our earliest days, CCEP established transforming these expectations into which includes our manufacturing, strong fundamentals about how we a set of targets and commitments that our cold drinks equipment and our hold ourselves accountable to each we will publish this autumn. This will be transportation – by 42.6 percent other and to the outside world and our first sustainability strategy for the since 2010. how we create an environment Coca-Cola system in Western Europe. • Continued to ensure that all of our where people want to work and But first we had to know where packaging is recyclable. In 2016, believe in what we are doing. We also we were coming from. With three 21 percent of the polyethylene developed an operating model that merging bottling organisations, it terephthalate (PET) we used was better reflects how people choose has taken us a year to consolidate recycled PET. to enjoy and buy our beverages. our data to establish the baseline • Donated approximately €6.6 million, And now the next phase begins. for our first full-year performance. or 0.5 percent of our pre-tax profit, Over the past year, we have seized the In making this Stakeholder Progress to our local communities in 2016. chance to talk to people about what Report available to you now, we aim they expect from this new company to show the foundation on which While we are encouraged by what that has such deep roots. With our we will build in the areas that all of we have accomplished, there is still colleagues at The Coca-Cola Company, you expect – from governance to considerable work to be done. we have listened to customers, environmental performance, from Ultimately, you will be the ones to consumers, employees and our transforming our drinks portfolio judge our success. And when we leadership about the issues facing and packaging to diversity. publish our strategy later this year, we our business and the wider world, I am proud that we have been able hope we’re taking a meaningful step and what is expected from us. The to do so much since forming CCEP. forward in meeting your expectations. feedback was clear. You want us, The credit for the progress in this fundamentally, to be a good business, Damian Gammell report rests with the passion and but one that more meaningfully Chief Executive Officer commitment of 24,500 employees, influences some of the biggest issues Coca-Cola European Partners and the great collaborative we face as a society. You want to see June 2017 02 Being a good business BEING A GOOD BUSINESS WHO WE ARE Coca-Cola European Partners (CCEP) is the world’s largest independent Coca-Cola bottler based on revenue. 300 million consumers. Coca-Cola European Partners We are proud of the rich heritage of We know that there is more work 2.5 our business and of the work that we to do. With the support of our billion unit cases sold annually. have done within our first year as a employees, our suppliers and combined organisation to continue to our stakeholders, we also know 14.2 reduce the sugar and calories in our we'll be able to achieve it. drinks, the weight of our packaging, billion litres of our world-famous and our carbon and water footprints. brands sold every year. 13 % countries. 7.9 % reduction in the total 35 calories per litre across of our drinks are 24,500 our portfolio since 2010. no- and low-sugar. employees. 21% 42.6% of the PET we use is reduction in the carbon recycled polyethylene footprint of our core business terephthalate (rPET). operations since 2010. 64% 23% of our sites send of our leadership zero waste to landfill. is female. 10.3% 75% What does reduction in our total water of the electricity we use is CCEP do? use ratio since 2010. from renewable sources. 80% Discover more at of our goods and services €6.6 m ccep.com are sourced through suppliers donated to our that abide by our Supplier communities in 2016. Guiding Principles (SGPs). Mikel López de Turismo, Key Account Manager Nacional Iberia, Spain 03 Being a good business A strong partnership A rich history The Coca-Cola Company is our We are proud of the local nature of our business and have operated in primary strategic partner. While some of our communities for many generations. Combining the bottling beverages owned by The Coca-Cola operations of Coca-Cola Enterprises, Coca-Cola Iberian Partners and Company and its affiliates represent Coca-Cola Erfrischungsgetränke, CCEP builds on more than 60 years the majority of our volume, we also of European heritage with histories dating back to 1919. distribute brands for other franchise partners, including Capri-Sun. Our operations at a glance 1919-1931 Europe welcomes the We offer consumers some of the first Coca-Cola bottling plants in France, followed world’s leading brands, including by Belgium, Germany and Coca-Cola, Coca-Cola Life, Diet Coke, the Netherlands. 1953 Coca-Cola Light, Coca-Cola zero TCCC and the Daurella family come together to sugar, Fanta and Sprite as well as a create the first Spanish growing range of water, juices and bottling plant in Barcelona. Over the next decade, juice products, sports and energy further bottling plants drinks and ready-to-drink teas. In open in Valencia, Madrid, 2016, we sold approximately Tenerife, Palma de Mallorca 1977 and Bilbao. 2.5 billion unit cases, generating Portuguese bottler approximately €10.9 billion in revenue Alfagide is founded and €1.4 billion in operating income. with bottling plants 1986 in several locations TCCC merges numerous The company is listed on Euronext around Portugal. bottling operations to create Amsterdam, the New York Stock Coca-ColaEnterprises (CCE), listed on the NYSE. Exchange, Euronext London and the 1990 Spanish stock exchange, and trades Coca-Cola under the symbol CCE. We are Erfrischungsgetränke GmbH is founded headquartered in London, UK. for bottling and distribution in the 1993-1999 We operate in Andorra, Belgium, east of Germany. CCE acquires Coca-Cola bottling operations in the France, Germany, Great Britain, Netherlands, Belgium, Iceland, Luxembourg, Monaco, the 2007 Great Britain, France, Luxembourg and Monaco. Netherlands, Norway, Portugal, All remaining, independent German bottlers merge Spain and Sweden, with a further with Coca-Cola office in Bulgaria. We employ Erfrischungsgetränke AG. 2010 CCE sells North America approximately 24,500 people. operations to The Coca-Cola 2013 Company and acquires We proudly contribute to our local Coca-Cola Iberian the Coca-Cola bottling Partners is formed businesses in Norway communities, and maintain a strong through the merger and Sweden. commitment to their economic and of eight Spanish and social wellbeing. Our contribution to Portuguese bottlers. 2016 the local economy in 2016 included Coca-Cola Enterprises, approximately €1.4 billion in salaries, Coca-Cola Erfrischungsgetränke benefits, and related social-security and Coca-Cola Iberian contributions, received by our Partners merge to create employees, and €1.4 billion in total the world’s largest independent Coca-Cola taxes paid across our territories. We bottler by revenue. also contributed nearly €6.6 million to our local communities. See more: For further See more: www.ccep.com/ information on CCEP’s pages/our-heritage 2016 results, visit WATER ir.ccep.com 04 Being a good business Our local contribution 74.9 percent of the drinks we sell are produced and marketed in the country in which they are consumed. Our economic impact where we operate goes far beyond the investment we make in our operations or the taxes we pay. We have 53 manufacturing operations located across our territories. In 2016 we invested over €407 million in our facilities, improving our operating infrastructure and supporting local jobs. Norway The first country in the Coca-Cola system to introduce PlantBottle™ on all locally produced The Netherlands products.