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Coca-Cola Australia Sugar Reduction.Pdf 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 26 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 Our innovation team is focused on creating new recipes and products with no or lower sugar content, along with great taste. Examples of our recent innovations created for Australian consumers are included below. Coca-Cola with Stevia (April 2017) WHAT: Coca-Cola with Stevia recipe in just a few months. A new recipe, Coca-Cola with Stevia as an evolution of Recipe development using Stevia with the Coca-Cola Coca-Cola Life. Company tracks back to 2010 with the first stevia in cola drinks in Argentina, followed by the USA in 2012, WHY: Great Britain in 2014 and Germany just last year. To continue to reduce the sugar content without 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 with stevia as a common natural sweetener in food and drinks. % 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 Keri Juice Blenders (June 2017) 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 • Preservative free • Smaller pack size than Goulburn Valley • Great taste WHY: 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. HOW: Keri Juice Blenders were locally developed with the support of a ‘Master Juice Blender’ who supported the Research and development (R&D) team to create each new recipe. 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 Coca-Cola – but with no added sugar. It plays a key role in 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 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 5 Years in Development The new recipe is SIGNIFICANTLY PREFERRED The journey began in 2012 where the R&D team based in Atlanta was tasked with creating a Coca-Cola that is sugar BY COCA-COLA DRINKERS & equally loved by free and tastes more like classic Coca-Cola. For the next Coke Zero drinkers in Australia (vs current Coke five years, R&D trialled dozens of recipes and undertook Zero formulation)5 multiple consumer trials in different markets, eventually creating our best tasting no sugar Coca-Cola. Our biggest launch of a new Coca-Cola in the last 10 years 3 % increase 1 million+ 1.3 2 In mix of no or low sugar just free samples have been taken eight weeks after Coca-Cola No up by consumers Sugar launched6 42% 74 % 80% 33% of Coca-Cola of carbonated soft drink of Coca-Cola of our Coca-Cola volume drinkers intend to consumers are aware of classic drinkers (litres) comprises of either purchase the no sugar alternative 7 are aware of ‘no sugar’ or ‘low or no kJ’ Coca-Cola No Coca-Cola No varieties 8 Sugar 7 Sugar 7 What we’ll do next From 2017 our ambition is for all new Coca-Cola innovations to be reduced, low or no sugar only 5 Reformulation As part of our commitment to sugar reduction, we’ve reduced sugar and kilojoules in 22 products9 since 2015. “When it comes to sugar We’ve been carrying out a sugar reduction program of our current range of beverages over many years. We reduction, our goal is to gradually are doing this in two ways: reduce sugar content over time by 1. Reducing sugar content over time, reducing the a variety of methods, including overall sweetness profile - eg Lift hard hitting Lemon, the use of sweeteners from 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 Percentage reduction in sugar and kilojoules (2015-2017)9 Kirks Kirks Sprite Fanta Powerade Fanta Lift Hard Deep Deep Deep Goulburn Creaming Lemonade Raspberry ION4 Grape Hitting Spring Spring Spring Valley Fruity Soda Lemon Orange Orange Orange Drink Passionfruit Mango Lemon Lime 0 -5% -5% sugar sugar -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% 26% 26% 26% sugar less kJ less kJ less kJ % decrease in sugar content (g/100mL) -30 33% less kJ RS RS RS RS RS + + RS + RS RS RS RS RS RS Reduced sugar only RS Reduced sugar + added Stevia + 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 & the Australian Dietary Guidelines guidelines and targets Caffeine. set by leading health authorities, such as the World Health CATEGORY TARGET REQUIREMENTS: Organisation. Specific to each beverage category e.g. regular soft drinks These guidelines are updated annually based on and flavoured milk. regular reviews and evaluation of new science, nutrition SUGAR GUIDELINES: recommendations and our global research and • ≤ 7.9g sugar per 100mL (excludes 100% Fruit Juice) development program. • ‘No Added Sugar’ - 100% Fruit Juice 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 experiential including a giant colour-by-numbers street- WHY: art activation.
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