INTEGRATED ANNUAL REPORT 2019
2019 highlights Coca‑Cola HBC Integrated Annual Report 2019
VOLUME (m unit cases) NET SALES REVENUE (€m) 2,265 7,026 WHAT IT 2018: 2,192 2018: 6,657 COMPARABLE EBIT (€m) COMPARABLE EBIT MARGIN (%) TAKES 759 10.8 TO DELIVER 2018: 681 2018: 10.2 COMPARABLE NET PROFIT1,2 (€m) NET PROFIT2 (€m) 522 487 2018: 480 2018: 447
COMPARABLE EPS1 (€) BASIC EPS (€) 1.436 1.340 2018: 1.306 2018: 1.216
PRIMARY PACKAGING COLLECTED CARBON EMISSIONS INTENSITY REDUCED FOR RECYCLING (EQUIVALENT) ACROSS THE VALUE CHAIN The paper used in this report is 100% recycled and FSC® certified. 48% 31% Printed in the UK using vegetable based inks. The printer is ISO 14001 2018: 48% 2018: 25% accredited and Forest Stewardship Council® (FSC®) chain of custody
certified. Under the framework of ISO 14001 a structured approach is 1. For details on APMs, refer to the Alternative taken by the company to measure, improve and audit their environmental performance measures section. status on an ongoing basis. FSC® ensures there is an audited chain of 2. Net profit and comparable net profit refer to net profit and comparable net profit respectively after tax custody from the tree in the well-managed forest through to the finished attributable to owners of the parent. document in the printing factory. Designed and produced by Black Sun Plc
Coca‑Cola HBC AG Turmstrasse 26, CH-6312 Steinhausen, Switzerland www.coca‑colahellenic.com [email protected] [email protected]
Watch our video and learn more at https://coca-colahellenic.com/en/ investors/2019-integrated-annual-report/ Our business at a glance
We are a leading strategic bottling partner Where we operate of The Coca-Cola Company, bringing beverage Our geographic footprint spans from the West Coast of Ireland to the Pacific coast of Russia; from Northern Europe to our most brands to life in 28 countries on three continents. southerly market, Nigeria. This combination of countries creates Our vision is to be the leading 24/7 beverage a unique and diverse balance. We benefit from operating in growth markets with significant opportunities to increase the per-capita partner, growing with our customers by ensuring consumption of our products, while also maintaining a leading that we have a beverage for each consumer presence in established markets. moment around the clock.
Established markets +1.3% Currency-neutral revenue growth 2019 Our commitment to sustainability After years of embedding sustainability, our 10.2% CSR strategy today is a business imperative Comparable EBIT margin 2019 and integral to our decision-making and targets. We are ranked as Europe’s most sustainable Developing markets beverage company by the Dow Jones Sustainability +4.2% Index and are ranked amongst the top performers Currency-neutral revenue growth 2019 on other ESG benchmarks such as CDP Climate 10.8% and Water, MSCI ESG, and FTSE4Good. Read Comparable EBIT margin 2019 more about what we are doing to achieve our sustainability agenda and how we measure our Emerging markets performance on pages 48-49. +7.1% (+5.6% excl. Bambi) Currency-neutral revenue growth 2019
11.3% (11.0% excl. Bambi) Comparable EBIT margin 2019 28 3 Countries Continents
Our people Our 24/7 portfolio Visit us We’re a company of over 28,000 diverse, Our portfolio is the strongest, broadest and most www.coca‑colahellenic.com Write to us talented colleagues. We share a passion flexible in the beverage industry. Our products The Group site features all the latest news We have dedicated email addresses which for serving our customers, developing cater to a growing range of tastes with a wider and stories from around our business and you can use to communicate with us: choice of healthier options, premium products our people and delivering more for all communities, as well as an interactive online [email protected] our stakeholders. and increasingly sustainable packaging, giving us version of this report. [email protected] an undisputed ability to delight consumers across all consumption occasions.
More than 28,389 100 Employees brands across eight categories INTEGRATED ANNUAL REPORT 2019 1 SR
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SSR We have set out to deliver Contents SI Strategic Report more for all of our 12 Our purpose and strategy 14 Chairman’s letter stakeholders through our 16 Our business model 19 Our stakeholders 20 Market review new strategy, targets and 22 Chief Executive Officer’s letter 24 Growth Story 2025 vision. Achieving our goals 26 Leverage our unique 24/7 portfolio 30 Win in the marketplace 34 Fuel growth through is made possible by our bold competitiveness and investment 38 Cultivate the potential of our people approach to products and 42 Earn our licence to operate 46 Key performance indicators 48 Sustainability performance portfolio strategy, route to 50 Tackling the problem of plastic 54 Managing risk and materiality market, passionate people, 66 Financial review 70 Segment highlights innovative thinking and 72 Non-financial reporting directive Corporate Governance 76 Chairman’s introduction to corporate commitment to responsible, governance 80 Board of Directors sustainable practices 84 Corporate Governance Report 108 Directors’ Remuneration Report 129 Statement of Directors’ throughout our Company. Responsibilities Financial Statements 131 Independent auditor’s report 137 Financial statements 143 Notes to the consolidated financial statements
Swiss Statutory Reporting 200 Report of the statutory auditor About our report on Coca‑Cola HBC AG’s consolidated financial statements The 2019 Integrated Annual Report (‘Annual Report’) consolidates 206 Report of the statutory auditor Coca‑Cola HBC AG’s UK and Swiss disclosure requirements while on Coca‑Cola HBC AG’s financial meeting the disclosure requirements for its secondary listing on the statements Athens Exchange and the sustainability reporting standards. For more 209 Coca‑Cola HBC AG’s financial information about our Integrated Annual Report, see page 236. statements 221 Report of the statutory auditor on the remuneration report 222 Statutory Remuneration Report Throughout the 2019 Integrated Annual Report, we have identified areas which are relevant to each of our five growth pillars. Supplementary Information These are indicated through the following icons: 226 Alternative Performance Measures LEVERAGE OUR UNIQUE 24/7 PORTFOLIO 230 Assurance statement 1 go to pages 26-29 233 Shareholder information WIN IN THE MARKETPLACE 234 Glossary 2 go to pages 30-33 FUEL GROWTH THROUGH COMPETITIVENESS & INVESTMENT 3 go to pages 34-37 CULTIVATE THE POTENTIAL OF OUR PEOPLE 4 go to pages 38-41 EARN OUR LICENCE TO OPERATE 5 go to pages 42-45 2 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 3 SR
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Our portfolio lies at the heart of our future growth plans. FS As the strongest, broadest and most flexible in the industry it caters to a growing range of tastes and preferences. SSR With over 100 brands, covering eight categories, we have SI evolved our offering dramatically in the past two decades as we have innovated and shifted into new and exciting brands and categories. Each category has a unique strategy targeted at driving profitable growth. We are seeing strong growth in our low-and no-sugar variants, in line with our sustainability strategy, which includes reducing calories by 25% in the sparkling category over 10 years to 2025. Alongside that, we have increased our focus on premiumisation through accelerating the adult sparkling segment, adding premium water and juice offerings, introducing new products such as Coca-Cola Energy and exploring new categories, such as plant-based beverages with AdeZ. We consider coffee to be a highly promising category and The Coca-Cola Company’s acquisition of Costa Coffee is an exciting opportunity in the years ahead.
Read more about how we are leveraging our unique 24/7 portfolio on pages 26-29.
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IN THE MARKETPLACE
Our route-to-market strategy ensures that we create value for our customers by ensuring that the right outlets receive the right beverages, in the right pack, in the right quantities, at the right time and at the right price. In line with our improving portfolio, we are continuously strengthening our route to market and partnering with our customers to bring our 24/7 portfolio into the hands of our consumers faster and with greater efficiency. Our route to market is increasingly segmented to offer more customer service options, aiming to capture the full potential of each individual outlet rather than just the channel. At the same time the broader portfolio requires greater sales force specialisation, with dedicated teams for the premium CLU S Hotels, restaurants and cafes (HoReCa) channel for RESTAU example, and this is an important part of how we RANT S & ARS activate these great brands in the market. HOTELS Read more about how we win AT WORK in the marketplace on pages 30-33. CONVENIENCE
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Meals g out at ho atin e its E M ha e e a o in t ut ho ho e o t n R a e ts l o o h c s H t a A n E g A i R n L g A o r E u o V I t w E t M N A I N
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To ensure our business is fit for the future, SI we are transforming and digitalising many of our supply chain and sales execution processes. Innovation helps us become more customer-centric. Our sales force automation tool embeds the latest technology into a single user-friendly solution that enables our sales people to make customer-specific suggestions of products and quantities, and track performance and execution in real time. At the same time, we are building a network of connected coolers that produce significantly lower emissions, while maximising performance by tracking door openings and inventory and undertaking automatic stocking and ordering. These ‘smart coolers’ connect directly to the sales person’s device, freeing up time to spend with the customer. We are also applying innovation to our manufacturing and logistics to expand our technical capabilities while ensuring productivity and cost savings. Innovative approaches to manufacturing are helping us manage growth at our mega plants while consuming less energy and water. New, automatic line changeovers reduce idle production time and free up volume capacity, effectively expanding our production line capacity by nearly 1% per year. These lines support smaller runs of new products, helping us supply niche market segments and respond to rapidly changing consumer preferences. And in the warehouse, new augmented reality technology helps us manage the complexity of our expanded 24/7 portfolio. The technology aids our warehouse colleagues in pulling inventory from stock and packing it for customer delivery, enhancing the speed and accuracy of our service.
Read more about how we are fuelling growth through efficiency on pages 34-37.
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We are creating a more sustainable business that makes a positive impact on our people, our communities and our planet. This begins by nurturing and cultivating the talent of our people. Our Company is made up of over 28,000 diverse, passionate professionals who are all committed to achieving long-term, sustainable success. We introduced a new set of comprehensive sustainability targets in 2018, called Mission 2025. We report on our progress towards these goals on pages 48-49. This includes an update on our journey to a World Without Waste, the Coca-Cola System’s commitment to tackle the challenges of packaging waste, in particular plastics.
Read more about how we cultivate the potential of our people and earn our licence to operate on pages 38-45.
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FOR THE FUTURE
Our vision is to be the leading 24/7 beverage partner – growing with our customers by ensuring that we have a beverage for every consumer moment around the clock. This vision can only be achieved by leveraging our 24/7 portfolio, which is the strongest, broadest and most flexible in the industry. With over 100 brands covering eight categories – sparkling, water, juices, ready-to-drink tea, energy, plant-based, premium spirits and coffee – we have more opportunities to help our customers delight consumers than ever before, by providing the brands and drinks people want, when and where they want them. 12 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 13 SR
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Our purpose and strategy FS
SSR We will deliver on our vision through SI a clear purpose and strategy To deliver on our vision of being the leading 24/7 beverage partner, we introduced Built on five key pillars of growth, each of which is a core strength or competitive a new strategy in 2019. Growth Story 2025 gives us a roadmap to grow with our advantage, our 2025 strategy is underpinned by new Growth Mindset Values and customers and to delight consumers across our 28 markets, around the clock. guided by ambitious targets. This plan to achieve our vision reflects the significant We do this by empowering our people and building trust by operating our business opportunities ahead that will help us deliver growth and value for our Company responsibly and sustainably. and all of our stakeholders.
Our purpose Our growth pillars How we grow 2021-2025 targets
We are devoted to LEVERAGE OUR • Offer the best 24/7 beverage portfolio on the planet growing every customer UNIQUE 24/7 PORTFOLIO in partnership with The Coca-Cola Company and delighting every 5-6% 1 FX-neutral revenue growth consumer 24/7 Read more on pages 26-29. per annum, on average
WIN IN THE • Build unrivalled teams of true partners for our customers, MARKETPLACE executing with excellence in every channel for prioritised 2 drinking moments • Fast-forward critical capabilities for growth Read more on pages 30-33. 20-40bps EBIT margin growth per annum, on average By nurturing • Transform, innovate and digitalise our business to ensure passionate & FUEL GROWTH THROUGH that we are fit for the future empowered COMPETITIVENESS & INVESTMENT teams 3 of people Read more on pages 34-37. Employee CULTIVATE THE POTENTIAL • Invest in building the best teams in the industry engagement • Develop an inclusive growth culture around our score greater than the OF OUR PEOPLE high-performing norm 4 empowered people Read more on pages 38-41. While enriching our communities & caring for the environment EARN OUR LICENCE • Be an environmental leader, engage our communities TO OPERATE behind water and waste initiatives, and empower youth, Accomplish together with our partners 5 Mission 2025 sustainability commitments Read more on pages 42-45.
Our Growth Mindset Values
WINNING WITH CUSTOMERS NURTURING OUR PEOPLE EXCELLENCE INTEGRITY LEARNING PERFORMING AS ONE We are the selling organisation We believe in our people, We strive for unparalleled We always do what is right, We listen, have a natural We collaborate with agility devoted to providing innovative and have a passion to develop performance by amazing not just what is easy, and are curiosity to learn and are to unlock the unique strength solutions to create shared value ourselves and others customers with our passion accountable for the results empowered to take of diverse teams and speed smart risks
Read more about our values Read more about our Growth on pages 38-41. Story 2025 on pages 24-25. 14 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 15 SR
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Chairman’s letter FS
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Dear Stakeholder, A more dynamic operating environment and This effort is backed by a strategic €15 million Dividend SI ambitious growth strategy also requires that investment in KeelClip packaging technology. Our strong growth and the significant Due to the continued strong operating our people are more empowered, and the progress we delivered toward our goals in At our annual Group Stakeholder Forum, we performance of the business and our Board is overseeing this cultural evolution. 2019 reflect the successful implementation listened to stakeholders from 20 countries confidence in the Company’s long-term With this in mind, I am pleased to report that of Coca-Cola HBC’s ambitious strategy. and their recommendations for water strategy, the Board is proposing a full-year Charlotte Boyle has been designated as our This was achieved despite the challenge stewardship strategies. Anastasios Leventis dividend payment of €0.62 per share. non-Executive Director responsible for of unfavourable weather in many of and Charlotte Boyle represented the Board This proposal represents an 8.8% increase work-force engagement. our markets. at the event. Our efforts to support water compared to the dividend that we We also welcomed Alfredo Rivera as a new availability in specific risk areas led to four paid in 2018. We set the stage during the year for further member of the Board in 2019. Alfredo is the different projects, of which one was finished improvements to our Company’s long-term President of The Coca-Cola Company's Latin in Nigeria's Kano State in 2019. Our Priorities for 2020 competitiveness and future growth. America Group and has a wealth of insights investment in new wells and new piping to Our focus in 2020 will be on overseeing Our Board’s independence and diverse range to bring with his experience. Meanwhile, let transport water from the Challawa River is strategy implementation and decision- of skills are complemented by the stability me also take this opportunity to thank Ahmet already providing clean water to one million making as we continue to evolve our portfolio and truly long-term focus of our two majority Bozer for his years of service. people in 20 communities. and transform our operations in this new shareholders. This keeps our focus on In recognition of our sustainability leadership, decade. We will also continue to nurture the delivery not just in the current year but in Culture and values we were named the most sustainable culture and values which underpin the building the conditions for success over the A big part of our success is based on our beverage company in Europe by the Dow potential of the business. next five, 10 and 50 years. efforts to support and cultivate the potential Jones Sustainability Indices in 2019. We also As we finalise the implementation of one of our people. This means investing in our Growth Story 2025 received recognition in other sustainability strategy and begin to work toward an even teams and developing a culture that ensures benchmarks, such as CDP Climate and bolder vision of growth, I would like to give In 2016, we introduced a bold strategy, that our people feel they belong in their place Water, FTSE4Good and MSCI ESG. my sincere thanks to everyone at Coca-Cola with 2020 targets, based on a vision to be the of work. Experience shows that diverse In 2019, the Company has made substantial HBC for their passion, and hard work undisputed beverage leader in every market teams with an inclusive culture deliver better investments in collision avoidance which continues to drive this Company in which we compete. Aiming for further business outcomes, and I am encouraged by technology for our fleet and in safety training to new strengths. growth and success, the Board approved a the steps taken to foster greater inclusivity. new strategy in 2019 with new 2025 targets, for all of our drivers. Building on the progress I am confident that we are operationally Coca-Cola HBC has long had a very strong, in the context of an updated purpose already made the Board will work closely with and strategically well-placed for long-term values-based culture. Many of these values and vision. management on the critical need to reduce success. On behalf of the Board, I thank all of – excellence, customer-centricity – are harm suffered on the job by our colleagues our stakeholders for your continued support. These targets include measures on timeless and enduring. As our Company and those who work with us. financial results, people engagement and evolves to respond to a changing business sustainability commitments. The entire environment, we have advanced our Board is in agreement that achievement in Growth Mindset Values to better support each of these areas is crucial. With the the increased need for agility and continual ambition to be the leading 24/7 beverage learning and transformation. The years partner, we have reinforced our commitment ahead will see an even greater focus on ANASTASSIS G. DAVID to delight consumers while creating growth innovation, technology and growth. The CHAIRMAN OF THE BOARD and value for our Company, our partners, Board is confident that these values and the and all of our key stakeholders. continued development of the leaders of our The Board of Directors has worked to Company, as well as our inclusive culture, will ensure that the new strategy and targets ensure that our teams are up for the reflect our ongoing engagement with challenges ahead. stakeholders, including the communities Sustainability in which we operate. Section 172 statement One enduring aspect of our culture and values is our commitment to manage our AIMING FOR business sustainably with integrity and Section 172 of the UK Companies Act 2006 requires directors to promote the FURTHER GROWTH respect for the planet. We took some big success of the company for the benefit of the members as a whole having regard “ steps forwards on our journey to meet our to the interests of stakeholders in their decision-making. As the Company is AND SUCCESS, THE 2025 sustainability commitments in 2019, Swiss incorporated, the UK Companies Act 2006 has no legal effect. However, in particularly regarding product packaging. accordance with the UK Corporate Governance Code 2018 and as a matter of good BOARD APPROVED We launched our first 100% recycled PET governance, in our decision-making the Board considers the interests of the Group’s A NEW STRATEGY IN bottles for water brands in Austria, employees and other stakeholders and understands the importance of taking into A clear focus Switzerland, Ireland, Croatia and Romania and account their views and considers the impact of the Company’s activities on the 2019 WITH NEW 2025 increased the recycled PET content of community, environment and the Group’s reputation. In its decision-making, the TARGETS, IN THE packaging for our sparkling brands in several Board also considers what is most likely to promote the success of the Company markets. We know that we have more work for its shareholders in the long term. for the year CONTEXT OF AN to do and we remain committed to continued Read more about: progress. Therefore, we have started to • How we manage risks and materiality on pages 54 to 61 UPDATED PURPOSE replace plastic wrap on can multi-packs • How we engage with key stakeholders on page 19 AND VISION.” with minimalist, paperboard packaging. ahead • Examples of how stakeholders were considered in specific decisions on page 91 16 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 17 SR
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Our business model FS
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Our business model describes the essence of what we do: SI Delivering value for How we create value for all our stakeholders from the our stakeholders resources and relationships we use to operate the business.
1. Our resources and relationships 2. What we do 4. Value created for stakeholders
Human We are a strategic bottling partner For our people of The Coca‑Cola Company Our success is dependent on the passion, • Our business directly employs 28,389 people in 28 countries engagement and customer focus of We have the exclusive authorisation to bottle and sell the beverages and supports many times more people across our value chain. our talented people. We cultivate their of The Coca-Cola Company in our 28 markets. We also partner • Our people invested more than 600,000 hours to improve their potential and empower them to leverage with other beverage businesses such as Monster, Brown Forman functional capabilities and leadership capacities through different opportunities for growth, both for and Campari to sell their products in our markets. Brand Consumer Company programmes. themselves and our Company. Ownership Marketing How our partnership works Portfolio Concentrate For customers Development Supply Natural The Coca-Cola Company owns, develops and markets its brands • We are a customer-centric business aiming to provide value with the end consumer. Coca-Cola HBC is responsible for producing, to our customers by growing their business and through perfect To produce our products, we use raw Data & Insights materials including water, sugar, fruit distributing, and selling these beverages. We work together to execution in the marketplace. ensure that we have the right portfolio for our markets and to ensure Portfolio Strategy concentrate, energy, glass, aluminium, Investments in Revenue Growth excellent, efficient execution. For the communities where we operate PET resin and paper. We source these Capabilities Plans using sustainable practices and seek We buy concentrate from The Coca-Cola Company under an Talent Exchange • We are an important contributor to the local economies of to use them efficiently. incidence-based pricing model. We also share marketing costs World without Waste the 28 countries in which we operate. Aside from our direct and responsibilities, with The Coca-Cola Company marketing to contribution through employment, and our indirect contribution Social and relationships consumers while we take responsibility for trade marketing to through the value chain, we also invest in community programmes to address environmental and social issues. Maintaining our reputation and the trust our customers. • According to our socio-economic local reports, we support more of our key stakeholders is essential to our Read more about how we leverage our unique 24/7 portfolio Customer Marketing, than 406,000 direct and indirect jobs across our value chain. business. Our most valuable stakeholder and win in the marketplace on pages 26-33. Production of Execution relationships are with The Coca-Cola Beverages & Management Company, our people and the communities Portfolio Sales Bottling Capex For shareholders & route to Investments • The cash flow we generate through the efficient management we operate in, our customers, suppliers, market governments and regulators. of our resources benefits our shareholders through dividend payments and share price appreciation. Financial • We operate a progressive dividend policy and occasionally make additional capital returns to shareholders through special dividends. Our business activities require financial capital, and we seek to allocate it efficiently. This capital is provided by our 3. How we do it For wider stakeholders equity and debt holders as well as cash • Our business activities generate revenue for our customers, flow earned from our operations. suppliers and contractors as well as income for our employees. We are paying taxes which support government revenue, Intellectual in turn supporting public wellbeing, local communities and infrastructure investment. For more details please see page 18: Innovation is embedded in our culture “Our socio‑economic impact”. and the intellectual property created from that includes new packaging, new products For consumers and improvements in manufacturing, 1. Working with 2. Producing beverages 3. Partnering with 4. Serving our consumers • Our innovation provides consumers with beverages of the highest logistics and sales execution. As we expand suppliers efficiently and our customers and communities quality and increasingly healthy choices. We have committed to our 24/7 portfolio, the importance of We work with our suppliers sustainably We grow by supporting our Our 24/7 product portfolio reduce calories per 100ml of sparkling soft drinks by 25% between innovation is increasing. to procure high-quality Using concentrate from customers’ growth. To do caters to a growing range of 2015 and 2025. The reduction achieved in 2019 compared to ingredients, sustainably- The Coca-Cola Company this, we leverage our 24/7 tastes and preferences with the 2015 baseline was 12%. Manufacturing sourced raw materials and along with other ingredients, portfolio and segmented a wider choice of healthier As a strategic partner, our plant and equipment and services we prepare, package and sales execution to grow the options and premium For suppliers required to produce overall beverage industry, products, and we continually logistics assets allow us to prepare, deliver products with an • We benefit from a network of approximately 19,500 suppliers. beverages. focusing on areas of high innovate to remain relevant. package and deliver our products to meet optimised manufacturing In 2019 our spend with suppliers was €3.3bn. 74% of key ingredients value opportunity and the demands of customers and consumers. infrastructure and are certified sustainable agricultural products. logistics network. executing with excellence. 18 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 19 SR
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Our socio-economic impact FS
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STAKEHOLDER ENGAGEMENT SI Making an impact Understanding our stakeholders
The Board will sometimes engage directly with certain stakeholders, however, most stakeholder engagement takes place at the operational level with the Board receiving reports on activities and key areas of concern to use in its decision-making. The Board will then balance different perspectives as it determines the best course of action. Further information on stakeholder engagement is set out on page 90 with examples of "Governance in Action" on page 91.
Since 2010, we have been conducting socio-economic impact studies In conducting these studies, we use input-output modelling to in our individual markets in a local sequence of maximum three years. generate estimates of jobs supported and economic value added. Description Key issues How we engage Why we engage Growth pillar We measure our impact on the communities where we operate in Input data includes our financial information (revenues, expenses, Our people • Building the best teams in Through continuous conversations Our people are our most important order to engage with stakeholders against the backdrop of this taxes, sales volume and profits) as well as some data from The the industry focused on results and behaviours asset and engine of growth. They are 4 information. The numbers below represent the aggregated data from Coca-Cola Company. While rigorous, the process involves statistical • Engagement score is greater as well as frequent employee surveys; both the creators and caretakers of our the latest set of local socio-economic reports from our markets, modelling, which should be considered when interpreting and using than high performing norm by offering unique, personalised culture and values. Our people's views experiences and programmes for enhance our decision-making. covering the period 2017-2019. the results from the studies. personal and professional growth; overseen by employee representative bodies, which have direct access to The input-output model enables an assessment of three key dimensions of impact: our non-Executive Director Charlotte Boyle. • Direct: immediate effect in terms of employment, wages and output Our communities • Water conservation We engage directly with people in To build trust by operating responsibly • Indirect: subsequent effect in the supply chain 5 • Waste from our packaging the markets in which we operate, and sustainably, and addressing issues • Induced: effect caused by staff spend on goods or services • Empowering youth and women particularly those living in the areas that are material for our communities. around our bottling operations, and To provide training opportunities and through third-party partnerships. support to young people currently not in education, training or employment. Overall footprint Our consumers • Continuously evolving our Understanding consumers’ needs and By understanding the consumer and products to meet consumers’ preferences through collecting evolving our portfolio accordingly, we 1 More than needs for healthy hydration, consumer insights. While this is also grow our business sustainably in the quality, taste, innovation and part of The Coca‑Cola Company’s role, long term. 5 56 98 c.19,500 convenience we gain access to these insights. Plants Distribution centres 487,000 Suppliers customers Our customers • Identifying products, channels A system of key account managers, To build business plans with specific and other opportunities that offer in whom we are constantly investing, in-store execution and promotional 1 growth and value creation for us who engage with our customers at a activities to suit our customers’ needs and our customers strategic level. and create joint value. 2 • Offering a 24/7 beverage Our business developers make regular To avoid unnecessary costs. 615m €484m portfolio that meets the changing visits to outlets. preferences of consumers Potential consumers CAPEX spend Partners • Rising costs of ingredients, We receive feedback at our annual To share knowledge and expertise in efficiency labour, packaging material, Group Stakeholder Forum. and find ways of using all our resources 3 Contribution to the economy energy and water as efficiently as possible, reducing We align and co-ordinate with the costs to our Company. • Minimising the environmental Coca-Cola System’s Central 5 impact of water and energy Procurement Group and our To ensure a healthy, sustainable 31,759 resources, as well as air emissions technology and commodity suppliers supply chain. €3.69bn through regular interactions. Employees in the Coca-Cola System paid in taxes. This includes taxes paid directly by NGOs • Wide-ranging issues facing our Via our annual Group Stakeholder NGOs have a key contributing role in our markets 5 Coca-Cola HBC and taxes paid by our suppliers business, from energy and water Forum and our annual materiality to our annual materiality process and trade partners and their suppliers and trade use, reductions in packaging assessment, as well as through ad and we engage with them, both in waste to corporate governance, hoc meetings. our markets as well as at Group level, partners, related to our activities. 374,439 human rights and diversity on an ongoing basis to develop and Indirect employment support community and >203,800 647,590 environmental initiatives. Shareholders • Quality and effectiveness Through open, honest communication To achieve fair value and appropriate 2017-2019 cumulative Training hours 1 2 young people trained of governance during our Annual General Meetings, ownership of our shares by enabling • Profitability and growth potential investor roadshows, press releases and the full understanding of the strategy, €1,037.3m 1 = 11.8 results briefings, and ongoing dialogue as well as the operational and financial Total employee costs of the business 3 5 = Job in the Jobs in our with analysts and investors. performance of the Company. >98% >€3.2bn system community Governments • Industry and/or product-specific Our advocacy efforts are mainly We consider it our duty and our of our total procurement spent with local suppliers policies, such as taxes, conducted through trade associations, responsibility to make our views 5 restrictions or regulations which represent companies, clear to those who have the potential • Environmental policies organisations, causes and industries. to influence the laws, regulations • Consumer health and public We also partner with local and policies that can impact health policies governments to tackle waste our business. collection challenges. €11.4bn created The Coca-Cola • Profitable growth opportunities Day-to-day interaction as business To maintain consumer trust and in added value to total contribution via our value chain Company • Value share in our markets partners, joint projects, joint business generate sustainable growth for 1 2 • Sustainable sourcing planning, functional groups on strategic the Coca-Cola System, objectives issues and ‘top-to-top’ senior central to both of our business models. 4 5 Disclaimers: management forums. • Numbers presented are aggregated based on the local SEI reports from CCHBC territories in the period 2016-2019; • All KPIs represent an annual impact; • Where applicable and relevant in local SEIS, the impact of other entities of the Coca-Cola System is included; • All presented data covers CCHBC territories only. 20 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 21 SR
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Market review FS
SSR Responding to SI evolving trends
Market trends How we are responding Delivered through Growth pillar
To reach consumers, we work hard to build strong customer relationships through Dynamic retail environment 1 The retail landscape is changing in response to transformation in lifestyles and technology use. joint value‑creation processes. We are leveraging our unique 24/7 beverage portfolio with +3% targeted execution excellence, covering more outlets more often. We are also evolving from Smaller households and busier lives are impacting consumer preferences and buying habits, In our active universe we 2 and driving rapid growth in both the convenience and e-commerce channels. Consumers are a product supplier to a 360-degree business partner, offering customers a holistic set of have increased our net also increasingly price-sensitive, fuelling the growth of discounters. Growth in away-from-home products, services and expertise. We are using new technologies to provide better service new outlets coverage socialising occasions creates a big opportunity to capture sales through hotels, restaurants faster. This includes connected coolers, sales force automation, image recognition and an by 3% in 2019. and cafés. online, 24/7 ordering platform. Technology frees up time for our sales force and increases possibilities for specialisation.
In each of our markets, we have a dedicated person or team responsible for e-commerce. Digital evolution 1 With increasingly affordable and efficient connectivity, more consumers are using digital We continue improving visibility of our products online and the use of e-commerce tools +48% including eRED, our online merchandising performance tracking system. In many markets, technology to explore potential purchases and interact with brands. Consumers increasingly use In our top three markets 2 social media as a primary interaction point with brands and companies, requiring retailers to we have built strong collaborations with merchandising, including the implementation of joint for e-commerce (Ireland, engage with these platforms. Smartphones have enabled consumers to become more price savvy, business plans. Going forward, we will continue building e-commerce capabilities and further Italy and Russia) with the majority of shoppers doing online research before committing to a purchase. At the improve our online ordering platform for retailers. To improve incremental volume and attract e-commerce volumes same time, online shopping is growing and evolving to provide consumers with more services and new shoppers, we have a goal to increase our sales incidence rate through online restaurant grew by 48% in 2019 compared to 2018. flexibility. One of the fastest growing segments of online shopping is online restaurant food delivery. food delivery companies to a minimum of 30%. We are pursuing these opportunities responsibly, with increased focus on cyber-security and data protection. We have obtained in the year ISO 27001 certification for our IT organisation which confirms our commitment to secure management of information and adherence to international cyber-security standards.
As part of the Coca-Cola System-wide World Without Waste initiative, we have committed Regulatory environment 3 Our industry is facing increased regulation of product packaging as concerns about plastic pollution to help collect the equivalent of 75% of primary packaging, use more recycled and renewable 48% materials in packaging and make 100% of our consumer packaging recyclable by 2025. We offer increase. To support the transition to a circular economy, the Europe-wide plastics strategy calls In 2019, we recovered 4 for all plastic packaging to be reusable or recyclable by 2030. At the same time, discussions about low- or no-sugar drink options in every market, provide transparent nutritional information and 48% of the primary discriminatory taxation of added-sugar beverages are gaining traction. Following Ireland’s adoption have committed to a 25% reduction in the calories per 100ml of our sparkling beverage products packaging we put in the of a sugar tax in 2018, governments in Italy and Poland explored similar taxes in 2019. The World by 2025 against a 2015 baseline. We also continue to support UNESDA’s commitment to not marketplace. Health Organization recommends a reduction in consumption of free sugar to less than 10% offering soft drinks in primary schools or added‑sugar beverages in secondary schools across of the daily energy intake to prevent obesity, diabetes and tooth decay. the EU and Switzerland.
We are well placed to respond to these trends with an ever expanding 24/7 portfolio. Our range Consumer preferences 1 Consumers increasingly look for healthy, sustainable product options, creating a clear shift towards of low- and no-sugar sparkling variants has been very successful. We are nurturing premium +3.0pp propositions in the adult sparkling category, which has revenue growth over three times that natural and organic offerings that contain pure ingredients, less sugar or fat and are sourced locally. In 2019, the share of 5 Product labels are increasingly scrutinised, with consumers searching for evidence of natural of the overall sparkling category. To improve and expand our offerings for health-conscious low- and no-sugar variants ingredients and brand authenticity. The demand for innovation and differentiation creates an consumers, we have established our position in ready-to-drink tea with FUZETEA, a sustainably in our sparkling portfolio opportunity for emerging, premium brands. Consumers are willing to pay more for better quality sourced tea blended with natural juice and herbs, and we launched our first plant-based, sugar increased by 3.0pp, to beverages, creating greater incentives to build authentic brand images to foster consumer trust and dairy-free, vegan-friendly beverage with AdeZ. In addition, we are incubating new brands 16.1%. and loyalty. offering natural ingredients and simplicity in hand-picked outlets.
By introducing Mission 2025 in late 2018, we have set a robust strategy which drives our progress Sustainability 1 In 2019, global movements such as Fridays for Future as well as the United Nations Climate in six main areas: emissions reduction; water reduction and stewardship; World Without Waste; 42% sustainable sourcing; nutrition; and our people and communities. We continuously engage with Change Conference COP 25 have created a lot of momentum for the environmental and In 2019, 42% of the total 3 socio-economic challenges that our world is facing. As a result, consumers and customers are all relevant stakeholder groups; we listen to them, for example during our annual Forum event, energy we used came we discuss and implement their material recommendations and share updates accordingly. increasingly aware of the impact they have on the environment and society. Companies are more from renewable and 4 than ever expected to act upon issues related to climate, water, packaging, poverty etc. in line with clean sources. the UN Sustainable Development Goals. A thoughtful, authentic approach to sustainable business 5 practices will help companies generate greater trust, help to attract employees, increase brand and customer loyalty and, eventually, strengthen competitive advantage. 22 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 23 SR
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Dear Stakeholder, I am proud that we have again been ranked The sparkling category continues to have Preparing for future success SI as Europe’s most sustainable beverage significant opportunities driven by innovation. I am pleased to report that we continued As we go into the final stages of our 2020 company by the Dow Jones Sustainability We are seeing continued double-digit growth to make progress on our 2020 strategic strategy implementation, we have also Index. This is the ninth year in a row that we from low- and no-sugar variants, as well objectives during 2019, putting us well looked ahead to the next stage of growth, have been ranked among the top three as strong growth from adult sparkling with on track to meet our targets. development and opportunity for all the beverage companies globally and in Europe. brands such as Schweppes, Kinley and stakeholders connected to Coca-Cola HBC. We remain focused on implementing and However, rankings and ratings are secondary Royal Bliss. delivering our strategy, leveraging a product to action and impact and we continue to work In June of 2019, following approval and Outside of sparkling we continue to focus on portfolio that is stronger, broader and more to improve in this regard. endorsement by the Board, we introduced premiumisation while expanding our share. consumer- and customer-centric than ever. our new purpose, values, vision and strategy. In the key area of packaging, we collected We know that we have an opportunity to We are continuously evolving and To guide and measure our success in 48% of our primary packaging, launched four continue to selectively expand our already strengthening our route to market with implementing this strategy, Growth Story water brands across five markets in 100% broad product portfolio into new categories segmented execution, which allows us to 2025, we also introduced new 2025 targets. recycled PET packaging and we have and brands as well as brand extensions where serve our customers better and capture announced that we will replace plastic shrink we see strong growth opportunities, today Our vision is clear: to be the leading 24/7 the growth opportunities in every channel. film on can multi-packs with recyclable and in the future. Costa Coffee is a good beverage partner. Our success and A focus on our customers is central to the paperboard by the end of 2021. example of this and we are excited to be continued growth depend on our ability to way we want to work at Coca-Cola HBC, serve our customers and delight consumers We are also making progress on carbon embarking on our journey with this high- and we are embedding a growth mindset in collaboration with The Coca-Cola emissions: 89% of electricity used at our quality coffee and great brand in 2020. throughout our organisation to support this Company. We are committed to enriching production sites in the EU and Switzerland In line with our improving portfolio, we are focus. Our willingness to cherish and leverage the communities where we work and is from renewable and clean sources. continuously strengthening our route to all our strengths, while being honest with delivering sustainable products with Our target is to be at 100% by 2025. market with a relentless focus on execution each other, and open to identifying and excellence. Our future success is most excellence. Through segmentation, we are addressing our gaps, underpins our progress I hope you will spend some time reading dependent on the passion and engagement better able to sell our broader portfolio and and long-term success. more about this and other initiatives on of our people, as well as the continual pages 42-45. We intend to be as accountable serve our customers. We continue to invest development of their capabilities which We delivered a strong set of results despite on our sustainability targets as we are on to remain agile. Our investments in digital will make us fit for the future. That is why the challenging backdrop of unusually cool, our financial ones, and you can see our capabilities allow us to be more granular in nurturing talent and inspiring people to take wet summer weather in several of our largest comprehensive reporting against Mission how we slice the market to go after the the initiative is such a focus for us. markets which constrained consumption 2025 on pages 48-49. highest potential opportunities. Similarly, our and impacted sales growth in the second and investments in tools for our sales force can Our targets, by which we will judge our third quarter. It is when we come up against success, include delivering, on average, What it takes to deliver 24/7 enhance their productivity, while connected challenges that I am most impressed by the coolers can monitor both the performance FX-neutral revenue growth of 5-6% and tenacity, creativity and spirit of our talented Since 2016, and as a part of our 2020 and productivity of our chilled space. comparable EBIT margin expansion of 20-40 people. Due to their efforts, we gained or strategic plan, FX-neutral revenues grew at basis points from 2021 to 2025. This would This 24/7 portfolio and our execution maintained share in the majority of our an average of 4.8%, at the upper end of the place our growth above the average for the excellence means faster growth for us, our markets while also achieving solid growth 4-5% range we targeted. At the same time, beverage industry. we have seen comparable EBIT margins partners and customers, more opportunities and strong margin expansion. Our priority remains organic growth, but we expand by 330 basis points, leaving us well on for our people and more value created for An indispensable part of our strategy is have also made some targeted acquisitions. track to achieving our 11.2% target in 2020. other stakeholders and the communities in our commitment to manage our business which we operate. In December 2019 we acquired Lurisia in Italy, responsibly and sustainably. We know that beverages remain a fast-growing together with The Coca-Cola Company; this industry, particularly in the markets in which We are energised by the ambition to deliver acquisition adds to our premium water and we operate where per-capita consumption on this opportunity and What It Takes To adult sparkling portfolio. Earlier in the year of sparkling drinks is still very low. Deliver 24/7 is the theme of this year’s we acquired Bambi, the leading confectionery Integrated Annual Report. Throughout the brand in Serbia, which helps us strengthen report you can learn about how we aim OUR VISION“ IS our market leverage and route to market, to do this. while synergising our beverage and snacks CLEAR: TO BE portfolio through joint activations. Going forward, we will continue to look at THE LEADING opportunities to make complementary, 24/7 BEVERAGE bolt-on acquisitions. As we look to 2020 and beyond, we remain Achieving PARTNER.” committed to partnership. We know that our Company can only grow when our customers grow, and when our growth benefits all of growth and our stakeholders. I thank you for your interest and partnership on our exciting journey to deliver 24/7. delivering Yours sincerely,
ZORAN BOGDANOVIC more Read more on our performance at https://coca-colahellenic.com/en/ CHIEF EXECUTIVE OFFICER investors/2019-integrated-annual-report/ 24 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 25 SR
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SSR Our growth pillars How we grow Setting out our SI LEVERAGE OUR Offer the best 24/7 beverage portfolio on the UNIQUE 24/7 planet in partnership with The Coca-Cola Company Growth Story 2025 PORTFOLIO 1 • Extend sparkling quality leadership in all markets, driving accelerated shift to lights/zeros and adult • Increase our portfolio value share in stills, moving into accretive premium sub-segments • Build a substantial business in complementary Over the first four years of our 2020 plan, currency- categories neutral revenues have grown at an average of 4.8% per year, at the upper end of the 4-5% range we targeted, while comparable EBIT margin expanded by 330 basis WIN IN THE Build unrivalled teams of true partners for our MARKETPLACE customers, executing with excellence in every points to 10.8%, leaving us well on track to achieve the channel for prioritised drinking moments 1 2 • Create value with every customer we serve 11.2% target in 2020. • Deliver innovative growth ideas with devotion • Seamlessly serve to exceed expectations across all functions As we entered the final stages of this plan, we started to Fast-forward critical capabilities for growth • Key Account Management, Revenue Growth look ahead to the next stage of growth and opportunity Management, Route to Market, Big Data for all of our stakeholders. & Advanced Analytics & Innovation
FUEL GROWTH Transform, innovate and digitalise our business Our new strategy, Growth Story 2025, builds on our new THROUGH to ensure we are fit for the future COMPETITIVENESS • Organise to act with agility and eliminate all vision. Our focus has shifted to growing the market in 3 non-essential cost & INVESTMENT • Digitalise the business where it creates exceptional partnership with our customers, aiming to be the leading customer, consumer and employee experiences • Make disciplined, growth-focused investments 24/7 beverage partner. • Experiment with new business models & technology to create the bottler of the future Growth Story 2025 is built upon five key pillars of growth – each of which is a core strength or competitive advantage – and reflects our capabilities and the CULTIVATE THE Develop an inclusive growth culture around our POTENTIAL OF empowered people significant opportunities that will help us deliver another OUR PEOPLE • Deliver high performance fast, by empowering every 4 team to make it happen step up in performance through 2025. • Ensure our people grow, and pursue their passion Invest in building the best teams in the industry • Make talent development our lighthouse capability, In support of this revamped strategy, we have introduced which each leader is excited to drive 2025 targets that raise the bar for financial results, people • Become the employer of choice in all our markets engagement and sustainability achievements. EARN OUR Be an environmental leader in the markets in which LICENCE TO we operate OPERATE • Help secure water availability in water risk areas • Further decrease CO emissions 5 2 • Work towards a World Without Waste Engage our communities behind water and waste initiatives, as well as empower youth, together with our partners
1. 2020 comparable EBIT margin target has been adjusted for the accretive impact of acquiring Bambi, taking an original target of 11% to 11.2%. 26 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 27 SR
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Introduction As lifestyles and consumer habits change, Percentage 1 the motivations and occasions driving of Coca-Cola beverage consumption are also evolving. HBC revenue Our category strategy GROWTH PILLAR We are unlocking growth potential in segments beyond our core sparkling portfolio, offering a wider choice of drinks to meet consumer needs at any time of the day. LEVERAGE In line with growing societal concerns around environmental issues, consumers are looking for sustainably-sourced ingredients and responsible packaging. Technology, Sparkling Water Juice RTD tea OUR UNIQUE 24/7 particularly social media, is changing socialising occasions and the ways consumers interact with brands. Consumers are also more focused on making healthier Drive category Expand and premiumise PORTFOLIO choices. This all leads to demand for a value growth broader range of products, providing us with a number of new growth opportunities.
KPIs Highlights in 2019 In 2019 we sold 165 million cases of new • Maintained high growth in the sparkling category, aided by the strong product, flavour and package innovations, and • FX-neutral revenue 4.2 percentage points of our volume growth growth performance of sophisticated adult sparkling beverages was attributable to these new launches. • Volume growth • Achieved another year of double-digit revenue growth in energy drinks • FX-neutral revenue and expanded the energy portfolio with Coke Energy and Predator This is testament to how, working together per case growth with The Coca Cola Company, we are well • Innovations supported overall growth, with 4.2pp of total volume growth in Stakeholders placed to respond to market trends with the year delivered by products and packages launched in the last 12 months Energy Plant Premium Coffee an ever expanding 24/7 portfolio. We have based spirits Our consumers the right brands, packaging and categories Priorities in 2020 to meet the evolving needs of our Our customers • Continue expanding to become a 24/7 beverage partner, creating shared consumer base. Shareholders value with our consumers and customers Innovate Establish Unlock total Unlock total and expand right to win portfolio portfolio The Coca-Cola • Consolidate the performance of product innovations by increasing growth in growth in Company distribution and repeat sales HoReCa At Work & Risks • Continue driving growth in sparkling by leveraging light variants, flavour Spar ling HoReCa and pack architecture Water • Consumer health uice and wellbeing • Bring ready-to-drink tea back to growth through a strong plan for FUZETEA R D tea nergy • Geopolitical and • Drive revenue growth in water by implementing our hydration portfolio strategy lant based macroeconomic • Launch Costa Coffee in at least 10 countries remium spirits 3 • Strategic stakeholder Coffee relationships 28 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 29 SR
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Driving sparkling category growth Another high-value, high-growth segment we We are also focused on expanding our One of our biggest growth opportunities is Responsible marketing SI Our evolving sparkling drinks portfolio is are prioritising is the adult sparkling category, premium offerings in the juice and water in the coffee category. We announced in Our advertising and promotions reach proving popular with consumers across our which has revenue growth over three times categories. Within juice, we focused on mid-2019 that we will launch Costa Coffee, millions of consumers. While this is a core territories and we are seeing strong growth that of the overall sparkling category. Adult product stratification during 2019 to capture a brand recently acquired by The Coca-Cola driver of our business, we take steps to from new variant and flavour launches. consumers with more discretionary income premium revenue opportunities. In Russia, Company, in at least 10 countries during ensure that marketing is responsible as well Sparkling beverage volume grew 3.5% in are interested in superior products and where our juice business represents a 2020. We believe this launch will address a as effective. As part of the Coca-Cola 2019 compared to the prior year, fuelled by experimentation. When compared to core considerable proportion of our portfolio, we broad range of consumer and customer System, we adhere to The Coca-Cola the double-digit volume growth of low- and sparkling products, this category commands have a track record of continuous innovation, UN Sustainable needs across multiple occasions, particularly Company’s Global Responsible Marketing no-sugar options, which is stimulating growth significant price premiums. which supports higher price points and Development Goals for the hotels, restaurants and cafes policy and, together with other members increased revenue per case. Bringing these (HoReCa) and At Work channels. We are in the entire category. We launched the Royal Bliss brand in the adult We serve our consumers with of our industry, we are also signatories of the juice innovations, and increased revenues, pleased to be the first Coca-Cola bottler to sparkling category in 2018, using the best a broad range of high-quality European Soft Drinks Industry Association Coca-Cola Zero grew 26.2% in volume during to other markets is a focus for 2020. undertake such a launch in close partnership practices developed with our Schweppes and products. In doing so, we (UNESDA) commitments. the year, delivering 10 consecutive quarters with The Coca-Cola Company. Our Kinley brands. Our approach for this category Within the water category, our overall focus create value by contributing of double-digit growth. This growth reflects well-established infrastructure, processes In the EU and Switzerland, we do not offer involves premiumisation and segmented is on accelerating value share gains with an aim to global goals for good health execution excellence and powerful assets and capabilities around coffee mean that we soft drinks in primary schools or offer execution with hotels, restaurants and cafes. to double the pace of our market share growth and wellbeing, innovation, such as our Star Wars-themed activations. are well positioned to hit the ground running added‑sugar beverages in secondary We also support growth by fully leveraging in the next five years. We develop market- responsible production and We also delivered strong performance from with this exciting opportunity. schools. We plan to gradually expand this new, low- and no-sugar sparkling beverage partnerships with premium spirits. specific maps of diverse water segments and consumption and partnerships. approach to all our markets over the coming options such as Sprite Zero and Fanta Zero. price tiers, seeking to expand our market We also benefit from the highly years. Further, we avoid engaging in any Our light variants had value growth over four Expanding value beyond sparkling share and capture higher revenue per case. complementary premium spirits category, direct commercial activity in primary schools, times higher than the sparkling category beverage offerings This hydration portfolio strategy involves a which is now available in 19 of our markets. except when requested by school authorities. average in 2019. In 2019, the share of In energy, one of the fastest-growing range of product offerings, execution tactics We leverage premium spirits to create a low- and no-sugar variants in our total segments of the beverage industry, our and route-to-market approaches. compelling offering for HoReCa. This Product quality provides us with strong cross-selling volume increased by 3.0pp to 16.1%. Monster brand products had another year We added to the premium water brands Product quality is a critical priority for our opportunities for our core beverage portfolio of impressive growth with volume up 36% in our portfolio during the year with the business, highlighting the importance of Innovations played a key role in our success in new, lucrative outlets. for 2019. In 14 markets, we launched compared to 2018. In this category, we have acquisition of Acque Minerali S.r.l., owner maintaining consumer trust. The freshness pursued a segmentation strategy, launching and producer of Lurisia, an Italian natural Coca-Cola Plus Coffee, featuring a great Health and nutrition of our products in trade, a key measure of coffee taste with more caffeine but zero a variety of brands at different price points mineral water and adult sparkling beverages quality, remained at the same level in 2019 As a company we are continuously evolving calories for consumers on the go. This to target different types of consumers. company. This acquisition, which we made in compared to the prior year, while we our portfolio to help create a healthier food innovative product has seen great initial For consumers seeking a new taste and a conjunction with The Coca-Cola Company, introduced approximately 1,000 new SKUs environment. We’ve already reformulated consumer engagement. In flavours, we taurine-free formula, we launched Coca-Cola was completed in December 2019. across Coca-Cola HBC. many of our drinks to contain less sugar and introduced Coca-Cola Zero Vanilla, Cherry Energy, a premium product, in 15 of our fewer calories. To give consumers more Our low rate of consumer complaints and seasonal flavours such as Cinnamon countries during 2019, attracting new users Building market share options, we’re also offering more diet, light also demonstrates the high quality of our and Ginger in many of our markets. to the category. We also added the Predator The dramatic expansion of our product and zero-calorie drinks in our portfolio. beverages and the trust consumers and brand to our portfolio in five markets, offering portfolio includes products in new categories We are also driving packaging innovation customers place in our products and brands. energy at a more affordable price point for our business. Following initial product Key nutritional information is visible on all of with smaller, more convenient packages, The number of complaints declined by 5%, in two flavours. rollouts, we are continuing to take action to our bottles and cans. Guideline Daily Amount which also serve to expand revenue per case. to 18 complaints per 100 million bottles sold. build our market share. labels provide at-a-glance information on Single-serve packages comprised 48.5% of Our biggest system-wide launch in 2018 This meets our 2019 target of no more than calories, as well as on sugar, fat, saturated fat our sparkling sales volume in 2019, up 2.5% was FUZETEA, and we continued to build We entered a completely new category 18 complaints per 100 million bottles sold. and salt content. In several of our markets, compared with 2018, with significant on the successful introduction of this fresh, in 2018 with AdeZ, our first plant-based, For 2020, we have set a target of no we are trialling new front-of-pack labels potential for additional growth. innovative, ready-to-drink tea in 2019. sugar- and dairy-free beverage. Thus far, we more than 17 complaints per 100 million which use the current European-wide This fusion of sustainably-sourced tea have launched eight vegan-friendly flavours, bottles sold. Reference Intake (R.I.) monochrome model, extracts with fruit and herbal flavours has including plain for the breakfast occasion disclosing the nutrient content per 100ml We offer the highest quality beverages in attracted strong competition in some and fruit flavours for snacking on the go. of our drinks for sugars, salt, fat and saturated all markets by applying end-to-end quality markets, impacting growth. With good We extended the distribution of AdeZ across fat through a simple ‘traffic-light’ colour and food safety standards and maintaining activation and customer coordination, the all our channels in 2019, increasing our share scheme of red, amber and green. a strong focus on quality and safety multi-layered, contemporary tea taste of of the plant-based beverage category in the FUZETEA is winning over consumers. In Italy, throughout our value chain. To minimise 17 markets where it has been introduced. The World Health Organization recommends quality risks in our supply chain, in 2019 we for example, FUZETEA doubled our market We have gained 6% market share in just over that no more than 10% of total energy/calorie share. Our focus going forward is on adding continued to collaborate with suppliers of key a year since its launch in prioritised markets. consumption come from added sugars. primary ingredients and packaging materials. differentiating flavours to attract more To help tackle consumption of added sugar consumers to the category. This collaboration helped us eliminate quality we support UNESDA’s pledge. In this context, incidents related to suppliers in 2019. we have committed to reduce calories per 100ml of sparkling soft drinks by 25% In 2019, we continued our strong focus FOR CONSUMERS SEEKING A NEW TASTE AND between 2015 and 2025, across all of our on enhancing our training and capabilities markets. The reduction we achieved in 2019 in regard to product quality and food safety. “ A TAURINE-FREE FORMULA, WE LAUNCHED compared to the 2015 baseline was 12%. As the result of best-in-class industry benchmarking, each of our markets has SUPER-PREMIUM COCA-COLA ENERGY IN 15 developed tailored plans to support and OF OUR COUNTRIES DURING 2019, ATTRACTING further develop our quality and food safety culture. NEW USERS TO THE CATEGORY.“ 30 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 31 SR
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Capturing growth opportunities requires more As a result of this model, in 2019 we were Route-to-market than a strong product portfolio. It is equally recognised as the top supplier for traditional 2 approach necessary to have excellence in execution, outlets in three additional countries compared successfully serving every customer through with 2018. We increased our share of Our route-to-market approach is about every outlet for every occasion, 24/7. satisfied customers by 2% to 68.6% in 2019, GROWTH PILLAR converting our strategy into excellent and we maintained our high share of satisfied Our success is dependent on the success of execution at every point of sale. In line key account customers at 81%. with our improving portfolio, we are our customers. When our customers are able continuously strengthening our route to generate profits by selling our products, We also launched customer pulse surveys to market and partnering with our they demand more products from an during the year to listen and respond to our WIN IN THE expanded range. Joint value creation is partners’ needs even more frequently. Pulse customers to bring our 24/7 portfolio into the hands of our consumers faster therefore key to both category and market surveys allow us to analyse satisfaction levels and with greater efficiency. share expansion as well as profitable growth. by region, channel and outlet segment for a more targeted response. MARKETPLACE Our targeted and segmented way There are two pillars underpinning our joint of serving our customers, with an value creation process: our next-generation To optimise strategies undertaken together appropriate level of sales force customer approach and our industry-leading with our customers, we are developing specialisation and combined with the commercial capabilities. more powerful analytic tools to assess KPIs Highlights in 2019 utilisation of new technologies, gives commercial decisions and better understand the investment and returns required. • FX-neutral revenue • Continued improvement in customer satisfaction results and launch of new us a competitive advantage to win Partnering with customers growth customer satisfaction pulse survey in the marketplace. Our next-generation customer partnership Our customers are also developing their • Volume growth • Improvements in customer coverage, including time spent with customers, model allows us to generate powerful insights own offerings. • FX-neutral revenue from customer data, which supports tailored per case growth with greater sales force specialisation to enable our 24/7 strategy The HoReCa channel remains a key focus, • Accelerated use of new technology, including connected coolers, sales force execution plans implemented in collaboration as it is pivotal in driving premiumisation and Stakeholders with our partners. We start by commissioning building the right consumer experience automation, image recognition and web-based ordering an annual survey of more than 16,000 around our brands. We leverage the expertise Our customers • Holistic approach to building growth capabilities, including revenue growth customers, comparing ourselves with other of our centres of excellence in Croatia and Shareholders management and key account management, by defining prioritised actions beverage suppliers. This survey allows us to Greece to build a shared value proposition, per capability understand the challenges and opportunities provide a bespoke service to our customers The Coca-Cola our customers are encountering, meaning we and capitalise on available synergies. Company Priorities in 2020 can identify how to become better partners and continue to exceed their expectations. Risks • Leverage data and advanced analytics to improve segmented execution Prioritising critical capabilities This approach is helping us to develop for growth • Channel mix • Step up in indirect partner management and data sharing stronger and more productive customer The second pillar underpinning our growth is • Geopolitical and • Launch of new business developers’ academy to drive our sales force’s partnerships and provides a platform for macroeconomic our industry-leading commercial capabilities. us to continue building these relationships. • Quality capability to deliver improved customer service, performance and execution This includes a game-changing approach to and ensure successful onboarding for new business developers revenue growth management, which makes • Strengthen our relationship with e-retailers and start deep partnering with our business more sustainable and profitable, new channels to achieve higher market share online and excellent sales execution, which lets us • Launch of internal validation and certification process to share best practices offer the right range of products and services to our customers while remaining and accelerate the development of our prioritised growth capabilities cost competitive. 32 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 33 SR
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By improving revenue growth management, Leveraging technology for better Sales force specialisation Building customer-centric By offering a broader portfolio, with a wider SI we aim to maximise value from every execution By segmenting our customers and capabilities choice of products, we grow our business transaction. Our new revenue growth and those of our customers. In established Our route-to-market approach converts our introducing dedicated sales teams To improve our efforts to partner with our management framework, developed in categories, new recipes, variants and strategy into excellent execution at every specialising in specific channels, we are customers to drive mutual revenue and profit partnership with The Coca-Cola Company, packages are having a strong impact, while point of sale. These efforts are increasingly unlocking the potential of our 24/7 portfolio. growth, we have developed a new framework makes better use of big data and advanced initiatives for new categories are the basis for segmented, with implementation plans for for end-to-end customer management. analytics, giving us deep insight across We start by understanding the total universe long-term success. almost 300 initiatives across our markets. We are also training and developing the next different channels, customers and types of outlets, defining different service levels Increasingly, new technology frees up time generation of key account leaders as we With every initiative, we are focused on of shoppers. This has led to fundamental and contact options and optimising needed by our sales force to focus on continue to evolve into an even more growing the value of our portfolio. For changes in planning, and it empowers our customer visits by channel and segment. channel and product specialisation. This process helps us determine the right customer-centric business. example, Coca-Cola Energy yields four markets to make the right strategic decisions. UN Sustainable times the net sales revenue per unit case We have equipped our sales teams with a level of specialisation so that we deploy the To accomplish this, we have put in place a In the last few years, we have continued Development Goals compared to the non-alcoholic ready-to- sales force automation tool, which helps our right number of business developers. In big robust programme of training backed by a to expand our portfolio and make it more drink average. For our customers, this people provide the very best service quality. As we build our business by cities, we have launched dedicated teams targeted development centre to address skill consumer centric, along with an increased represents increased revenue incremental This platform uses a range of customer data, helping our customers to grow serving HoReCa key accounts and gaps and ensure our people have the right focus on consumer occasions. At the same to the overall energy category. including from connected coolers, and thrive, we make substantial wholesalers, as well as ambassadors for capabilities to take our customer partnerships time, we have striven to improve category suggesting activities with the biggest impact contributions to the coffee and premium spirits. forward. As an example, we are setting up Additionally, we have launched an internal and package mix, focusing on portfolio for each customer visit, and recommending achievement of the Sustainable dedicated negotiation rooms in each market innovation platform with 6,600 employees premiumisation, brand stratification and Meanwhile, our business developers in rural products and quantities to be ordered whilst Development Goals related to for our teams to practise and build their currently engaged in the scheme. This is a growing sales of single-serve packages. ending poverty, decent work, areas are responsible for a mix of customers reducing administrative tasks. and products. negotiating skills, ready to meet our hub for our employees to share their ideas, These are all crucial to our revenue sustainable communities, and so far, we have generated more than We have increased our investment in coolers customers’ expectations. growth approach. responsible production, In Italy, over half of the beverage revenue in 4,700 ideas. over the past few years. Our cooler coverage We are investing in improving leadership skills As an example, in Russia we created a plan justice and strong institutions, the country comes from out-of-home reached 87% of our top customer outlets by and intensifying the involvement of leaders in We also engage with external parties in our to address the challenges of low per-capita and partnerships. consumption, but just over a third of our the end of 2019, amounting to 1.43 million talent development. We have also launched a quest for innovation, partnering with leading consumption and overall affordability of revenues in the market come from this coolers, of which 28% are energy-efficient. simplified people-powered process for universities and start-ups. Coca-Cola products, combining consumer channel. We have addressed this with a This investment serves to drive immediate performance and talent management which insights, pack-price architecture and specialised sales force, supported by digital consumption and increases revenue per incorporates regular feedback from peers Big data and advanced analytics promotions to create a compelling customer prospecting tools, adding 34,000 high case. At the same time, we are building a and customers. This is part of our effort to selling story. One specific initiative was the potential outlets to our business developers’ As we seek to become more innovative and network of connected coolers, which are now improve employee experiences, with launch of a 900ml package size, which routes. Since we began this approach in customer-centric, we are leveraging our data present in all of our 28 markets. This increased focus on hiring, onboarding and successfully contributed to sales growth. 2017, we improved our coverage from 23% and investing in advanced analytic tools to technology automatically keeps track of to 51% by the end of 2019. career discussions. identify and capture value creation and In Italy, we have successfully used pack-price inventory and supports promotional improve our service and operations. architecture to reverse declines in the messaging to consumers within close range. Our tailored approach for the emerging Disciplined innovation sparkling category and dilution of customer e-commerce and at-work channels supports In Nigeria, where trade is very fragmented, In order to improve our in-store execution we As we become the leading 24/7 beverage margins. We launched several new packs product cross-selling. advanced analytics have given us the ability have deployed image recognition partner, we are unlocking growth potential in to segment our outlets to the same degree including a 660ml PET bottle with a €1 price We are pleased with the results we have technology. In Italy for example, our segments outside our core sparkling portfolio. we had previously achieved in our other point as well as a new, smaller, 450ml pack for achieved, through customer segmentation customers are incentivised through a loyalty New product launches accounted for 4.2pp markets. This allows us to have different on-the-go occasions. In addition, we and sales force specialisation. Our outlet scheme to perform image recognition in our of our volume growth in 2019, the result of activations for different outlet segments, supported new multi-packs with value-based coverage was up 6% to 68% in 2019 and time coolers, ensuring the right presence for all our disciplined approach to innovation. addressing different drinking occasions. In promotions. These moves helped us unlock with customers up 3% in 2019 compared to our product categories. Lagos, for example, we were able to target opportunities for smart pricing which led to a the prior year. return of sparkling category value growth in In 2019, we launched Coca-Cola Hellenic’s the Easter occasion in outlets near major the market. first service brand, Qwell by Valser, for churches, with additional premium products delivery in Switzerland. The project includes a in more affluent areas. As our Revenue Growth Management web-based ordering platform and app, and approach is analytically intensive, it requires We aim to build and sustain this critical we have doubled the number of products the right tools to be supported by our capability as a long-term competitive available since 2017. This effort is supported systems. To embed this model, we have advantage. by a cross-system team, in partnership with equipped our business units with various Data and advanced analytics techniques are The Coca-Cola Company, and supports “ analytical tools which are fully integrated BY SEGMENTING OUR also supporting our segmented execution brand launches to fuel growth. with our digital environment. Our business CUSTOMERS AND model, providing suggested activities to our developers can now use advanced pricing In 18 of our markets, we have improved sales force, including recommended orders and assortment optimisation tools which online ordering and self-service functionality INTRODUCING DEDICATED with specific products and quantities to are allowing us to make the right for customers with a solution that fully SALES TEAMS SPECIALISING IN minimise out-of-stock incidents. strategic decisions. integrates SAP platforms with Coca-Cola HBC back-end systems. This streamlines SPECIFIC CHANNELS, WE ARE both ordering and processes for cooler servicing, financial claims and order tracking. UNLOCKING THE POTENTIAL In 2019, we expanded this solution to a total of 12,000 customers. In 2020, our focus is on OF OUR 24/7 PORTFOLIO.“ expanding the rollout of this solution to additional markets and further improving customers’ online shopping experience with options for email marketing campaigns and product proposals. 34 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 35 SR
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Optimising infrastructure At our distribution centre in Northern In 27 of our plants, we are now using smart Our drive to optimise and develop our Greece, we piloted augmented reality glasses glasses to resolve production line issues 3 infrastructure to support growth and produce to help our warehouse colleagues find faster, capitalising on remote technical an expanded 24/7 portfolio continued in products and pack orders for delivery. The support from equipment manufacturers. positive results, with improvements in service This technology helps us resolve emergency GROWTH PILLAR 2019. By centralising our production planning system for the whole Group, with each plant and transaction speed and excellence, led us incidents 70% faster than if a technician had serving regional needs, we have been able to to introduce the technology to an additional to come to resolve problems on site and it will meet market demand with speed and agility. seven locations in 2019 and we plan for be rolled out in an additional 16 plants in 2020. further rollout across our 28 markets in 2020. We are currently expanding production Across the business since 2008, our FUEL GROWTH capacity in targeted markets, including Beyond logistics, we also improved our optimisation work has resulted in a 30% Nigeria and Russia, where we anticipate manufacturing efficiency. In Bulgaria and the reduction in plants, from 80 to 56 at the end strong future growth. Czech Republic, we introduced automatic of 2019. At the same time, we increased our THROUGH To support innovation, we upgraded line changeovers to reduce idle production production lines per plant by 40% which production lines so that our manufacturing time and increase our effective production allowed us to maintain our capacity and capabilities reflect our diverse product capacity. These lines are particularly well create more efficient and flexible facilities. portfolio. We made investments to support suited for small batch production, which To improve our service offering while COMPETITIVENESS the new premium glass packaging for improves our flexibility and helps us cater to reducing our costs, we have also reduced FUZETEA in the Czech Republic and Romania changing consumer preferences. Additional our distribution centres by 65% and our and for Coca-Cola Energy in Hungary. During investment in automatic line changeovers warehouses by 34% over the same the year, we also made additional is planned for 2020 in Poland, Romania time period. & INVESTMENT and Russia. investments to support the production of Nigeria is a good example of our focus Cappy Lemonade and Coca-Cola signature We have implemented split maintenance, on≈fuelling growth through investments mixers in Romania. which spreads maintenance activities more in efficiency. The country represents a key Highlights in 2019 KPIs Investments made in Italy during the year evenly across the year, and we are moving growth market for our business and one towards a predictive maintenance model. of the most challenging environments from • OpEx as a % of NSR • Introduced automatic line changeovers to improve production flexibility included new production capabilities for The move from one annual maintenance a supply chain perspective. Since 2014, • CapEx as a % of NSR • Invested in augmented reality technology for increased efficiency different package sizes, a new aseptic PET overhaul for manufacturing equipment to a we have reduced our Nigerian production • Comparable EBIT margin line at our Nogara plant to accommodate our • Continued investing in automatic guided vehicles and high-bay warehouses more spread out maintenance schedule footprint by 38% while optimising our • ROIC • Invested in growth-focused areas such as big data and advanced analytics, production expanded 24/7 portfolio and new TriBlock technology in a PET line in our Marcianise helped us reduce down time by logistics network with a 74% reduction Stakeholders capacity and connected coolers plant. TriBlock technology helps us use approximately 6,500 production hours in in distribution centres. By eliminating • Introduced 100% recycled PET in four water brands 2019 compared with 2018. We made our first non-essential infrastructure and costs, Partners in production space more efficiently and reduce efficiencies water and energy consumption. investments in predictive maintenance the country has become more efficient Shareholders Priorities in 2020 during the year, using machine learning to and flexible for further growth. To manage the increased output from our recognise patterns and generate insights to • Continue increasing production flexibility to support our 24/7 portfolio and innovation mega plants and the complexity of our further improve the efficiency and Risks • Continue to focus on automation in all areas including production and warehousing expanded 24/7 portfolio, we continued effectiveness of our maintenance schedule. • Cyber incidents • Introduce innovative carton packaging to reduce plastic use investing in automation for our high-capacity warehouses. Automated warehouses, and In the five plants where this technology has • Foreign exchange and • Invest in new technology to produce 100% recycled PET widely at an affordable cost been introduced, emergency breakdowns commodity costs automatic guided vehicles, improve both have been reduced by 30% resulting in a 2% • Geopolitical and efficiency and service quality. macroeconomic increase in line capacity. • Ethics and compliance 36 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 37 SR
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Leveraging technology and big data Robotic process automation Smarter procurement and OUR SALES FORCE AUTOMATION TOOL Sustainable sourcing SI and master data joint initiatives We are making investments in technology to GIVES OUR SALES PEOPLE EASY ACCESS The sourcing of our raw materials accounts provide a better and faster service. In 2019, Following the 2018 implementation of As part of ongoing efforts to digitalise our “ for a large portion of our economic, we continued building a powerful network of robotic process automation (RPA) to execute procurement processes, we are TO CRITICAL DATA, INCLUDING operational and environmental footprint, connected coolers that maximises basic tasks in our shared Business Service implementing a variety of new tools. We and the behaviour of our suppliers directly performance by tracking door openings, Organisation (BSO) in Sofia, we achieved cost kicked off the implementation of SAP Ariba INFORMATION FROM COOLERS, IN A impacts our sustainability performance. supporting automatic stocking and ordering and process efficiencies. During 2019, we e-procurement software across our SINGLE USER‑FRIENDLY SOLUTION WHICH We therefore consider our suppliers as and freeing up time for sales people to spend expanded RPA use to additional processes in Company, a process we expect to complete critical partners, as well as contributors to with our customers. Sofia and in our Russian BSO, automating a by 2021. We also launched a new digitally- IS TABLET-BASED IN MOST MARKETS.“ the ongoing and sustainable success of A productivity assessment in Bulgaria found total of 102 processes. based buying platform to procure materials our business. that connected coolers increased sales team supporting our trade marketing. Following an As part of the Coca-Cola System, we have a For example, we now have an RPA application We are making similar improvements to productivity by 117 minutes per month, initial rollout to four markets, it will be uniform approach to sustainable agriculture, extracting customer balances from SAP and plastic packaging. Our aggressive PET bottle equivalent to four selling days per year, while implemented in all of our other markets by which is rooted in the principles of protecting sending them to customers by email and light-weighting programme reduced our boosting incremental sales by 3.2%. late 2020. We have selected the Merkateo the environment, upholding human and creating payment batches for weekly supplier Group-wide use of PET by 6,000 tonnes procurement platform as our preferred workplace rights, and helping to build more Our sales force automation tool gives our payments. In 2020, we will implement this in 2019 compared with the prior year. solution for cost-effectively managing sustainable communities. These principles sales people easy access to critical data, technology in other areas of the organisation We introduced our first 100% recycled PET smaller procurement orders, based on the are showcased in The Coca-Cola Company’s including information from coolers, in a single including supply chain management, treasury bottles for water brands in Austria, Ireland, success of a 2019 pilot in Austria. The Sustainable Agriculture Guiding Principles, user-friendly solution which is tablet-based in and human resources. Switzerland, Croatia and Romania as part platform will be available in seven markets by which provide guidance to our suppliers most markets. This technology boosts sales Another area of enhanced efficiency is of a long-term effort to increase our use the end of 2020. of agricultural ingredients. process effectiveness and agility with maintenance of our Company data relating of recycled PET. In 2020, we will continue real-time performance measurement and to customers, suppliers and materials, called Changes in regulation in the EU sugar market to expand this approach and we will invest in The scale and uniform approach of the execution tracking. Across our markets in master data. We have implemented a new have brought it more in line with global price an innovative technological solution in Poland Coca-Cola System helps us source our 2019, we increased the use of our sales force technology solution that has not only setting practices, subsequently affecting to produce 100% recycled PET bottles. raw materials sustainably, while mitigating automation tool by 7pp compared with global sugar prices. Capitalising on this business risks. This helps us balance the costs improved the quality and accuracy of our We are also one of the first bottlers in the the prior year. opportunity along with other Coca-Cola of sustainability by leveraging relationships master data but has also reduced the cost Coca-Cola System to move to replace plastic bottlers, we have requested that all our sugar and initiating new opportunities, ensuring that We are also investing in big data and per processed transaction. wrap on can multi-packs with a sustainable, suppliers offer pricing formulas that our agricultural suppliers and their suppliers advanced analytics to identify and capture paperboard packaging solution, KeelClip™. reference the world benchmark contract for have a sustainable business. All suppliers are value creation opportunities. Leveraging our The first countries to start introducing this raw sugar trading. This gives us the option to required to meet our Supplier Guiding extensive customer and market data allows will be Ireland, Poland, Austria and Romania. use financial derivatives to mitigate the risk of Principles. These principles communicate us to make better decisions faster and Meanwhile, we are exploring other sustainable sugar price volatility. our values and expectations of compliance implement laser-focused initiatives that solutions to replace stretch and shrink films. generate incremental value. In select Nigerian In line with our continuous efforts to improve with all applicable laws, and emphasise We have guidelines and tools for supplier outlets where we trialled this approach in operational efficiency and support our the importance of responsible workplace selection and governance, including Supplier 2019, we achieved a 32% average increase in sustainability agenda, we have worked to practices that respect human rights. Guiding Principles, and sustainability criteria sales volumes. continuously improve and reduce product This framework for sustainable sourcing is for supplier selection are an integral part of our packaging. Efforts to make our cans the integrated into internal governance and In addition to outlet segmentation, our supply assessment process. On an ongoing lightest in the market are underway, with an procurement processes. Our 2025 target investments in analytics allow further basis, we monitor the activities of our critical aim of reducing our average aluminium can for ingredient sourcing is to achieve 100% optimisation in supply chain, minimising suppliers through our internal supply base weight by 2%. We managed to reduce the certification of our key agricultural ingredients out-of-stocks with faster, more efficient assessments, audits of compliance and the weight of our 33cl can by 4% during 2019, against the Sustainable Agriculture Guiding responses to demand fluctuations. In 2020, EcoVadis platform. EcoVadis helps us and expect to achieve an additional 4% Principles. In 2019, 74% of the key commodities we will deploy a machine learning solution monitor a range of risks using 21 criteria from reduction by 2021. we purchased for use as ingredients were that will have a demand forecasting process international standard setters including the certified, up from 64% in 2018. Our work to based on analytics in Italy, Greece, Romania UN Global Compact, ISO 26000, the Global certify our key agricultural ingredients will and Poland. Reporting Initiative and the International continue to expand in 2020, with close Labour Organization. cooperation with suppliers who are still UN Sustainable In 2019, more than 450 of our critical progressing towards certification. Development Goals suppliers were assessed using EcoVadis and our plans are to expand the use of these Our sustained efforts to reduce assessments for better, more objective our costs and improve our supplier monitoring. impact have generated significant results for our To increase awareness of sustainability in our business, our communities, supply chain, during 2019 we held sustainability society and the environment. days with strategic suppliers in Russia, These results correspond to Austria and Hungary. These events create contributions to the Sustainable opportunities to identify joint sustainability Development Goals for clean initiatives and share our corporate social water and sanitation, clean responsibility policy, sustainability energy, economic growth, commitments and best practices. industry innovation, sustainable communities, responsible production, climate action, life below water and life on land. 38 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 39 SR
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Cultivating the potential of our people is An inclusive culture We know that committed employees provide one of the five pillars of our growth strategy. to empower people the best experience for our customers, and We know that to achieve our vision and our we therefore listen to their voice carefully and 4 One of our greatest strengths is our growth objectives, we need to develop our act on what we hear. values-based culture which is built on six people, our culture and our critical Growth Mindset Values. As our Company In 2019, our Employee Engagement Index GROWTH PILLAR organisational capabilities with even greater evolves in the face of changes in our score improved by two percentage points speed and effectiveness. We also understand operating environment, we advanced our from 2018, to 90%. We kept participation that in this dynamic talent market the enduring values in 2019. quite high, at 87% of our people, despite relationship between organisations and their keeping the survey open for only three days. CULTIVATE THE people is changing. Next to the timeless values of excellence and customer-centricity, we are increasing focus By partnering with Willis Towers Watson, we We aim to make our Company an irresistible on the continual learning and smart risk-taking are able to benchmark our performance place to work, where employees feel heard, necessary to manage fast-paced change. against other companies in our industry and valued, supported and motivated to realise in the Coca‑Cola System, as well as other POTENTIAL OF We know that introducing new values is not their full potential. To attract and retain high-performing companies. Our 2019 enough; culture must be embedded the capable, committed people our business results strengthened our leading position in throughout the organisation and progress requires, we strive to provide a our industry and among the Coca-Cola measured. We use employee engagement OUR PEOPLE workplace where: System companies. Our score is 1% above surveys, evidence-based feedback from • Talented people have the opportunity for the Willis Towers Watson’s high-performing direct reports, peers and customers and unique, personalised experiences and norm and considerably higher than the 81% quarterly reflection on how employees personal and professional growth; average for FTSE 100 companies KPIs Highlights in 2019 demonstrate growth mindset behaviours to • Our talent pipeline is a source of adaptive participating in the Willis Towers Watson • Evolved approach to values and culture to better support agility, learning and understand how our culture evolves. • Employee engagement and disruptive leaders who are fully fit for benchmarking pool. • Percentage of managers transformation, ensuring we are fit for the future To bring our culture to life, we fostered internal the future; Engagement survey respondents reported that are women discussions about our behaviours and mindset • Improvement of employee engagement score by 2pp to 90%, compared to 2018 • High achievers and curious learners are that they are proud to be part of the • Lost time accident rate at Culture Lab workshops held across the • Established an Agility Centre of Excellence to support improvements in speed empowered to make decisions and take company and, compared with 2018, were 2% Company in 2019. As we move forward, our Stakeholders to market, productivity and cultural evolution smart risks; and more likely to recommend Coca-Cola HBC focus is on embedding our culture into ways • Learning is deeply embedded while as a good place to work. Respondents also Our people • Transitioned our robust yet traditional performance management to an of working, structures and processes across diversity is leveraged as a source of energy expressed an interest in more clarity about employee‑driven continuous process, focused on results, behaviours and mindset our markets. We also aligned our employee and innovation. the Company’s strategy. Risks • Improved our social media presence to engage and attract the best talent engagement survey with our new values, • The Board appointed Charlotte Boyle as the designated non-Executive Director sharpened its focus and increased the survey • People frequency from once to twice a year. • Geopolitical and for workforce engagement macroeconomic • Health and safety Priorities in 2020 Our six Growth Mindset Values are: • Inspiring and activating our people to live our culture • Investment in transformational leadership and the personal growth of our people WINNING WITH NURTURING OUR EXCELLENCE INTEGRITY LEARNING PERFORMING AS ONE CUSTOMERS PEOPLE We strive for We always do what We listen, have a natural We collaborate with • Accelerating the development of our six prioritised organisational growth capabilities We are the selling We believe in our unparalleled is right, not just curiosity to learn and agility to unlock the • A step change to the digital and personal ambassadorship of our leaders in order organisation devoted to people, and have a performance by what is easy, and are empowered to take unique strength of our providing innovative passion to develop amazing customers are accountable smart risks. diverse teams. to attract the best talent solutions to create ourselves and others. with our passion for the results. • Fostering agile ways of working to improve the productivity of our empowered shared value. and speed. and motivated teams 40 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 41 SR
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Managing performance for growth Our investments in attracting talent, training, The number of people following Coca-Cola We increased the percentage of management We regularly review our policies and internal Support for wellbeing SI We made a very bold change in our technology and process improvements HBC as an employer on social media also roles held by women by 1pp in 2019, to 38% standards to ensure we adhere to all At Coca-Cola HBC, all of our employees have performance management approach in 2019, are driven by these priorities: big data and increased by more than 50%, exceeding compared with 37% in 2018. At the end applicable laws and regulations. In line with access to a range of health and wellbeing moving from manager-led performance to advanced analytics, revenue growth 300,000 followers by the end of 2019. of 2019, women made up 29% of our total that, in 2019 we updated our Code of programmes. Our approach to employee management, route to market, key account workforce. Our newly established Diversity Business Conduct. To ensure awareness and continuous conversations focused on results, Our ability to develop leaders internally is an wellbeing exemplifies our values and management, disciplined innovation and and Inclusion Council closely monitors understanding across our entire workforce, behaviours and mindset with mutual important competitive advantage, ensuring enhances engagement and productivity. talent development. our progress. our Code of Business Conduct is accountability. These feedback loops are a cultural continuity. Career progression acknowledged by all employees. To help employees financially, we offer critical part of evolving our culture and Through our ongoing Innovation for Growth depends on long-term performance and We foster diversity in our talent pipeline by benefits such as pensions, a savings scheme supporting continuous learning and agility. initiative, 6,600 participating employees potential, as well as alignment with our values. recruiting a balanced number of male and To ensure we continue to drive improvement and life insurance, and assistance with We are especially proud of the high generated 4,700 new ideas in 2019, twice the In 2019, we simplified our talent review female management trainees. In keeping in this area, in 2019 we held a cross- financial planning and literacy. Emotional participation rates in evidence-based amount generated in 2018. In 2020, we will approach, making the career outlook for our with this approach, 62% of the management functional workshop on human rights with wellbeing is addressed through on-site feedback sessions where our people and step up our focus and investment in this people more understandable and eliminating trainees we hired in 2019 were women. external guests to challenge our thinking. counselling, relaxation techniques, and teams provide continuous feedback and programme and we will launch an upgraded unnecessary complexity. Our focus on To promote awareness and understanding In addition, we have a well-publicised energy balance programmes. To support learn from each other. In the last quarter of platform that will support faster realisation succession for business unit function of the importance of diversity and inclusion whistleblower system, and we investigate all social wellbeing, we host events for families 2019, more than 80% of our people provided of new ideas. heads also paid off as we increased our for our business, we launched a diversity reported issues and incidents. and employee bonding and team building. feedback to their teams. To engage people and maximise learning successor pool for this critical workforce and inclusion communication campaign. segment in 2019. We have developed a Health and Dependent We also simplified our leadership model from critical work experiences, development Also in 2019, leadership modules to develop Health and safety Care Framework designed to address the during 2019, introducing new leadership programmes use a mix of in-person and Our leadership plays an essential role in ambassadors of inclusion were launched The health and safety of our people and wellbeing needs of our employees. In each of standards with six prioritised leadership online training. 95% of online employees ensuring that we have the best teams, with in five languages. contractors is managed as a principal risk, our countries, employees are offered at least capabilities. These are: empowers, thinks completed digital learning programmes in 2019. every leader accountable for attracting, Our Human Rights Policy covers diversity, emphasising the critical importance of one programme option for both health and customers, fosters agility, collaborates, builds Our use of digital learning further increased developing, retaining and engaging the right collective bargaining and workplace security ensuring the wellbeing of everyone in our dependent care. Healthcare initiatives include talent and drives impact. These six in 2019, reaching 70% of all programmes talent, and then empowering them to and is guided by international human rights workplaces. medical and health insurance benefits, execute our strategy. We remain committed capabilities focus on both results and completed. Learning through conversations principles, such as the International Labour While the number of employee workplace preventative measures such as medical behaviours to ensure that our people balance and knowledge sharing complements formal to enhancing talent development as our Organization’s international labour standards check-ups, subsidised gym memberships lighthouse organisational capability. accidents fell for the tenth consecutive year short- and long-term objectives and learning. In 2019, 286 employees participated and the UN Guiding Principles on Business in 2019, regrettably, nine contractors died and nutrition information. We also offer our demonstrate desired growth behaviours. in mentoring and 568 in formal leadership and Human Rights (also known as the Ruggie people a range of dependent care initiatives, Championing diversity, inclusion in road accidents. There were no employee In our effort to foster agility, we established coaching programmes. Framework). Given that we also expect our fatalities. The Lost Time Accident Rate including dependent care leave, subsidies for and human rights partners to respect these workplace values, school activities and supplies, internships and a centre of expertise for agile working in 2019 Leadership acceleration centres have been (LTAR) was 0.33, compared with 0.39 in 2018. Respect for individuals is at the core of our our Supplier Guiding Principles are aligned career days. with a multi-year plan to introduce the agile established to support unlocking the All contractors are invited to attend a safety values and we foster behaviours that create with our Human Rights Policy. methodology, run projects and introduce potential of our talents and the development induction course and other ongoing training. Across the Company, we promote the use an inclusive culture. These behaviours can be elements of agility into our culture and of future leaders. This helps our people of flexible working. Under our flexible working found in our formal Inclusion and Diversity Our fleet safety training programmes aim organisation. Through this effort, we understand their strengths and the areas of framework, over a quarter of our total Policy, our Code of Business Conduct and to improve safety for all drivers within the conducted eight major projects and trained opportunity for development in their current workforce now has options for flex-time, our Human Rights Policy which can be found Group. The blend of online, classroom and 195 employees in our selected framework and future roles. We also use functional remote working, job sharing, part-time work online at https://coca-colahellenic.com/en/ on-the-road training elements is adjusted for fostering agility. Our aim is to use agility development centres to accelerate and compressed working arrangements. about-us/policies. for different groups, reflecting their to deliver high quality results for customers functional expertise in our six prioritised relative risk classification. Overall, 5,407 Flexible working arrangements involve a faster and to prioritise, simplify, and improve organisational capabilities. One of our 2025 sustainability commitments participants completed these programmes partnership between managers and the productivity of our teams. is to achieve full gender balance in managerial employees that supports wellness To accelerate the development of more in 2019, with an average 7% safety positions. Our CEO also formalised our and productivity. In 2019, we further digitalised our workplace than 600 people with leadership potential, knowledge improvement. commitment to diversity and inclusion in and introduced cloud-based applications for we further improved experiential learning 2019 by signing the CEO pledge of the LEAD To reduce the number of road accidents, ongoing feedback and performance through our Fast Forward programmes. Network Europe, which aims to accelerate we continued installing collision avoidance management as part of our HELO (hiring, This programme received the 2019 Excellence gender parity and drive inclusion. In support technology in fleet vehicles. OEM or empowering and learning online) platform. in Practice Award from the Association for of gender balance, we are building a strong MobilEye driver warning systems have now We also upgraded technologies for Talent Development. Within 12 months pipeline of female leaders and a support been installed in 71.7% of the Group’s light personalised learning as well as for talent of graduating from this high-potential network to help women in our business. fleet vehicles. identification and selection. The video programme, 81% of the graduates were UN Sustainable interviewing and the new selection promoted. Promotion rates among the Development Goals As a result of these efforts, the number Lost Time Accident Rate trend applications improve candidate experience, graduates of our management trainee Employee engagement: Efforts to foster an engaging of accidents per million kilometres travelled (# LTA per 100 FTE) outperforming peer companies (%) provide additional insights for selection programme improved as well due to our workplace, nurture and develop fell to 2.63, compared with 3.67 in 2018. decisions and improve hiring speed. HELO efforts to create a more effective entry point the capabilities of our people, This was our seventh consecutive year 1.4 90 is available to all our online employees, for our leadership pipeline. increase gender balance in our of improvement, resulting in a cumulative 1.2 1.35 democratising learning, accelerating management ranks and reduce reduction of 71%. 75 development and helping our people fulfil Attracting and developing talent stress and support employee While we have made much progress 1.0 CCHBC 90 CCHBC CCHBC 89 CCHBC their potential. 88 CCHBC wellbeing all contribute toward in ensuring safety, we are determined To support our efforts to recruit the best 60 teams, we refreshed our employer value global goals for development. to do more. In 2019, we extended our 0.8 FT E 100 81 FT E Invest in building the best teams proposition and improved our social media The specific Sustainable behaviour‑based safety programme to 45 0.6 in the industry presence. Investments in recruiting help us Development Goals supported 53 manufacturing plants, 51 warehouses
Coca-Cola ystem 85 ystem Coca-Cola are those for: good health and In addition to introducing six prioritised retain nine out of ten new hires. and commercial teams in five countries. 0.4 30 norm 89 High-performing wellbeing; gender equality; Of the barriers to safety identified under 0 20
leadership capabilities for our people, 0.40 We are particularly proud of the 60 0.39 decent work and economic this programme in 2019, 76% have 0.2 0 as a Company we are focusing on six recognitions we received across our 28 15 organisational capabilities that can growth; reducing inequalities; been eliminated. countries, reflecting different measurements 0.0 2009 2017 2018 2019 2025 accelerate our growth and performance. and peace, justice and of employer attractiveness. 0 17 18 19 19 19 19 strong institutions. goal 42 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 43 SR
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Working towards a World We are supporting the development of new Total community investment Without Waste infrastructure and improved collection systems across all our markets to ensure that 5 Together with The Coca-Cola Company, we collect 75% of our primary packaging for we have made good progress in making our recycling by 2025. As part of these efforts, packaging have more than one life. GROWTH PILLAR we are exploring investment opportunities We are working to achieve 100% recyclability in PET recycling facilities in various markets. in advance of the 2025 deadline; 99.9% of our We also partner with other organisations primary packaging is already recyclable. and use brand messaging to encourage EARN OUR We are working to increase our use of recycled consumers to reuse and recycle. Together PET across all our packaging. Of the PET with The Coca-Cola Company, and with the material that we used in packaging in 2019, support of The Coca-Cola Foundation, we #Youth Empowered Water stewardship 12% was from renewable or recycled have engaged in seven zero waste LICENCE World Without Waste materials. We are working to increase this partnerships during the year and promoted Local initiatives percentage to 35% by 2025 and to 50% recycling through messaging on packaging by 2030. and in stores in several market. Environmental leadership KPIs TO OPERATE Innovative design is a key part of reducing In partnership with the Italian plastic waste As we grow our business, we seek to ensure packaging waste. By light-weighting our collection consortium (COREPLA), we • Mission 2025 that this growth is sustainable over the long sustainability bottles, we reduced the total PET used developed and executed an educational term and that ecosystems are sustained for commitments across our portfolio by approximately 25%1 project called Upcycle during 2019, at an Highlights in 2019 future generations. Stakeholders vs a 2010 baseline. In 2019 we eliminated annual public event called “Rimini Meeting”. • Increased our community investment by 34% to €10.6 million Long recognised as an environmental leader 6,000 tonnes of PET plastic compared to We provide information about packaging Our communities • Engaged with 576 partners for community projects in the beverage industry. In 2019, we further 2018. We also announced the introduction of design and market-specific recycling improved our environmental impact, KeelClip™, a paperboard packaging solution processes. In addition to returning to the Our consumers • Secured water supplies for one million people in Nigeria • >118,053 #YouthEmpowered participants – almost twice as many particularly regarding packaging. We which replaces plastic packaging for Rimini event in 2020, we are partnering with introduced the first 100% recycled PET multi-pack cans. This innovative, minimalist Partners in as in the year before customers to bring Upcycle to Italian retail efficiencies bottles for our water brands sold in Austria, packaging will roll out in Austria, Ireland, spaces. With national retailer Finiper, we will • Collection of primary packaging fully on schedule, 48% NGOs Croatia, Ireland, Romania and Switzerland. Poland and Romania in 2020, and in our take Upcycle to two of Italy’s largest (equivalent) recovered remaining EU markets by the end of 2021. shopping malls. Shareholders Priorities in 2020 We believe every package has value and life Governments beyond its initial use and should be collected • Improving effectiveness and impact of #YouthEmpowered and recycled into either a new package or The Coca-Cola digital platform another beneficial use. Therefore, we are Company • Agree next science-based carbon reduction targets aligned with striving to create a closed loop, so that old Risks the new methodology packaging can become new packaging. Nearly half, 48%, of the bottles and cans that • Sustainability: Plastics and packaging waste we placed in the market in 2019 were either • Sustainability: Climate refilled or collected for recycling. and carbon • Sustainability: Water Educational project Upcycle at the • Geopolitical and 1. Considering neutral package mix evolution vs. 2010; “Rimini Meeting” event. Macroeconomic packaging intensity reduction per litre of beverage produced is 4% in 2019 vs. 2010. 44 COCA-COLA HBC INTEGRATED ANNUAL REPORT 2019 45 SR
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Further decreasing CO2 emissions In our Greek plants, we have reduced energy First water stewardship initiative Beyond water-risk areas, we continue to SI As a business, we are aware that the effects required for lighting by 75% by replacing in Nigeria invest to reduce water intensity. In the Czech conventional lighting with LED lights. For the Republic, a new system installed for of climate change are significant. Our risk To improve water security for communities impact we achieved through this project, we pasteurisation has reduced water management efforts to manage and mitigate around our production plant in Challawa, we received recognition at the Energy Mastering consumption by approximately 13,000 m3 the impacts of climate change include a focus made significant investments in water Awards 2019. per year. Energy and chemical use have also Number of young people trained through on: increased cost of energy and raw infrastructure in 2019. By drilling several new been reduced. In Poland, we installed an #YouthEmpowered materials; carbon taxation and regulation; shallow wells, replacing ageing pipe, and Securing water availability additional reverse osmosis treatment step water sustainability; and business disruption supporting the refurbishment of the Kano at our plant in Radzymin.This allows us to due to severe weather conditions. Safe, accessible water is essential to human State Water Board’s water analysis recover 35 to 60% of nano-filtration health and ecosystems. Water is also the laboratory, we are helping to ensure that one Reducing emissions is a strategic priority, wastewater, saving approximately 60,000 m3 primary ingredient of many of our products, million people have greater access to water including ongoing investment along the value 1,000,000 critical for our manufacturing processes and of water annually. chain in energy efficiency and renewable and and water quality has been improved for necessary to grow the agricultural approximately 10 million people. We further low carbon technologies. Engaging communities ingredients for our products. established a community water supply point UN Sustainable Our Mission 2025 sustainability targets, to empower youth By the end of December 2019, 38 of our at our plant, which has reduced the time Development Goals which we report against on page 48-49, 341,500 manufacturing sites were certified for their needed by many families for water collection. Our community initiatives We know that our business can only be as include goals for reducing energy healthy and strong as the communities in responsible use of water resources and contribute to the Sustainable 203,865 consumption and associated emissions. We continued to supply 8,000 litres of water
which we operate. We have therefore been 25 000 excellence in water management according per day by tube wells and solar powered Development Goals (SDGs). 05
Through a set of projects and innovative 64,411 Our initiatives to empower tackling one of the most relevant societal to the standards of either the European 21,401 solutions implemented across our value boreholes to displaced people in a settlement Water Stewardship or the Alliance for Water youth and women contribute to issues in many of our markets, the chain, we saved 262,038 tonnes of CO in close to Maiduguri in the north-east of Nigeria. 2 Stewardship. While all our European plants the goals for quality education, employability of young people. Through our
2019 compared to 2018 and increased the Our investments and process improvements 2017 2018 2019 are now certified, we continue to move decent work and economic flagship programme #YouthEmpowered, we use of renewable electricity by 7.7% across are also having an impact in Greece aim to provide training for one million young
towards achieving certification for all our growth, sustainable cities and 2020 goal our markets. and Cyprus. plants by the end of 2020. New acquisitions communities, and partnerships. adults across our markets by 2025. In Austria and Switzerland, we are using more will be certified during the related post- We have begun using treated wastewater Our initiatives regarding water Because the challenges faced by young power from the sun. We installed one of the merger integration. to clean the recycling area in our plant in stewardship, CO2 emissions people vary as much as the markets in which largest photovoltaic systems in Austria on Schimatari, Greece. Strict quality control reduction and waste reduction We reduce water intensity in all our we operate, we adapt the programme to the roof of our production and logistics ensures that we comply with all aid global progress towards the Cumulative 2017 – 2019 operations and focus particularly on our local needs. We have engaged over 118,053 centre in Edelstal. This will save around 725 environmental requirements. SDGs for clean water and impact in water-risk areas. As part of our young people during 2019 and hope to tonnes of CO per year compared with sanitation, and climate action. Cumulative target 2017 – 2020 Cumulative target 2017 – 2025 2 2025 targets, we will reduce water use by Our water initiatives in Cyprus were further ramp up our outreach through a new, conventional energy production, equivalent Our initiatives in communities 20% in plants located in water-risk areas. recognised in 2019 for their impact, improved online platform. More than 750 to the annual emissions of 400 mid-size cars. help advance the global Together with other stakeholders in those benefiting more than 80,000 Cyprus of our employees have become mentors Beyond those markets, we have engaged objectives of good health and The photovoltaic system on the roof of our watersheds, we also want to make sure that residents, at the Responsible Business through the initiative, and we have partnered in various additional initiatives. In Croatia, we wellbeing, and sustainable cities Swiss mineral water warehouse was originally these communities retain access to safe, Awards. We launched Mission Water in 2013, with almost 50 local non-governmental are aligning the skills and knowledge of young and communities. installed for the benefit of the community, good-quality water. with funding from The Coca-Cola organisations. Last year, we made particular people with the needs of employers in the supplying energy for 64 households. An Foundation, in cooperation with the progress in Italy, Poland, Russia and Greece. tourism and hospitality sectors. Nearly two Through assessments using globally extension of this project was added in international organisation Global Water The strengths of the Polish programme dozen young chefs applied for a culinary recognised tools such as the WWF Water September 2019 using bi-facial vertical solar Partnership Mediterranean (GWP-Med). include a mobile-friendly tool that is scholarship programme which we offered Risk Filter, we have identified 16 of our 56 panels, an innovation specifically developed Through Mission Water, 19 water projects well-linked to social media platforms. We plan in 2019. bottling plant locations as areas with water for mountain areas to increase energy yield. were undertaken, saving more than to take the learnings from Poland’s online risk. Half of these are in Nigeria, and the rest All candidates underwent a personality This collected solar power is now also used in 40,000 m3 of water annually. success to additional markets in 2020. in Greece, Cyprus, Russia and Armenia. assessment, a skills test and an interview. our plant, providing around 4% of the plant’s The finalists were granted scholarships to top In these catchment areas, we will: annual energy consumption. culinary schools. The winners commit to work We tackle emission reductions throughout • provide access to drinking water, in Croatia for at least two years after their our value chain, including Company vehicles. • purify waste water, and training. We plan to finance 25 scholarships Our 180 pool vehicles in Switzerland are • protect and restore watersheds. by 2024, supporting young culinary talent powered by compressed natural gas, forming and the Croatian restaurant industry. We have reduced the water intensity at our CO ratio (scopes 1 and 2) CO ratio (scopes 1, 2 and 3) Water use ratio in plants the country’s largest biogas vehicle fleet. In 2 2 plants in water-risk areas by 7% compared to (gCO /litre of produced beverage) (gCO /litre of produced beverage) (litre/litre of produced beverage) The #YouthEmpowered initiative in North comparison to similar vehicles using diesel, 2 2 the 2017 baseline. In 2019, we implemented Macedonia was recognised during the year biogas-powered vehicles emit 15% less CO , 2 60 new water-saving projects, investing 80 -58% 600 -25% 3.0 -30% by the country’s ministry of economy and the resulting in annual savings of approx. 250 2025 vs. 2010 2020 vs. 2010 2020 vs. 2010 national coordination body for corporate
roughly €6 million and saving more than half 78.3 tonnes of CO . 2 a million cubic metres of water. 500 2.5 social responsibility. Our ongoing Skills for
By 2025, we will source 100% of our 60 493 Success project provides free training for electricity needs from renewable and clean 400 2.0 2.30 young adults in the country, including 1,700 trained in 2019. In recognition of our impact, sources in the EU and Switzerland. In many 388 370 1.82 1.79 47.0