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2018 Business & Sustainability Report

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2018 Business & Sustainability Report 2018 Business & Sustainability Report CEO/Board Our Priority Portfolio World Without Water Sustainable People & Partnerships Climate Regional Data Letters Company Issues Transformation Waste Agriculture Communities Change Highlights Appendix Letter from James Quincey 3 SUSTAINABLE AGRICULTURE 30 Letter from Our Board of Directors 5 Shared Opportunity: Agriculture Sustainable Growth for Across the globe and around the clock, OUR COMPANY India’s Smallholder Farmers At A Glance 6 and Our Portfolio 32 we never stop working to give people The Coca-Cola System 7 Total Beverage Portfolio 8 the drinks they want and to improve CARING FOR PEOPLE Business Transformation AND COMMUNITIES 33 the world we all share. Timeline 9 Human Rights 34 Selected Financial Data 10 Women’s Economic Progress Against Our Empowerment 35 We turn our passion for consumers Sustainability Goals 11 Workplace 36 into the brands people love, and create Our System in Context 12 Diversity & Inclusion 37 shared opportunity through growth. Giving Back 38 PRIORITY ISSUES Our Approach to Managing Our Priorities 13 PARTNERSHIPS 39 Priority Issues: Stakeholder Engagement 40 That’s the essence of Risks & Opportunities 15 Sustainable Development Goals 41 PORTFOLIO TRANSFORMATION 17 our transformation. Providing Choice to Consumers 18 A GLOBAL PERSPECTIVE ON CLIMATE CHANGE 43 Reducing Calories— Expanding Portfolio 19 REGIONAL HIGHLIGHTS 46 Shared Opportunity: Sugar Reduction ABOUT THIS REPORT 51 Refreshingly Less Sugar 20 DATA APPENDIX 52 WORLD WITHOUT WASTE 21 ASSURANCE STATEMENT 67 Shared Opportunity: Waste PRAISE: Transforming Waste GLOBAL REPORTING into Value in Indonesia 25 INITIATIVE INDEX 71 WATER LEADERSHIP 26 Shared Opportunity: Water Replenishing Cape Town in a Time of Drought 29 The Coca‑Cola Company 2018 Business & Sustainability Report 2 CEO/Board Our Priority Portfolio World Without Water Sustainable People & Partnerships Climate Regional Data Letters Company Issues Transformation Waste Agriculture Communities Change Highlights Appendix Letter from Letter from Our James Quincey Board of Directors On May 8, 1886, a store Lifting, shifting and scaling in Atlanta served the first brands around the world: Coca-Cola. • We used the strength of our distribution system to help launch Today, that now-famous drink forms brands like Fuze Tea, smartwater the foundation for a total beverage and AdeS across multiple markets company that offers more than 500 with increased speed and agility. brands and 4,300 products worldwide. • Worldwide, we expanded 165 products into additional markets While many brands have come and in 2018. gone during the past 133 years, our success is based in part on our history of investing in the success Making strategic investments and sustainability of the communities for the future: we call home, from our hometown of Atlanta to more than 200 countries • We strengthened and expanded and territories where you can find our our portfolio through mergers products today. and acquisitions, including Costa Limited, which closed in In 2018, we continued to transform our early 2019 and gives us a global portfolio and, in turn, our company. coffee platform. We delivered strong, geographically • We invested in a strategic balanced revenue growth and value partnership with the premium share gains in line with our strategy. sports hydration brand There are many highlights, including: BODYARMOR, one of the fastest- growing beverage trademarks in the U.S. More innovation, including options with less sugar: Investing in the Coca‑Cola system • Globally, sparkling soft drink advantage: volume was up 2% in 2018, fueled by double-digit volume growth of • We are aligned with our bottling Coca-Cola Zero Sugar, along with partners to capture growth strong performance from new, low- opportunities. Since 2010, we’ve and no-calorie versions of sparkling invested—with our system—more beverages such as Sprite and Fanta. than $125 billion to strengthen • Our innovations included Coca-Cola our platform for growth, including Letter from Plus Coffee, now available in technology, such as connected multiple markets around the world, coolers; and in new plants and James Quincey and a restage for Diet Coke in route-to-market innovation. North America that included new • For example, our bottling partner packaging, marketing and flavors. Arca Continental, the first Latin • We launched about 600 new American bottler to operate in the Chief Executive Officer products. Of those, more than 250 U.S., announced a $250 million were low- or no-sugar, and more investment in a new facility in Texas than 400 were juices, teas, waters to help us get more drinks to the and other non-sparkling beverages. market faster. The Coca‑Cola Company 2018 Business & Sustainability Report 3 CEO/Board Our Priority Portfolio World Without Water Sustainable People & Partnerships Climate Regional Data Letters Company Issues Transformation Waste Agriculture Communities Change Highlights Appendix Letter from Letter from Our James Quincey Board of Directors Building leadership for success • establishing or joining 10 global and metrics. This is an idea born from and a growth culture: recycling/packaging partnerships; stakeholder engagement and our belief • announcing four packaging that, working together, we can create a • We announced several key technology advancements including positive impact and respond effectively In 2018, we continued leadership appointments, including the opening of our PlantBottleTM IP to the collective challenge of the to transform our portfolio Brian Smith as president and chief for use across the industry; and UN Sustainable Development Goals. and, in turn, our company. operating officer, John Murphy as • launching bottles made from chief financial officer, and new group 100% recycled materials in We are pleased with our progress We delivered strong, and business unit presidents. multiple markets. against some of our goals, while geographically balanced • Our new Global Ventures group, recognizing that more needs to be We replenished 155% of the water done in other areas. We will continue to revenue growth and value led by Jennifer Mann, was created to ensure we connect and globally we use in our finished beverages take action and grow our business the share gains in line with scale key acquisitions, investments to communities and nature in 2018, right way—not the easy way. our strategy.” and brands such as Costa, innocent, continuing to exceed our 2020 goal. We Dogadan and Monster. also economically empowered more Sincerely, • These changes will help us continue than 865,000 women in 2018, adding to build a culture that fuels our an additional 17 countries. transformation and supports growth worldwide. We don’t just recognize our responsibility to be a part of the solution to challenges we all Creating Shared Opportunity face—we embrace it. through Growth For us, that means using our size, James Quincey While we’re proud of our business scale and success to create shared Chief Executive Officer results in 2018, companies like ours opportunity through growth—creating April 24, 2019 have a responsibility as leaders. As real opportunity for our communities, we grow, we will continue to support our customers, our employees and local economies and help create our shareowners. economic opportunity. Our commitment to doing business the Leveraging Data to Help Us Grow right way continued in 2018, as we set Our Business the Right Way out to show the world that the drinks they love can make life more enjoyable, Finally, I am a firm believer in the without harming our planet and the importance of data. In a digital and natural resources we all depend on. data-driven world, good information helps us make better decisions. In early 2018, we announced our World When we share our data, we can help Without Waste initiative with a clear, drive collective accountability for us simple goal: to help collect and recycle and others. a bottle or can for each one we sell by 2030. The company’s progress during In this year’s report—our first combined the first year included: business and sustainability report— we created a detailed Data Appendix to share more details on our progress The Coca‑Cola Company 2018 Business & Sustainability Report 4 CEO/Board Our Priority Portfolio World Without Water Sustainable People & Partnerships Climate Regional Data Letters Company Issues Transformation Waste Agriculture Communities Change Highlights Appendix Letter from Letter from Our James Quincey Board of Directors Letter from Our Board of Directors Our company’s heritage of innovation, growth and In 2010, we launched our 5by20 program with value creation includes 133 years of creating beverage the goal of helping to empower 5 million women brands loved and shared by people around the world. entrepreneurs by the end of the year 2020. The program is considered one of the most ambitious Today, The Coca-Cola Company is continuing to women’s economic empowerment initiatives ever build on this heritage by opening new horizons for undertaken by a commercial enterprise. By the end growth as a total beverage company. Our portfolio of 2018, we had empowered more than 3.2 million is evolving and expanding to meet the changing women across 92 countries. From the Philippines to tastes of people around the globe. Our board of South Africa to Poland and beyond, we have provided directors strongly believes in the bright future of training, mentorship and other support. our brands, our business and the positive impact we have, and
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