Marketplace

One of the biggest changes at CCA in the past 7 years has been the expansion and diversification of the beverage and food products we make, sell and distribute to our 500,000 customers, who have access to 230 million consumers across the Group.

The Coca-Cola System recognises public concern about health issues, particularly in relation to kilojoule-dense diets and the need for more physical activity. We recognise our responsibility in this area and we are helping consumers make more informed choices about what they eat and drink.

We are not only investing in product and pack size innovations, but we are also investing significantly in voluntary initiatives, such as labelling information, new vending machines in Health Department locations across Australia, and innovative sales strategies aimed at helping deliver positive outcomes to communities in Australia and New Zealand.

Non-Alcoholic Beverages

Our portfolio of non-alcoholic beverages now consists of more than 80 options, and we are continuously responding to consumer needs for a greater choice, many with fewer kilojoules, more nutrients and in smaller portion sizes. We now provide a sugar-free option for sparkling drinks containing sugar and in 2008 we produced our smallest ever mainstream portion size, the 200 ml can of
Coca-Cola, containing just 360 kilojoules.

We have further expanded our range of sugar-free, low-kilojoule and nutritious and functional options, including Kirks Sugar-Free, Coca-Cola Zero, Sprite Zero, diet Lift and Fanta Zero, Mount Franklin, Peats Ridge Springs, Pump, Neverfail Springwater, Glacéau vitaminwater, Goulburn Valley fruit juices and smoothies and Goulburn Valley flavoured milks.

Nestea Iced Tea was reformulated in mid-2008 with 20 per cent less sugar.

Australia was also the first country in the world to ensure that Coca-Cola brand advertisements promote a sugar-free option.

Independent Expert Advice

In 2007 the Coca-Cola System’s Coca-Cola Australia Health and Wellness Advisory Council expanded to include New Zealand experts. The Council was set up in 2006 to provide independent advice on health and wellness issues, and members are selected from professional disciplines including nutrition and dietetics, dental health, public health and health and nutrition communications. Activities in 2007 included undertaking a research review of the health effects of the two sweeteners most commonly used in diet drinks. Further work being undertaken by the Council includes product innovation opportunities, a nutrition policy and scientific reviews of relevant health issues.

Consumer Education

In 2007, the Coca-Cola System undertook a major communication and education program to inform consumers on a number of issues, including how to understand our product labels and addressing misinformation on artificial sweeteners.

The Make Every Drop Matter campaign included an advertising campaign, website (www.makeeverydropmatter.com.au) and online communications and newsletters.

Labelling

The Coca-Cola System supports greater transparency on labelling, and after a global search, committed to voluntarily implement the Australian Food and Grocery Council’s Daily Intake (%DI) Guide for energy, as set out by the National Health and Medical Research Council. We have rolled out %DI “thumbprints” on the front of our beverage labels in Australia and New Zealand.

Responsible Sales and Marketing

The Coca-Cola Company is responsible for consumer marketing. In 2000, the Coca-Cola System in Australia adopted a policy of not marketing any products to children under 12. This includes not advertising during television programs aimed at children irrespective of what time of day they are broadcast (see www.thecoca-colacompany.com/citizenship).

We also work with our customers to ensure they understand our policies on not marketing to children.

We continue to support the role of parents as custodians of what their children eat and drink. In 2004 we voluntarily withdrew all sugar soft drinks from primary schools in Australia and New Zealand. In New Zealand, CCA led the creation of a voluntary industry agreement, in partnership with the health and education ministries, to withdraw all sugar soft drinks from high schools by 2009.

Public Policy

In 2007, the Coca-Cola System worked with Australian hospitals and area health services to place vending machines in health department settings that promote low-kilojoule beverages like Mount Franklin water. Each of the new vending machines carries “Make Every Drop Matter” nutrition brochures. This is a multi-million dollar initiative involving 2000 new machines nationally.

Our New Zealand team also worked on an innovative program with the Counties Manukau District Health Board to replace Sprite with Sprite Zero in McDonalds’ restaurants. The pilot, which resulted in a 17 per cent decrease in sugar intake, was rolled out across McDonalds’ restaurants in New Zealand.

Our sales team in the Northern Territory came up with an innovative and radical strategy working with community stores to increase the availability and take-up of water and sugar-free beverages by consumers. This Remote Communities Strategy will be rolled out into Queensland and Western Australia.

Food

All SPC Ardmona brands of packaged fruit and vegetables offer healthy choices, particularly those packed in natural fruit juice. SPC Ardmona re-launched the 425g can of SPC Baked Beans offering “3 Serves of Vegies”, reminding consumers that baked beans are an easy and economical way to eat vegetables.

SPC Ardmona’s Goulburn Valley brand of fruit has no artificial additives or preservatives and has been promoted as a healthy option with the Heart Foundation Tick of Approval.

IXL All About the Fruit range of spreads are sweetened with fruit juice and contain no cane sugar, and Weight Watchers spreads won the 2008 Slimming and Health Healthy Eating Award in the Low fat/Low cholesterol category.

SPC sponsored the Weetbix “Tryathalon” in 2008, which attracted 12,000 children across Australia to compete in physical activities.

Alcohol

CCA is still a relatively small player in the alcoholic beverages market in Australia and New Zealand, but we recognise the public concern about excess consumption of alcohol, particularly among young people and we take seriously our role as responsible corporate citizens in this area. We have adopted the responsibility codes created by our Pacific Beverages partner, SABMiller and we are members of DrinkWise Australia, an educational and research body set up by the alcohol industry in the wake of the Alcohol Summit in Sydney.

Product Quality

We aim to provide customers and consumers with the highest quality beverages and food, and it is our policy to meet or exceed regulatory requirements.

In manufacturing, CCA relies on policies and procedures, robust systems and proven technologies along with trained people to ensure that our products exceed all company standards and legal requirements prior to leaving our facilities.

Excessive age of stock in the market and process variability during manufacturing are our top product quality concerns. A focus on process control, through the introduction of on-line process control monitoring systems and the introduction of the Coke Best Fresh program were key components of the strategy introduced to improve the quality of our products. The Coke Best Fresh Program recognises that handling and storage of our products after manufacture can impact on their quality and ultimately influence the experience our customers have.

Responding to Customers and Consumers

CCA responds to both customers and consumers in Australia through the national contact centre, Coke Connect. The 240-strong team covers 24 hours a day, seven days a week.

The customer service team at Coke Connect receives 1.4 million calls annually and answers them within an average of 12 seconds. The sales team calls customers on an agreed day and time to take orders, sell new products and ensure they have enough product available.

All calls from customers are logged and monthly reports are produced and distributed through the business.

The Consumer Information Centre (CIC) is the independent function within Coke Connect which captures consumer feedback. In 2007, the CIC received nearly 98,000 contacts, a 22-fold increase since its inception in 1991.

The CIC responds in detail, by phone, email or in writing, to all consumer inquiries within 24 hours, or the next business day wherever possible. Consumer information is delivered to the business and shared with the global Coke System via regular monthly reporting.

CIC: free call 1800 025 123; fax 02 9436 8715 or via email to consumer_information@anz.ccamatil.com.