Corporate Responsibility & Sustainability Report 2015/2016

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CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016 Wellbeing: Product Portfolio OUR TARGETS Calorie reduction Reduce calories by 10 percent per liter across our product portfolio by 2020. 1, 2 No- low-calorie Offer a no- or low-calorie alternative whenever regular soft drinks are available. 3, 4 Portion size Ensure that all soft drinks are available in small portion sizes, and increase the availability of small packs. OUR COMMITMENT We will reduce calories per liter across our portfolio of beverages by 10 percent by 2020. 1, 2 INTRODUCTION We understand the role that diet, including our products, can have on health and wellbeing. We believe that all calories count, and are committed to playing our part to help address obesity. We are committed to providing a wide choice of products, driving awareness of our no- or low-calorie options, and providing clear and transparent information on our products. WORKING TO REDUCE CALORIES ACROSS OUR PORTFOLIO, ACROSS OUR TERRITORIES 1 2015 Baseline – Great Britain 2 2012 Baseline – Netherlands Labeling Ensure clear nutritional labeling on front-of-pack across all our products. 1 Under 12 We will not market any of our products to children under 12 and will not sell our products in primary schools. 1 WHAT WE ACHIEVED 4.5% reduction in the calories per liter across our product portfolio since 2010. 59% of our full sugar brands have a no- or low-calorie alternative. 3, 4 32% of the volume of our products in our portfolio are no- and low-calorie. 3, 5 99% of our products have front-of-pack GDA labeling. HOW WE’RE DOING IT Our strategy includes: • Choice: provide a wide range of beverage choices to fit a balanced lifestyle – including ensuring awareness of our no- and lowcalorie options. • Nutrition information: ensure transparency across all our labeling, marketing and sales activities. • Responsible marketing: never market any of our products to children under 12. FACTSHEET 08/32 We have committed to reducing calories by 10% per liter by 2020 CCE’s corporate calorie reduction target CALORIE COMMITMENTS In 2014, we made a commitment to reduce the calories per liter across our portfolio of beverages, across all of our territories, by 10 percent by 2020. 1, 2 As of 2015, we have reduced the calories in our portfolio by 4.5 percent per liter since 2010. We have also reduced the total calories across our portfolio by 7.5 percent since 2010. CHOICE Our product portfolio is made up of a wide variety of products. Our core sparkling brands, such as Coca-Cola, Fanta and Sprite, make up 57 percent of our portfolio. We aim to offer a no- or low-calorie alternative every time a regular sparkling soft drink is available, with 59 percent of our full sugar brands having a no- or low-calorie alternative. We are aiming to expand the range of noand low-calorie products 3 that we offer, and are reformulating our products to reduce their sugar and calorie content. In 2015, 21% of our innovation activities were related to reducing the calories and sugar in our products. 6 Reformulated products launched in 2015 included Fanta Lemon in France, Belgium, the Netherlands and Luxembourg, Dr Pepper in Great Britain and Nestea Lemon and Peach in the Netherlands. Coca-Cola Life, which was launched in 2015 across all of our territories, uses a blend of stevia 1 In partnership with The Coca-Cola Company. 2 Against a 2010 baseline. 3. No- and low-calorie products defined as
CORPORATE RESPONSIBILITY & SUSTAINABILITY REPORT 2015 — 2016 Product portfolio Reduce calories per liter across our portfolio of beverages by 10% by 2020 We have made a commitment to reduce the calories per liter across our portfolio of beverages by 10 percent by 2020. 1, 2 We are doing this through a combination of reformulation and introducing new no- and low-calorie products. We are also reducing the portion sizes across our portfolio. 59% 32% of our full sugar soft drinks have a no- or low-calorie alternative such as Diet Coke, Coke Zero or Coca-Cola Zero Sugar. 3, 4 of the volume of the products in our portfolio are no- and low-calorie. 3, 5 * Progress against target: 4.5% reduction in calories per liter since 2010 20.8% of our portfolio is available in small portion sizes of less than 250ml. * Coca-Cola Zero Sugar to be launched in Great Britain in June 2016. We take advice from local and European Scientific Advisory Councils and make no health claims unless these are scientifically proven. Information about our products is available through the websites, care lines and consumer information centers operated in all the countries where we do business. In 2015, there were approximately 74,000 calls to our customer satisfaction helpline, of which 19 percent were complaints about product quality. 9 We also provide extra information about ingredients on pack labels to help consumers make the right personal choices. For example, our energy drinks carry a statement indicating that they are not suitable for children and pregnant and breast-feeding women, specific groups for whom caffeine is not recommended. Marketing We want to ensure that consumers not only have the product choice available to them in stores, but that our marketing spend and guidelines are aligned to the promotion of the range of drinks that are available. In Great Britain, we have committed to double our media investment in our no- and lowcalorie variants of Coca-Cola. The Coca-Cola Company recently launched a 'One Brand' global marketing strategy that unites all of the Coca-Cola brand varieties under a single Coca-Cola brand campaign, allowing consumers to better understand the range of choices available. Over the past year, we have also established Responsible Marketing Guidelines to encourage the sale of no- and low-calorie beverages. For example, we aim to make our no- and low-calorie beverages most prominent in any meal deal or snack promotion, and developed guidance for our sales teams on how to work with our customers to develop meal and snack promotions that showcase healthier food choice options of an appropriate portion size. FACTSHEET 08/32 No marketing to children under 12 Since 2009, we have committed to not market to children under the age of 12. Through UNESDA, we have committed not to advertise in printed media, on websites or during broadcast programs specifically aimed at children. As a result, we do not advertise or market any of our products directly to children under 12. Coca-Cola advertising is never shown during children’s programing and we do not undertake promotional activities aimed at children under 12. We never provide free samples to children under 12 unless an adult or carer is present. We recognize the growing use of digital and internet communications by children and support The Coca-Cola Company’s policies for responsible marketing of our products on the internet and via digital media. Our internet sites and content are designed for visitors aged 12 or above, and we use features and elements on our websites that appeal predominantly to visitors over the age of 12. As part of a global Coca-Cola policy and through UNESDA, we have committed to not undertake direct commercial activity in primary schools unless requested by school authorities or parents. We have different policies on the distribution of our products in secondary schools in each of the countries where we operate and aim to: • Ensure that a full range of beverages (including waters, juices and lower, noand low-calorie products) are available in appropriate portion control sizes. • Include educational images and messages on vending machines to promote balanced diets and to respect the commercial-free environment of schools. • Ensure that those responsible for the final distribution of our products to schools are aware of these commitments. 5 Measured using unit cases. 6. Measured at an SKU level including new pack. 7 Forty-five percent fewer calories vs full sugared colas in Great Britain. We have also signed the UNESDA initiative to ensure that energy drinks are not marketed to under-16s. For more information see the further reading section. Our products and alcohol We recognize that adult consumers may choose to drink our products in conjunction with alcohol. We have begun providing guidance to our sales teams to ensure that products promoted in association with alcohol are directed to consumers above the legal drinking age, and that materials depict moderate and responsible drinking, and contain appropriate responsible drinking statements. We also promote our drinks as a non-alcoholic alternative. For the past eight years, we have worked in conjunction with the THINK! driver friendly program in Great Britain to offer a free second drink during Christmas when ordering a Coca-Cola Zero, Schweppes or Appletiser product. In 2015, this program was supported by approximately 8,000 bars and pubs across the country. FURTHER READING: More information about our responsible marketing guidelines, joint commitments with The Coca-Cola Company, and through UNESDA can be found on www.cokecce.com/ sustainability/wellbeing These include: The Coca-Cola Company Global Responsible Marketing Policy The Coca-Cola Company Global School Beverage Guidelines The Coca-Cola Company Responsible Marketing Charter, Great Britain UNESDA Commitments to Act Responsibly UNESDA Code for Energy Drinks and Shots Coca-Cola Great Britain: Choice and Information 8 In 2016 all Monster-owned energy drinks will have the front-of-pack RI label removed. 9 Our customer complaints rate per million units sold (CPMU) was 1.23 in 2015.
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Corporate Responsibility & Sustainability Report 2015/2016

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