Coca-Cola Canada Packaging Strategy and the Plantbottle

Highly Confidential – Not for Distribution

-  7 Production Plants -  Over 50 Sales, Distribution and Warehouse Centres -  6,300 Associates -  $2.5B in capital investments in Canada in the last 10 years -  Over 3,800 vehicles in our fleet

Coca-­‐Cola  Canada  

Highly Confidential – Not for Distribution

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Portfolio: Leading through innovation in beverage options, package size and caloric labelling!

414mL

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Partnerships:    Achieving  more  by  working  with  others  

“The economic, environmental and social implications of business are more important than ever. In a world where populations are

growing, natural resources are stressed, communities are forced to do more with less

and our consumers’ expectations are expanding, we understand that

sustainability is core to our business continuity and how we create long-term value.”

Muhtar Kent

Chairman and CEO The Coca-Cola Company

6 Classified - Internal use

Energy Efficiency and Climate Protection!Global Goal: Grow the business, not the carbon, in our manufacturing operations by improving energy efficiency and reducing emissions!

Sustainable Packaging!Global Goal: Our packaging is no longer seen as waste, but as a valuable resource for future use!

Water Stewardship !Reduce … Recycle … Replenish!Global Goal: Establish a water-sustainable business that safely returns to communities and nature an amount of water equivalent to what is used in all of our beverages and their production. !

The Environment: The Global Perspective!

Changing How We Do Business

We operate the largest heavy-duty hybrid electric fleet in Canada. These trucks reduce emissions by roughly 30 percent and use about 30 percent less fuel.

Water  Conserva<on  in  Canada  

   ●  Mul<-­‐year  million  dollar  

sponsorship  of  WWF  Canada    ●  Developing  best-­‐in-­‐class  prac<ces  

of  freshwater  stewardship  ●  Created  a  freshwater  framework  

that  is  being  rolled  out  across  Canada  

●  Communi<es,  NGOs,  government  and  the  private  sector  all  working  toward  a  common  sustainability  goal.    

Advancing freshwater conservation

Helping save the Polar Bear

•  Support WWF-Canada polar bear conservation efforts

•  Coca-Cola Canada has donated over $500,000 in last 3 years

•  2011 we will be putting the full power of Coca-Cola behind the effort to protect the polar bear

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Source: LOHAS Perspectives for TCCC Canada, Natural Marketing Institute, December 16, 2009 NMI 2009 LOHAS Consumer Trends Database

Canadian values and Recycling Practices

“I  care about”  (agree  completely/somewhat) Canada U.S.

Using  products  from  recycledmaterials   92% 70%

Socially responsible  business 87% 68%

“Aware of  the term “

Biodegradable 91% 86%

Compostable 86% 62%

Environmental  Attitudes  &  Behaviour– Canada  vs US   (sig.  diff.)

“Concern  about”

Global  warming/climate   change 77% 27%

Pollution from  cars  and  trucks 75% 54%

Excess  packaging filling  up  landfills 73% 50%

Attitudes  (agree  completely/somewhat)

Personal  behavior change  to  minimize  global  warming 66% 41%

More information  on  how  I  can  protect  environment 62% 44%

Canadians  are  Greener  than  Americans

“Recycle  all…”   Canada U.S.

Plastic  bottles,   jars,  etc 75% 46%

Glass  bottles,   jars  etc 73% 45%

Paper 73% 42%

Cans  or  other  metals 72% 52%

Packaging  – Canada  vs US (significant  difference)

“Do  the  followingat  least  monthly” Canada U.S.

Carry  reusable  water  bottle  when  away  from  home 55% 49%

Attitudes (agree  completely/somewhat) Canada U.S.

Excess  packaging filling  up  landfills 73% 50%

•Recycling  is  important  to  the  majority  of  Canadians…

• …  because  of  concerns  over  waste  reduction…  

• …  which  also  translates  into    reduction  in  plastic  bottle  use

Canadians  Support  Greener  Packaging

Canadians have high environmental care and understanding Vast majority of Canadians recycle

HIGHLY CONFIDENTIAL Classified - Restricted

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Source: LOHAS Perspectives for TCCC Canada, Natural Marketing Institute, December 16, 2009 NMI 2009 LOHAS Consumer Trends Database

The Business Case

Attitudes (agree  completely/somewhat) Canada U.S.

Buy  more  green  products/services  if  available    where  shop 66% 51%

Choose  products   from sustainable  sources  over    conventional  when  given  choice  to  buy

57% 33%

Buy  as  many  green products  as  can 50% 33%

Canadians  Buy  Greener  than  Americans

Green  Purchase  Attitudes– Canada  vs US   (sig.  diff.)

Canadians demand and purchase better, ‘greener’ packaging

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SUSTAINABLE PACKAGING GOALS

We envision a world in which our packaging is no longer seen as waste, but only as a valuable

resource for future use.

REDUCE

Design consumer preferred packages that use the least amount of natural resources. Target 7% reduction in total packaging by 2015 (package/product use).

RECOVER

Build systems to collect post-consumer packaging. Target 50% recovery of bottles and cans by 2015.

REUSE

Use post-consumer packaging and packaging materials again. Target 25% recycled PET procurement.

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Package  Material  Produc0on  

Package  Conver0ng  

Manufacturing  

Retail  Use  

Consumer  Use  

Post-­‐  Consumer  Recovery  

End  of  Life    Use  

Distribu0on  

Resource  Related  Metrics  • Fossil  Fuel  Consump0on  (energy)  • Water  (Use/Consump0on)*  • Land  Use*  

Emissions  Related  Metrics  • Global  Warming  Poten0al  • Acidifica0on  • Eutrophica0on  (Terrestrial)  • Eutrophica0on  (Aqua0c)  • Photooxidants  Forma0on  (Smog)  • Human  Toxicity  (PM  10)  • (cumula0ve  index)  

*  Assessed  w/  Plant-­‐Based  Packages  

Guided by Life Cycle Research Coca-­‐Cola  was  the  first  ever  in  the  food  or  beverage  industry  to  conduct  a  life  cycle  assessment  (LCA)  of  packaging  in  the  late  1960s.  We  con0nue  to  use  the  tool  to  analyze  end-­‐to-­‐end  package    environmental    performance  in  a  consistent,  transparent  and  reproducible  manner  

Key  Impact  Indicators  Used  

end

end

2  

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Life Cycle Research: Global Warming Baseline Sample*

Source:  IFEU  2007    -­‐  UMBERTO©  Model  *  Notes:    Retail  Distance:  250  km,  0%  Recycled  Content,    100%  Landfill    Except  Op<mized  21  Use  Refillable  Glass  Bo[le]    

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Life Cycle Learning on Plastic Beverage Bottles

•  Focus on Material Enhancements: Raw material production typically is the most significant eco-impact area for one-way PET bottles (improvement actions: lightweighting, recycled content use, plant-based material use)

•  Recognize  Current  Value  of  PET  Plas<c  Bo[le  :  PET  boZles  show  comparably  low  environmental  impact  values  versus  other  one-­‐way  boZle/can  packaging  systems  -­‐  and  are  increasingly  comparable  to  highly  op0mized  refillable  glass  boZle  systems    

•  Recycling  Remains  Cri<cal:  Recovery  of  the  material  and  embodied  energy  in  rigid  plas0c  PET  beverage  boZles  through  recycling  provides  greater  environmental  value  than  compos0ng  or  landfilling  containers  

•  Avoid  Degradables:  Degrading  rigid  plas0c  boZles  offers  limited  environmental  value  and  should  be  avoided  

•  Protect  Product  Quality:  Protec0ng  product  quality  and  ensuring    consumer  needs  are  met  are  essen0al  to  consider  when  reviewing  overall  packaging  environmental  performance  

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Be[er  By  Design  Thinking  

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30%  Renewable

Plant-Based

Material

100%  Petrochemical-­‐

Based  Material  

PlantBoZle  PET  is  chemically  &  physically  THE  SAME  AS  petrochemical-­‐based  PET:  

• Same  quality  standard  for  both  sparkling  and  s0ll  products  

• Same  material  op<miza<on  

• Same  recyclability  and  end-­‐use  economic  value  suppor0ng  collec0on  

Only  difference  is  that  30%  (by  weight)  of  the  feedstock  to  make  the  PET  resin  is  sourced  from  a  renewable,  plant-­‐based  material    

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plantbottle™ is Breakthrough Packaging Innovation

19 Source: TCCC Environmental and Technical Team, 2009 Classified – Internal Use Only

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Technical Path to Making PlantPET

Paraxylene

Ethylene Monoethylene Glycol (MEG)

Terephthalic Acid (TA)

Plant-Based Carbohydrate

Fermentation & Distillation

BIO Monoethylene Glycol (bMEG)

Ethanol to Ethylene

Petro-Based (crude oil,

natural gas)

PET Resin

(70% TA & 30% MEG)

recycle  

Refining & Cracking

Paraxylene Terephthalic Acid (TA)

Petro-Based (crude oil,

natural gas)

Refining & Cracking

PlantPET Resin

(70% TA & 30%

bMEG)

Plant Bottle

PET Bottle

use

recycle  

Petro-Based PET

Plant-Based PET 20

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Carbon Footprint (Global Warming) Benefit in CO2 reduction is consistent with other bio-based resins

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-­‐21%  

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30%  Industrial

Plant-Based

Material

Petrochemical-­‐Based  

Material  

100%   70%  Petrochemical-­‐

Based  Material  

30%  Plant-Based Waste

Material

Petrochemical-­‐Based  

Material  

70%  

100%  Plant-­‐Based  

Waste  Material  

First Step on Plant-Based Journey Breakthrough  research  on  lignocellulosic  feedstocks  and    bio-­‐terephthalic  acid  (bTA)  underway.    Vision  to  produce  a  carbon  nega8ve  PET  bo=le  made  from  100%  renewable  material  that  is  100%  recycled.    

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Renewable  Material  

Recycled  Content  

Post-­‐Consumer  Recovery   End-­‐of-­‐Life  Design  

LightweighDng  

Preference  &    Quality  

Sustainable  Package  (EFFICIENT  &  EFFECTIVE)  

TIME  

 ECO

-­‐IMPA

CT  AVO

IDANCE

 

ZERO  WASTE  

Evolving a Better Bottle for the Future

QUALITY  

OPTIMIZATION  

RECYCLABILITY  

RENEWABILITY  

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Thank  you!    

Remember,    even  when  you’re  finished,    that  bo[le  or  can  isn’t.      

 Give  it  Back!