Health and Nutrition

Coca-Cola HBC Issue Brief #10November 2017

1Health and Nutrition

PACKAGING

TWIST bottles are

22% lighter than previous containers

Fully recyclable PLANTBottles® contain

plant-based material - available in 10 of our markets

30%

#1

WATER USAGEreduced by

In the past 2 years

~~

In the past 6 years

CARBON FOOTPRINTreduced by

billion litres

glass of water

foreveryone on Earth

In 2016

spent on

COMMUNITIES to support wellbeing, environmental and water stewardship, youth development

¤7.3 million

1.15215,000

annual emissions of over

passenger cars

1.74

1

RECYCLING

26%

increase in the use of recycled PET versus 2010.

milliontonnes

Ranked #1 by Dow Jones Sustainability Indices (DSJI)We are the first company to achieve four consecutive wins in the world’s most prestigious business sustainability rankings and now we also lead the Food, Beverage & Tobacco Industry Group as a whole.

In 2017 we were one among only 25 companies from all industries to be recognized as a global leader in corporate sustainability areas for climate and water by the Carbon Disclosure Project (CDP).

For more information please visit our website:

Our 2020 commitments highlight

our determination to grow our

business responsibly, profitably

and sustainably. They are part of

our long-term strategy that has

enabled us to become leaders in

sustainability among beverage

companies.

SUPER SECTOR LEADER IN DOW JONES SUSTAINABILITY INDICES FOR THE FIRST TIME & BEVERAGE INDUSTRY LEADER FOR THE FOURTH CONSECUTIVE YEAR IN 2017

*Water consumption and direct carbon emissions per litre of beverage produced, versus 2010

We will recover for

recycling an average

of 40% of the total

packaging we introduce

to our markets

We will invest 2% of our

annual pre-tax profit in

communities and double the

number of employees taking

part in volunteering initiatives

during work time to 10% of

our people

We will take 40%

of the total energy

we use from

renewable and clean

energy sources

We will source 20% of the total

PET we use from

recycled PET and/or

PET from renewable

material

We will reduce

primary packaging

by 25% per litre

of beverage produced

We will certify over

95%

of our key agricultural

ingredients against the

Coca-Cola system’s

Sustainable Agriculture

Guiding Principles

We will reduce

direct carbon

emissions intensity

by 50%*

We will reduce

water use

intensity

by 30%*

We will reduce

carbon emissions

intensity in the

value chain by

25%

We will certify all of our

plants in European

Water Stewardship or

Alliance for Water

Stewardship standard.

Health and Nutrition

THe Issue

Consumers around the world are changing. Reducing

sugar consumption is becoming increasingly important

for many. People are more health conscious than ever

and living “healthier” is the new normal for consumers.

In addition, they are concerned about artificial

ingredients and look for natural alternatives. Finally,

consumers are becoming used to having more choice

and are looking for beverages with new functional

features, more health benefits and more natural

ingredients.

Our apprOaCH and Our prOgress TO daTe

As the leader of the beverage industry, we choose to do

more – not just say more – when it comes to the global

fight against obesity.

To meet evolving consumer needs and preferences,

we offer a diverse product portfolio and we have

an exciting pipeline of new products and packaging

options. We are focusing on offering consumers more

of the products they want, including low- and no-sugar

options, across categories and in more packages. We

therefore put a lot of effort in supporting our juice,

water and Ready-to-Drink Tea categories, which

accounted for approximately 30% of Coca-Cola HBC’s

sales in 2016.

Importantly, as a System we support the current

recommendation by several leading health authorities,

including the WHO, that people should limit their intake

of added sugar to no more than 10% of their total

energy/calorie consumption.

We have begun a journey toward this goal and we are

evolving our business to become even more responsive

to people’s changing tastes and needs:

• We are rethinking many of our recipes around the

world to reduce sugar and calories across many

of our brands while making our low and no-sugar

drinks more visible and easier to find.

• We are offering more new drinks that provide

benefits like organic tea, coconut water, grab-and-

go coffee, juices and purified water to more people

in more places.

• We are making smaller, more convenient packages

so that controlling sugar intake is easier.

• We are giving people the information they need to

make truly informed choices.

• We are diligently following our longstanding policy

not to target advertising to children under age 12

anywhere in the world.

Our consumers are changing and so are we. We

are listening carefully and working to ensure that

consumers are firmly at the center of our business

so we can continue to grow responsibly.

Our strategy behind our actions can be best explained as:

• INSIDE THE BOTTLE: Focusing on the actual

drinks we make, including how we sweeten them

and the various benefits they provide.

• OUTSIDE THE BOTTLE: which includes everything

apart from the drink itself, such as the packaging

we develop and policies we implement to help

consumers make the right choices for themselves

and their families.

Our 2020 commitments highlight

our determination to grow our

business responsibly, profitably

and sustainably. They are part of

our long-term strategy that has

enabled us to become leaders in

sustainability among beverage

companies.

Our

2 3Health and Nutrition Health and Nutrition

INSIDE THE BOTTLE

We are taking action to help people around the world to

consume less sugar.

• In 2016, we reduced sugar in more than 200 of our

drinks globally to help consumers drink less sugar

when they buy our products.

• In 2017, we will reduce sugar in more than 500 of

our drinks around the world – adding to the 1,100+

drinks we make that are already low or no-sugar.

We are making low and no-sugar versions of the drinks

that people love easier to find in more places.

• Since 2014, as a System, we have launched nearly

500 new low or no-sugar drinks globally.

• Approximately 30% of the more than 3,900

beverages we make fall into the low or no-sugar

categories.

• In addition, 18 out of the 20 top brands we make

feature a low or no-sugar option.

We are shifting some of our marketing budget to make

people more aware of these low and no-sugar options

in their local markets.

• For example, in 2016, we launched our “One

Brand” global marketing strategy, which highlights

our lower and no-sugar versions of Coca-Cola

right alongside Coca-Cola original taste. It also

underscores the System’s commitment to choice,

offering consumers whichever Coca-Cola suits

their taste, lifestyle, and diet – with or without sugar,

with or without calories.

We are also exploring and bringing to market new sugar

alternatives that help us keep the great tastes people

love but with less sugar and fewer calories.

• Coca-Cola Life, made with a blend of sugar and

stevia leaf extract, has 50% fewer calories and less

sugar than Coca-Cola original taste, but with the

Coca-Cola taste people love.

• In Greece, we have launched Coca-Cola Stevia in

2016, a zero sugar, zero calorie variant sweetened

also with stevia leaf extract.

We are fully committed as a System to helping

consumers better control the amount of sugar they get

from our drinks without giving up the great tastes they

know and love.

EUROPEAN SOFTDRINKS INDUSTRYACCELERATES SUGARREDUCTION TODELIVER A FURTHER

10%FROM 2015-2020

BUILDING ON THE 12% REDUCTION ALREADY ACHIEVED SINCE 2000 AND TRIPLING THE REDUCTION PACE

Addressing changing consumer preferences

Responding to the EU call for reformulation and sugar reduction across the food industry

The first sector to answer the EU added sugars annex and its 10% sugar reduction target

ZERO 0%

2000 2015 2020

1. OUR SUGAR REDUCTION JOURNEY SO FAR

1970

SUGARFREE

2015

ZEROREDUCEDCALORIELIGHTLOW

CALNO

SUGAR

An early mover in added sugars reduction, our journeybegan in the 1970’s when the first no sugar

and calorie drinks were introduced

Since 2000 we have been measuring our sugar and calorie reductions. In 2006 wemade wide commitmentsto reduce calories and sugar to the EU Platform forAction on Diet, Physical Activity and Health

Our industry is already actively

working on sugar reduction with

governments and stakeholders in

multiple member states, and has

signed local reduction pledges

2. ACHIEVEMENTS 3. CHALLENGES

-12%

30+

66%

CALORIES

+150%

LOWSUGAR ZE

RO

Lithuania

1%

Italy

7%

DIFFERENT TASTES AND CONSUMER PREFERENCES ACROSS EUROPE

(Canadean, 2016, % salesof reduced and no sugardrinks, excluding water)

Source: Canadean, 2016

SUGAR =

THE SOURCEOF CALORIES

IN SOFT DRINKS

SUG

AR

average caloriereduction from 2000-2015

increase in availabilityof pack sizes smaller than 330ml (standard can)since 2006

di�erent packsto choose from

of new product introductions are noand reduced sugar

30%of sales in some EUmarkets are no and low sugar/calorie drinks S U G A R

0S U G A R

LOW

TASTE

CONSUMERACCEPTANCE

REGULATORYHURDLES

United Kingdom

44%

5. ACCELERATION OF THE SPEED AND SCALE OF ACTIONS

We welcome the EU policy approach:

• Partnership based, involving all stakeholders

• Flexibility to optimise tools available to reflect local situations

• Allows us to deliver e�ciency, speed and scale

• We hope other food categories will follow suit to generate critical mass

6. EMPLOYING A WIDE ARRAY OF TOOLS TO ACHIEVE OUR AMBITIOUS TARGET AND REDUCE THE SUGAR MIX ACROSS THE SOFT DRINKS PORTFOLIO

NEWRECIPE

NEWRECIPE

Reformulating existing productsincluding the use of low

calorie sweeteners

NE

WR

EC

IPE

S U G A R

0

Increasing availability of smaller pack sizes to increase portion

control and moderation

ZER

O

Progress will be monitored using independent third party auditors

and shared with stakeholders

Cal

orie

/sug

ar c

onte

nt

60

80

100

1970 2000

-12%

-10%

2015 2020

15 YEARS 5 YEARS

Tripling the pace of added sugars reductionbetween 2015-2020 (vs 2000-2015)

10% aggregate sugars reduction across Europe, impacting over 500 million consumers

RESEARCH

Investing in the promotion of drinks with reduced or no sugar to encourage consumer choice

Innovating to introduce new products withno orreducedsugar, includingthe use oflow calorie sweeteners

ZER

O

NEW

4. COORDINATED EU POLICY ON REFORMULATION & SUGAR REDUCTION

S U G A R

0

The UK’s leading companies increased their collective advertising spend on low and no calorie drinks by 49% in 2014

In Germany, between 2010 and 2014, Coca-Colaincreased by 40%the marketing & advertising spends for low/no calorie drinks

In Italy, between2014 and 2016, SBFE advertising spends on low/no calorie drinks increasedby 70%

42% of soft drinks sold in Norway are no or low sugar, containing less than 20kcals per 100ml

7. INNOVATION AND SUGAR REDUCTION IN ACTION

150ml

200ml

250m

l

INTRODUCING SMALLER PACKSIZES

Average 330ml can ofregular carbonated

soft drink = 36g sugar

REFORMULATING EXISTINGDRINKS

PROMOTING DRINKS REDUCED

IN SUGAR OR WITH NO SUGAR

INTRODUCING PRODUCTS REDUCED IN SUGAR OR WITH NO SUGAR AT ALL

250ml = 27.5g sugar

-24%

200ml = 22g sugar

-39%

150ml = 16.5g sugar

-54%

10% lessadded sugar

15% lessadded sugar

45% lessadded sugar

35%less sugarPT, IT, UK

At least30% less sugarin a.o FR, CZ, PL, NL,CY, EL, IT, DK, NO

At least30% less sugarin a.o UK, ES, FR

At least30% less sugarin a.o PL, AT, FI, UK,FR, BE, IE, NL, CY, EL,ES, CZ, SK, H, BG

Coca-Cola Lifeat least 45% less sugar

Pepsi Maxno sugar, no calories

Coca-Cola Zero Sugarno sugar, no calories

Pepsi Next30% less sugar

No added sugarFR, BE, CH, NL

No added sugarFR, BE

40% less sugarFR

No sugarFR, BE, CH

30% less sugarFR, BE

On 7 February 2017, The European soft drinks industry1

has announced it will reduce added sugars in its

products by a further 10% by 2020. The soft drinks

sector is an early mover in added sugars reduction

with its journey beginning in the 1970s when the first

no sugar and no calorie soft drinks were introduced.

The industry reduced sugar in still and carbonated

soft drinks by 12% from 2000-2015, so the new

commitment triples this pace by adding another 10%

reduction over the next five years. This initiative

responds to changing consumer preferences regarding

sugar intake and calls from Member States and the

European Commission for a coordinated approach to

reformulation and sugar reduction. The commitment

will be rolled out across Europe.

OUTSIDE THE BOTTLE:

We know what we put in our bottles is only half of the

story. We have to go beyond what is inside the bottle to

make a real difference.

We are providing smaller, more convenient packages,

making it easier to control sugar sugar intake.

• Today, about 40% of our sparkling brands come in

these smaller, more convenient packages of 250 mL

or less.

• We are working to launch mini-cans and smaller

packages in more markets around the world, which

provide just the right amount of your favourite drink

when you want a little less.

• In fact, you can now buy Coca-Cola in more

convenient sizes (250 mL) in 140 countries around

the world.

We are looking to introduce a wider variety of beverages

to retail and cinema customers, including low and no-

sugar options, and encourage them to examine the

serving sizes they offer to consumers.

Consumers around the world have told us they want

straight-forward information about what they are

drinking. We voluntarily put clear, easy-to-find calorie

information right up front, so our consumers can make

informed choices without the guesswork.

• In September 2009, we were the first beverage

company to commit to front-of-package calorie

labelling globally on nearly all our packaging and we

continue to do this today.

• In fact, we lead the food and beverage industry

in voluntary front-of-package calorie labelling

because it is simply the right thing to do.

• Where it is not possible for us to do front-of-

package labelling, for example on returnable

glass bottles in some countries, we make this

information available on our websites or by other

easily accessible means.

We are diligently following our longstanding policy not

to target advertising to children under age 12 anywhere

in the world—a policy that applies to all products and

brands we sell, everywhere in the world.

Although, we cannot control everything every child sees,

we can—and we will proactively push the industry to

advertise responsibly by being careful and thoughtful

about any media placement where children are a

significant percentage of the audience. It is not just about

following the letter of the policies, but the spirit of them

as well.

• We do not place advertising in media where the

audience is over 35% children under 12 years old.

• This policy applies to all media including television

shows, print media, websites, social media, movies,

SMS/email marketing, animation, 3rd party

characters, celebrities/games/contests, branded

toys/merchandise, talent selection, point of sale,

and merchandise items.

• We will not design our marketing communications

in a way that directly appeals to children under 12.

• We openly participate in audits by external

organizations that monitor our advertising to

demonstrate compliance.

Coca-Cola leadership actively engages with public

health leaders, government officials, and civil society

to fully understand their concerns.

UNESDA SECONDARY SCHOOL COMMITMET

No advertising of any products on TV, in print, online and on social media, irrespective of their sugar content

IN PRIMARYSCHOOLSNo sales of any soft drinks in primary schools across the EU

• Drinks only sold in unbranded vending machines – respecting the commercial-free character of schools

• Involving school authorities and parents in the choice of drinks available

IN SECONDARY SCHOOLS

DRINKS

No presence inprimary schools

• No sales of soft drinks

• No advertising or marketing

• No commercial activity

95%of primary schoolsare compliant withthese commitments

RESULTS:

Signatories to the UNESDA commitments have no presence in

primary schools across the EU:

Source: PriceWaterhouseCoopers

Third party auditing demonstrates compliance rates of:

99%100%no advertising to

under 12’s in print

media, online media

or social media

no advertising

to under

12’s on TV

95%no advertising

appealing

to children

under 12 on

company-owned

websites88% less

in 2014 EU children were exposed to

advertising around

children’s

programmes

compared with 2005

Source: World Federation of Advertisers Source: Xtreme/Ebiquity

Source: Xtreme/Ebiquity Source: Xtreme/Ebiquity

2. MARKETING TO CHILDREN & SCHOOLS: OUR ACHIEVEMENTS TO DATE

1. STRENGTHENING UNESDA’S EXISTING COMMITMENTS IN SCHOOLS SINCE 2006

EUROPEAN SOFT DRINKS INDUSTRYTO STOP SALES OF SUGARY DRINKS IN SECONDARY SCHOOLS ACROSS THE EU

UNESDA has taken a lead in responsible behaviour in schools for over 10 years

This initiative builds on overall efforts to reduce added sugars in soft drinks consumed across EuropeSource: Canadean/GlobalData

Drinking water should remain the foremost drink in EU schools. PwC research confirms it is available free in 86% of secondary schoolsSource: PriceWaterhouseCoopers

2006 2015 2018

No sugar-sweetened soft drinks insecondary schoolsby the end of 2018

Impacting 50,000 secondary schools and 40 million young people

Source: PriceWaterhouseCoopers

SUGAR-SWEETENED SOFT DRINKS54% 39%

SUGAR-SWEETENED SOFT DRINKS 0%

SUGARY DRINKS AS A PERCENTAGE OF TOTAL SECONDARY SCHOOL SALES

OUR GOAL:

FREE

WHO Europe 2017 Report 'Child and Adolescent Health' confirms“recent decreases in reported consumption

of sugared soft drinks are notable”

Soft drinks industry’s contribution to the

prevention of obesity

3. BUILDING ON OVERALL STRATEGY OF REDUCING SUGAR CONTENT IN SOFT DRINKS

4. ALIGNED WITH CALLS FOR ACTION FROM:

EUROPEAN HEALTH AUTHORITIES

confirm childhood obesityis an ongoing challenge

EU COUNCIL CONCLUSIONS, JUNE 2017

“urging actions that contribute towards halting the rise in childhood obesity”

Make sure the healthy option is an easy option

Restrictmarketing to

children

Monitor and evaluate

Promote healthier environments,

particularly in schools

STOP

LOW

2000-201512% average added sugars reduction achieved

2015-2020commitmentto a further

10% reduction

2000 2015 2020

EU ACTION PLAN ON CHILDHOOD OBESITY, 2014-2020 Source: WHO Europe report, ‘Adolescents obesity and related behaviours: trends and

inequalities in the WHO European Region, 2002-2014’, May 2017, http://www.euro.who.int/en/health-topics/Life-stages/child-and-adolescent-health/publications/2017/adolescent-obesity-and-related-behaviours-trends-and-inequalities-in-the-who-european-region,-20022014

Sour

ce: C

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ean/

Glo

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ata

Source: https://ec.europa.eu/health/sites/health/files/nutrition_physical_activity/docs/childhoodobesity_actionplan_2014_2020_en.pdf

Source: http://www.consilium.europa.eu/en/press/press-releases/2016/06/17-epsco-conclusions-food-product-improvement/

We willrespect the

commercial-free characterof schools

5. HOW WE WILL DELIVER ON OUR COMMITMENT

6. IMPLEMENTATION, TIMING AND MONITORING

SECONDARYSCHOOLS

Company salesforces will be directed to stop sales of

sugar-sweetened soft drinks to secondary schools

Wholesalers and third parties will be encouraged to also support our policy

The new policy will be fully implemented by UNESDA member companies by the end of 2018, across the EU28

Compliance will be monitored using third party auditors

We will work with organisations operating in secondary schools to

ensure consistency of approach

SCHOOL

We are also looking for ways to make many of our

beverages better and more nutritious whenever we can

by e.g. providing vitamins or minerals, that help fuel your

active body, while we are looking for ways of adding

new, sophisticated flavours to keep up with consumers’

rapidly evolving taste preferences

UNESDA SUGAR REDUCTION COMMITMET BY 2020.

(1) UNESDA Soft Drinks Europe is the trade association representing non-alcoholic beverages such as carbonates, fruit based drinks and dilutables. UNESDA represents 80% of the European soft drinks industry by value.

4 Health and Nutrition

On 6 September 2017, The European soft drinks industry, represented

by UNESDA, announced that it will voluntarily cease sales of drinks

containing added sugars to secondary schools across the European

Union . This pledge maintains the industry’s long-standing commitment

to responsible marketing to children and adolescents, and expands its

existing policy - first introduced in 2006 - not to sell any beverages in

primary schools nor advertise any beverages to children under 12.

The commitment will be introduced across the 28 European Union

member countries with complete implementation by the end of 2018.

From then, UNESDA member companies will provide only no- and

low-calorie soft drinks to secondary schools. We recognize that water

must remain the foremost drink available for schoolchildren. UNESDA

estimates that this voluntary effort will reach more than 50,000

secondary schools and over 40 million young people across the EU.

Beside that, we also help to develop

and implement other voluntary

industry codes of conduct. The

premise of these various codes is

not to target marketing at children

under 12 years old. Codes have

been implemented throughout our

business and industry compliance is

independently verified by third party

audits.

These include:

• EU Pledge on advertising to children

• Global Guidelines on Marketing

to Children – International Council

of Beverage Associations

To ensure that our approach continues

to meet expectations, we engage with

a wide range of stakeholders. In 2013,

our Company’s Annual Stakeholder

Forum focused on health and nutrition

issues. We invited nutritionists,

academics, consumer representatives

and industry peers to review our

progress to date.

The Group Director of Public Affairs

and Communications is responsible for

stakeholder engagement on consumer

health.

Reducing preference for sugar

sweetened beverages will require

concerted action on several levels

– from creative food scientists and

marketers in the beverage industry,

as well as from individual consumers

and families, schools and worksites,

retailers and governments.

Despite of all measures taken above,

we know we aren’t there yet. Therefore,

we reach out to you in order to gauge

your opinion and collect your ideas, to

ensure that we address material issues

for them and our business. In particular,

consumer health and wellness remains

a key focus in 2017 and beyond.

No advertising of any products on TV, in print, online and on social media, irrespective of their sugar content

IN PRIMARYSCHOOLSNo sales of any soft drinks in primary schools across the EU

• Drinks only sold in unbranded vending machines – respecting the commercial-free character of schools

• Involving school authorities and parents in the choice of drinks available

IN SECONDARY SCHOOLS

DRINKS

No presence inprimary schools

• No sales of soft drinks

• No advertising or marketing

• No commercial activity

95%of primary schoolsare compliant withthese commitments

RESULTS:

Signatories to the UNESDA commitments have no presence in

primary schools across the EU:

Source: PriceWaterhouseCoopers

Third party auditing demonstrates compliance rates of:

99%100%no advertising to

under 12’s in print

media, online media

or social media

no advertising

to under

12’s on TV

95%no advertising

appealing

to children

under 12 on

company-owned

websites88% less

in 2014 EU children were exposed to

advertising around

children’s

programmes

compared with 2005

Source: World Federation of Advertisers Source: Xtreme/Ebiquity

Source: Xtreme/Ebiquity Source: Xtreme/Ebiquity

2. MARKETING TO CHILDREN & SCHOOLS: OUR ACHIEVEMENTS TO DATE

1. STRENGTHENING UNESDA’S EXISTING COMMITMENTS IN SCHOOLS SINCE 2006

EUROPEAN SOFT DRINKS INDUSTRYTO STOP SALES OF SUGARY DRINKS IN SECONDARY SCHOOLS ACROSS THE EU

UNESDA has taken a lead in responsible behaviour in schools for over 10 years

This initiative builds on overall efforts to reduce added sugars in soft drinks consumed across EuropeSource: Canadean/GlobalData

Drinking water should remain the foremost drink in EU schools. PwC research confirms it is available free in 86% of secondary schoolsSource: PriceWaterhouseCoopers

2006 2015 2018

No sugar-sweetened soft drinks insecondary schoolsby the end of 2018

Impacting 50,000 secondary schools and 40 million young people

Source: PriceWaterhouseCoopers

SUGAR-SWEETENED SOFT DRINKS54% 39%

SUGAR-SWEETENED SOFT DRINKS 0%

SUGARY DRINKS AS A PERCENTAGE OF TOTAL SECONDARY SCHOOL SALES

OUR GOAL:

FREE

WHO Europe 2017 Report 'Child and Adolescent Health' confirms“recent decreases in reported consumption

of sugared soft drinks are notable”

Soft drinks industry’s contribution to the

prevention of obesity

3. BUILDING ON OVERALL STRATEGY OF REDUCING SUGAR CONTENT IN SOFT DRINKS

4. ALIGNED WITH CALLS FOR ACTION FROM:

EUROPEAN HEALTH AUTHORITIES

confirm childhood obesityis an ongoing challenge

EU COUNCIL CONCLUSIONS, JUNE 2017

“urging actions that contribute towards halting the rise in childhood obesity”

Make sure the healthy option is an easy option

Restrictmarketing to

children

Monitor and evaluate

Promote healthier environments,

particularly in schools

STOP

LOW

2000-201512% average added sugars reduction achieved

2015-2020commitmentto a further

10% reduction

2000 2015 2020

EU ACTION PLAN ON CHILDHOOD OBESITY, 2014-2020 Source: WHO Europe report, ‘Adolescents obesity and related behaviours: trends and

inequalities in the WHO European Region, 2002-2014’, May 2017, http://www.euro.who.int/en/health-topics/Life-stages/child-and-adolescent-health/publications/2017/adolescent-obesity-and-related-behaviours-trends-and-inequalities-in-the-who-european-region,-20022014

Sour

ce: C

anad

ean/

Glo

balD

ata

Source: https://ec.europa.eu/health/sites/health/files/nutrition_physical_activity/docs/childhoodobesity_actionplan_2014_2020_en.pdf

Source: http://www.consilium.europa.eu/en/press/press-releases/2016/06/17-epsco-conclusions-food-product-improvement/

We willrespect the

commercial-free characterof schools

5. HOW WE WILL DELIVER ON OUR COMMITMENT

6. IMPLEMENTATION, TIMING AND MONITORING

SECONDARYSCHOOLS

Company salesforces will be directed to stop sales of

sugar-sweetened soft drinks to secondary schools

Wholesalers and third parties will be encouraged to also support our policy

The new policy will be fully implemented by UNESDA member companies by the end of 2018, across the EU28

Compliance will be monitored using third party auditors

We will work with organisations operating in secondary schools to

ensure consistency of approach

SCHOOL

Case sTudIes, COunTry examples

GREECE

Over the last 10 years, the Coca-Cola System in Greece

reduced the average calories in our soft drinks by

almost 20% and for all major soft drink brands there is

a low or no calorie choice. Coca-Cola Light, the first

zero-calorie Coca-Cola, was launched in 1986 and

since then 12 more beverages with low or no calories

entered the Greek market. Currently there are five

different variants of Coca-Cola and four of them are

without calories. In 2017 Coca-Cola ‘No Calories, and

with sweetener from Stevia Plant’ was launched, the

fifth addition to the Coca-Cola family that has the great

taste, but with zero calories. In 2017, the promotion

of zero-sugar Coca-Cola choices was further

strengthened so that more consumers can learn about

all the different choices available to them. Consumers

can choose among seven different packages from

150ml to 2L family pack. Servings per pack are

communicated on the labels of our multi-serve

bottles (e.g. 1L = 4 serves) to provide consumers with

information on number of servings in a bottle. Clear,

easy-to-find calorie information is voluntarily put front

of pack and there is no advertising to children below 12.

HUNGARY

In Hungary, we reduced total calories in the portfolio

by 5.3% between 2015 and 2017. Today, 47% of the

Hungarian Coca-Cola portfolio consists of low- or no

sugar variants and the ratio of low/no sugar products in

the total portfolio has increased by 12% since 2015.

To consumers there are also provided products in

smaller, more convenient packages and 73 different

products in 170 different packaging and 11 sizes. The

Hungarian food industry is united and committed to

improve public health of Hungarian consumers. In 2014,

Hungarian food industry signed a voluntary initiative

led by the Hungarian Food and Drink Association. The

initiative includes 11 industry commitments including

the commitment on reformulation, innovation, food

labelling and supporting active, healthy lifestyle

programs. Each year a report is published while the

local governmental and civil organizations monitor

the results and progress of our commitments.

AUSTRIA

In 2017 a new recipe for Coca-Cola Zero was

introduced to improve the taste that is now even closer

to the great taste of Coca-Cola, but without the sugar.

To offer consumers more sugar-free versions Fanta

zero sugar was launched in Austria in 2017. On top,

sugar in Sprite was reduced by 67%, it now contains

1,9 g/100 ml. The sugar in Coca- Cola Life that initially

had 36% less sugar was further reduced to 50% less

sugar and contains the sweetener from stevia plant.

More than a half of the Austrian portfolio is now with low

or no calories and almost 30% without or with low sugar.

In order to help consumers to better control their sugar

intake, sparkling soft drinks are now also sold in 250 ml

cans. Media budget on Coca-Cola Zero was doubled

from 2016 to 2017 and tripled to provide free product

samples to the consumers.

HumanWe work continually to develop the competencies, capabilities and talent of our people, a critically important asset.

NaturalWater, energy and other natural resources are important inputs to our value creation processes, and we seek to use them efficiently.

Social and relationshipSocial and relationship capital includes our reputation and our ability to earn and maintain the trust of key stakeholders.

FinancialWe seek to use all funds efficiently, whether obtained through financing or generated from operations or investments.

IntellectualOur knowledge-based assets include our brands and brands we license, as well as proprietary technology, standards, licences and processes.

ManufacturedWe carefully manage our stock of manufactured capital, including equipment and buildings, held to produce and distribute our products.

Serving customers effectivelyWe manage customer relationships as well as promotions and displays at the point of sale. Our customers rely on us to have a full range of quality products on the shelves every day, so that they can satisfy consumers’ refreshment needs. In order to give our customers the best possible service, we segment each market and serve each customer based on size and need, taking into account prevalent market conditions.

Serving consumers and communitiesWe offer a range of beverages to satisfy evolving consumer preferences. By providing products that meet consumer needs and operating a responsible, sustainable business, we create value for the communities where we operate.

Working with partnersOur partnership with The Coca-Cola Company gives us exclusive rights to manufacture, sell and distribute their branded products in our territory. They also produce and supply our Company with the concentrate, or syrup, that is the main ingredient for our beverages.

Working with suppliersWe rely on our supply chain for many types of inputs to our business, including equipment and machinery and consultancy services and soft-ware. Partnering with responsible, dependable, efficient suppliers allows our Company to focus on what we do best – producing and distributing beverages that bring smiles to consumers.

Producing cost‑efficientlyUsing concentrate from The Coca-Cola Company, and other ingredients, we produce, package and distribute products. We produce nearly all of the products we sell at our production facilities that also have distribution centres and warehouses. Utilising these facilities wisely helps us produce products responsibly and is key to our profitability.

Capitals engaged Value added by Value created

EmployeesDeveloping, recognising and rewarding our people secures a skilled and motivated workforce.

CustomersOur efforts to produce products efficiently and responsibly build value for our customers’ businesses.

ShareholdersThrough the process of managing all inputs to our business well, we create profits which benefit shareholders through dividend payments and share value.

SuppliersAs we create value, we support businesses throughout our value chain, and support job creation beyond our business.

CommunitiesWhen our business is profitable, sustainable and responsible, the communities where we operate benefit through job creation, tax payments to governments, useful products and services, and minimisation of environmental impact. We also have a commitment to invest 2% of our pre-tax profits in programmes to support communities in our territory.

By running a profitable, sustainable, responsible business, we create value which is subsequently both retained by our business, making it stronger, and shared with all of our stakeholders.

Direct employment

31,083Met or exceeded customers’ expectations

94.8%Net profit

€344m

Supplier spend

€3,138m

Total taxes

€281m

Our business model is at the heart of everything we do. It supports our growth and defines the activities we engage in, the relationships we depend on and the outputs and outcomes we aim to achieve in order to create value for all of our stakeholders in the short, medium and long term. Leveraging

our growth model

Createdemand

Grow thetop-line

Investin the

business

Expandmargins

Marketing

In-market execution

Cost efficiencies

Use of cash

Price and mix improvements

Leverage top-line growth

Brand investment – The Coca-Cola Company

Growth in category volume

Investment in production optimisation

Working capital management

In-store activation – Coca-Cola HBC

Share gains

Operatingexpense reduction

Disciplined CapExinvestment

EnhancedEBITDA growth

INFORMATION ABOUT THE COMpANYCoca-Cola HBC is ranked food, beverage and tobacco industries’ leader in the Dow Jones Sustainability World and Europe Indices. It is also included in the FTSE4Good Index and has a AAA rating on its ESG performance by MSCI. Coca-Cola HBC has a premium listing on the London Stock Exchange (LSE: CCH) and its shares are listed on the Athens Exchange (ATHEX: EEE).

pLEASE CONTACT US ATpanagiotis Vergis Group sustainability policy and reporting manager Coca-Cola HBC AG E: panagiotis.vergis@cchellenic.com T: +30 210 6183146

BusIness mOdel

Find all of our locations:www.coca-colahellenic.com/ interactivemap

Our broad geographic footprintWe operate across 28 countries and three continents. Our territories extend from as far west as the Dingle Peninsular in County Kerry, Ireland, to Petropavlovsk, the easternmost point of Russia, and from the Arctic Circle to the tropics of Nigeria. This breadth provides attractive growth opportunities and reduces our dependence on any particular market.

28 countries 136 brands 2,058 million unit cases €518 m EBIT 31,000 employees

3continents

56plants

264warehouses

and distributioncentres

595 millionconsumers

Established markets• Austria• Cyprus• Greece• Italy• Northern Ireland• Republic of Ireland• Switzerland

Developing markets• Croatia• Czech Republic• Estonia• Hungary• Latvia• Lithuania• Poland• Slovakia• Slovenia

Emerging markets• Armenia• Belarus• Bosnia & Herzegovina• Bulgaria• FYROM• Moldova• Montenegro• Nigeria• Romania• Russia• Serbia• Ukraine

OUR MISSIONWe seek to refresh our consumers,

partner with our customers, reward ourstakeholders and enrich the lives of the people

in our local communities.

OUR PUPOSEBring togetherness, spread happinessand inspire a better future motivatesour employees to make a meaningfulcontribution to business and society.

OUR VISIONTo become the undisputed leader

in every market in which we compete.