2006 Sustainability Report - Coca-Cola Amatil

Marketplace
Principles
• We are committed to earning the
trust of our consumers by providing
safe, high quality, relevant products
and services that satisfy their
beverage needs and fit their lifestyles.
• We are committed to marketing and
communicating credibly and honestly
with respect for and across social,
economic, and cultural backgrounds.
• We are committed to supporting
our business partners, both local
and global, by building sustainable,
reliable, consistent, mutually
beneficial relationships.
CCA recognises public concern about
health issues, particularly in relation to
kilojoule-dense diets and the need for
more physical activity in the community.
To meet changing consumer needs
we have significantly diversified our
product range. Today water, fruit
juice, coffee, sports and energy drinks,
sugar-free soft drinks and SPCA’s fruit
and vegetable products contribute to
more than 30% of our revenue,
compared to just 5% in 2001.
A key changing consumer need is the
move to low-kilojoule beverages. This
was evident in the hugely successful
Australia and New Zealand launch of
Coca-Cola Zero, a sugar-free lowkilojoule
beverage. Coca-Cola Zero
captured and maintained 13% of the
total cola category and has created a
new segment in the Australian and
New Zealand markets.
Diet Coke and Coca-Cola Zero, both
sugar-free, now represent 34% of Coke
volume, up from only 20% in 2000.
Product Development
In 2006 CCA focused on growing
its functional/low kilojoule beverages,
including water, low kilojoule and
no kilojoule brand and product
extensions including Coca-Cola Zero,
diet Coke, Sprite Zero, Pump, Pumped
flavoured waters, Mount Franklin,
Frestea Jasmine and Frestea Green
iced teas.
In Australia, 43% of sales have been
from these beverages, and 50% of
the marketing budget was spent on
promoting them.
While the range of our products
and the volume of beverages sold
in Australia has expanded markedly
since 2002, we have at the same time
lowered the energy density of our
product portfolio.
The shift in the product portfolio
to lower kilojoule beverages has
resulted in a 13.9% drop in kilojoule
consumption per capita in the
Australian market.
There has also been a focus on
smaller serving sizes. In Australia
300ml slimline cans, 250ml glass
bottles, and 250ml grocery snack
packs for carbonated soft drinks
have been successfully introduced.
Other successful products launched
in Australia included Goulburn Valley
chilled juices and 220 gram Goulburn
Valley fruit snacks. Two flavoured
waters, Pumped, drove total Pump
volumes over 20% in the second half
of the year, becoming the number one
and two selling functional flavoured
waters in Australia.
In Indonesia successful new
products included Frestea Frutcy,
Frestea Green Tea and Powerade
Isotonic. In New Zealand Kiwi Blue
water and Powerade both grew volume
by more than 20%.
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