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Media Release - Coca-Cola Amatil

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<strong>Media</strong> <strong>Release</strong><br />

COCA-COLA AMATIL UNVEILS $35 MILLION INVESTMENT IN BOTTLE SELF-<br />

MANUFACTURE<br />

City: Thebarton, South Australia<br />

Date: Monday 10 October, 2011<br />

The Hon. Michael Atkinson MP Member for Croydon and Managing Director of <strong>Coca</strong>-<strong>Cola</strong> <strong>Amatil</strong> (CCA)<br />

Australia, Warwick White, officially opened two new “blowfill” lines at the Company’s Thebarton production<br />

facility in Adelaide today.<br />

“Blowfill” technology represents a $35 million investment in CCA’s South Australian operation, and<br />

enables CCA to design and manufacture its own PET beverage bottles using less raw materials.<br />

Speaking at today’s event Mr White said that “blowfill” technology is the single largest capital investment in<br />

CCA’s history and will fundamentally change the nature of manufacturing in the business.<br />

“The introduction of this technology has enabled us to redesign and lightweight our entire small<br />

carbonated soft drink and water PET bottle range. With innovation comes benefits which, in this case, are<br />

good for CCA, our customers and the communities we operate in. They include significant cost savings,<br />

production efficiency gains, increased product shelf life and stacking ability.<br />

“Blowfill is also delivering against our key environmental sustainability goals in both energy and water<br />

savings and is expected to reduce the carbon footprint of our beverage containers by over 20%. A<br />

significant portion of these savings will come from bottle redesigns that use less PET resin, with others<br />

from the elimination of the need to transport empty bottles to CCA bottling facilities, and energy savings on<br />

the line. This investment continues our lightweighting journey – a journey which has already seen CCA<br />

achieve a 20% increase in packaging raw material efficiency since 2004,” Mr White said.<br />

At a Group level, CCA has committed to spending approximately $450 million to install “blowfill”<br />

technology at all of the Company’s production facilities in Australia, New Zealand, Indonesia, Papua New<br />

Guinea and Fiji. The completion of works at Thebarton mark the Company’s largest single investment in<br />

the technology to date.<br />

CCA’s Thebarton facility has been home to the production of <strong>Coca</strong>-<strong>Cola</strong> in South Australia since it opened<br />

in 1952 and today, <strong>Coca</strong>-<strong>Cola</strong> <strong>Amatil</strong> employs approximately 450 South Australians.<br />

<br />

<strong>Media</strong> :<br />

Sally Loane<br />

Director <strong>Media</strong> and Public Affairs, <strong>Coca</strong>-<strong>Cola</strong> <strong>Amatil</strong><br />

0416 162 336 sally.loane@ccamatil.com<br />

COCA-COLA AMATIL LIMITED PAGE 1 OF 3<br />

ABN 26 004 139 397


<strong>Media</strong> <strong>Release</strong><br />

FACT SHEET - <strong>Coca</strong>-<strong>Cola</strong> <strong>Amatil</strong> (CCA) investment in “Blowfill” technology<br />

General<br />

CCA’s group-wide $450 million investment in “blowfill” technology – or bottle self-manufacture –<br />

is the largest infrastructure investment for the Company in a decade.<br />

“Blowfill” technology is being installed across CCA’s production facilities in Australia, New<br />

Zealand, Indonesia, Papua New Guinea and Fiji.<br />

“Blowfill” technology has enabled CCA to redesign and lightweight its entire small carbonated soft<br />

drink and water PET bottle range, delivering significant cost savings, production efficiency gains,<br />

increased product shelf life and stacking ability.<br />

“Blowfill” is delivering against key environmental sustainability goals in both energy and water<br />

savings as it has enables CCA to produce PET bottles using less resin, with lighter labels, and<br />

shorter, redesigned closures/caps that are without a liner.<br />

The change in production process will lead to a reduction in the use of cardboard and shrink<br />

plastic in secondary packaging, significant savings in water use as the “blowfill” bottles do not<br />

need to be rinsed prior to filling, and the future capacity to save energy in the “blowing” of the preforms<br />

into bottles by introducing low-pressure blowing.<br />

“Blowfill” technology is expected to reduce the carbon footprint of CCA’s beverage containers by<br />

over 20%, with a significant portion of these savings coming from bottle redesigns that use less<br />

PET resin, but also from the elimination of the need to transport empty bottles to CCA bottling<br />

facilities, and energy savings on the line.<br />

A 2011 Masters study of “blowfill” technology at CCA’s Northmead, Sydney site – the first site to<br />

introduce “blowfill” – found that the technology has delivered a remarkable 22% reduction in the<br />

carbon footprint for every beverage container, based on an average 600mL bottle size (source:<br />

Martina Birk – MSc Thesis “Case study - <strong>Coca</strong>-<strong>Cola</strong> <strong>Amatil</strong>, Australia: Comparison of carbon<br />

footprint converter model v blow-fill technology for PET bottles” August 2011). This is equivalent<br />

to 1700 cars being removed from the roads per year.<br />

Ms Birks’ study found that the most significant carbon savings are delivered by:<br />

Using 15-23% less PET resin in all bottle manufacture<br />

Using 33% less PET resin in closures (or caps)<br />

Using 30% less energy used to “blow” the pre-forms into bottles<br />

Eliminating use of the warmer (the new technology enables bottles to be filled at room<br />

temperature)<br />

Reducing the transportation of bottles from suppliers<br />

CCA estimates that more than 9000 tonnes of PET resin will be saved per year when all<br />

production lines have installed “blowfill” technology.<br />

“Blowfill” continues CCA’s lightweighting journey, a journey that has already seen CCA achieve a<br />

20% increase in raw material efficiency since 2004 when 1 tonne of PET resin produced 38,000<br />

bottles compared to the 46,500 today.<br />

COCA-COLA AMATIL LIMITED PAGE 2 OF 3<br />

ABN 26 004 139 397


<strong>Media</strong> <strong>Release</strong><br />

Thebarton<br />

<br />

<br />

<br />

<br />

The $35 million investment in CCA’s Thebarton production facility is the Company’s largest<br />

investment to date in “blowfill” technology.<br />

The Thebarton facility has been home to the production of <strong>Coca</strong>-<strong>Cola</strong> in South Australia since it<br />

opened in 1952 and today, it produces the full CCA range of beverages including brands under<br />

licence from The <strong>Coca</strong>-<strong>Cola</strong> Company (major brands include <strong>Coca</strong>-<strong>Cola</strong>, <strong>Coca</strong>-<strong>Cola</strong> Zero, diet<br />

Coke, Sprite, Fanta, Glaceau vitamin water, Powerade Isotonic, Mother energy drink), along with<br />

CCA-owned brands.<br />

The Thebarton facility produces approximately 110 million PET bottles a year.<br />

<strong>Coca</strong>-<strong>Cola</strong> <strong>Amatil</strong> employs 450 South Australians with the Thebarton facility being the main<br />

workplace for 240 employees.<br />

COCA-COLA AMATIL LIMITED PAGE 3 OF 3<br />

ABN 26 004 139 397

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