Flexibility in the Direct Store Delivery Supply Chain

Sean Maroney Vice President – Product Supply

Coca-Cola Refreshements

Classified - Internal use

r e f r e sh t he wo r l d , i n sp i r e

momen t s o f op t im i sm and

happ i nes s , c r ea t e va l ue and

make a d i f f e r en ce

our M I S S I O N

Classified - Internal use

Classified - Internal use

4

consumers eve ry th i ng we do i s gea red

t owa rd connec t i ng

consumers w i t h ou r b rands

Classified - Internal use

5

customers a l i gn i ng ou r No r t h Amer i c an

bus i ne s s t o be t t e r p l an and

deve l op s t ra t eg i e s w i t h ou r

cu s t omer s

Classified - Internal use

6

communities ou r su c ce s s depends on

our commitment to

the communi ty

Classified - Internal use

our bus iness is growing

$14 Bil l ion b ran d p ort fo l io

The world’s #1 brand Classified - Internal use

• The Coca-Cola Company is the world’s largest beverage company

– More than 500 sparkling and still brands

– 14 Billion Dollar Brands – Coke, Diet Coke, Coke Zero, Fanta, Sprite, VitaminWater, PowerAde, Minute Maid

– World’s largest beverage distribution system in 200 countries

– 1.7 Billion servings per day

Our Company

• Coca-Cola Refreshments

– North America Operating Unit of The Coca-Cola Company

– Created in 2010 when the TCCC acquired Coca-Cola Enterprises and integrated it with CCNA, Foodservice, Minute Maid, and Odwalla businesses

– One of the largest vertical business integrations in US history

Our Company

Build a competitively advantaged North America Product Supply System that enables us to build brands, serve customers, generate growth and engage in our communities at an optimized cost.

Product Supply Mission

• High degree of vertical integration

– In many cases from raw/pack to the retail shelf

• Complex portfolio/Diverse Customer Base

– SKU count

– Varied customer sizes/needs/capabilities

– Supports occasion based beverage portfolio through variety of packages – drives POA

• Short Lead time – 24-48 hours from order to delivery

• Certain high volume segments of the marketplace are highly price elastic

Characteristics of our Operating Environment

Need for flexibility results from an imperative to leverage the product portfolio across a diverse customer base while maintaining our commitment to our communities and the environment.

• In other words – translate the power of the brands into value for the customer

• SKU proliferation is a key driving force

– More packages and products

– Higher variety of configurations, characteristics, marketing programs, closures/labels…

Business Case for Flexibility

Arctic Home

• Grocery/Mass Retail

• Club

• Convenience Retail

• Restaurant/Bar

• At-work – hospital, office, school

• Recreation – stadiums, amusement, golf

• Specialty – non-food retail

• Food Service

• Vending

Ideally, within reach of consumer desire

Diverse Customer Base

Product Segments

• Hydration – PowerAde, VitaminWater

• Sparkling

• Tea/Juice – Gold Peak, Minute Maid, Simply, Odwalla

• Water – Dasani, SmartWater

• Energy – Full Throttle, NOS, Monster

Market Segments

• Bottle/Can – cold vs. warm

• Fountain

• Refrigerated

Diverse Product Portfolio

• Segment the market in 2-dimensions

1. Characteristics of the retail customer

2. Characteristics of the brands and packages they sell

• Ensure we effectively evaluate opportunity in terms of market volume, product life cycles, complexity, cost, environmental responsibility…

Approach flexibility through Customer/Product segmentation

ENERGY & CLIMATE

SUSTAINABLE PACKAGING

WATER STEWARDSHIP

we na r r owed ou r

focus t o en su re max imum e f f e c t i venes s

target

100 94% recycling

rate

our Target 100

program challenges

our facilities to

redirect all solid

waste away from

landfills and into

productive recycling

efforts

250 million pounds of waste diverted From landfills

new coolers

and vending machines

50% more efficient

Use EMS-55 intelligent

energy to shut off l ights

and adjust temperatures

HFC reduction in our

equipment presents less

risk to climate change

20

f leet/transportation Our 600+ hybrid

electric delivery trucks

The largest fleet of its

kind in North America

They run quieter and

operate with about 30%

less fuel and emissions

Thank You