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									                                                              Coca-Cola European Business and Social Review 2005
Coca-Cola Services S.A.                                                                                            Coca-Cola European Business                          “Coca-Cola who?” You would think that nobody could ever ask a
Chaussée de Mons 1424                                                                                                                                                   question like this. After all, Coca-Cola is often described as the world’s
1070 Brussels                                                                                                      and Social Review 2005                               most famous brand. And yet, if you know us for our flagship product,
Belgium                                                                                                                                                                 do you know about our full range of beverages? If you know us as a
www.coca-cola.com                                                                                                                                                       successful American business, do you understand our business
coca-cola.europe.review@eur.ko.com                                                                                                                                      presence in Europe?
                                                                                                                                                                        Many are not aware of this fact, which is why we are publishing our first
                                                                                                                                                                        Coca-Cola European Business and Social Review. In it, we explain how
                                                                                                                                                                        our business works in Europe and outline our approach to corporate
                                                                                                                                                                        social responsibility. Additional information is available in Coca-Cola’s
                                                                                                                                                                        global Annual Report, Environment Report and Citizenship Report.
                                                                                                                                                                        See www.coca-cola.com

                                                                                                                                                                                                                                                               Environment
                                                                                                                                                                                                                                                                               Community



                                                                                                                                                                                                                                                                            26
                                                                                                                                                                                                                                                            18                           Who
                                                                                                                                                                                                                                                                                        we are p
                                                                                                                                                                              How we put
                                                                                                                                                                              corporate                                                                                       28
                                                                                                                                                                              responsibility
                                                                                                                                                                              into practice                          06                     14


                                                                                                                                                  Key figures
                                                                                                                                                                                                                                                                                 Coca-Cola
                                                                                                                                                                                                                                                                                 around
                                                                                                                                                                           04                                                                                                    the world
                                                                                                                                                                   03                                                                          Workplace
                                                                                                                                                            02
                                                                                                                                                 01
                                                                                                                                                                                                                         Marketplace

                                                                                                                                                                     Economic contribution

                                                                                                                                                                Message from
                                                                                                                                                                Dominique Reiniche




                                                                                                                                                                        Scope of this review                                                The review covers activity between 2003 and 2005.
The brands featured in this report are trade marks of
                                                                                                                                                                        The text and data cover both the activities of The Coca-Cola        During this period Coca-Cola reorganised its business
The Coca-Cola Company, its affiliated entities and/or
                                                                                                                                                                        Company and the independent companies that manufacture,             structure in Europe. Unless otherwise stated, data relate
its joint venture partners.
                                                                                                                                                                        bottle and distribute its products, ie the ‘Coca-Cola system’       to the new ‘European Union Group’, covering the 25
                                                                                                                                                                        (except where stated). Some of our bottlers in Europe issue         EU member states plus Albania, Iceland, Liechtenstein,
Consultancy by Context.
                                                                                                                                                                        their own corporate responsibility reports, see for example;        Norway, Switzerland, Israel and the Palestinian Authority.
Designed by Radley Yeldar.
                                                                                                                                                                        www.coca-colahbc.com/community.                                     Some data refers to a wider area corresponding to
                                                                                                                                                                                                                                            Coca-Cola’s previous business structure in Europe,
Printed by St Ives Westerham Press, a CarbonNeutral company                                                                                                             In addition, some of our national businesses in Europe              i.e. ‘Europe, Eurasia and Middle East’. This is indicated
registered to ISO 14001 Environmental Management System.                                                                                                                issue their own reports, often jointly with their local bottlers.   at the appropriate points in this review.
                                                                                                                                                                        See for example:
The paper used is Take 2 Offset, made from 100% recycled                                                                                                                Coca-Cola Great Britain (www.coca-cola.co.uk/citizenship)
fibres sourced entirely from post consumer waste.                                                                                                                       or Coca-Cola España (www.conocecocacola.com)
Who we are                                                                                                                       Three largest bottling companies in Europe
                                                                                                                                 Company                    Countries of operation in      Number of
Many people think of Coca-Cola as one brand made by a single                                                                                                the European Union Group       employees
company. In reality, our roots are local and diverse – around                                                                    Coca-Cola Hellenic
                                                                                                                                 Bottling Company S.A.
                                                                                                                                                            Operates in Austria, Czech
                                                                                                                                                            Republic, Estonia, Greece,
                                                                                                                                                                                           15,041

30 companies manufacture and distribute hundreds of different                                                                    (Coca-Cola HBC)            Hungary, Italy, Latvia,
                                                                                                                                 Headquarters in            Lithuania, Northern Ireland,
brands to European consumers.                                                                                                    Athens, Greece             Poland, Republic of Ireland,
                                                                                                                                                            Slovakia, Slovenia and
                                                                                                                                                            Switzerland.
                                                                                                                                 Coca-Cola                  Operates in Belgium,           10,526
                                                                                                                                 Enterprises Inc (CCE)      France, Great Britain,
                                                                                                                                 Headquarters in Atlanta,   Luxembourg and
                                                                                                                                 USA                        The Netherlands.
                                                                                                                                 Coca-Cola                  Germany                        9,600
                                                                                                                                 Erfrischungsgetränke
                                                                                                                                 AG (CCEAG)
                                                                                                                                 Headquarters in Berlin,
                                                                                                                                 Germany




A wide range of brands                                                     One system, many partners
We offer consumers a choice of products to                                 The Coca-Cola Company typically manufactures
reflect a wide range of tastes and lifestyles.                             concentrates and syrups which it then sells to
We have more than 130 different brands                                     companies which, under a licence agreement,
throughout Europe, including:                                              manufacture the finished products, put them in
                                                                           bottles and cans, and distribute them to retailers,
• Carbonated soft drinks e.g. Coca-Cola,
                                                                           restaurants and others who sell to the final
  Coca-Cola Light, Fanta, Fanta Free, Lilt,
                                                                           consumer. There are around 30 companies
  Sprite, Sprite Light
                                                                           manufacturing in 99 plants and distributing
• Juice and fruit drinks e.g. 5 Alive, Cappy,                              hundreds of different beverages under our brands
  Hi-C, Ipsei, Minute Maid, Oasis, Sonfil                                  to European consumers. We call them ‘bottling
                                                                           companies’ and we refer to the whole network
• Sports drinks e.g. Aquana, Aquarius, Powerade
                                                                           as ‘the Coca-Cola system’.
• Energy drinks e.g. Burn
                                                                           In a few markets, Coca-Cola owns the bottling
• Water e.g. Aquabona, Bonaqua, Chaudfontaine,                             company. In 2004, we held controlling ownership
  Dorna, Malvern, Valser                                                   interest in three bottling companies in Europe
                                                                           (in Norway, Sweden and Germany), representing
• Ready to drink tea and coffee e.g. Nescafé
                                                                           12% of unit case volume.1 In other markets, we
  Xpress, Nestea, Tian Tey
                                                                           own a minority interest in the bottling companies,
In 2004, Coca-Cola brand beverages (Coca-Cola,                             and in many other markets, they are totally
Coca-Cola Cherry, Coca-Cola Vanilla, Diet Coke,                            independent local businesses.                                                                                                                                  manufacturing and
Caffeine-free Diet Coke, Diet Coke with Lemon,                                                                                                                                                                                            bottling operations
                                                                           Whatever the ownership of our bottling partners,
Diet Coke with Lime, Diet Coke Vanilla and
                                                                           we aim for collaborative relationships in which we
Coca-Cola Light Sango) represented 66% of                                                                                        The manufacturing process in Europe
                                                                           support each other. These independent businesses
sales in Europe by volume. 23% of sales were
                                                                           have their own management, policies and
low- or no-calorie brands, a large and fast growing
                                                                           governance structures. Many are publicly quoted
product category.
                                                                           companies. Some are also involved in businesses
                                                                           outside the non-alcoholic beverage sector. We do
Our Company                                                                not control the policies and programmes of these
The Coca-Cola Company is the world’s largest                               independent bottlers, but we do have mutual
non-alcoholic beverage company. People around                              interests so often we work together to find
                                                                                                                                   Ingredients
the world consume Coca-Cola products more                                  common ground. We take common action in                 & Bulk Packaging                                                                                Vending machines
than a billion times every day.                                            many areas, including a common approach to              e.g. Lemon oil,                                                                                 & coolers
                                                                           environmental and social issues.                        vanilla & cherry
The Coca-Cola Company develops and markets                                                                                         flavour
the brands and manufactures the concentrates
and syrups from which our products are made.
                                                                                                                                                                                           Bottle plants
                                                                                                                                                                                                                       Transport                         Consumers
                                                                                                                                                                    Concentrate                            Warehouse
                                                                                                                                                                    plants




                                                                                                                                   Ingredients & Packaging
1 ‘Unit case volume’ is the number of unit cases of Company trademark or licensed beverage products directly or                                                                                                                    Customers
indirectly sold by the Coca-Cola bottling system or by the The Coca-Cola Company to customers. A ‘unit case’ is                    e.g. water, sugar/sweeteners
equal to 192 US fluid ounces of finished beverage.                                                                                 & carbon dioxide
     Coca-Cola Europe Business and Social Review 2005



01   Key figures




     Revenue                                                  Employment
     The value of The Coca-Cola Company’s operations          The Coca-Cola Company has 1,650 employees in
     in Europe continues to grow. In 2004, when our           Europe and our European bottlers employ a further
     business region also included Eurasia and the            60,000 people, making the Coca-Cola system a
     Middle East it accounted for 33% of the                  major employer on the Continent.
     Company’s global net operating revenues
     – making it the largest business we had in the           Operations
     world, bigger even than North America.
                                                              Our system operates 99 bottling plants and 4
     In 2004, our sales in Europe (plus Eurasia and the       concentrate plants that distribute our products
     Middle East) amounted to 4.3 billion unit cases,         to countless local stores and other outlets.
     22% of our sales worldwide. The pie chart shows
     the distribution of sales between countries in this
     business division.




     Net operating revenues                                   2004 unit case volume
     Europe, Eurasia and Middle East (US$ millions)           (per cent)

                               5,262     6,556        7,195

                                                              Other 20%                                             Germany 14%

                                                              The Netherlands                                        Eurasia and
                                                              3%                                                     Middle East 12%
                                                              Belgium 3%
                                                              Italy 6%                                              Great Britain12%

                                                              France 7%
                                                              Central Europe                                         Spain 12%
                                                              and Russia 11%
                               2002       2003        2004


     Operating income
     Europe, Eurasia and Middle East (US$ millions)

                               1,612     1,908        1,898




                               2002       2003        2004                 Data in the charts above refer to Europe, Eurasia and
                                                                           Middle East Group existing until 30 April 2005.
        Coca-Cola Europe Business and Social Review 2005                                                                                             Coca-Cola Europe Business and Social Review 2005



02_03   Message from                                                                                                                                 Economic contribution
        Dominique Reiniche                                                                                                                           The Coca-Cola Company makes a substantial contribution to the
                                                                                                                                                     European economy through the wealth it generates, the employment
                                                                                                                                                     it creates and the supplier industries it supports. A measure of this is
        President of the Coca-Cola European Union Group                                                                                              ‘cash value added’ which is the value of sales less the cost of bought
                                                                                                                                                     in materials and services. In 2004, our cash value added in Europe
        People usually assume that nobody ever asks me “who is Coca-Cola?”                                                                           was u2.04 billion.
        After all, Coca-Cola is the world’s most famous brand. And yet people
        don’t really know much about the company that brings Coca-Cola to them.
        Some may even believe that our products are imported from the US and
        they are surprised to see a French woman representing what they see as
        an American institution. Well, it is an American icon – but what my team
        and I manage is really a European business.
        The purpose of this first Business and Social          them so that they are able to respond to consumer                                     The contribution of the Coca-Cola system,               Our extensive beverage distribution system and
        Review is to present the facts about Coca-Cola         demand. In countries where the health and                                             including our large network of bottling partners,       the relatively simple and affordable nature of our
        operations in Europe – who we are, what we do,         wellness trend is stronger, such as Great Britain,                                    is of course much larger. We do not report on           products, means that we provide opportunities
        how we do it.                                          the diet version of our flagship brand already                                        financial figures relating to our bottling companies,   for a myriad of local companies, small and large,
                                                               outsells the regular version in supermarkets. More                                    which have their own governance structure,              to sell our products or to supply us. Studies in
        There are three things I would like everybody
                                                               information on the variety of products we sell and                                    following statutory financial reporting rules.          several countries indicate the significant job
        to know about us.
                                                               on our actions in contributing to the fight against                                                                                           multiplier effect of our business: each direct job in
                                                                                                                                                     Facts and figures for 2004:
        First, we are fully integrated into the economic       obesity are provided in the ‘Marketplace’ section                                                                                             our system indirectly generates between seven and
        and social fabric of Europe. Our products have         of this Review.                                                                       • Capital investment (The Coca-Cola                     ten additional jobs in related businesses, including
        been on sale in Europe since 1900 (in Great Britain)                                                                                                                                                 suppliers and retailers. This means that around half
        and we have had manufacturing operations here
                                                               Thinking of The Coca-Cola Company as just the                                           Company only): u234 million                           a million European jobs are directly or indirectly
                                                               maker of the red flagship brand is like thinking you
        since 1927 (in Italy). Some of our famous brands
                                                               know Europe by visiting just one city. You may love                                   • Wages (The Coca-Cola Company                          related to our Company.
        were actually invented here – like Fanta. Most of
        our management, our supplies, our research and
                                                               Coca-Cola as you love my hometown, Paris – but                                          only): u191 million
                                                               Coca-Cola is not all we offer, just as Europe has
        development, our marketing and our manufacturing                                                                                             • Employment in Europe: 1,650
                                                               enormously more to offer than Paris alone.
        operations are European. The beverages that
        carry our brands are manufactured, bottled and         Third, The Coca-Cola Company and our bottling                                           employees within The Coca-Cola
        distributed to retail outlets by bottling companies    partners are committed to being responsible                                             Company and approximately
        owned primarily by European shareholders.              members of European society. We aim to be                                               60,000 in our bottling partners
                                                               model employers, committed to an open, diverse
        This federation of companies creates employment,                                                                                             • Payments to European suppliers
                                                               and inclusive work environment where people
        pays taxes, pays dividends and purchases
        supplies. The figures provided on the following
                                                               feel valued and are highly motivated. We have                                           (The Coca-Cola Company only):
                                                               environmental systems and standards, with a
        pages show that Coca-Cola is a large European
                                                               strong focus on water sustainability, global warming
                                                                                                                                                       u1.6 billion                                          Our contribution in Central and Eastern Europe
        business, close to European consumers and                                                                                                                                                            Coca-Cola was one of the first major international
                                                               and solid waste management. We invest in
        contributing to Europe’s economy.                                                                                                                                                                    investors in Central and Eastern Europe in the early
                                                               communities with a focus on encouraging exercise
        Second, we are in the business of satisfying           especially among young people. Under our ‘Fit for                                                                                             1990s. The Coca-Cola Company and its bottling
        consumers’ needs and desires. This has led us          the Future’ programme we already support over                                                                                                 partners have invested u3.3 billion in this region,
        to learn how to measure and respond to social          200 different active lifestyle events every day                                                                                               creating more than 13,000 jobs within the
        changes with ingenuity and speed. We have              throughout Europe.                                                                                                                            Coca-Cola system and generating opportunities
        doubled the number of our brands in Europe in just                                                                                                                                                   and income for many others.
                                                               I hope that you find this Review informative and
        eight years. In the late ’90s, Coca-Cola in Europe                                                                                                                                                   On 1 May 2004, ten countries in our Group
                                                               relevant. We intend to publish regular updates and
        was launching some 200 new products and line                                                                                                                                                         (Poland, Czech Republic, Slovakia, Hungary,
                                                               to increase our measurement and target setting in
        extensions every year. Last year we launched more                                                                                                                                                    Slovenia, Cyprus, Estonia, Latvia, Lithuania and
                                                               these key areas.
        than 600 in the name of greater choice.                                                                                                                                                              Malta) joined the European Union, bringing with
        Part of this choice is offered to respond to a                                                                                                                                                       them 75 million new EU citizens. EU enlargement
        growing consumer need for health and wellness,                                                                                                                                                       helps to generate economic growth across Europe
        and demand for low-calorie food. Yet calories are                                                                                                                                                    and also helps us grow our business.
        a by-product of what really matters to consumers:                                                                                                                                                    The Coca-Cola Company offered its expertise
        hydration, refreshment, taste, functionality and                                                                                                                                                     and resources to support these countries in their
        nutrition. Our traditional soft drinks respond to      Dominique Reiniche                                                                                                                            accession to the EU. We have advocated for
        many of these needs – they have done so for more       President of the Coca-Cola                                                                                                                    foreign investment, supported local training and
        than a hundred years and we continue to innovate       European Union Group                                                                                                                          education initiatives, and provided expertise on
                                                                                                                                                                                                             legislative harmonisation affecting our industry.
                                                                                                                                                                                                             We have also partnered with the EU and other
                                                                                                                      Euro figures are converted from US dollar figures reported                             reputable independent organisations to sponsor
                                                                                                                      in our Annual Report in 2004. We used a conversion
                                                                                                                      rate of o1 = $1.2382, the average 12 month exchange                                    debate on the opportunities and challenges
                                                                                                                      rate for 2004.                                                                         of accession.
                     Coca-Cola Europe Business and Social Review 2005                                                           Coca-Cola Europe Business and Social Review 2005



04_05                How we put corporate                                                                                       Environmental Advisory Board members
                     responsibility into practice                                                                               Rt. Hon. John Gummer,
                                                                                                                                MP – Chairman
                                                                                                                                                                      Dr. Amory Lovins
                                                                                                                                                                      Chief Executive Officer,
                     Our reputation relies on trust. Wherever Coca-Cola does business, we                                       Chairman, Sancroft                    Rocky Mountain Institute
                     strive to be trusted partners and good citizens. We are committed to                                       Professor Daniel Esty                 Ms. Julia Marton-Lefèvre
                                                                                                                                Director of the Center for            Rector, University for Peace,
                     achieving the highest standards of corporate governance and have a                                         Environmental Law and                 Costa Rica. Former Executive
                     clearly defined set of values to guide our actions: honesty, integrity, quality,                           Policy, Yale University               Director, Leadership for
                     respect for individuals and for the environment, and accountability for                                    Ms. Yolanda Kakabadse                 Environment and
                     our actions.                                                                                               Executive President, Fundación        Development International
                                                                                                                                Futuro Latino Americano. Former       Mr. Ma Jun
                                                                                                                                Executive Director – IUCN (The        Consultant, Sinosphere
                                                                                                                                World Conservation Union)             Corporation




                                                                        The framework for corporate governance at               Stakeholder engagement                                   Our participation in EU legislative and political
                                                                        The Coca-Cola Company consists of our                                                                            discussions mainly relate to: food law, health and
                                                                        Corporate Governance Guidelines and the charters        We believe that many environmental and                   nutrition as applied to foodstuff, packaging
                                                                        of the Board Committees. These documents                social issues are best addressed through                 regulations, marketing legislation, fiscal matters
                                                                        and a list of our Board members are available at        dialogue and partnerships between companies,             related to our products, customs classifications,
                                                                        www.coca-cola.com. The Board’s Public Issues            governments, non-governmental organisations              regulated markets related to our main purchases
                                                                        and Diversity Review Committee oversees our             (NGOs) and local communities. We work closely            (such as sugar), fluorinated gases used in
                                                                        corporate responsibility initiatives and performance.   with a range of external stakeholders on a number        refrigeration and water safety legislation.
                                                                        On a daily basis, corporate responsibility issues are   of social, environmental and community issues, at
                                                                                                                                local and regional levels. For example, we are           Our Code of Business Conduct governs, among
                                                                        managed by a team established in 2004, which
                                                                                                                                working with Greenpeace to develop alternative,          other things, our contacts with politicians and
                                                                        includes senior-level representatives from key
                                                                                                                                climate-friendly refrigeration; as an industry, we are   regulators. All our employees attend a mandatory
                                                                        corporate functions around the world.
                                                                                                                                working with the European Commission to devise           training session on the Code, learning for example
                                                                        In 2004, we started introducing a set of                a multi-stakeholder strategy to fight obesity; and       about how to differentiate between acceptable and
                                                                        operating principles for responsible citizenship        we are helping schools and local communities to          unacceptable behaviour.
                                                                        and a management framework for implementing             develop grassroots football tournaments promoting        The full Code is available at:
Our operating principles                                                them across the Coca-Cola system.                       physical exercise for youth.                             www2.coca-cola.com/ourcompany/pdf/business_
                                                                        Citizenship@Coca-Cola was developed jointly by
                                                                                                                                Listening to others and engaging in honest and           conduct_codes.pdf.
                                                                        The Coca-Cola Company and our main bottling
Marketplace                                                             partners. The operating principles reflect the          constructive dialogue with external stakeholders
We provide products and services that meet the                          highest standards of citizenship and cover four         benefits Coca-Cola. For example at corporate
beverage needs of our consumers. In doing this,                         key areas – marketplace, workplace, environment         level our environmental strategy is informed by
we provide sound and rewarding business                                 and community (see bubble, left).                       an Environmental Advisory Board (EAB) that
opportunities for customers, suppliers, distributors                                                                            advises our Executive Committee. The EAB is
                                                                        To ensure the principles are embedded in the            composed of six independent experts who are
and local communities.                                                  Coca-Cola system, each business unit is                 leaders in their fields (see above). They provide
Workplace                                                               encouraged to assess their current position             valuable external perspectives on environmental
We foster a safe and inclusive environment based                        against our Operating Principles to identify risks      issues and challenge our own thinking.
on recognised workplace human rights, where a                           and opportunities; develop plans to improve
highly motivated, productive and committed                              performance; implement the plans and                    Political engagement
workforce drives business success through                               monitor progress.                                       We are a non-political organisation and we do
superior execution.                                                                                                             not support nor endorse any political party or
                                                                        For more detailed information on                        organisation in Europe. We believe that our
Environment                                                             Citizenship@Coca-Cola please see                        influence on political decisions must be limited to
We conduct our business in ways that protect                            www2.coca-cola.com/citizenship.                         the transparent defence of our legitimate business
and preserve the environment and we integrate                                                                                   interest. We also provide information and expertise
principles of environmental stewardship and                                                                                     to authorities responsible for the well-being of the
sustainable development into our business                                                                                       societies in which we operate. We are in favour of
decisions and processes.                                                                                                        practical regulations governing corporate political
Community                                                                                                                       engagement, at EU and national level, to promote
We invest time, expertise and resources to                                                                                      trust and transparency.
provide economic opportunity, improve quality of
life and foster goodwill in communities through
locally relevant initiatives.
                    Coca-Cola Europe Business and Social Review 2005                                                         Coca-Cola Europe Business and Social Review 2005



06_07               Marketplace
                    Being a responsible business begins with our relationships with consumers.
                    We have recognised for many years the importance of product safety and
                    consistent quality. Similarly, our commercial practices must be fair and
                    honest, and product information must be clear and objective.
                    But today, more is expected of a responsible business. We need to
                    understand the wider impact our products have on society, and seek
                    to minimise any negatives while promoting positives. Important issues
                    for consumers and society at large are discussed in this section.




                                                                       Listening to consumers                                Fair commercial practices                              Retailers
                                                                       Knowing our consumers is vital to our business.       We subscribe to the International Chamber              The Coca-Cola Company has sponsored and
                                                                       We invest in considerable consumer research           of Commerce’s (ICC) International Code of              supported the Coca-Cola Retailing Research
                                                                       to gain an insight into consumer trends and           Advertising Practice and its application to the        Council Europe for 15 years. The council identifies
                                                                       changing lifestyles.                                  food and beverage industry. It covers areas            critical issues for retailers, commissions research
                                                                                                                             such as honesty, social responsibility (including      on these issues and makes the research findings
                                                                       We operate information lines in all European
                                                                                                                             not encouraging excessive consumption and              widely available to help strengthen the food retailing
                                                                       countries, which consumers can use to contact
                                                                                                                             portion sizes), avoiding misleading information,       distribution business.
                                                                       us free of charge. These lines receive around
                                                                                                                             not undermining the promotion of healthy and
                                                                       400,000 calls every year, relating to queries about                                                          The studies are carried out independently under
                                                                                                                             active lifestyles or parental guidance, and proper
                                                                       consumer promotions, information on our product                                                              the guidance of the retailers on the council.
                                                                                                                             use of health claims.
                                                                       range, issues about the quality of our products                                                              In 2005, the council commissioned research
                                                                       or packaging, and our corporate policies.             Together with other companies, we recently             on the growth of discount grocery retailers in
                                                                                                                             commissioned a study by the European Advertising       Europe. Previous studies include supplier-retailer
                                                                       Quality                                               Standards Alliance and the World Federation of         collaboration in supply chain management,
                                                                                                                             Advertisers on compliance with the ICC code in         how customer information will revolutionise
                                                                       We are committed to providing quality products        Europe. According to the results of this study, our    food retailing, and the future of the food store.
                                                                       for our consumers. All our bottlers must comply       company was found in breach of the code in only        Reports are available at www.ccrrc.org.
400,000                                                                with the standards set by our global quality
                                                                       management system, known as The Coca-Cola
                                                                                                                             0.9% of our advertising spots, a better compliance
                                                                                                                             rate than the industry average. Our aim is to
                                                                       Quality System. This system is consistent with        achieve zero non-compliance. We will work at
                                                                       the ISO 9001 international management standard        improving both our monitoring and our compliance,
                                                                       on quality.                                           and we plan to report our progress.
Our free
information lines                                                      Our supplier management programme ensures             We are committed to sales practices that respect
receive around                                                         that only materials produced by authorised            open competition and consumer choice and we
400,000 calls
every year                                                             suppliers are used by our bottlers, distribution      cooperate with authorities to ensure that this
                                                                       systems and customers. Our bottlers and               happens in the marketplace.
                                                                       suppliers are audited regularly to ensure our
                                                                       quality standards are met. In addition, we            The European Commission has conducted a
                                                                       purchase samples of all our products from             five-year investigation into our sales and marketing
                                                                       a wide range of sales outlets around Europe           practices, leading the Commission to have
                                                                       to check quality and ensure we meet regulatory        preliminary concerns that some practices restricted
                                                                       and labelling requirements.                           competition. We cooperated fully to address the
                                                                                                                             Commission’s concerns, and in June 2005 the
                                                                       The Coca-Cola Company is a leader in food quality     Commission ended its investigation when we
                                                                       and safety and many of our quality standards          agreed to change certain practices. By example,
                                                                       influence or define internationally recognised        we committed with respect to certain coolers, that
                                                                       standards in the beverage industry, for example       the customer would be free to use at least 20% for
                                                                       quality standards for sugar and carbon dioxide.       other products and we committed not to tie the
                                                                                                                             sales of Coca-Cola and, in certain instances, Fanta
                                                                                                                             Orange to purchases of other beverages. Further
                                                                                                                             detailes can be found at www. coca-cola.com.
        Coca-Cola Europe Business and Social Review 2005       Marketplace                                            Coca-Cola Europe Business and Social Review 2005



08-09
                                                                                                                                                                                                              130
                                                                                                                                                                                                              Different brands
                                                                                                                                                                                                              on offer
                                                                                                                                                                                                              throughout
                                                                                                                                                                                                              Europe.




        Supply chain                                           Tackling obesity                                       Why are we concerned?                                 1. Promoting choice
                                                                                                                      The continued success of our business depends         Fifty years ago, The Coca-Cola Company sold only
        Our commercial relationships with suppliers are        What is the issue?                                     on providing consumers with the products they         one product: Coca-Cola. We now offer more than
        governed by our Supplier Guiding Principles.           The World Health Organization (WHO) estimates          want. Issues that concern consumers such as           130 different brands throughout Europe, twice as
        These set out the standards we expect from             that globally more than one billion people are         obesity and health are therefore important to us.     many as we had eight years ago. Products under
        our suppliers in areas such as the work                overweight. Around 300 million of these are obese,     We put consumer research at the heart of our          the Coca-Cola trademark account for 66% of our
        environment, health and safety, child and forced       including 22 million children. The condition affects   innovation and marketing strategies. This helps       sales in the EU Group (including both regular and
        labour, wages and benefits, collective bargaining      almost all ages and socio-economic groups.             us to respond to trends in societal concerns and      light versions).
        and environmental practices. See www2.coca-            According to the WHO, about 20 – 30% of                changing lifestyles. Working collaboratively with
        cola.com/ourcompany/supplier_principles.html           Europeans are overweight or obese.                                                                           We now offer consumers a choice of products
                                                                                                                      legislators and other relevant partners, nutrition
        for details.                                                                                                                                                        to reflect different tastes and lifestyles. We have
                                                               There is broad consensus that obesity and its          and health are now priorities in our product
                                                                                                                                                                            extended our range of drinks to include low sugar
        We are currently engaged in a large auditing           related diseases have multiple causes. Profound        development, and have become a driving force
                                                                                                                                                                            and diet varieties as well as bottled waters, teas,
        program that aims to verify compliance with our        changes in society have led to more sedentary          for innovation within the company.
                                                                                                                                                                            juices and juice drinks (the illustration on page 10
        standards throughout the supply chain. In 2004,        lifestyles and unbalanced diets. Other causes          What are we doing?                                    shows examples of our brands from 0 kilocalories
        we commissioned third party auditors to visit 600      include genetic predisposition and socio-economic      Our strategy for helping society tackle obesity is    per 100ml to 51 kilocalories per 100ml).
        facilities that manufacture packaging, ingredients     factors. In combination, these factors have caused     called ‘Fit for the Future’. It has four components
        and marketing materials around the world.              an increase in the proportion of people who are                                                              Diet Coke, introduced in Europe in 1983, is
                                                                                                                      and will evolve with the societal debate and in
        We also supported 150 suppliers with training.         overweight and obese.                                                                                        now the biggest selling light soft drink in Europe.
                                                                                                                      response to our experience of what works and
        We have already audited more than 800 plants                                                                                                                        Low- or zero-calorie products now account for
                                                               The Coca-Cola Company believes that because            what does not.
        worldwide in 2005.                                                                                                                                                  23% of the total volume of sales in the EU group.
                                                               there is no single cause of obesity, the solutions     We will:                                              In supermarkets, for example, sales of Diet Coke
        The Coca-Cola Company has a firm policy of             also need to be multi-factorial, involve multiple                                                            have already overtaken sales of regular Coca-Cola
        using only ingredients which have been evaluated       actors and multiple strategies. We are working         1. Provide choice in nutrition and portion size.
                                                                                                                                                                            in Great Britain in 2005.
        for safety based on sound food science and             in partnership with other stakeholders,                   Extend our product range, including low calorie,
        accepted for use in food by the relevant health        including governments, health authorities and             juice and water options                            As a result of the consumer trend for health and
        and safety regulatory authorities. In Europe, we       non-governmental organisations, to promote                                                                   wellness and our response to it, the average
                                                                                                                      2. Provide clear and consistent information to help
        recognise that there is widespread consumer            healthy eating and physical activity to help                                                                 calorie content of the drinks we sell in Europe has
                                                                                                                         consumers make informed nutritional choices
        concern about genetically modified organisms.          prevent and fight obesity.                                                                                   fallen by over 10% in recent years (and as much as
        For this reason, we do not use ingredients which                                                              3. Market responsibly with particular safeguards      30% in Belgium). In Great Britain and Belgium, for
        are genetically modified or derived from genetically                                                             for children                                       example, where this trend is particularly strong,
        modified organisms.                                                                                                                                                 no- or low-calorie drinks account for 36% and
                                                                                                                      4. Encourage more active lifestyles.
                                                                                                                                                                            39% of our total sales respectively.
        We have worked closely with a range of suppliers
        to develop environmentally beneficial technologies.                                                                                                                 As well as choice of calorie content, we also offer
        For example, our collective efforts have produced                                                                                                                   customers a wide choice of sizes. This helps
        packaging which is lighter and has a higher
        recycled content, and cooling equipment with
        better energy efficiency and reduced global
                                                                    800                                                                                                     consumers choose the right size serving for
                                                                                                                                                                            their needs. Our consumer research has shown
                                                                                                                                                                            an increasing demand for smaller packaging
        warming impact.                                                                                                                                                     sizes, particularly for personal use for people
                                                                                                                                                                            on-the-move. We are responding to this by
                                                                  Audits of suppliers                                                                                       introducing smaller cans and bottles in some
                                                                  in 2005                                                                                                   markets. For example, in Belgium, Coca-Cola
                                                                                                                                                                            is now available in a 150ml slimline can. We also
                                                                                                                                                                            plan to introduce smaller cup sizes for fountain
                                                                                                                                                                            soda. Family-size two litre bottles of our major
                                                                                                                                                                            brands remain popular because of the value
                                                                                                                                                                            they offer, and we believe that it is right to continue
                                                                                                                                                                            to offer this format, intended mainly for families
                                                                                                                                                                            or parties.
                                Coca-Cola Europe Business and Social Review 2005             Marketplace                                                                         Coca-Cola Europe Business and Social Review 2005



10_11




Selection of The Coca-Cola Company’s range of products on sale in European countries*                                                                    We intend to display    2. Providing information                                At a minimum, the label on each of our products
                                                                                                                                                         nutrition information
energetic value/sugar content (in kCal/grams per 100ml)                                                                                                  on our packaging, for   We believe it is our responsibility to help consumers   provides information on the amount of energy,
                                                                                                                                                         example, by printing    make informed choices about our products as             protein, carbohydrates and fat contained in the
                                                                                                                                                         clear calorie content   part of balanced healthy lifestyles. We provide         product. This already goes beyond what is
                                                                                                                                                         information per
                                                                                                                                                         serving size.           information on our packaging, through local             required by the law, but we realise our consumers
                                                                                                                                                                                 websites and consumer information centres in the        want more information. It is important for us to
                                                                                                                                                                                 countries where we operate. We make no health           understand what information consumers need
                                                                                                                                                                                 claims unless these are scientifically proven.          and how best to provide it. We and our industry
                                                                                                                                                                                                                                         partners commissioned research by the European
                                                                                                                                                                                 Nutritional information is available to consumers
                                                                                                                                                                                                                                         Food Information Council which showed that
                                                                                                                                                                                 from our carelines and our websites in
                                                                                                                                                                                                                                         consumers were most concerned about energy
                                                                                                                                                                                 every market. For example, the website
                                                                                                                                                                                                                                         content (such as calories per serving). We are now
                                                                                                                                                                                 www.coca-cola.co.uk/nutrition in Great Britain,
                                                                                                                                                                                                                                         working to identify the best ways to communicate
Chaudfontaine        Malvern               Bonaqa                Valser     Coca-Cola      Caffeine free   Sprite Light   Aquana          Oasis                                  or www.cocacolabelgium.be in Belgium provide
                                                                                                                                                                                                                                         this information in a way that consumers can easily
0/0                  0/0                   0/0                   0/0        Light          Coca-Cola       1.3/0          Orange          Lemon                                  the nutritional values for all the products available
                                                                            0.2/0                                         1.6/0           Lime Light                                                                                     understand. We are cooperating with European
                                                                                           Light                                                                                 in these countries.
                                                                                           0.2/0                                          2.6/0.2                                                                                        legislators and other stakeholders to implement
                                                                                                                                                                                                                                         an industry-wide approach that will help
                                                                                                                                                                                                                                         consumers make informed choices.




                                                                                                                                                                                                                                         Reality check in Germany
Five Alive           Fanta                 Bonaqa                Nalu       Minute Maid    Frutonic        Rose’s         Tian Tey        Powerade                                                                                       Our policy is not to target marketing at children.
Tropical Hit         Orange/Z              Apple/Pear            19.9/4.2   Tomato         Orange          Lime Juice     24/5.7          24/6.0
Squash               3.1/0.5               12.7/2.8                         19/4.3         20/4.6          Cordial
                                                                                                                                                                                                                                         This is not always straightforward. Unfortunately
3/0.4                                                                                                      21/4.9                                                                                                                        we cannot ensure that children do not see our
                                                                                                                                                                                                                                         advertising if they watch programmes designed
                                                                                                                                                                                                                                         for adults. This depends on guidance from parents
                                                                                                                                                                                                                                         or supervising adults. We implement this policy
                                                                                                                                                                                                                                         by avoiding advertising spots during children's
                                                                                                                                                                                                                                         programmes, which we define as programmes
                                                                                                                                                                                                                                         having a share of children viewers of 50% or more.
                                                                                                                                                                                                                                         We recognise that we need to improve how we
                                                                                                                                                                                                                                         monitor the implementation of this policy and we
                                                                                                                                                                                                                                         plan to report on this in the future. A place where
                                                                                                                                                                                                                                         we are well advanced in the monitoring of the
Nescafé              Ipsei                 Nestea                Nestea     Aquarius       Minute Maid     Nordic Mist    Oasis           Kinley                                                                                         implementation of our policy is Germany. There a
Xpress Black         24.4/6                Lemon                 Peach      Orange         100% Juice      Tonic          Summer Fruits   39/9.4
26/6.8                                     31/7.6                32/7.8     32/7.8         with Zinc       37.5/9         37/10
                                                                                                                                                                                                                                         total of 12,760 television advertising spots were
                                                                                           33/8.2                                                                                                                                        aired for The Coca Cola Company Germany
                                                                                                                                                                                                                                         between January and August 2005.
                                                                                                                                                                                                                                         Virtually all (99.9%) of the advertising budget fell in
                                                                                                                                                                                                                                         slots where the share of child viewers was below
                                                                                                                                                                                                                                         50%. More than 96% of the budget was spent on
                                                                                                                                                                                                                                         slots intended for adults only (where the share of
                                                                                                                                                                                                                                         child viewers was less than 10%).
                                                                                                                                                                                                                                         The remaining 0.1% of the advertising budget,
                                                                                                                                                                                                                                         which fell in slots where the share of child viewers
                                                                                                                                                                                                                                         was above 50%, still complied with the ICC codes
                                                                                                                                                                                                                                         (for example, no undermining of parental
Sprite               Coca-Cola             Minue Maid            Cappy      Nescafé        Minute Maid     Fanta          Burn            Five Alive
41/10.1              42/10.6               Orange                Apple      Xpress White   Apple           Orange         49/11.5         Citrus Burst                                                                                   guidance). But we believe that even 0.1% is too
                                           46/11                 46/11.2    47/8.3         47/11           48/11.2                        51/13.0                                                                                        much and we plan to address this marginal non-
*Figures are indicative and may vary slightly in different markets.                                                                                                                                                                      compliance in the future.
                     Coca-Cola Europe Business and Social Review 2005       Marketplace                                            Coca-Cola Europe Business and Social Review 2005



12_13




                     3. Marketing responsibly                               In secondary schools, we respect the classroom as
                     We are committed to marketing and selling our          a commercial-free zone and introduce unbranded
                     products responsibly. We believe we have a duty        vending machines with graphic panels showing
                     of care to all our consumers, and are particularly     young people engaging in physical activity or other
                     aware of how our activities affect families and        images related to healthy eating and lifestyles.
                     young people. We have a policy of not targeting        We also make sure that wherever possible a full
                     advertising of any of our products to children under   range of beverages (including water, juices and
                     the age of 12. See bubble for an example of how        other beverages in both regular and sugar-free
                     we are implementing this policy in Germany, our        version) is made available, in appropriate container   Active lifestyle examples
                     biggest European market. We will monitor the           sizes designed for individual consumption.
                     implementation of this policy and report progress
                     in future reports.
                                                                            4. Encouraging active lifestyles                       In Italy, a school project called the ‘Fuoriclasse     In Germany, the Coca-Cola ‘1,000 schools
                                                                            Over the last fifty years there has been a sharp       Cup’ (www.fuoriclassecup.it) promotes sports and       in motion’ programme continued in 2005 with
                     It is our policy not to engage in direct commercial    decline in physical activity across Europe,            active lifestyles among students. The Fuoriclasse      Coca-Cola trucks touring schools with games
                     activities in primary schools, unless otherwise        particularly among school children. The fourth         Cup is a students’ competition based on a              and sports equipment for sports days and
                     requested by school authorities. There are a small     element of our Fit for the Future strategy is to       combination of academic and sports performance.        festivals. The programme encourages children
                     number of cases in which our products (essentially     promote a long-lasting change of behaviour away        The winning score is a combination of points           to exercise in a relaxed, non-competitive
                     waters and fruit juices) are present in primary        from sedentary lifestyles. The effect of this goes     achieved in a football tournament and in the           atmosphere. It has reached more than two
                     schools, but they represent a very small fraction      well beyond controlling weight and extends to the      educational part of the programme. In 2005,            million pupils since it was launched in 1996.
                     of our sales (0.1%).                                   overall health and wellbeing of society. Every day,    450,000 boys and girls from 2,243 schools in
                                                                            we support on average over 200 different active        51 Italian cities entered the ‘Fuoriclasse Cup’        In Hungary, Coca-Cola launched a new
                                                                            lifestyle events throughout Europe, mostly for         (40% more than in 2004).                               programme in 2005 designed to help people
                                                                            young people.                                                                                                 get fit and enjoy a healthy active lifestyle by
                                                                                                                                   In Denmark, we are helping the Danish Cycling
                                                                            Coca-Cola has a long-standing connection with          Federation (DCF) to encourage people to cycle          choosing activities that suit them. The programme,
                                                                            sport as one of the first sponsors of the Olympic      more as part of a five-year partnership. The focus     called ‘Wake Up Your Body’, focused on popular
                                                                            Games in the 1920s and a sponsor of international      of the campaign in 2005 was the Big Bicycle            sports, and active cultural and musical events.
                                                                            football for over 70 years. Sponsoring the elite in    Day on 12 June. DCF set up over 100 special            Around 60,000 people participated in 16 events
                                                                            sport has been mirrored by support for a wide          bicycle routes for the day and offered prizes          around the country, including the Coca-Cola Cross
                                                                            range of grassroots sports programmes in               of cycling equipment. People across Denmark            Balaton Swim and the Coca-Cola Running Gala.
                                                                            communities where we live and work. For example,       are encouraged to register the number of
                                                                            our school football tournament is now run in over      kilometres they have cycled on the DCF website         In Poland, more than 4,500 teams entered
                                                                            10 countries in Europe, for boys and girls over the    (www.storecykeldag.dk). The Big Bicycle Day            the Coca-Cola Cup soccer tournament in 2005.
                                                                            age of 12. The bubble shows some examples of           boosted the distance cycled by around a third          Established in 1999, the Cup gives students an
                                                                            our work in different communities around Europe.       to a total of 1.3 million kilometres.                  opportunity to develop team-building skills and


200
                                                                                                                                                                                          encourages them to take exercise.
                                                                                                                                   In Greece, we sponsored the first Southeast
                                                                                                                                   Europe Children’s Festival which was held in           In Great Britain, we run the ‘Personal Best
                                                                                                                                   Athens, under the auspices of the International        Challenge Park’ programme in partnership with
                                                                                                                                   Foundation of Olympic & Sport Education, the           the Youth Sport Trust and the British Olympic
                                                                                                                                   National Olympic Committees and the Greek              Foundation. The programme provides a wide
                                                                                                                                   Ministries of Culture and Education. From August       range of sports and games equipment for
Every day,
                                                                                                                                   27th to September 3rd, 2005, the Festival              secondary school playgrounds to encourage
we support on
average over 200                                                                                                                   welcomed approximately 220 children from               young people to participate in physical activity
different active
                                                                                                                                   Albania, Romania, Bulgaria, Serbia-Montenegro,         each day during their break times. Research by
lifestyle events
                                                                                                                                   FYR Macedonia, Turkey, Greece and Cyprus               the Institute of Youth Sport at Loughborough
throughout Europe,
mostly for young                                                                                                                   who engaged in various athletic and recreational       University suggests that the initiative more than
people.
                                                                                                                                   activities designed to educate them on the health      doubles the time students spend doing physical
                                                                                                                                   benefits of physical activity combined with            activity. To date, nearly 9,000 students have
                                                                                                                                   balanced nutrition. Coca-Cola provided the             benefitted in receiving a Park in their school with
                                                                                                                                   children with creative messages on the concepts        more planned for 2006. Coca-Cola Great Britain
                                                                                                                                   of fair play, teamwork, collaboration and friendship   has also committed to support the development
                                                                                                                                   and, via the company’s nutritionists’ network, tips    of a resource pack that will be accessible to all
                                                                                                                                   on healthy and balanced nutrition.                     secondary schools across England.
        Coca-Cola Europe Business and Social Review 2005                                                                                                                       Coca-Cola Europe Business and Social Review 2005



14_15   Workplace                                                                                                                                                              Training and development
                                                                                                                                                                               at CCE in Great Britain
                                                                                                                                                                               Coca-Cola Enterprises (CCE) (our second largest
        The Coca-Cola system is a major employer in Europe with over 61,000                                                                                                    bottling company in Europe, by volume of sales)
        employees. We are committed to fostering an open and inclusive work                                                                                                    employs around 5,000 people in Great Britain.
        environment where employees feel valued and are highly motivated.                                                                                                      In 2004, the company invested £3.4 million
        The Coca-Cola Company’s and our bottlers’ policies for work environment                                                                                                (almost u5 million) in training, providing an average
                                                                                                                                                                               of 2.6 days of training per employee.
        responsibility provide a framework for managing workplace issues.
        They cover health and safety, workplace fairness, working hours,                                                                                                       All CCE employees have access to ‘My career’ –
                                                                                                                                                                               an online personal development and career
        compensation and benefits.                                                                                                                                             planning tool. They also receive a performance
                                                                                                                                                                               and development review twice a year.




                                                                                                                                                   70
                                                                                                                                                                               In 2004, CCE launched a programme for
                                                                                                                                                                               senior managers to develop their leadership skills.
                                                                                                                                                                               The course covers managing peak performance,
                                                                                                                                                                               conflict resolution, coaching and team
        About workplace data                                                                                                                                                   development. Participants also learn how to ensure
                                                                                                                                                                               the Company’s values are integrated into business
        The data in this section covers The Coca-Cola                                                                                                                          practices and the behaviour of employees.
        Company, which has approximately 1,650
        employees in Europe. The Coca-Cola system
        (including bottling companies) employs over 61,000                                                                                          In 2004 in Europe
                                                                                                                                                    we employed people
        people in Europe. We do not collect workplace                                                                                               from around 70
        data for the whole system because bottling                                                                                                  different nationalities.
        companies manage their own workplace issues.
        However, we have included in this section, case
                                                                                 Employee survey                                                                               Diversity                                               Ethics
                                                                                                                                                                               We are committed to building a diverse workforce        We expect our employees to act with integrity in
        studies on management of workplace issues at                             In 2004, The Coca-Cola Company carried out                                                    that reflects the backgrounds of our customers,         all their business dealings. Our Code of Business
        our two largest Coca-Cola bottlers in Europe –                           its first global employee survey. In Europe,                                                  consumers and the communities in which we live          Conduct helps to guide employees on ethical
        Coca-Cola HBC and Coca-Cola Enterprises.                                 90% of employees participated. Responses to                                                   and work.                                               issues and provides real-life examples of ethical
                                                                                 10 of the questions most relevant to corporate                                                                                                        dilemmas employees might face. It covers a
                                                                                 responsibility are shown in the table. Some of                                                In 2004 in Europe The Coca-Cola Company
                                                                                                                                                                                                                                       range of issues, including bribery and corruption,
                                                                                 these responses are very encouraging, for                                                     employed people from around 70 different
                                                                                                                                                                                                                                       conflicts of interest and political contributions.
                                                                                 example 85% of employees are proud to be part                                                 nationalities.
                                                                                                                                                                                                                                       The full code is available in several languages at
                                                                                 of The Coca-Cola Company and 84% believe                                                      The gender balance in our workforce is                  www2.coca-cola.com/ourcompany/business_
                                                                                 that we act with integrity towards our business                                               52% women and 48% men.                                  conduct.
                                                                                 partners. However, we are concerned about
                                                                                 lower scores on issues such as work-life balance                                              Gender diversity (as at October 2004)                   All employees receive a copy of the Code of
                                                                                 and promoting the best people. We are reviewing                                                                   Number       Number                 Business Conduct when they join the Company
                                                                                 our performance in these areas to find ways                                                                          male       female     % female   and must sign an acknowledgement form
                                                                                 to improve.                                                                                   Pay Grade         employees    employees    employees   confirming they have read and understood the
                                                                                                                                                                               0-4                      23           70           75   provisions of the code. Employees can report
                                                                                                                                                                               5-9                     133          365           73   any concerns or violations of the code. The Ethics
                                                                                                                                                                                                                                       and Compliance Office, based in Atlanta, was
        Coca-cola employee survey % agree                                                                                                                                      10-14                   563          373           40
                                                                                                                                                                                                                                       formally launched in 2003.
        * This data refers to Coca-Cola employees (excluding bottling companies) in Europe, Eurasia and the Middle East.                                                       15-22                    59            7           11
                                                                                                                                                                               Not assigned             20           36           64
                            85           84           81           76           73            61          61               53       43        38
                                                                                                                                                                               Total                   798          851           52

                                                                                                                                                                               Training and development
                                                                                                                                                                               We encourage our employees to realise their
                                                                                                                                                                               potential through training and career planning
                                                                                                                                                                               programmes. In 2004, we provided between
                                                                                                                                                                               three and five days training per employee in most
                                                                                                                                                                               countries in Europe. This included leadership

                                                                                                                                                    85%
                                                                                                                                                                               development programmes and training for specific
                                                                                                                                                                               skills such as IT and finance.
                            A             B            C           D             E             F           G               H    I             J
                                                                                                                                                                               The rate of employee turnover helps us gauge how
                                                                                                                                                                               satisfied our people are at work. In 2004, the level
        Survey questions                                                                                                                           85% of employees            of turnover varied considerably between countries
        A I am proud to be part of The Coca-Cola Company                        G My organisation acts with integrity in its dealings              are proud to be part        from 4% in Turkey to 21% in our German and
        B My organisation operates with integrity towards those                   with employees                                                   of The Coca-Cola
                                                                                                                                                   Company.                    Nordic Division. We moved our German offices
           outside the organisation (bottling partners, customers,              H I believe I have the opportunity for personal development
           suppliers, etc)                                                        in my organisation                                                                           from Essen to Berlin in 2004, which accounts for
        C My immediate manager treats all his/her employees fairly              I In my opinion, my organisation does a good job of                                            the relatively high level of turnover in this region.
        D The company is socially responsible in the community                    promoting the best people
        E Where I work most of the time it is safe to speak up                  J My work schedule allows sufficient flexibility to meet my
                                                                                  personal/family needs
        F I think my performance on the job is evaluated fairly
        Coca-Cola Europe Business and Social Review 2005          Workplace                                                                     Coca-Cola Europe Business and Social Review 2005



16_17




                                                                                                                                                Labour rights                                          Occupational health and safety
                                                                                                                                                The Coca-Cola Company complies with all                It is Coca-Cola’s policy to offer its employees a safe
                                                                                                                                                applicable labour and employment laws in the           and healthy workplace. To implement this policy,
                                                                                                                                                countries in which we do business. We recognise        Coca-Cola designed a safety management system
                                                                                                                                                international labour standards and are committed       as an integral part of The Coca-Cola Quality
                                                                                                                                                to respecting the workplace human rights of our        System, which incorporates health and safety
                                                                                                                                                employees and the parties with whom we do              standards and guidelines for The Coca-Cola
                                                                                                                                                business. We do not employ anyone under the            Company and our bottling partners throughout the
                                                                                                                                                legal age in countries where we operate and we         world. It is fully compatible with the international
                                                                                                                                                do not tolerate forced labour, physical or other       Occupational Health and Safety Assessment Series
                                                                                                                                                abuse, or harassment.                                  management standard OHSAS 18001.
                                                                                                                                                Representation                                         We encourage all of our system’s manufacturing
                                                                                                                                                The Coca-Cola Company respects its employees’          sites within Europe, including bottling plants,
        Promoting a good workplace                                                                                                              right to join or not join labour unions, and ensures   to achieve certification to OHSAS 18001.
        at Coca-Cola HBC                                                                                                                        that those rights are exercised without fear of        This requires sites to be independently audited
                                                                                                                                                retaliation, repression or any other form of           by third party accredited auditing bodies.
        Coca-Cola HBC is our largest bottling company             Representation                                                                discrimination.
                                                                                                                                                                                                       At present we have 14 sites that have achieved
        in Europe, by volume of sales, with almost                Coca-Cola HBC respects the right of employees to
                                                                                                                                                The Coca-Cola Company established a forum              OHSAS 18001 certification and by 2006 we
        15,000 employees in 14 countries in the                   join or not to join trade unions, and to consult with
                                                                                                                                                in 1998 to consult with its employees in the           expect this number to increase to approximately
        European Union. (Coca-Cola HBC also                       management on issues of joint interest. Over 30%
                                                                                                                                                European Economic Area about the development           20 representing 20% of the total.
        operates in 12 non-EU European countries.)                of the workforce are members of a trade union
                                                                                                                                                of the business and allow them to raise concerns
                                                                  and a further 60% of employees are covered by
        Health and safety                                                                                                                       on transnational issues related to matters such as
                                                                  collective labour agreements.
        Health and safety is a very important issue in                                                                                          health and safety, training, equal opportunities and
        manufacturing. Coca-Cola HBC aims to have all             The Coca-Cola HBC European Works Council                                      restructuring. Similar European works council
        its plants certified to the Occupational Health and       (EWC) was established in 2002, under the                                      forums are established by the European bottlers
        Safety Assessment Series (OHSAS) 18001 by                 European Works Council Directive. This forum                                  who have establishments in several countries within
        2007. During 2004, operations in Greece, Italy            is made up of employee and management                                         the European Union.
        and Switzerland all achieved OHSAS 18001                  representatives from Austria, Greece, Italy, Northern
        certification, and health and safety training was         Ireland and the Republic of Ireland. Participation
        provided for over 200 employees. In the first             was expanded in 2005 to include representatives
        full-year results, a total of 1,103 lost-time accidents   from countries that joined the EU in 2004 – the
        (resulting in more than one day’s absence from            Czech Republic, Estonia, Hungary, Latvia,
        work) were reported. The accident frequency rate          Lithuania, Poland, Slovakia and Slovenia.
        (the total number of occupational accidents
                                                                  Training and development
        resulting in one or more days of absence from
                                                                  All employees in positions from team leader
        work multiplied by 100,000 and divided by the
                                                                  upwards receive an annual skills assessment
        total days worked by employees) was 12.56.
                                                                  to help them identify training and development
        Diversity                                                 opportunities. Coca-Cola HBC invested u12 million                                                                                     Coca-Cola bottling
        Coca-Cola HBC is working to encourage more                in training in 2004.
                                                                                                                                                                                                        plant in Norway receives


                                                                                                                          14
        female employees, particularly in management
                                                                  Further information is available in the HBC
        positions. In 2004, women represented 21% of
                                                                  Social Responsibility Report 2004.                                                                                                    diversity award
        managers and 15% of all employees. The under-
        representation of women is partly because the             See www.coca-colahbc.com.                                                                                                             Coca-Cola’s bottling plant in Oslo (fully owned by
        nature of manufacturing work has traditionally                                                                                                                                                  The Coca-Cola Company) employs people of over
        been more attractive to men, but women can                                                                                                                                                      40 different nationalities. The plant works closely
        be recruited for these jobs.                                                                                                                                                                    with the Pakistani Muslim community in Norway
                                                                                                                                                                                                        to integrate Pakistani employees in the workforce.
                                                                                                                          At present we have                                                            It received a Bridge Building Award for its efforts,
                                                                                                                          14 sites that have                                                            presented by the leader of the Pakistani
                                                                                                                          achieved OHSAS                                                                community. The company has implemented
                                                                                                                          18001 certification
                                                                                                                          and by 2006 we                                                                several measures to increase diversity in its
                                                                                                                          expect this number                                                            workforce, including silent rooms for prayers,
                                                                                                                          to increase to
                                                                                                                          approximately 20
                                                                                                                                                                                                        catering for special diets in its canteen, and
                                                                                                                          representing 20%                                                              language courses.
                                                                                                                          of the total.
        Coca-Cola Europe Business and Social Review 2005                                                                                    Coca-Cola Europe Business and Social Review 2005



18_19   Environment
        We are committed to good environmental stewardship –
        throughout the Coca-Cola system.
        Following consultations with our Environmental Advisory Board,
        we have concluded that the three environmental priorities for our
        business are water, global warming and solid waste. In this section
        we explain our environmental strategy, and our performance in
        these three areas in Europe.
                                                                                                                   90                                                                             Water use efficiency
                                                                                                                                                                                                  (litres/litre of product)
                                                                                                                  By 2006, an estimated
                                                                                                                  90 out of 99 facilities                                                                                2.52            2.46           2.43           1.80
                                                                                                                  in the European Union
                                                                                                                  Group will have
                                                                                                                  achieved ISO 14001
                                                                                                                  certification (72 had
                                                                                                                  been certified by the
        About environment data                                                                                    end of 2004).


        The environment data cover the ‘Coca-Cola
        system’ (both The Coca-Cola Company and its
        bottlers) in Europe, Eurasia and Middle East.
        A total of 164 plants in Europe reported                                                                                                                                                                         2002           2003            2004          Target
        environment data in 2004, equivalent to 97% of                                                                                                                                                                                                               for 2009
        our total product volume. We have estimated the
        unreported element, based on the average per       Our environmental governance                                                     We work closely with our bottling partners to         In 2004, we launched The Company’s Global
        litre of product. We show the reported data                                                                                         ensure that our approaches to environmental           Water Initiative and Risk Assessment programme
                                                           The development of our environment strategy is                                   issues are aligned. For example, representatives      to, amongst other things, assess the water
        and estimated total separately in the charts.
                                                           ultimately the responsibility of the audit committee                             of The Coca-Cola Company sit on the                   challenges our bottling system faces as well as
        In 2005 our new European Union Group covers
                                                           of The Coca-Cola Company’s Board of Directors.                                   CSR/environment committees of our two largest         those of the community in which we operate and
        a smaller geography, in which 99 plants operate.
                                                           Its management is the responsibility of our                                      bottlers in Europe, Coca-Cola HBC and CCE.            to identify potential solutions. We are working
        We will report their performance in 2007.
                                                           Environment and Water Resources Department                                                                                             on this in collaboration with our bottlers and
                                                           which develops environmental policies, guidance                                  By 2006, an estimated 90 out of 99 facilities in
                                                                                                                                                                                                  other stakeholders.
                                                           and programmes.                                                                  the European Union Group will have achieved
                                                                                                                                            ISO 14001 certification (72 had been certified        Water quality
                                                           Our strategy is informed by an Environmental                                     by the end of 2004). This requires sites to be        The Coca-Cola Company has a rigorous quality
                                                           Advisory Board (EAB), composed of six                                            independently audited. In 2004, external audits       system to ensure that all our products meet
                                                           independent experts who are leaders in their fields.                             were carried out at 139 sites in Europe (55% of       the highest standards of quality and safety
                                                           The EAB provides valuable external perspectives                                  the total)2. We aim to have all our system’s          (see page 6). All the water we use in our products
                                                           on environmental issues and challenges our own                                   manufacturing sites within Europe, including          must meet the standards established by the World
                                                           thinking. See page 5 for the EAB members.                                        bottling plants, certified to ISO 14001 by the        Health Organization or local laws, whichever are
                                                           Since much of the environmental impact of our                                    end of 2006.                                          more stringent.
                                                           business is created outside Company-owned                                                                                              Every manufacturing plant in the Coca-Cola system
                                                           facilities, we work continually with our bottling                                Water                                                 has a multiple barrier water treatment system,
                                                           partners to help them develop consistent policies                                                                                      which disinfects and filters the water. Water quality
                                                           and improve the environmental performance of the                                 Water is fundamental to our business – it is the
                                                                                                                                            main ingredient in our products and is used in        is tested at all facilities at least once a year by
                                                           entire Coca-Cola system.                                                                                                               recognised external laboratories.
                                                                                                                                            our manufacturing process.
                                                           Coca-Cola’s environmental management system,                                                                                           Water efficiency
                                                           known as eKOsystem, incorporates environmental                                   More importantly, water is of course essential to
                                                                                                                                            the well-being of society. We share local water       In 2004, the Coca-Cola system in Europe used
                                                           standards and guidelines for The Coca-Cola                                                                                             a total of 56.05 billion litres of water to produce
                                                           Company and our bottling partners throughout the                                 resources with local communities as well as other
                                                                                                                                            commercial users. Given its importance, we believe    23.06 billion litres of product – an average of
                                                           world. It is closely aligned with the international                                                                                    2.43 litres per litre of product. The difference
                                                           environmental management standard ISO 14001.                                     that water stewardship is critical to the long-term
                                                                                                                                            sustainability of our business. We focus on           between what is used and what is put in our
                                                           For more information, see our global 2004                                        initiatives which encourage efficient water use,      product is on average 1.43 litres, needed to clean
                                                           Environmental Report (available at www2.coca-                                    clean waste water effectively, and support water      the bottles, filling lines, mixing tanks and the plants
                                                           cola.com/citizenship/environmental_report.html).                                 conservation projects in local communities.           – essentially to ensure the quality and the safety of
                                                                                                                                                                                                  the products. In absolute terms, we reduced the
                                                                                                                                            In the European Union, water resources are usually    amount of water we used at the same time as
                                                           Environmental management                                                         supervised by regulators and our plants are given     increasing the amount of product made.
                                                           in Europe                                                                        licences limiting the amount of water they can
                                                                                                                                            consume. In some other parts of Europe, local
                                                           Our European environmental manager works                                         regulation may be less strict and it falls to us to
                                                           with a network of local environmental coordinators                               ensure our consumption is not interfering with
                                                           in the operating divisions and production facilities                             the needs of others. About half of the water
                                                           to ensure high standards are achieved across                                     used to produce our products in Europe comes
                                                           our operations.                                                                  from municipal utilities, most of the rest from
                                                                                                                                            privately-owned wells near the bottling facilities.   2
                                                                                                                                                                                                   This data refers to our previous structure, i.e the ‘Europe, Eurasia,
                                                                                                                                                                                                  Middle East’ Group. In the current EU Group there are 99 sites.
                      Coca-Cola Europe Business and Social Review 2005   Environment                                                                         Coca-Cola Europe Business and Social Review 2005



20_21




                                                                         Water use ratios (the amount used divided by the                                    Community projects                                    Sales and marketing equipment
                                                                         amount of product produced) may vary depending                                      We believe our contribution to managing freshwater    We estimate that almost two-thirds of our
                                                                         on local circumstances. For example plants using                                    can go beyond good environmental practices in         greenhouse gas emissions are from sales and
                                                                         refillable bottles need more water for rinsing.                                     the plants bottling our products. We want to use      marketing equipment carrying our brands.
                                                                         We believe that our current water use ratio is                                      our knowledge and expertise, as well as our local     As well as using energy to keep our products cool,
                                                                         among the best in the industry. We believe we                                       presence and global reach, to help stimulate public   equipment typically contains hydrofluorocarbon
                                                                         can improve further. In 2004, our bottling system
                                                                         reduced the amount of water used per litre of                                       awareness and to engage in valuable conservation      (HFC) gases as a refrigerant. These gases,
                                                                         product by 2.4% from the previous year. The target                                  projects. We are doing this by establishing           which were introduced as a safe substitute for
                                                                         is to achieve 1.8 litres per litre of product by 2009.                              partnerships with nongovernmental organisations       ozone-depleting CFCs 10 years ago, have
                                                                         That level of efficiency represents the best that                                   and local communities.                                a high global warming impact if released into
                                                                         could be obtained using the best available                                                                                                the atmosphere.
                                                                         technologies in our mix of plants and products.                                     On 1 June 2005, The Coca-Cola Company and
                                                                                                                                                             our bottler Coca-Cola HBC signed a partnership        We recognise that climate change will have


                                                                                                                                   2.43
                                                                         Our Water Savers programme is designed to                                           with the International Commission for the             serious implications across the world, and are
                                                                         ensure that the target is met. The programme                                        Protection of the Danube River (ICPDR), for the       committed to finding ways to minimise emissions
                                                                         includes training and promoting best practice, and                                  joint protection and preservation of the Danube       of greenhouse gases. We have focused our
                                                                         incorporates a self-assessment tool-kit. We are                                     River. This partnership includes support for          efforts on developing alternatives to HFC
                                                                         planning a Water Savers league and Water Savers                                     celebrating Danube Day (29 June) and help             refrigerants and improving the energy efficiency
                                                                         awards to encourage our operations to show                                          creating educational material on the Danube.          of refrigeration units.
                                                                         leadership in this area.                                 In 2004, the
                                                                                                                                  Coca-Cola system in
                                                                                                                                                             We are helping to increase private involvement in     In June 2000, we made a commitment to stop
                                                                         We are not able to compare total volume of water         Europe used a total        conservation projects. The partnership includes       buying new cooler equipment using HFCs where
                                                                         used in 2004 (56.06 billion litres) with the amounts     of 56.05 billion litres    several conservation initiatives at national and      cost-efficient alternatives are commercially
“The International Commission for the                                    used in the past, because of a change in the             of water to produce
                                                                                                                                  23.06 billion litres of    local level in the countries of the Danube basin.     available. This applies both to refrigerant gases and
Protection of the Danube River (ICPDR) has                               way we measure and aggregate this indicator              product – an average       These involve partnership with local authorities      insulation. We have embarked on a large research
partnered with The Coca-Cola Company and                                 (the change does not affect the water use ratio).        of 2.43 litres per litre   and NGOs. Five such projects were launched in         and development programme with suppliers and
                                                                                                                                  of product.
its bottler, Coca-Cola HBC during the past year.                         We believe our new measurement standard is                                          Slovakia, Hungary, Serbia and Montenegro,             technology partners (worth more than u24 million)
The ICPDR carefully reviewed the commitment                              more accurate.                                                                      Bulgaria and Romania. The total contribution          and evaluated the commercial potential of a variety
of the company to environmental protection                                                                                                                   from Coca-Cola was almost u400,000 at the             of alternatives including ammonia, carbon dioxide,
and water management in particular. We have                              Wastewater
                                                                         Like most manufacturing operations, plants in                                       end of 2005.                                          hydrocarbon, and the helium-based Stirling cycle.
been greatly impressed with the leadership
Coca-Cola has demonstrated in managing                                   The Coca-Cola System generate effluent, or                                          We also pursue local projects in other water          Following extended lab and field tests which began
water resources. Most important is their careful                         wastewater. Most of this effluent in Europe goes                                    catchment areas. In Spain, we have partnered          in the latter half of 2003, we concluded that carbon
accounting of water use and wastewater                                   to municipal treatment facilities. In areas where                                   with WWF to raise awareness of water                  dioxide-based refrigeration is the best alternative for
discharges and their commitment to improve                               adequate treatment facilities are not available,                                    conservation in the region of Valencia. We have       our needs. Initial field tests, performed during 2004
their environmental management systems.                                  we require our bottling partners to build systems                                   developed educational materials for children,         in Greece, Spain and Australia, indicated that
Coca-Cola’s ongoing corporate monitoring                                 to treat the effluent on site.                                                      a pamphlet with water-saving tips for households,     carbon dioxide equipment in real-life conditions
and accounting of water use and discharges                               Our company standards require that effluent                                         and a brochure on water conservation for              was between 17% and 35% more energy-efficient
to water (using International Standards) –                               discharged from our facilities into a natural body                                  local businesses.                                     than equivalent units using standard refrigerants.
and their regular achievements in reducing                               of water is treated to a level capable of supporting                                In Great Britain, we donated US $270,000
water use and improving water quality – are                              fish life. We maintain fish habitats (ponds and                                     (u220,000) to support research and education in
a model for other companies. As part of the                              aquariums) filled with our treated effluent at more                                 water sustainability, conservation and management
partnership agreement with Coca-Cola,                                    than 21 plants to confirm and demonstrate the                                       at Linacre College and the Environmental Change
the ICPDR will work with the company to                                  effectiveness of our treatment. At the end of 2004,                                 Institute, Oxford University.
promote improvements in the company’s water                              about 90% of plants in the system met our effluent
management in countries in the Danube region,                            standard, and we are working to achieve full                                        Global warming
and more generally. ICPDR and Coca-Cola                                  compliance by 2006.
are committed to utilise the company’s                                                                                                                       The Coca-Cola Company and its bottling partners
resources to raise awareness of appropriate                                                                                                                  contribute to European greenhouse emissions
water management following the principles                                                                                                                    through energy used in manufacturing and fuel
of the Danube River Protection Convention                                                                                                                    used for transporting products. But the biggest
among communities near the river. Coca-Cola’s                                                                                                                impact on global warming is from the two million
skills and expertise together with the                                                                                                                       refrigeration units, vending machines and fountain
framework and international coordination                                                                                                                     dispensers (which we refer to as sales and
offered by the ICPDR ensure that these efforts                                                                                                               marketing equipment) used to display and sell
can have a broader impact involving other                                                                                                                    our products in Europe.
companies and sectors of society.”
Philip Weller ICPDR
                         Coca-Cola Europe Business and Social Review 2005               Environment                                                                           Coca-Cola Europe Business and Social Review 2005



22_23                                                                                                                                                                                                                                                            4.5%
                                                                                                                                                                                                                                                                  We have reduced
                                                                                                                                                                                                                                                                  the amount of solid
                                                                                                                                                                                                                                                                  waste produced per
                                                                                                                                                                                                                                                                  litre of product by
                                                                                                                                                                                                                                                                  4.5% since 2003.




                         In 2005, Coca-Cola launched large field tests of               Greenpeace Executive Director, said: “Greenpeace          Energy                                                                         Waste
                         carbon dioxide units in several European countries,            welcomes the commitments made by Unilever,                (billion megajoules)
                         including Germany and Norway. We plan to launch                Coca-Cola and McDonald’s. What they are doing                                                                                            We are working to minimise our environmental
                         further tests in the near future. By 2006, we will             is to show that technologies that save the planet         10.30    10.92         12.56      11.26    0.50        0.49
                                                                                                                                                                                                                                 impact through initiatives to reduce, reuse and
                         have more than 2,000 of these units in the                     from HFCs are here. They exist! We call on                                                                                               recycle waste.
                         marketplace. We will expand these large tests                  other companies in their sector to follow suit.”                                                                                         Solid waste from our product packaging is the
                         to validate reliability targets, verify service and            See www.refrigerantsnaturally.com for more                                                                                               most visible environmental issue associated
                         support processes, and prepare for system-wide                 about this joint initiative.                                                                                                             with Coca-Cola and its bottling partners.
                         conversion when appropriate. Nearly all new                                                                                                                                                             Packaging is essential to carry and preserve our
                                                                                        Manufacturing
                         models our bottlers purchase in Europe have                                                                                                                                                             beverages and plays a critical role in marketing.
                                                                                        In 2003, the Coca-Cola system in Europe used a
                         switched to HFC-free foams (they are mostly                                                                                                                                                             But it also creates an obvious environmental
                                                                                        total of 11.26 billion megajoules (MJ) of energy to
                         cyclopentane or water-blown foams). We intend                                                                                                                                                           challenge: what to do with the package after
                                                                                        produce 23.06 billion litres of product – an average
                         to de-certify equipment with HFC foams from                                                                                                                                                             the beverage has been drunk.
                                                                                        of 0.49 MJ per litre of product. The amount of
                         January 2006.                                                                                                           Reported Data           Estimated Total    Efficiency
                                                                                        energy needed per litre of product has been              2003      2004          2003       2004    (megajoules/litre)                   We also generate solid waste in our manufacturing
                         We are also working with our suppliers to develop              reduced by 2% since 2003. Our total energy use                                                       2003      2004
                                                                                                                                                                                                                                 process.
                         new equipment that is 40% to 50% more energy                   in Europe has been reduced in absolute terms by
                         efficient by 2010 (compared with 2000 levels).                 around 600 million MJ, notwithstanding the growth
                         We have extensively tested new hardware and                    of our total sales.                                                                                                                      Manufacturing waste
                         software solutions that can better manage the                                                                                                                                                           In 2004, the Coca-Cola system in Europe
u24 million              energy use of our equipment and intend to
                                                                                        Improving energy efficiency cuts costs and reduces
                                                                                        our greenhouse gas emissions. We are planning an
                                                                                                                                                                                                                                 produced nearly 229,000 tonnes of solid waste.
                         start rolling these out in our standard purchases                                                                                                                                                       On average, 9.91 grams of solid waste were
                                                                                        Energy Savers programme in 2006 to help identify                                                                                         generated for each litre of product sold. We have
                         from 2006. We believe this will put us in a good
                                                                                        potential savings and share best practice.                                                                                               reduced the amount of solid waste produced
                         position to comply with our 2010 goal. We have
                         calculated that the combined effect of the                     The initial phase of the programme will pool energy                                                                                      per litre of product by 4.5% since 2003. We also
We have embarked
                         measures mentioned above will ensure that our                  saving best practice across the bottling plants.                                                                                         recycled a higher proportion of solid waste than in
in a large R&D
programme with           new equipment purchased worldwide in 2010                      Using a simple self-assessment tool, facilities will                                                                                     the previous year (78% in 2004 compared with
                                                                                                                                                  “Given the enormous greenhouse potential
suppliers and            will emit 700,000 fewer tonnes of greenhouse                   test their local performance and practices against                                                                                       71% in 2003), which means that our business in
                                                                                                                                                  of HFCs it is crucial to eliminate them step by
technology partners
(worth more than         gases than models purchased in 2000. This is                   the best global standards. This will enable them to                                                                                      Europe generated about 50,000 tonnes of solid
                                                                                                                                                  step, especially from commercial refrigeration,
e24 million) and         roughly equivalent to taking 150,000 cars                      identify improvement opportunities and set targets.                                                                                      waste for final disposal, or two grams per litre
                                                                                                                                                  which is one of the biggest single applications
evaluated the
                         off the road every year.                                       The next phase will involve training at local level to                                                                                   of product. A combination of less solid waste
commercial potential                                                                                                                              of HFCs. Therefore it was a big step forward,
of a variety of                                                                         begin implementation of the programme.                                                                                                   generated and a higher recycling rate means that
alternatives including   Our approach to developing new technology is                                                                             not only as a political signal, but a concrete
                                                                                                                                                                                                                                 in one year we have reduced the amount of solid
ammonia, carbon          to seek partners and consult widely. We do not                 Transport                                                 benefit for the environment, that Coca-Cola
                                                                                                                                                                                                                                 waste going for disposal by about 22,000 tonnes,
dioxide, hydrocarbon,    regard global warming as a competitive issue and               Our business system is mostly built on                    took the initiative to phase out HFCs within
                                                                                                                                                                                                                                 notwithstanding the growth of our business.
and the helium-based
Stirling cycle.          want any new solutions to be widely available.                 concentrate-based products, which means that              their own business. It is as remarkable to
                         In June 2004, we organised a joint conference                  our long-haul transportation needs are extremely          see how Coca-Cola did not just talk and                                        We have a training programme known as
                         with Unilever and McDonald’s to promote                        limited. A truckload of Coca-Cola concentrate, for        make plans, but took action by investing                                       Waste$mart to help employees identify ways to
                         environmentally friendly refrigeration. This was               example, corresponds to roughly 2,000 trucks of           in sustainable refrigeration research and                                      reduce waste and identify cost-saving opportunities.
                         supported by Greenpeace and the United Nations                 finished products. This is the main reason why            development, and implementing its                                              Solid waste generated              2003           2004
                         Environment Programme (UNEP). Gerd Leipold,                    the contribution of transportation to the overall         eKofreshment programme. It is impressive
                                                                                                                                                                                                                                 Reported data
                                                                                        greenhouse gas emissions of our business is               to see Coca-Cola – despite considerable
                                                                                                                                                                                                                                 (thousand tonnes)               205.65       221.67
                                                                                        relatively limited (see chart).                           economic risks – pioneering an ecological
                                                                                                                                                  and technological revolution which has the                                     Estimated total
                         Greenhouse gas emissions                                       Finished products are transported by our bottling         potential to really make a difference and                                      (thousand tonnes)               250.79       228.52
                         (millions of tonnes of CO2-equivalent)                         partners to customers. Because our bottling               contribute to a shift towards sustainable                                      Efficiency (grams/litre)         10.38         9.91
                                                                                        network in Europe is very dense and mostly                development in commercial refrigeration.                                       Recycling rate (%)                  71           78
                                                                                        country-based, transportation of our finished             I would be very happy to see not only the
                         Fleet 0.6                                Sales and marketing   products consists mainly of local distribution from a     final technical and economic success of
                                                                  equipment 3.4
                                                                                        bottling plant to a warehouse, or directly to shops.      Coca-Cola’s eKOfreshment programme for
                                                                                        We estimate that delivery vehicles in the Coca-Cola       their technology at point-of-sale, but to see
                         Manufacturing
                                                                                        system in Europe consume an average of around             this programme being extended to additional
                         operations 1.2                                                 9.3 litres of diesel per 1,000 litres of product          business fields like refrigeration in transport
                                                                                        delivered.                                                and production.”
                                                                                                                                                  Wolfgang Lohbeck Greenpeace
                       Coca-Cola Europe Business and Social Review 2005          Environment                                                                    Coca-Cola Europe Business and Social Review 2005



24_25




                       Packaging                                                 We have been helping to promote the market for                                No matter how much we improve the                                  Litter
                       The Coca-Cola Systems aim is to systematically            recycled PET for several years. We fund and                                   environmental profile of our packaging, there will                 Litter is an undesirable result of people disposing
                       reduce the life-cycle environmental impact of             contribute to several research and development                                eventually be some waste created. In Europe, the                   of their waste irresponsibly. Discarded beverage
                       our packaging. Our packaging teams work to                projects looking into new recycling technologies.                             whole industry involved in the packaging chain has                 packaging is a highly visible example of litter,
                       incorporate environmental criteria into packaging         We are bringing companies together to build                                   already improved recovery rates from the waste                     although it accounts for only a small proportion
                       design and have focused on reducing the amount            and invest in new recycling plants equipped                                   stream in response to the EU Packaging and                         of all litter. Beverage containers represented only
                       of materials used. For example, the original two litre    for the production of food-contact grade PET.                                 Packaging Waste Directive. Recovery organisations,                 9% of litter in the Netherlands in 2001 (according
                       PET bottles weighed over 70 grams and have now            For example, we have been involved in developing                              mostly financed by industry, have been set up in                   to research by SVM-Pact) and only 6% in
                       been reduced to around 50 grams.                          United Resource Recovery Corporation (URRC)                                   all member states. It is estimated that total funding              Germany (according to research by Roland
                                                                                 technology. URRC is a sophisticated mechanical                                by industry of packaging recovery and recycling                    Berger), measured by number of items.3
                       We believe it is preferable to use as much recycled
                                                                                 recycling process that generates food-grade PET                               was u2.8 billion in 2001 (the latest available data)
                       material as possible in our packaging, as this tends                                                                                                                                                       We encourage our consumers to dispose of their
                       to reduce the energy content and provides a use
                       for material that could otherwise become waste.
                                                                                 recyclate and is now being widely used in the
                                                                                 Coca-Cola system globally. We have also been
                                                                                 instrumental in the opening of two European
                                                                                                                                        25 million             – representing 65% of the total incremental cost
                                                                                                                                                               of packaging recycling.
                                                                                                                                                                                                                                  beverage containers responsibly. In most European
                                                                                                                                                                                                                                  countries our packaging carries the
                       Our use of recycled material varies from market to                                                                                      As a result, the EU packaging recovery rate is                     ‘Tidy Man’ logo.
                                                                                 recycling plants using this technology. These are in
                       market but we estimate that we purchase more                                                                                            now more than 60% and still increasing, leading
                                                                                 Switzerland and Germany, with a third one planned                                                                                                We support national anti-littering campaigns
                       than US$4 billion (u3.2 billion) worth of recycled                                                                                      to a reduction of greenhouse gas emissions of
                                                                                 in Sweden.                                             25 million tonnes                                                                         in virtually every country where we operate,
                       material worldwide each year.                                                                                                           25 million tonnes of carbon dioxide equivalent
                                                                                                                                        of CO2-equivalent                                                                         for example ‘Keep the Baltics Tidy’ in several
                                                                                 We also support new legislation being considered       emissions avoided in   so far. Even though the growth of our economies
                       Many of the packaging materials we use routinely                                                                                                                                                           Nordic countries and ‘Vacances Propres’ in
                                                                                 by the European Commission to prevent                  Europe through the     has meant that consumers are buying more and
                       have a high recycled content, such as glass, steel                                                               recycling of 60% of                                                                       France. We conducted an extensive anti-littering
                                                                                 restrictions on use of recycled materials in food                             more packaged products, the absolute amount of
                       and aluminium.                                                                                                   packaging waste.                                                                          advertising campaign during the 2004 Athens
                                                                                 packaging. This proposes strict testing procedures                            packaging waste being disposed of has reduced
                                                                                                                                                                                                                                  Olympic Games. The Coca-Cola system provided
                       Plastic presents the biggest challenge since              to protect the health and safety of consumers.                                by more than 10% between 1997 and 2001. In this
                                                                                                                                                                                                                                  recycling bins throughout the city and teams
                       the economics usually favour virgin material.             Our scientists have been instrumental in developing                           field effective regulation combined with investment
                                                                                                                                                                                                                                  of young people spread the message to ‘keep
                       In addition it is easier to recycle a PET bottle into a   and using such tests over the last 10 years.                                  by industry has succeeded in decoupling
                                                                                                                                                                                                                                  Athens clean’.
                       different product such as carpet or textile, than to      This new regulation will be extremely important to                            economic growth from environmental impact.
                       recreate a new bottle which has very high quality         our strategy for introducing recycled-PET bottles in                                                                                             As well as helping to prevent people littering,
                                                                                                                                                               Packaging material recycling in Europe
                       specifications. We believe bottle-to-bottle recycling     several countries where we are currently prevented                                                                                               we work to clear existing litter. For example,
                                                                                                                                                                                                                     Average
                       for PET packages should be encouraged, as it can          from doing so by law.                                                                                                                rate of
                                                                                                                                                                                                                                  Coca-Cola Great Britain continues to be a member
                       provide a vast, and so far largely untapped, market                                                                                                                                                        of ‘ENCAMS’, formerly the ‘Keep Britain Tidy’
                                                                                 In Europe, we use PET bottles with recycled                                                                             K/tonnes packaging
                       for waste PET bottles.                                                                                                                                                            Recycled   recycled      campaign. Coca-Cola and its bottlers employees
                                                                                 content in Belgium, Germany, the Netherlands,                                 Material                                  in EU-12 by material     in Romania volunteer to help clean up public
                                                                                 Sweden and Switzerland, and we are planning the
                                                                                                                                                               Glass                                     8150.9          59.1%    parks as part of annual ‘spring cleaning days’.
                                                                                 use of recycled-content bottles in several other
                                                                                                                                                               Paper                                    17796.6           69%     Beach clean-ups were organised in Serbia,
                                                                                 markets in the near future.
                                                                                                                                                               Metal                                      2526           58.5%    Montenegro, Romania and Slovakia as part of
u3.2 billion                                                                     We support the use of refillable systems where
                                                                                 economically viable and environmentally                                       Plastics                                  2634.3          25.4%
                                                                                                                                                                                                                                  our Green Danube project to protect the Danube
                                                                                                                                                                                                                                  River and its ecosystems.
                                                                                 advantageous (they typically require more transport                           Total                                    31107.8
                                                                                                                                                                                                                                  We have been working with Ocean Conservancy
                                                                                 and washing). We also have to have the necessary                              Source: ASSURRE, ‘Packaging and Packaging Waste Statistics 2002’
                                                                                                                                                                                                                                  to sponsor the International Coastal Cleanup since
                                                                                 logistics and retail structures and to ensure the
                                                                                                                                                                                                                                  1996. In September 2005, hundreds of thousands
                                                                                 bottles are accepted by consumers. In Europe,
                                                                                                                                                                                                                                  of people volunteered to clear litter from more
We estimate that                                                                 30% of our total beverage volume is distributed in
                                                                                                                                                                                                                                  than 11,000 miles of shoreline around the world.
we purchase more                                                                 refillable packages.
than US$4 billion                                                                                                                                                                                                                 Our sponsorship helps to publicise the event and
(e3.2 billion) worth
of recycled material                                                                                                                                                                                                              purchase supplies, and Coca-Cola employees are
worldwide each year.                                                                                                                                                                                                              encouraged to participate in local cleanup activities.
                                                                                                                                                                                                                                  Source: http//www.europen.be
                                                                                                                                                                                                                                  3
        Coca-Cola Europe Business and Social Review 2005                                                                                    Coca-Cola Europe Business and Social Review 2005



26_27   Community
        Coca-Cola’s interpretation of corporate social responsibility focuses
        primarily on our core business activities, but we believe that well-targeted
        community investment can also make a meaningful contribution to society.




        Our contribution is a combination of time,             Austria                                                                      Romania                                             Palestinian Authority Area
        expertise and resources, both from The Coca-Cola       In 2004, Coca-Cola HBC Austria donated                                       In 2003 Coca-Cola Romania, the CONCEPT              The National Beverage Company (NBC), our
        Company and our bottling partners. Putting a           u50,000 to SOS Kinderdorf, a children’s charity                              Foundation and the Ministry of Education,           bottling partner in the Palestinian Authority Area,
        value on these donations is not easy, but when
        we made an estimate in 2000, the total figure
        in Europe was approximately US $7.4 million
                                                               that provides residential homes for children in
                                                               need. Coca-Cola HBC are also encouraging
                                                               young people in Austria to take an interest in
                                                                                                                     10 million             launched Magic Books, an educational programme
                                                                                                                                            to help schoolchildren develop a love of reading
                                                                                                                                            and books. Psychologists, artists, choreographers
                                                                                                                                                                                                supports a range of community projects. Many of
                                                                                                                                                                                                these focus on helping children, including orphans
                                                                                                                                                                                                and those with special needs. NBC’s Back to
        (u6 million). We intend to track these donations       the environment by supporting Junior Rangers                                 and social workers helped to design exciting        School programme provides school clothing and
        systematically and report more accurate                in the Hohe Tauern National Park.                                            teaching sessions, now being piloted in six         materials for children. In 2004, Coca-Cola Spain
        figures in future.                                                                                                                  schools in Bucharest.                               supported this programme by collecting 10,000
                                                               Greece                                                High-school students                                                       school kits (including bags and stationery) for
        Most of our community investment is focused on         In 2002, Coca-Cola in Greece, in cooperation          who participated in    Great Britain
                                                                                                                                                                                                Palestinian children. For the past three years they
        promoting physical activity among young people.        with the NGO Hellenic Society for the Protection      the Spanish National   Coca-Cola Great Britain supports the Valued
                                                                                                                     Essay contest since                                                        distributed more than 15,000 bags.
        This is part of our strategy to help tackle obesity.   of the Environment and Cultural Heritage, launched    its beginning.         Youth programme, run by the national charity
        In 2003, we supported over 100,000 physical            a 3-year environmental education programme                                   Youth Esteem UK, to help secondary school           NBC also opened 4 children’s libraries at public
        activity events throughout Europe (these are           called “Environment: Do we really care?”                                     students develop their self-confidence by acting    hospitals in Ramallah, Jenin and two in Gaza
        covered in the section on Encouraging Active           addressed to 60 Greek schools and more than                                  as classroom tutors for primary school children.    as part of a broader Coca-Cola initiative in the
        Lifestyles, see page 12).                              2,000 students of secondary education. Coca-                                 Results of the programme include improved           Middle East region to provide books for children
                                                               Cola’s commitment to environmental awareness                                 levels of academic achievement, self-esteem         in hospital.
        We also support a range of local initiatives and
                                                               and sustainability was set off in 2001 with the                              and a greater commitment to succeed and
        good causes in the areas of arts and culture,                                                                                                                                           Now NBC is giving one MBA scholarship every
                                                               support of the 1st National Research                                         stay in school. Nearly 8,000 young people have
        education, and environment. Many Coca-Cola                                                                                                                                              year and supporting graduate students by training
                                                               on “The Environmental Conscience of Greeks”                                  participated in the programme since 2001.
        employees give their time as volunteers on                                                                                                                                              them “How to enter their career life”.
                                                               aimed at surveying and recording environmental
        these projects.
                                                               awareness and engaged behaviour of Greek                                                                                         Spain
        Here are some of the thousands of recent               citizens vis-à-vis environmental issues. Within the                                                                              The Coca-Cola Spain Foundation supports a range
        examples of the support we provide to                  same context, Coca-Cola was the sponsor of                                                                                       of arts and education projects, including art therapy
        communities across Europe:                             the first Environmental Guide called “Light-footed”                                                                              workshops in three hospitals, national drama
                                                               and the follow-up launch of the 2nd National                                                                                     competition for 14 to 18 year olds and a national
                                                               Research in 2005. During the ATHENS 2004                                                                                         essay contest for secondary-school students.
                                                               Olympic Games, Coca-Cola, in cooperation                                                                                         The latter has been organised every year in the
                                                               with Athens Olympics Organising Committee                                                                                        past 46 years and about 10 million high-school
                                                               and UNEP, developed a campaign on the                                                                                            students have participated in it. Coca-Cola Spain
                                                               importance of recycling and donated 5,000                                                                                        runs an environmental game on its website,
                                                               trees to the Municipality of Athens in the context                                                                               developed with conservation organisation WWF.
                                                               of its “Olive Tree, the tree of Athens” activation.                                                                              The game enables players to plant a virtual tree by
                                                                                                                                                                                                answering some simple questions. Coca-Cola plants
                                                               The Netherlands
                                                                                                                                                                                                a real tree for every virtual tree planted. For more
                                                               In The Netherlands Coca-Cola sponsors initiatives
                                                                                                                                                                                                information, see www.conocecocacola.com
                                                               to encourage young people to become more
                                                               interested in reading. Coca-Cola support the
                                                               De Jonge Jury, an annual event giving children
                                                               the chance to select their favourite new books.
                                                               ‘Mood cabins’ have been provided for over 20
                                                               secondary schools giving children a fun space
                                                               in which to read some of the short-listed books.
                         Coca-Cola Europe Business and Social Review 2005                                                                                   Coca-Cola Europe Business and Social Review 2005



28                       Coca-Cola around the world
                         The Coca-Cola Company worldwide employs approximately 50,000 people
                         in more than 200 countries, and our bottling partners employ many more.
                         Although this review focuses on Europe, here we outline briefly some issues
                         and initiatives from outside Europe that have global significance.



                         HIV/AIDS in Africa                                     Education in Asia                                                           Water in India                                          Labour rights in Colombia
                         The Coca-Cola system is the largest private sector     The Coca-Cola Company employs around                                        Water is a very valuable resource in India where        More than 2,000 Columbians are employed by
                         employer in Africa with over 60,000 employees          9,400 people in nearly 40 countries throughout                              supplies are limited. We are continually working        Coca-Cola bottlers. Nearly 10 years ago, a union
                         working for The Coca-Cola Company and                  Asia. It supports a range of local community                                to reduce our water use and our impact on the           leader was shot and tragically killed at the gate of
                         40 bottling partners in over 50 countries.             programmes, many of which focus on education.                               local environment. Between 2000 and 2004, we            one of these plants. Separate judicial inquiries by
                                                                                For example in China, the Coca-Cola system has                              reduced our water use ratios per litre of product       a Colombian court and the Colombian Attorney
                         As well as providing jobs and contributing in
                                                                                supported Project Hope for over a decade – an                               by 24% in India.                                        General found no evidence to support allegations
                         other ways to local economies, Coca-Cola
                                                                                initiative run by the China Youth Development                                                                                       that bottler management conspired to intimidate
                         supports a range of local community projects.                                                                                      Allegations have been made over the last
                                                                                Foundation to improve access to education in                                                                                        trade unionists.
                         In 2001 the Coca-Cola Africa Foundation                                                                                            two years that water use by our bottling plant
                                                                                rural areas. We have invested over US$4 million
                         was established. This focuses on three areas:                                                                                      in Kerala, India, was depleting local groundwater       We also commissioned Cal Safety Compliance
                                                                                (u3.2 million) in the construction of 56 Project
                         healthcare, education and the environment.                                                                                         levels. After an independent scientific study was       Corporation – an independent firm accredited
                                                                                Hope schools and 100 libraries.
                         The Foundation and our African operations                                                                                          conducted, the Kerala High Court determined             for social compliance auditing by the Fair
                         have donated approximately US $40 million              In the Philippines, the Coca-Cola Foundation                                that the primary cause of the water shortage            Labor Association and SA8000 – to conduct
                         (u32.3 million) to community work on the               Philippines supports the Little Red Schoolhouse                             was reduced rainfall over several years and not         an independent assessment of our bottling
$4 million               continent since 2001, including US $4.9 million
                         (u4 million) in 2004.
                                                                                project. Since 1997, this has helped to build over
                                                                                55 schools, and provide equipment and training
                                                                                                                                                            because of water use by the Coca-Cola plant.            partners’ operations in Colombia to ensure
                                                                                                                                                                                                                    their business practices meet the highest
                                                                                                                                                            To help replenish water resources we have installed
                                                                                for teachers.                                                                                                                       standards. The assessment found no evidence of
                         The Foundation’s healthcare programmes are                                                                                         rainwater harvesting systems in 22 of our plants
                                                                                                                                                                                                                    intimidation by management against any employee
                         targeted at the continent’s most urgent crisis:        In India, The Coca-Cola Company has partnered                               (more than 80% of company-owned bottling
                                                                                                                                                                                                                    or union official.
We have invested         HIV/AIDS. The Foundation expects to spend              with a range of NGOs including Child Relief & You,                          facilities in India) and in a number of communities,
over US$4 million in
the construction of 56   US $30 million (u24.2 million) on HIV/AIDS             Pratham, Prayas, the Naandi Foundation and                                  and we are expanding these efforts. A significant       More than 30% of those employed by Coca-Cola
Project Hope schools     programmes by the end of the decade. It supports       Literacy India to provide educational facilities in                         portion of the water we use is now returned to          bottling partners in Colombia are union members,
and 100 libraries        a range of education, awareness, prevention and        areas most in need of them.                                                 groundwater systems.                                    compared to a national average of only 4%.
                         treatment programmes in close partnership with                                                                                                                                             All unionised workers are covered by collective
                                                                                                                                                            Biosolids produced in wastewater treatment at our
                         organisations including UNAIDS, Hope Worldwide,                                                                                                                                            bargaining agreements regulating wages, benefits
                                                                                                                                                            Kerala bottling plant were distributed to farmers
                         the Global Business Coalition on HIV/AIDS and the                                                                                                                                          and working conditions. Our Colombian bottling
                                                                                                                                                            for use as a soil conditioner. It has been alleged
                         Nelson Mandela Foundation in Africa.                                                                                                                                                       partners work with unions and government to
                                                                                                                                                            that cadmium and lead were present in these
                                                                                                                                                                                                                    provide emergency mobile phones, secured
                         Employees of The Coca-Cola Company in Africa                                                                                       biosolids, but a study by the Kerala State Pollution
                                                                                                                                                                                                                    transportation to and from work, secure housing
                         and its 40 African bottling partners – and their                                                                                   Control Board deemed the biosolids produced by

                                                                                                                                      24%
                                                                                                                                                                                                                    and other measures to protect union leaders.
                         family members – are provided with access to                                                                                       our Kerala plants to be non-hazardous. We are
                         free antiretroviral medication, confidential testing                                                                               working with stakeholders to resolve this matter,       Coca-Cola has operated in Colombia for over
                         and counselling. More needs to be done to change                                                                                   and we continue to work with industry associations      70 years. We support initiatives which help
                         perceptions and remove the stigma associated                                                                                       and the Indian government to regarding proper           children, promote education and provide relief
                         with HIV/AIDS to encourage greater participation                                                                                   characterisation, handling and disposal of biosolids.   for the victims of the country’s ongoing conflict.
                         in our programmes. In 2003, 159 bottler                                                                      Between 2000 and                                                              In 2005, we provided US$10 million (u8.1 million)
                                                                                                                                                            For more information, see
                         employees received antiretroviral treatment                                                                  2004, we reduced                                                              to establish the Columbian Foundation for
                                                                                                                                      our water use per     www.coca-colaindia.com and www.cokefacts.org.
                         – only 16% of those estimated to need it.                                                                    litre of product by                                                           Education and Opportunity. A group of well
                                                                                                                                      24% in India                                                                  respected Colombians, including the President
                         On World AIDS Day, 1 December 2003, we
                                                                                                                                                                                                                    of the Colombian United Confederation of Workers,
                         launched the Big Match – an internal employee
                                                                                                                                                                                                                    is running this Foundation, which addresses the
                         volunteering programme that enables Company
                                                                                                                                                                                                                    needs of victims of violence.
                         employees in Africa to take time off to participate
                         in local HIV/AIDS and other community initiatives                                                                                                                                          For more information, see www.cokefacts.org.
                         of their choice. The Coca-Cola Africa Foundation
                         matches funds raised by employees up to a
                         maximum of US$500 (u400) annually per employee.
                                                                                Further details of our community initiatives around
                         For further information see                            the world are available in our 2004 Citizenship
                         www.AIDSprogramsinafrica.coca-cola.com.                Report (www.citizenship.coca-cola.com).

								
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