Unite spring2018 central

ASSOCIATE NEWS | ISSUE 22 | SPRING 2018

CANADA

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REFRANCHISING THE CANADIAN BOTTLING OPERATION Letter of Intent Signed

Meet LARRY TANENBAUM and JUNIOR BRIDGEMAN Read more on page 3.

CANADIAN NEWS

QUICK HITS

FROM BILL Welcome to the spring edition of UNITE. As you have probably all heard, The Coca-Cola Company has signed a non-binding letter of intent to refranchise Coca-Cola Refreshments Canada to a group led by Larry Tanenbaum, O.C. (Order of Canada) and Junior Bridgeman. You can read more about Larry and Junior on page 3.

This is an exciting time of change for our business, with the transition to CONA (Coke One North America) and System of the Future later this quarter and refranchising in the works.

Look for the new Coca-Cola Zero Sugar recipe on shelves now!

All of the successes we have achieved -- from accelerating revenue growth behind the dramatic increase of innovation and improving execution to increasingly digitizing our operations toward our journey towards becoming a world-class bottler -- are examples of the outstanding contributions each of you at CCRC have made. We’ve had a very strong revenue start to the year -all three operating units (led by Central) and every single market unit (led by Hamilton and Toronto/Kingston) are growing revenue.

The new recipe now tastes and looks more like Coca-Cola. Give it a try and experience the great Coke taste, still with zero sugar and zero calories because we’ve nailed it!

Importantly, safety performance has improved by 30% in 2018! The Quality index is also up nearly 13% compared to a year ago. On the Planning, Production and Distribution front, our teams were amazing. Week after week, actual sales exceeded forecast. Yet, the Supply Chain team reacted, despite over-delivery, all while simultaneously launching an unprecedented number of new SKUs and reorganizing the distribution ecntres and picking areas to accommodate them.

DEAR LEO

We’re building on all of that success in Q2 as we reach an important pivot point in our business. This spring we have the chance to complete the play with the fi nal wave of innovation until late August. We have exciting Hydration, Sports, Sparkling and Energy launches underway this spring. And, as always, we want to continue to make previous waves of innovation visible. We create unstoppable momentum when each wave of initiatives builds on rather than replaces the previous waves.

Our Local Ethics Officer (LEO) is here to answer all of your questions about operating ethically.

Let’s continue to focus on these launches and stay aggressive on space, leveraging the new Sparkling package sizes (you can read more about these on page 5) to increase Sparkling SOVI (share of visual inventory) in-store.

As the weather warms up, we have the opportunity to drive single serve -- especially in Small Store and Food Service On-Premise outlets. This is especially critical because as always, mix matters most.

Dear LEO, This requirement to always display my Company I.D. badge is annoying.

I’ll carry it when necessary, but do I have to have it on me at all times?

I know we will continue to execute with excellence, to innovate and win with our customers during the transformative time. I can’t wait to see what we accomplish together in Q2! As always, thank you for all that you do for Coca-Cola.

- Badge-free fan Dear Badge-free fan, We have security precautions in place and everyone is expected to comply.

In complying, we drastically reduce opportunity for outsiders to enter our Company premises and therefore we are protecting valuable Company information and assets, not to mention the safety of all employees.

Cheers,

- LEO

WE WANT TO HEAR FROM YOU! Email canadacommunications@coca-cola.com

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Associate News ISSUE 22 • SPRING 2018

CANADIAN NEWS

THE COCA-COLA COMPANY ANNOUNCES LETTER OF INTENT FOR REFRANCHISING OF CANADIAN BOTTLING OPERATIONS The Coca-Cola Company has signed a non-binding letter of intent with Larry Tanenbaum, O.C. (Order of Canada) and Junior Bridgeman to refranchise Coca-Cola Refreshments Canada. Through a new Canadian-based joint venture, these two proven leaders will bring their distinctive skills and expertise to support the long-term growth and success of the Coca-Cola business in Canada.

This letter of intent marks an important milestone in the Company’s refranchising journey as it puts in place the final non-binding agreement needed to complete the refranchising of all our company-owned bottling operations in North America. Currently in the due diligence phase, the prospective buyers are evaluating the business and the letter of intent is subject to the parties reaching definitive agreements, expected to occur later in the third quarter of 2018.

Larry Tanenbaum, a prominent Canadian businessman and philanthropist, leads The Kilmer Group, which has a long-standing history of successful businesses throughout Canada, including Maple Leaf Sports & Entertainment. Larry said in an interview with the Globe and Mail that that he and his businesespartner and son, Ken Tanenbaum, had spent several years “searching for a large-scale business in which we could apply our entrepreneurial energy and which we could love and nurture with a multi-generational perspective.”

Junior Bridgemenalso approaches the new venture with a multi-generational perspective after an extensive 30-year career as the owner and operator of one of the largest franchise restaurant operations in the United States. Junior joined the Coca-Cola bottling system in 2017 with the formation of Heartland Coca-Cola, covering territories in Kansas, Missouri and southern Illinois. “Coca-Cola has been a big part of my life and I am excited for this opportunity to be part of the Canadian business,” said Junior Bridgeman.

“Larry and I are committed to building on the traditions of The Coca-Cola Company while leveraging our heritage of putting people first, serving our local communities, and refreshing Canadians from coast to coast to coast.”

The two leaders take a customer-centric approach to the new venture, with Brideman’sextensive franchise leadership experience, he brings an in-depth customer focus to the bottling operation. Ken Tanenbaumechoed that approach, emphasizing that their strategy will be to work closely with store owners and sales channels to boost sales noting, “there’s a revolution playing out in retailing, and the customer will tell us where they want products. Our job is to always be an arm’s length from desire.”

PROJECTED TIMELINE FOR REFRANCHISING March 2018

Due diligence proceedings

Non-binding letter of intent signed

Q2-Q3 2018

Q3 2018

Q4 2018

Definitive agreement reached

Transition to new ownership

New ownership In operation

LARRY TANENBAUM, O.C. • • • •

Canadian philanthropist and business leader Chief Executive Officer of The Kilmer Group Chairman of Maple Leaf Sports & Entertainment Governor of the National Hockey League and Major League Soccer

JUNIOR BRIDGEMAN • •

•

President and CEO of Heartland Coca-Cola Bottling Company Founder of Bridgeman Foods, operated 200 restaurant franchises National Basketball Association legend

The partnership between Toronto-based Larry and Kansas City-based Junior unites two remarkable entrepreneurs. Both leaders are committed to the betterment of their communities, and invest with a long term vision.

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Associate News ISSUE 22 • SPRING 2018

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CANADIAN NEWS

CONA Q&A AT THE CCRC BOTTLER LEADERSHIP MEETING With the transition to CONA (Coke One North America) happening in a few short weeks, Senior Vice President of Business Transformation, Stephen Du Toit, hosted a panel of CONA experts at the Coca-Cola Refreshments Bottler Leadership Meeting in February for a question and answer period.

Question: How much did CONA impact your daily routine?

Danny Holstead, Chief Financial Officer, Coca-Cola Southwest Beverages (formerly Chief Financial Officer, Coca-Cola Refreshments Canada): “When you think about Day 1, everything needs to be set and it’s a big undertaking. But the transition team knows how to do this stuff, and they know how to do it seamlessly. The day after launch, we were churning 500,000 cases from 35 facilities.

We were up and running and it just continued as business as usual from there.”

Kady Slavin, Assistant Vice President, System Transformation Operations, The Coca-Cola Company: “One of the things that gives us all confidence is our standard playbook for System of the Future. We’ve done it dozens of times...Our standard play is going to work.

We have the perfect recipe for success.”

From left to right: Stephen Du Toit, Senior Vice President, Business Transformation Office for CCRC, Stephen Satchel, Senior Director, People, Strategy and Transformation for CCRC, Kady Slavin, Assistant Vice President, System Transformation Operations for The Coca-Cola Company, Danny Holstead, Chief Financial Officer for Coca-Cola Southwest Beverages and Dave Thornton, Business Process Director for Coca-Cola Refreshments.

Question: How do you stay focused on delivering the business plan through the transition process?

Danny Holstead: “Trusting the system is key. Each and every person in the system has been trained leading up to Day 1 and each person needs to stay focused on what they have do to. On Day 1 you go, ‘OK this is it, we’ve just dispatched our first route’ – and it works. You concentrate on it so much that first day, but after that, you’re back to business as usual as long as you stay focused on the priorities.”

Dave Thornton, Business Process Director, Coca-Cola Refreshments: “The training is so comprehensive that it becomes engrained in the process and it’s clear what needs to be done. It’s still the same company, delivering to the customer and that’s we have to focus on.”

Question: What’s the significance of the CONA training?

Stephen Satchel, Senior Director of People, Strategy and Transformation, CCRC: “We have 55,000 hours of training slated for Q2.

It’s the largest number of training hours we’ve ever allocated in CCRC history.”

Dave Thornton: “The importance of the training is that we’re not training for Day 1. We’re training for Day 1 and beyond. The knowledge that will be acquired of the new processes will help sustain and continuously improve the new processes and the overall business.”

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Associate News ISSUE 22 • SPRING 2018

CANADIAN NEWS

CHECK OUT OUR NEW PRODUCTS! CHANGING THE GAME IN THE HYRDATION CATEGORY WITH POWERADE ZERO AND vitaminwater active

POWERADE ZERO joins the Coca-Cola portfolio in Canada this quarter with three flavours: Fruit Punch, Mixed Berry and Strawberry.

Made with natural colours and flavours, the zero-calorie sports beverage also boasts an advanced electrolyte system.

Also making a splash in the hydration category is the new vitaminwater active. Standing out as an excellent source of antioxidant vitamins C and E, vitaminwater active contains 10% coconut water and a naturally-sourced electrolyte from sea salt. Enhanced with three key B vitamins and available in three refreshing flavours: strawberry black cherry, orange mango and lemon lime, vitaminwater active comes in a 100-calorie, 450 ml bottle flavor that’s filled with all natural colours and flavours to hydrate consumers on the go.

DRIVING SOVI WITH NEW SPARKLING PACKS SOVI can soar with the launch of new 4x310 mL packs from Sprite and Fanta, and the expansion of our 6x222 mL minican offering with A&W and Barq’s joining the lineup.

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Associate News ISSUE 22 • SPRING 2018

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CENTRAL REGION NEWS

FROM JOHN Heading into 2018, our key focus was to maintain the positive momentum around Accelerating Profitable Revenue Growth. Congratulations to the entire team for successfully making this happen! You are executing the “Framework Priorities” with excellence while ensuring all our new, exciting innovation is within arm’s reach of consumers.

As we tackle Q2, it is critical that we maintain our focus on executing in the market and accelerating Revenue growth, operating effectively and efficiently, and providing best in class service to our customers. We will also ask for everyone’s commitment to support and prepare for the CONA transition at the end of May. I know I can count on the Central team to make this important transition successful.

I can feel the positive energy and momentum as I travel across the Operating Unit and I continue to observe engaged individuals thriving in a “Freedom in a Framework culture”.

Thank you for your focus and effort, as we transform our future.

- John

LONDON ADDS PRODUCT TO COLD EQUIPMENT DELIVERY The London Distribution Centre is now delivering product with cold drink equipment.

The new Freedom in a Framework initiative in Southwestern Ontario ensures that customers are up and running with saleable product from the first day that they receive a piece of cold drink equipment.

In addition to improving customer service, the new service also saves on costs while driving immediate revenue. On a recent visit to the London Distribution Centre, Operating Unit Vice President, John Stiefelmeyer, called out this Freedom in a Framework initiative as one that drives efficiency, revenue and customer service and that has potential to be replicated across the Central operating unit and the country.

BRAMPTON GOES LIVE WITH CONA TV In preparation for the transition to CONA (Coke One North America) later this spring, Distribution Manager, Pat Donovan, launched CONA TV in Brampton.

Utilizing the facility’s existing televisions, Donovan put up informative slides on the new CONA devices that drivers and the sales team will be using in the coming months. The screens are developing familiarity with – and excitement for – the new devices amongst the team in Brampton.

Read more about the new CONA devices on page 8.

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Associate News ISSUE 22 • SPRING 2018

CENTRAL REGION NEWS

CUSTOMER CORNER: THE CITY OF OWEN SOUND

The City of Owen Sound has turned 25 outlets red with a new 10 +1+1 year agreement that’s estimated to bring in $250,000 in annual revenue. Included in the deal is the Bayshore Arena, home to the Ontario Hockey League’s Owen Sound Attacks who bring 300,000 patrons each year.

The successful win was a team effort brought forth by a positive relationship fostered by local team supported by Rob Dube, District Sales Manager, and Jason Bassett, Market Development Manager. Regionally, Stephanie Aiello, Key Account Development Manager and Michelle Inch, Account Executive diligently prepared the winning request for proposal response powered by our brand strength, world-class service, and strategic marketing initiatives prepared by Tracey Noakes and Rose Kwan. The long term partnership is a huge competitive win for the Barrie Distribution Centre led by Angele Craftchick.

CELEBRATING OUR PEOPLE Retiree Recognitions William Eran

ON

Milestones John Peters Timothy Gingerich Richard Uhrig Stojan Stojanovic Sylbert Lewis Tony Caradonna Timothy Sexton Michael Clark David Cusack Frank Rooke Robert Hamilton Daniel Leroux Ian Cunningham Nicolas Doukas Francisco Javier Sureshchandra Mistry Marc Brunelle Matthew Ormond Tankashwer Rajkumar John Webster Abdul Daher Philip Dunn Keith Carey Timothy Forbes Selina Achiaw Jason Foote Chris Chandler Gina Pietrangelo Steve Simms

YEARS OF SERVICE

36 YEARS OF SERVICE

ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON

45 40 40 40 40 40 40 35 35 35 35 35 35 35 35 35 30 30 30 30 30 30 30 30 30 25 25 25 25

Central Region

Milestones Chris Vogels Robert Best Garry Harrigan Trevor Gravel William Bagnell Malcolm Mac Neil Julius Abiog Emiliano Bago Errol Loney Robert Ramsammy Ernesto Jimenez Lun Choo Tom Strezos Marius Saroiu Kameron Cox Marlon Presley Richard Falconer Brian Clark James Leonard Michael Spytkowsky Wes Kubay David Cowan Franco Gallizzi Mike Matthews Sean Morrison Mathew Arand Jason Mooney Gord Parker John Chartrand Stephen Lancia Asko Makinen Dennis Wease

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YEARS OF SERVICE

ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON

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Milestones Puran Hanuman Colin Gilmour Roal Richards Michael Fawbert Fiona Stewart Mark Edghill Sreemattie Singh Andrew Sinclair Richard Daynes Derek Johnston Glen Davis Marco Visco Bill Ropcean Jason Paton Keri-Anne Sooley Chris Paradisi Matt Brooks Stephen Smith Michael Gaul Shawn Roy Judy Mitchell Robert Cepecauer Chris Chessell Jeff Dykstra William Lock Michael Hanhimaki Adam Hayes Todd Menard Yvan Pellerin Valenty Machnicki Anthony Baptiste Barry Amlin

Associate News ISSUE 22 • SPRING 2018

YEARS OF SERVICE

ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON ON

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CANADIAN NEWS

CANADA QUALIFIES FOR THE WOODRUFF CUP The Canada Business Unit has qualifi ed to compete for the 2017 Woodruff Cup (pictured left). The annual award honours the top-performing business market in The Coca-Cola Company’s worldwide business system. This year’s nomination marks the fi rst time the Canada BU has qualifi ed the Woodruff Cup since 2012. Nominated alongside seven other business units from around the world, this nomination comes from outstanding collaboration on key deliverables between Coca-Cola Refreshments Canada, Food Service On-Premise and The Minute Maid Company of Canada Inc. in 2017.

The Robert W. Woodruff Cup – named after our company’s longtime leader and one of the 20th century’s premier business leaders – rewards the business unit that meets or exceeds its business plan for net revenue and profit before tax – as well as grows value share versus the prior year. In Canada, this was also accomplished during a year of unprecedented change. President of Coca-Cola Ltd., Shane Grant, said of the nomination, “this important milestone demonstrates that we are making the right changes for the business, our consumers and our customers. It also demonstrates the power of our new operating model – that all of our employees are making significant process in executing.” The winner of the Woodruff Cup will be announced on May 20.

NEW HANDHELD DEVICES TO ROLL OUT WITH CONA The transition to the Coke One North America (CONA) system takes place later this quarter on May 26. With the transition to CONA comes a series of new devices to equip our teams. Here’s a preview of just two of the new devices you’ll be seeing in the coming months.

The aging delivery handhelds that our drivers use will be replaced with the Zebra TC75 (pictured bottom left), which have better battery life and smartphone capabilities.

Service technicians and sales associates will also be utilizing new devices, saying goodbye to the bulky Panasonic Toughbooks and Dell tablets and hello to Samsung Galaxy tablets (pictured bottom right).

Both the Zebra TC75 and Samsung Galaxy tablets have been extensively researched, tested and selected for their easer of use, durability and lightweight design. These new devices bring updated and scalable technology to the business and enable our field teams to go to market faster.

DID YOU KNOW? Between 2013 and 2017, more than 55,000 associates experienced System of the Future transitions in the U.S., and the vast majority of these associates became CONA users.

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Associate News ISSUE 22 • SPRING 2018

TRANSFORMING OUR FUTURE TOGETHER

President and Chief Executive Officer of The Coca-Cola Company, James Quincey presents Prime Minister Justin Trudeau with polar bear socks at the World Economic Forum in Davos, Switzerland.

JAMES QUINCEY MEETS JUSTIN TRUDEAU President and Chief Executive Officer of The Coca-Cola Company, James Quincey (pictured left) met with Prime Minister Justin Trudeau (pictured right) in Davos, Switzerland at the World Economic Forum earlier this year.

During the meeting, Quincey shared the Company’s leadership through our Beverages for Life strategy, including our work to reduce sugar and calories from our beverages in Canada. We also discussed the Company’s ongoing commitment to sustainability, specifically our new World Without Waste strategy.

Of the meeting, Trudeau tweeted, “I had a great first meeting with James Quincey, the new CEO of @CocaCola, focused on investing in Canada to create more jobs and how we can protect our oceans.” Quincey also presented Trudeau, a known fan of eclectic socks, with Coca-Cola polar bear socks for the meeting.

DID YOU KNOW? In 2016 Coca-Cola was the first Fortune 500 company to return to nature an estimated 115% of the water used in the production of its drinks. This water replenishment target, which the company first set in 2007, was achieved a full five years before its deadline.

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Associate News ISSUE 22 • SPRING 2018

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TRANSFORMING OUR FUTURE TOGETHER

OUR WAY FORWARD

is part of our strategy to become a total beverage company. We’re taking action “Inside the Bottle” and “Outside the Bottle” to give people the drinks they want – including options with less sugar – and the information they need to make informed choices.

These actions can be remembered as RED CAN.

CONVENIENT,

REDUCE SUGAR We’re making low- and no-sugar versions of the drinks you love easier to find.

In Canada, we offer more than

beverages, including 70 low- and no-calorie options.

EVOLVE RECIPES

SMALLER PACKAGES

Making it easier to control sugar.

100%

of our core sparkling brands in Canada come in packages of 237 mL or less. We also right-sized our 591 mL PET bottle to 500 mL – a 15% reduction in size.

ACCESSIBLE

140

INFORMATION

We’re looking to make many of our beverages better and more

EASY-TO-FIND

CALORIES PER CAN

calorie information right up front so you can make informed choices.

by providing vitamins, minerals and electrolytes that help fuel your body.

NO ADVERTISING TARGETED

We’re also adding new, sophisticated flavours to keep up with rapidly evolving taste preferences.

TO CHILDREN UNDER 12

We’re following our longstanding policy not to target advertising to children under age 12.

DIFFERENT DRINKS Realizing not everyone drinks soda, we’re making

We do not place advertising in media where the audience is over

35% children under 12.

like organic tea, coconut water, grab-and-go coffee, juices and purified water more readily available.

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Associate News ISSUE 22 • SPRING 2018

TRANSFORMING OUR FUTURE TOGETHER

WORLD WITHOUT WASTE CAMPAIGN LAUNCHES The Coca-Cola Company is leading the industry in announcing a bold, ambitious goal: to help collect and recycle a bottle or can for every one we sell by 2030. This goal is the centerpiece of our new global packaging vision, World Without Waste.

The Coca-Cola Company and its global network of bottling partners will tackle the ambitious goal, which is part of a holistic plan called “World Without Waste,” through a renewed focus on the entire packaging lifecycle – from how bottles and cans are designed and made, to how they’re recycled and repurposed.

To help improve recycling rates, Coca-Cola will apply its global marketing muscle to help educate the public on what, how and where to recycle. The Company also will continue to team with local communities, NGOs, industry peers and consumers to help make recycling easier and more accessible for everyone by improving local recycling systems and driving policy change that supports a truly circular economy.

Vice President of Public Affairs for Coca-Cola Ltd., Ron Soreanu, added, “in partnership with governments and communities, Coca-Cola Canada already helps to recover over 70% of bottles and cans in communities across the country. In addition, we divert an average of 97% of the waste generated by our facilities from landfill. We won’t reach our goal of 100% collection and recycling by 2030 alone, it will take collective action to make a real difference.”

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Associate News ISSUE 22 • SPRING 2018

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Learn more about the new World Without Waste campaign on page 11 or at www.coca-cola.ca