the link sustainability v18 final

ISSUE #9 THE LINK NOVEMBER 2020 GAUTENG, IT ALL STARTS HERE! Messages from DOING our leaders BUSINESS 2L returnable plastic SUSTAINABLY bottle in Gauteng Water Tanks for increased production A World Without Waste, our sustainability stories

PROFIT & PORTFOLIO Message from Hannes We launched the 2L RefPET in Gauteng Region in September, and we are in 91% penetration of the targeted outlets for the affordable strategy. This is a good effort by our commercial teams, but we need to ensure that we are in 100% of the targeted outlet population and encourage repeat purchases. Alongside driving penetration, we need to focus on executing the RefPET look of success within the customer, inclusive of displays and point of sale elements. In addition to customer penetration, Gauteng has embarked on a comprehensive consumer seeding programme over the period of October to December this year. We are aiming to seed to a total of 494 000 households to the value of R10 million. The seeding programme is aimed at consumer education of the RefPET packaging and will no doubt create increase consumer demand for this affordable pack. With alert level 1 in the country, more people and businesses are back to economic participation. We need to take advantage of that to ensure improved volumes and revenue performance. We, however, cannot lose sight of our safety and that of our families, so please, keep to the protocols as stipulated by the government and our risk department. Your safety is important to us! OPTIMISATION JOURNEY: As you know, CCBSA has embarked on an Optimization Project to mitigate the impact of the declining economy and associated factors on its business. Some of the factors include: . COVID-19 Stagnant growth Above-inflation increases (technical recession) in input costs We have concluded consultations with all our partners and are working with them to find suitable alternatives. We are optimally rescourced for the work we need to do; our sales front-end is fit for purpose, and our route to market is streamlined for the execution of our business plan. As we move increasingly into peak, let us keep our eye on the prize and finish strong in 2020. Our focus will be on four key elements that will drive our growth, namely: 1. Improve Grocery Channel performance through an increased share of voice and advertising activities and increased multi-buys. 2. Accelerate Immediate Consumption - Continue to increase contribution levels of our Sparkling Immediate Consumption packages, driving additional price/mix benefits. 3. Aggressively to grow out stills category with an acute focus on the water opportunity. 4. Aggressive Right Execution Daily (RED). I want to personally thank each of you for your commitment to our organisation and wish you the best of luck as we venture into our greatest peak yet! Cheers!

Message from Derin Message from Derin Rampersad, Regional Manufacturing Manager - Gauteng \"I hope that you and your families are safe. First and foremost, I would like to thank each of you for your unwavering support and commitment.\" \"It is critical that we continue to deliver production reliability and strive to meet the production through the execution of our daily routines.\" “Remember, it is you that truly makes the difference! Going into peak, let's please ensure that we maintain the rigour around all the Covid-19 protocols.\" = HAVE WE REFRESH AFRICA EVERY DAY AND MAKE THE CONTINENT A BETTER PLACE FOR ALL VISION BE WE NURTURE A CULTURE OF PASSION TO DO WE DO THE RIGHT THING ACHIEVE OUR VISION VALUES MISSION All that we do, we do with the highest integrity and drive to exceed on our commitments. We act with a FULL POTENTIAL sustainable growth mindset, take an expansive approach to what’s possible, and believe in continuous Profitability is important, but not at any cost. People matter. Our planet matters. learning to improve our business and ourselves. We value how we We are growing with a conscience. We do business the right way by following work as much as what we achieve. Weare: our values and partnering for solutions that benefit us all. PASSIONATE PASSION FOR CUSTOMERS AND CONSUMERS • About our business, brands, customers, people • We partner for growth with our customers through service excellence • We lead in trade execution excellence and the communities where we operate • We help our customers to grow by providing for consumer preferences • We build deep system alignment that benefits all • We are humble and confident in all we do PRODUCTIVITY LEADERSHIP EMPOWERED • We are thought and execution leaders in operational efficiencies • We think and act like owners • Using fewer resources for every US$1 revenue we generate • Accountability is clear and personal • So we can maximise market-facing investment • Our leaders mobilise our people, excel in execution, DONE SUSTAINABLY drive and transformation with agility • Start with facts, based in science INCLUSIVE • Grow our business while reducing sugar • Make packaging a circular economy, focus on 100% World Without Waste target • We have an inclusive culture where diversity is our strength • Use water more responsibly in our operations, return water to communities • We build winning capabilities • We work and win in teams FOR A BETTER SHARED FUTURE RESPONSIVE • Support local economies • Create inclusive growth opportunities for communities, women and youth • We anticipate potential risks and opportunities • Ethical local sourcing • We respond with a sense of urgency and agility • Deliver returns for our shareholders • Sustainability and safety underpin our license to trade ENGAGED, MOTIVATED AND INSPIRED PEOPLE ARE AT THE CENTRE OF ALL THAT WE DO We invest in employees’ personal growth and talent | Our people are proud to work for CCBA | Our leaders mobilise our people, excel in execution, drive transformation with agility

PROFIT & PORTFOLIO WINNING in the Affordable Market with 2L RefPET Why did the business decide to sell the 2L returnable plastic bottle? Gauteng Region has rolled out the 2L returnable market allowing for the consumer to enjoy our plastic (RefPET) bottle in September this year premium brands at affordable recommended which is available at in the local and traditional prices of R12 and R15 without deposit; it is the first market. This forms part of our 'win in affordable' returnable plastic bottle in the market and is pillar of the ACTION framework and aims to available in four of our premium brands, namely provide value for money to our consumers while Coke Original-Less Sugar, Fanta, Sprite and Coke- caring for the environment. The 2L returnable No Sugar. bottle has been developed for the affordable

How does the process work? The consumer will recognize the returnable plastic bottles by the 'RETURNABLE' marking found on the front of the paper label, on a green or yellow strip; they make an incredible saving by returning the empty bottle at selected outlets and get a R9 deposit back for returning reusable bottle, which is then collected by CCBSA back to a manufacturing plant: It will go on a looped journey to be cleaned to Coca-Cola's stringent measures and requirements; Then get refilled and distributed back to retail outlets in the affordable market. When the bottle reaches the end of its lifecycles, after being returned to CCBSA, it will be recycled and turned into another PET plastic bottle. What else are we doing to ensure that consumers know about the 2L returnable plastic bottle? Returnable PET innovative packaging is part of The Coca-Cola Company's World Without Waste vision, which focuses on the entire packaging value chain from how bottles and cans are designed and made to how they're collected, recycled and reused later. CCBSA is offering more consumers across South Africa value-for-money while playing its part in protecting the environment. Seeding… Our sales team has embarked on the seeding process which is an effort to bring awareness and educate the consumer about this incredible offering at the comfort of their homes with effect from October to December 2020. Working with the local distribution partners (LDPs) and ambassadors, the teams each visit the different households in our hosting communities and key focus areas where they sample the Coke Original-Less Sugar and Coke-No Sugar flavours. The teams have been qualified with the necessary skillset to engage the consumer; they wear Coca-Cola branded clothing for easy identification and to maintain a professional presence, they always put safety first by observing the 'covid-19 ways of working' guidelines by sanitizing their hands regularly and that of the consumer, wear a mask at all times and keep a safe physical distance. ReF PET

CONSUMER COMPETITION We have also partnered with some of the local media such as Alex FM and Eldos FM to run a consumer competition for a period of four weeks. Listeners were quizzed on the 2L returnable pack including pricing, different flavours, sustainability and where they can get the product; consumers were asked to call in to answer one of these questions and each won an awesome hamper with lots of goodies including a mini cooler, RefPET t-shirt and bucket hat, and at least two 2L returnable product.

DID ReF PET YOU KNOW? Quick benefits of the 2L This is what Thabo Mhlauli, a Team Leader at CCBSA Joburg Central District had to say during the seeding: returnable pack: = The price points of R15 and R12 make this 2lt pack very affordable to customers that want to buy a quality Coke product. This pack is unique to the market because it is the first returnable plastic bottle. Because of the affordable price points, more customers will be able to afford and buy the product, which means more sales and revenue for your business. The bottles are the same shape and size with paper labels so flavours do not have to be sorted by brand into crates when being returned. Every time you return an empty crate with 8 x bottles you receive a credit of R83.50. Storage and Returns: The 2lt Ref PET must not be stored in the sun, and it must be kept cool. Please make sure that you do not fill the bottles with any other liquids e.g. paraffin before returning the empty bottles and crates. Ensure that only 2lt REF PET bottles are returned in the crate and not normal 2lt bottles. Encourage your consumers to return the bottle with the Cap to keep it clean inside. Damaged bottles will not be accepted for a deposit and cannot be returned. KEEP SAFE, STAY ALERT AND LET'S WIN IN THE AFFORDABLE MARKET!



PROFIT & PORTFOLIO Doing Business, the Right Way – Water Tanks Project Water is the first ingredient in our Inside our operations, the Coca-Cola beverages, therefore, safe and clean water system is targeting to use is critical to the long-term success of our business. 1.7l 1lwater protdouce product Several countries in CCBA are water-stressed and in this context, we take our water stewardship across all our operations by 2020. responsibilities very seriously. We continuously need reliable access to water and continue to seek ways to In South Africa, CCBA has already reduce water use in our operations, while treating our exceeded this target and we are wastewater to the highest standards. Across the committed to maintain and further improve world, approximately 1.9 billion people live in our efficiencies in water management. potentially water-scarce areas. Globally, over 80% of the wastewater generated by society flows back into In addition, we will continue to leverage our the environment without being treated or re-used. By system expertise and partnerships to enhance 2050, the global water demand will have increased by and support local Governments' capabilities in 30%. our markets. As part of the world's leading beverage company, we As part of the world's have a responsibility to use water as respectfully and leading beverage efficiently as possible. Therefore, we continue to manage water resources through projects that reduce company, we have a water use in our operations, protect local water responsibility to use resources and provide safe, clean drinking water to water as respectfully and communities in need. efficiently as possible.

PROFIT & PORTFOLIO What is the Business need? It has been noticed that the municipal infrastructure currently in place for municipalities supplying CCBSA factories has been deteriorating, introducing risk to the sustainable supply of water. The frequency of interruptions has been increasing over time and predictions indicate that this would not subside soon. Each occurrence has a significant negative impact on the business. Considering this, the business has identified a need to minimise the impact of water interruptions by installing additional holding capacity on-site to sustain our operations for a period of up to 48hours. WHAT ARE WE DOING TO ADDRESS THIS ISSUE? We are installing at least fifteen water storage tanks across CCBSA sites; Gauteng Region will be installing five water tanks at the manufacturing or production plants: Devland and Midrand will install two water tanks each, and Wadeville will install one water tank. These water storage tanks are for the provision of water for the sustenance of operations for up to 48 hours, in the event of water supply interruptions from the municipalities. The capacity of tanks that could be installed at each plant is dependent on the space available. The tanks are of a non-corrosive sheet metal casing with an internal liner material that is for sealing. The sheet metal casing serves as a support structure for the liner and is supported by a concrete base.

We visited the Midrand site where the new water tanks are being installed. THIS PROJECT AIMS AT MITIGATING THE RISKS TO PLANT OPERATIONS: The factories will be able to remain operational despite municipal supply interruptions. The factories will be able to remain operational during possible water shedding. There will be flexibility to maximising the use of borehole water.



PLANET As the Coca-Cola system, we have committed to a “Well done to Gauteng Region bold and ambitious goal to help collect and recycle for all the dedication and hard work a bottle or can for every one we sell by 2030 to demonstrated during these inauspicious times. Since support local Governments' waste management the announcement of the Covid-19 lockdown by the objectives by making recycling more accessible. In Statesman Cyril Ramaphosa early this year, the PACS addition, our goal as a system is to make all our team continued to partner with both local and consumer packaging 100% recyclable globally. ”national governments to help bring much-needed relief to the communities where we operate. This is part of our larger strategy to grow with a conscience as we become a total beverage Pirtunia Dhlamini: company. Our commitment is to invest in our PACS Manager, Gauteng planet and our packaging, to help make the world's packaging problem a thing of the past. We encourage more people to recycle more often and we invest in helping people understand what to recycle, how to recycle, and where to recycle. We continue to work with local communities, NGOs, our competitors, and our critics to highlight this critical issue. Some of CCBSA Gauteng Region’s initiatives in 2020 This year we are faced with the Coronavirus Sector and other organizations have come pandemic which has negatively affected together since the pronouncement of the communities. The economy has also been National Disaster and country's lockdown to help adversly affected , intensifying existing social ills bring relief in the devasted communities by and economic challenges such as donating food parcels, relief water, personal unemployment, need for the essentials to name proactive equipment (PPE) such as face masks but a few. The South African Government, Private and hand sanitisation.

Mandela Month We believe that these investments will help CCBSA Gauteng Region partnered with the City of sustain a clean and healthy Johannesburg, Pikitup as well as the City's Waste Pickers to help bring relief to the waste reclaimers. environment as well as embrace social and The Executive Mayor of Johannesburg, Councillor Moloantoa Geoffrey Makhubo attended the event community development which was held in Soweto and thanked CCBSA for the for our hosting continued partnership and for being a socially communities. responsible organisation. During an interview with Soweto TV, Derin Rampersad, Regional Manufacturing Manager said that the waste reclaimers play a significant role in minimizing waste that goes to the landfill sites, \"CCBSA has donated appropriate PPE to 300 waste reclaimers from Region F (Johannesburg inner city) to the value of R75610.20 including 400 face masks, 300 gloves, 300 sanitisers, 300 aprons and 300 reflective jackets\" he concluded.

PLANET Derin Soweto TV interview National Clean-up and Recycling Month CCBSA Gauteng Region partnered with Pikitup,= City Parks and the City of Joburg (COJ) to upgrade the sports ground at Elias Motsoaledi informal settlement in ward 24 which is one of our hosting communities in Devland next to the plant. We have installed soccer and netball poles with nets, sponsored with two sets of soccer kits and thirty-six soccer medals, sponsored with fourteen netball medals, donated ten Coca-Cola indestructible soccer and netball balls, sponsored two sets of trophies for soccer and netball activities. The purpose of the event was to create awareness on the company's WWW ambitious targets and educate the community on the role they can play in helping us achieve this goal. #KleenaJoburg campaigns We continue to partner with #kleena campaign , which is an integrated programme to create a cleaner city.

THEEMPLOYEE COMPETITION TELL US HOW YOU THINK WE CAN ACHIEVE A Share with us your ideas on how we can create a shared value for our hosting communities. One or more winners will be announced on Yammer – Join CCBSA Gauteng Region Community today! RESPECT ROAD Life Saving Behaviours Conduct a pre-trip inspection Keep a safe following distance. Don’t drink and drive. Buckle Up -Wear a seat belt. Adhere to the speed limit. No texting whilst driving Drive responsibly