24 TheCoca-ColaCompany

Packagingplaysanessentialroleinmeetingconsumerneeds.Itisthefaceofourbrandsaroundtheworld,anditprotectsthequalityofourproductsduringdeliverytoconsumers.However,manypeopleconsiderpackaging,onceemptied,tobeaburdensomeproblem.WeareactivelyworkingthroughouttheCoca-Colasystemtocreatesolutionsbyadvancingaglobalsustainablepackagingstrategyaimedatpreventingwasteoverthelifeofourpackaging.

Withapproximately85 percentofourvolumedeliveredinrecyclablebottlesandcans,wefocusonthosepackagesbycreatingmorevaluewithlessmaterial,usingmorerecycledandrenewablematerials,andincreasingcommunityrecycling.

Todayourpackaginggoalsfocusonthreepriorityareasforeffectivelypreventingwaste:optimizingpackagingefficiency;increasingouruseofrenewableandrecycledmaterials;andeliminatingwastetolandfillsthroughrecycling.

Systemwidepackagingefficiencyeffortsin2009avoidedtheuseofapproximately85,000metrictonsofprimarypackaging,resultinginanestimatedcostsavingsofmorethan$100 million.Keyinitiativesdrivingtheseresultsincludedthecontinuedroll-outofshort-heightbottleclosureswhichreducePETuse;UltraGlassbottletechnology;traditionalpackagingmateriallightweighting;anduseofrecycledmaterialsinpackagingproduction.In2010,weimplementedacomprehensiveproductdatamanagementsystemfortheentireCoca-Colasystemwhichwillhelpustracksystemwideprogramsandmeasureourprogressagainstourpackaginggoals.

Creating Sustainable Packaging

2009 global packaging breakdown(basedon24.4 billionunitcases)

• PET–Nonrefillable 52%• Aluminum 13%• Glass–Refillable 12%• Fountain 10%• PET–Refillable 7%• Other 6%

52%

13%

12%

10%

7%6%

UnderSTanding oUr prodUcT liFecYcle

OurCompanyhasacommitmenttofullyunderstandingtheentirescopeofourproductandpackagingimpacts,andweareworkingtoadvanceourProductLifecycleManagement(PLM)leadership.WearecurrentlyimplementingamultimilliondollarproductdatamanagementsystemthatwillprovidefoundationalPLMcapabilitiestomanageandtrackglobaldatafortheentirelifecycleofourportfolio—fromrawmaterialsthroughtodesign,manufacturing,consumeruseanddisposal.HavingthisdatawillenabletheCoca-Colasystemtofurtheroptimizeproductsandquality,reducewaste,andimproveefficiencyandtraceabilityacrossourproductlifecycle.

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Learnmoreatwww.packaging.thecoca‑colacompany.com.

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Morethan50 percentofourbeveragevolumetodayisdeliveredinPETplasticbottles.Theaddedvalueprovidedbylightweight,shatter-resistantandresealableplasticbottleshasprovenimmenselypopularwithconsumersaroundtheworld.Efficiencyimprovementsinmanufacturingandtransport,togetherwithhighrecyclability,alsohavehelpedmakePETplasticbottlesasoundenvironmentalchoice.

However,inaworldwithgrowingpressureonourplanet’sresources,thebartomeetconsumerbeverageneedswithevenbetterenvironmentalperformancecontinuestorise.Tomeetthischallenge,weareconstantlypushingourCompanyandourbottlingpartnerstofindinnovativewaystoimprove.Weareworkingtocompletelyeliminatetheuseofnonrenewablefossilfuelsinourplasticbottleswhilemaintainingqualityandrecyclability.

In2009,weintroducedourbreakthroughPlantBottlePETpackage—theonlyrecyclablebottlemadepartiallyfromplant-basedmaterialsthatcanmeetourstringentbeveragequalityrequirements.PlantBottlepackagingusessugar-basedethanoltoproducethesamePETplasticusedtoday,butwithasmallercarbonfootprint.

WearecurrentlyinvestingmillionsofdollarsinPlantBottletechnologybecausewebelieveintheenvironmentalandsupplychainbenefitsitprovidestotheCoca-Colasystem.Weareconfidentthatthecostwilldecreasesignificantlyasweadvancethetechnology,andthebenefitsofPlantBottlepackagingarealreadyaddingup.In2010,weexpecttolaunch2.5 billionpackagesinninemajormarketsacrossEurope,LatinAmerica,NorthAmericaandPacific.Throughthisroll-out,wewilleliminatemorethan79,000barrelsofoiluseforoursystemthisyear.

In2009,wealsocontinuedtoenhancethesustainabilityofbottlesthroughourleadershiponrecycledcontenttechnology.Fornearlytwodecades,theCoca-Colasystemhashelpedadvancecutting-edgetechnologiesforusingrecycledplasticbackinbottles,includinginvestmentsinsixbottle-to-bottlerecyclingplants.

increasing Renewable and Recycled Material use

whY noT biodegradable boTTleS?

While biodegradable packaging can be a sound choice for products that are not commercially recyclable, the process of capturing the embodied energy and raw materials in beverage bottles for reuse through recycling is, in our view, a much better option. a one-use bottle is simply not a viable option for our business.

We plan to use Plantbottle packaging in every bottle we sell by 2020.

26 TheCoca-ColaCompany

VancoUVer olYmpic gameS acTiVaTion

Forthe2010VancouverOlympicGames,wewereabletomakeourpresencecarbonneutralbyoffering100 percentcompostablebeveragecupsandlids,debutingourPlantBottlepackagingandactivatingCoca-Colagreenteamsin172communitiesthatcollectedPETcontainers.Wealsoused126PETplasticbottlesforeachofthe600Coca-ColaOlympicassociateuniforms,totaling75,600recycledplasticbottles.

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Ourglobaltargetistorecovertheequivalentof50 percentofthebottlesandcanswesellworldwideannuallyby2015.In2009,oursystemsupportedthedirectrecoveryof36 percentofthebottlesandcansweplacedintothemarket.

Torealizeourlong-termsustainabilityaspirations,therecoveryofourbeveragecontainermaterialsforreuseiscritical.Weareactivelyengagedaroundtheworldprovidingleadershipandfundingtohelpestablishandgroweffectiverecoverysystemstoensurethevaluablematerialsusedinourpackagingarerecoveredandusedagain.Werecognizethatakeytodrivingrecoveryisensuringmarketdemandformaterialscollectedisstrong.Wewerethefirstcompanytouserecycledcontentinbeveragepackagingandhavehelpedfundsixbottle-to-bottlerecyclingplantsaroundtheworldtohelpdrivedomesticendmarkets.WealsouseourtrademarktohelpadvancealternativeendmarketsthroughrecycledPETretailmerchandise.Thisensuresvaluefortherecycledmaterialsandhelpseducateconsumersonwhatourpackagescanbecomewhentheyarerecycled.

Werecognizewewillnotbesuccessfulactingalone.Weareconfidentthatthroughcollaborationwithgovernmentandotherindustrypartnerswewilladvanceourvisionfasterandwithalargerpositiveimpact.Wearesupportingandadvancingproductstewardshipmodelsaroundtheworld.Althoughrecyclingandwastemanagementareverylocalissues,weareadvancingindustryrecoverymodelsthatarecloselylinkedwiththeeconomicdevelopmentofaparticularmarket.Indevelopingmarkets,weareworkingwithgovernmentandindustrytotransformthecurrentinformalcollectionsystemsintoformalmodelsthatdriverecoveryofmaterialwhilecreatingsustainablejobs.Indevelopedmarkets,wesupportextendedproducerresponsibilityapproachesthatincludecomprehensiverecoveryofmaterialsthroughindustryrecoveryorganizations.

investing in Recycling Programs

cUSTomer recYcling parTnerShipS

Coca-ColaArgentinapartnerswithalarge-scaleretailcustomertocreate“OptimismoqueTransforma”(translatedasOptimismTransforms),aprogramtogenerateawarenessabouttheimportanceofrecyclinginorganicwastesanddrivingreuseopportunitiesforPET.Throughtheprogram,consumersareencouragedtorinseandseparateusedpackagesbeforedepositingtheminrecyclingstationsattheretailer’slocationsinCapitalFederal,GreaterBuenosAires,Córdoba,SantaFé,ParanáandMendoza.

Learnmoreatwww.communityrecycling.thecoca‑colacompany.com.

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Bottle-to-Bottle Plants

Wehavehelpedfundsixbottle-to-bottlerecyclingplantsworldwide,recyclingmillionsofpoundsofPETannually.Initsfirstyearastheworld’slargestbottle-to-bottlerecyclingplant,Coca-ColaNorthAmericaandUnitedResourceRecoveryCorporationinSpartanburg,SouthCarolina,recycledmorethanahalf billionPETbottles.Atfullcapacity,theplantwillproduceabout100 millionpoundsofrecycledPETforreuseannually.Thesecondlargestbottle-to-bottleplant,IndustriaMexicanadeReciclaje,S.A.deC.V.(IMER)1isthefirstfood-graderecyclingplantinMéxicoandthefirstofitstypeinLatinAmerica.IMERhasthecapacitytorecycleapproximately50 millionpoundsofPETannually.In2009,IMERincreaseditsproductionby30 percent,recycling32 millionpoundsofPET,producingnearly20 millionpoundsofrecycledfood-graderesinusedtoproduce1.4 billionnew600mLPETbottleswith35 percentrecycledcontent.

GloBal ReCYClInG allIanCe

Our Company is the founding sponsor of the Global Alliance for Recycling and Sustainable Development (GARSD), a network of companies, governmental agencies and NGOs created in 2007. The global alliance encourages developing and emerging markets to adopt proven selective collection and recycling models, which create a safer and more socially sustainable environment for the millions of people who earn their living from collecting recycled materials. In 2009, we brought together GARSD members and other interested stakeholders from around the world to share best practices and see firsthand how government and industry have joined forces to use recycling to help build sustainable communities.

1IMERisapartnershipbetweenourCompany,ourbottlingpartnerCoca-ColaFEMSA,S.A.BdeC.V.(Coca-ColaFEMSA)andAlplaMexico,S.A.deC.V.

PaRtneRInG WItH oCean ConseRvanCY

Thereareanumberofstudiesunderwaytounderstandtheeffectsofmarinedebrisontheenvironment.Solvingissueslikemarinedebrisrequirescollaboration,andthatiswhywehaveworkedwithOceanConservancyforthepast15 yearstohelpaddressthisissue.Thisyear,inadditiontoprovidingfinancialandin-kindsupporttotheNorthPacificGyreresearchexpedition,ProjectKaisei,ourCompanyalsosponsoredtheparticipationofascientistfromOceanConservancy.Theexpeditionfocusedoncleanupopportunitiesaswellascontinuedresearchonunderstandingthesourcesofmarinedebrisandscopeoftheissue.Uponcompletion,weco-hostedaworkshoponacceleratingsolutionsformarinedebriswithOceanConservancy.Theworkshop,facilitatedbyTheKeystoneCenter,broughttogetherthoughtleadersandpractitionersfromgovernment,industry,academiaandtheNGOcommunitywhoarecommittedtoadvancingresearchandsolutionsontheissue.TheworkshopoutcomesarenowprovidinginputintothedesignandcontentoftheInternationalMarineDebrisConferenceinMarch2011.

111 navY CHaIR

The 111 Navy Chair, the result of a joint venture between our Company and the furniture manufacturer Emeco, is created by combining 111 Coca‑Cola PET bottles and a combination of other materials, including pigment and glass fiber, for strength. It is estimated that more than 3 million PET plastic bottles will be repurposed annually for the production of 111 Navy Chairs. In addition to chairs, our growing recycled PET retail merchandise includes bags, caps, notebooks and T‑shirts.

Learnmoreatwww.packagingreuse.thecoca‑colacompany.com.