News

Growing in 2020 and beyond

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Stephen Lusk

07/08/2020

Yesterday, we published our results for the first half of the year. The last six months have seen major shifts in how consumers behave, and we are learning a lot. We’ve worked hard to turn these new shopper and customer insights into targeted plans for the remainder of the year to drive growth through the recovery. As we do so, supporting our communities and continuing a drive for a greener future are critical.

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How has consumer behaviour changed?

People are understandably looking to save or have less disposable income but we’re also seeing the importance of premium products, too – with people looking for a treat or indulgence in these challenging times.

There has been a clear shift to online with people much more reliant on technology in general. As more people work and spend time at home, they’re also looking to bring the cinema or bar experience into their house.

How will CCEP grow?

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Great drinks

We’re a leader in the sparkling drinks category, and we want to help the category grow with leading brands like Coca-Cola, Coca-Cola Light/Diet Coke and Fanta orange and Fanta flavours. There are big opportunities to grow brands like Monster, Coke Energy, Sprite, Fuze Tea and Tropico, and we have ambitious plans in coffee with Costa Coffee.

We will invest in a focused way to support this great family of drinks, and support it with the right mix of packs to drive growth.

Our new powerful marketing campaign, Open Like Never Before, encourages all people to live those exact words, be ‘open, like never before’, think differently and embrace change. Part of this campaign will include support for bars, restaurants and cafes. This builds on the existing support we’ve developed for this important sector.

In the Netherlands, we’ve provided 4,300 families will meal vouchers as part of our existing Helpthehoreca initiative. Similarly in France, we’re a founding member of JaimeMonBistrot which encourages people to return to their favourite restaurant and has generated over 7000 sales. These are just some examples of the work we’re doing in the countries where we operate.

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Great service

E-commerce is a significant channel for us, and our expertise here is a big part of the future. We want to have a digital presence in every channel – whether that’s gourmet food delivery, or doing the weekly shop online with a supermarket or food delivery website.

 

Online grocery

Our online grocery revenue grew 35% in the first half. Across our markets, our teams are working closely with customers on new solutions as buying habits change - including ‘store in a store’ concepts which showcase all our of products on a dedicated page or placement alongside products people buy as they look to recreate a bar or cinema experience at home.

 

Food aggregators

With restaurants and bars having been closed for so long, food delivery aggregators have increased in popularity with revenue growth of around 30% since the start of the year. There is also a growing trend for gourmet food delivery and we want consumers to be able to easily add a CCEP drink when ordering their meal.

My.CCEP.com

Our portal, My.CCEP.com, enabled us to process almost €1 billion in revenue last year. We are rolling out it out to more markets and customers – including wholesalers – and increasing its functionality including point of sale, promotions and dedicated marketing. We currently have around 30,000 customers using the platform, a threefold increase since the end of last year.

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Great people

None of this is possible without our world class sales and supply chain teams and the quality customer service they provide. I am hugely grateful to them for their hard work and dedication so far this year, and excited to see what they can achieve in the second half.

We also want to use these strong foundations to continue to create value for our customers. We were the top soft drinks manufacturer in terms of driving value in the first half - creating value growth of €225mn, nearly double that of our nearest competitor.

 And in Coca-Cola Zero Sugar and Coca-Cola we have 2 of the top 3 soft drink brands for value sales growth in the first half of the year according to Neilsen. Monster also performed strongly, with a place in the top 6.

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A green future

This is all supported by our commitment to a green future. A key part of this is our approach to sustainable packaging. In October 2019, we announced an evolved commitment to reach 50% recycled plastic (rPET) in our bottles by 2023, two years ahead of our original schedule, with the aim of achieving 100% rPET in the future.

We’re making progress - all our locally produced bottles in Sweden are now 100% rPET, a first globally for The Coca-Cola Company and we’ve invested in CuRe, an emerging recycling technology.

-- Stephen Lusk, VP Commercial Development Coca-Cola European Partners