2021 Integrated Annual Report

Highlights in 2021

• Strong momentum across all segments and continued expansion to become the leading 24/7 beverage partner, creating shared value with our consumers
• Maintained resilience in the sparkling category by leveraging low- and no-sugar variants, Adult Sparkling, flavours and different pack formats
• Achieved another year of strong double-digit revenue growth in energy drinks, with continued new roll-outs and launches
• Rolled out Costa Coffee in additional markets, bringing the product to 17 markets in total
• Acquired a stake in Caffè Vergnano, a premium coffee brand to complement Costa

Priorities in 2022

• Continue to prioritise scalable and profitable brands as well as products, whilst driving disciplined innovation
• Continue driving excellence in execution to capture the growing at-home occasion, while maintaining focus behind the out-of-home channels
• Increase the penetration of single-serves and affordable entry packs helping expand our price/mix
• Continue to drive growth in energy
• Continue to grow organically and roll out Costa Coffee and Caffè Vergnano, building our presence in one of the most attractive beverage categories

Highlights in 2021

• Supported the reopening of hotels, restaurants and cafés
• Strengthened our relationship with e-retailers and developed our partnerships with new channels, achieving higher market share online
• Accelerated the use of big data, advanced analytics and new technology
• Introduced the new Sales academy across all our markets, to drive our salesforce’s capability to deliver improved customer service, performance and execution
• Deployed image recognition technology to five new markets and increased our connected cooler coverage by +3pp

Priorities in 2022

• Continue to execute our revenue growth management through both price and mix acceleration, while addressing consumer needs for affordability as well as premiumisation
• Advance our big data and advanced analytics capabilities to further enhance our segmented execution model
• Continue to invest to improve our digital commerce abilities and respond to rapid growth
• Improve our coverage of dynamic route-to-market solutions across markets, supported by the deployment of image recognition in all markets and an acceleration in the increase of coverage in connected coolers

Highlights in 2021

• Supply chain costs as % of net sales revenue were decreased by 1.4 basis points in comparison to prior year
• Further implementation of advanced analytics supported roll-out of segmented execution to all markets
• Automation and digitalisation of manufacturing process
• Successful implementation of SAP’s S/4HANA for greater productivity

Priorities in 2022

• Continued focus and investment in digital commerce, underpinned by next generation digital marketing capabilities
• Smooth integration of IT systems for Egypt
• Introduce digital solutions for supply chain and demand planning
• Reduce the use of PET, accelerating package-less and refillable options and eliminating plastic from secondary packaging
• Expand predictive maintenance

Highlights in 2021

• Protected the health and wellbeing of our people as the COVID-19 pandemic continued, while further investing to support new ways of working
• Sought more feedback from our people, through the annual employee engagement survey and periodic pulse surveys, and acted on their feedback
• Strengthened the collaborative spirit and growth mindset values, which underpin our culture and continued our efforts to make learning available to everyone
• Launched a unique development experience for all our frontline sales people to upgrade their critical capabilities and enhance customer support
• Continued working towards a more diverse and inclusive workforce

Priorities in 2022

• Build unmatched sales teams by strengthening our commercial talent pipeline
• Drive an inclusive and purpose-driven culture by redefining culture narrative and updating our leadership model
• Continue simplifying processes and investing in capabilities necessary to achieve our growth strategy
• Continue efforts to build an inclusive workplace and a diverse workforce that reflects our customer base and communities

Highlights in 2021

• Announced NetZeroby40, our most ambitious environmental target to date
• Reduced our Scope 1 and 2 carbon emissions by almost 137 kilo tonnes compared with 2017 baseline
• Established Italy as the first Coca-Cola HBC country to launch 100% rPET bottles for all ‘on-the-go’ sparkling drinks and iced tea
• Investing in on-site PET recycling technologies in Poland, Italy, and Romania
• Achieved once again the status of Europe’s most sustainable beverage company in the 2021 Dow Jones Sustainability Index, and received ‘A’ ratings from the 2021 Carbon Disclosure Project (CDP) for climate change and water
• Continued to support the communities where we operate during the COVID-19 pandemic

Priorities in 2022

• Embed our net zero ambition across the business and in decision-making processes
• Continue reducing emissions from direct operations, and work with our suppliers to reduce Scope 3 emissions across our value chain
• Enter new partnerships in areas such as forestry and water replenishment to remove our residual emissions and meet our science-based targets for 2030
• Design a sustainable packaging strategy that will help us reach net zero, with a focus on test-and-learn for various package-less and refillable solutions across our markets
• Increase the share of rPET bottles in our portfolio for selected markets
• Continue to progress towards our collection targets by supporting the design and set-up of collection models with local market relevance