Flexibility in the Direct Store Delivery Supply Chain
Sean Maroney Vice President – Product Supply
Coca-Cola Refreshements
Classified - Internal use
r e f r e sh t he wo r l d , i n sp i r e
momen t s o f op t im i sm and
happ i nes s , c r ea t e va l ue and
make a d i f f e r en ce
our M I S S I O N
Classified - Internal use
Classified - Internal use
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consumers eve ry th i ng we do i s gea red
t owa rd connec t i ng
consumers w i t h ou r b rands
Classified - Internal use
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customers a l i gn i ng ou r No r t h Amer i c an
bus i ne s s t o be t t e r p l an and
deve l op s t ra t eg i e s w i t h ou r
cu s t omer s
Classified - Internal use
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communities ou r su c ce s s depends on
our commitment to
the communi ty
Classified - Internal use
our bus iness is growing
$14 Bil l ion b ran d p ort fo l io
The world’s #1 brand Classified - Internal use
• The Coca-Cola Company is the world’s largest beverage company
– More than 500 sparkling and still brands
– 14 Billion Dollar Brands – Coke, Diet Coke, Coke Zero, Fanta, Sprite, VitaminWater, PowerAde, Minute Maid
– World’s largest beverage distribution system in 200 countries
– 1.7 Billion servings per day
Our Company
• Coca-Cola Refreshments
– North America Operating Unit of The Coca-Cola Company
– Created in 2010 when the TCCC acquired Coca-Cola Enterprises and integrated it with CCNA, Foodservice, Minute Maid, and Odwalla businesses
– One of the largest vertical business integrations in US history
Our Company
Build a competitively advantaged North America Product Supply System that enables us to build brands, serve customers, generate growth and engage in our communities at an optimized cost.
Product Supply Mission
• High degree of vertical integration
– In many cases from raw/pack to the retail shelf
• Complex portfolio/Diverse Customer Base
– SKU count
– Varied customer sizes/needs/capabilities
– Supports occasion based beverage portfolio through variety of packages – drives POA
• Short Lead time – 24-48 hours from order to delivery
• Certain high volume segments of the marketplace are highly price elastic
Characteristics of our Operating Environment
Need for flexibility results from an imperative to leverage the product portfolio across a diverse customer base while maintaining our commitment to our communities and the environment.
• In other words – translate the power of the brands into value for the customer
• SKU proliferation is a key driving force
– More packages and products
– Higher variety of configurations, characteristics, marketing programs, closures/labels…
Business Case for Flexibility
Arctic Home
• Grocery/Mass Retail
• Club
• Convenience Retail
• Restaurant/Bar
• At-work – hospital, office, school
• Recreation – stadiums, amusement, golf
• Specialty – non-food retail
• Food Service
• Vending
Ideally, within reach of consumer desire
Diverse Customer Base
Product Segments
• Hydration – PowerAde, VitaminWater
• Sparkling
• Tea/Juice – Gold Peak, Minute Maid, Simply, Odwalla
• Water – Dasani, SmartWater
• Energy – Full Throttle, NOS, Monster
Market Segments
• Bottle/Can – cold vs. warm
• Fountain
• Refrigerated
Diverse Product Portfolio
• Segment the market in 2-dimensions
1. Characteristics of the retail customer
2. Characteristics of the brands and packages they sell
• Ensure we effectively evaluate opportunity in terms of market volume, product life cycles, complexity, cost, environmental responsibility…
Approach flexibility through Customer/Product segmentation
ENERGY & CLIMATE
SUSTAINABLE PACKAGING
WATER STEWARDSHIP
we na r r owed ou r
focus t o en su re max imum e f f e c t i venes s
target
100 94% recycling
rate
our Target 100
program challenges
our facilities to
redirect all solid
waste away from
landfills and into
productive recycling
efforts
250 million pounds of waste diverted From landfills
new coolers
and vending machines
50% more efficient
Use EMS-55 intelligent
energy to shut off l ights
and adjust temperatures
HFC reduction in our
equipment presents less
risk to climate change
20
f leet/transportation Our 600+ hybrid
electric delivery trucks
The largest fleet of its
kind in North America
They run quieter and
operate with about 30%
less fuel and emissions
Thank You