For internal use only
Bienvenido! Summary
Transandina Facts
The Coca-Cola Company in Peru
NAB´s Figures
Transandina Franchise Unit OverviewPositive Macroeconomic Context within the RegionCompetitive landscape becoming more dynamic and challenging
Favorable Operating ContextInfrastructure Mapping
Industry StructureKO Portfolio Performance2014 Business Priorities
04
08
13
Welcome to Perú, land of millenary tradition and culture, land of the Incas who built Macchu Picchu, and home to one of the best cuisines in the world.
Peru has been enjoying a sustained economic growth for the past 10 years, and this growth has allowed for renewed optimism and the emergence of a new buoyant middle class.
Coca-Cola has been a part of Peruvians since its arrival on New Year’s Eve 1936, it is one of the most admired companies and loved brands in the country, and recognized for being a responsible citizen.
The business, like the country, has grown in the past years, and is ready to take the next step, with state of the art bottling plants which offer increased production capacity, a new execution model and solid plans for growth.
3
Market Execution @ Traditionals
Market Execution @ Modern Channel
Business Life
The Execution ModelOur Picture of SuccessAssets expansionShopper MarketingRoute to Market Long Range Plan
The Execution ModelOur Picture of SuccessKey Accounts Management
Key Initiatives
18
25
29
| Summary
4
ECUADOR
CHILE ARGENTINA
COLOMBIA
VENEZUELA
BRASIL
Inhabitants: 6.8 MM GDP Per Cap: US$4,401Area: 407M km2
Bottler Since: 2005KO Vol: 61 MM UCKO SOM w/SSD’s: 60.5%KO SOM w/NARDT: 57%Per Caps: 216 Bot 8oz
Transandina Franchise Unit Overview
POPULATION
• 52.4 MM inhabitants• 1/3 of the population living in
rural areas• GDP Per Cap: US$ 4.1M• Young Population, 50% under
the age of 30 and an average age of 28.
Inhabitants: 31.2 MMGDP Per Cap: US$6,603Area: 1.3 MM km2
OVERVIEW SYSTEM PROFILE FY 2013
Bottler Since: 1999KO Vol: 275 MM UCKO SOM w/SSD’s: 69.6%KO SOM w/NARDT: 56%Per Caps: 211 Bot 8oz
Inhabitants: 11.0 MM GDP Per Cap: US$2,455Area: 1.1 MM km2
Bottler Since: 1995KO Vol: 123 MM UCKO SOM w/SSD’s: 68.0%KO SOM w/NARDT: 60%Per Caps: 268 Bot 8oz
Inhabitants: 3.4 MM GDP Per Cap: US$16,539Area: 176M km2
Bottler Since: 2005KO Vol: 46 MM UCKO SOM w/SSD’s: 60.6%KO SOM w/NARDT: 36%Per Caps: 325 Bot 8oz
TERRITORY
• 2.983MM km2• Diverse Ecosystems: Amazon
Jungle, Andes Mountains, De-serts and Coasts
• Agriculture, Mining and Natural Gas are the Main Resources, Peru & Bolivia together own largest gas reserve in Latin America
PERU
BOLIVIA
PARAGUAY
URUGUAY
Transandina Facts |
5
Positive Macroeconomic Context within the Region
Growth moderation & weak politic leadership
PERU
BOLIVIA
PARAGUAY
URUGUAY
Political issues impacting Busi-ness & Consumers’ confidence.New International context mod-erating Peru’s growth.
Strong economic policy, with net reserves @ 53% of GDP.Government interventionism ris-ing (anti-American & Chilean).
Strong agro-economy depend-ence driving growth volatility.Brazil’s Real depreciation fuelling border challenges.
Strong fundamentals & foreign investing support Peso apprecia-tion. Inflation to slowdown from 8% to 6%.
Economic stability, but unpredictable business environment
Restrained private consumption, in line with economic activity
Stable growth with inflation challenges
4.5%
4.6%
4.4%
Private Consumption 2014-2016 Growth
Stable growth, lower than past years.Social Inclusion & poverty reduction as part of presidential agenda.
In practice strong economic ties prevent actions. Presidential elections (2014) with Morales as favorite.
New President Cartes to restore economic growth and interna-tional relationships, but posing challenges within the party.
Argentina’s inflation as a threat to our stills exports model.Presidential elections (2014) challenging for Mujica.
4.4%
| Transandina Facts
6
Competitive landscape becoming more dynamic and challenging
Strong Competition focused in Stills New Competitive Dynamics
Plain Water as main challenger to SSDsPepsico relaunch has not brought dynamism to market
333041
2007
Cifrut
15
22
1820
24
2022
27
8
2010 2013
Kola Real Cielo
Sporade Other
22% SOM w/NARTD, driven by Cielo.
Distribution challenges with AMBEV
AJE Volume mix by brand
Nov ‘11
SOM PCI w/NARTDSOM PCI w/SSDs
Nov ‘12 Nov ‘13
9%
8%
10%
8%
2008 2013
+5.8pp 28.5
22.7
SOM Danone w/NARTD
• After re-launching 2 years ago, PCI has stabilized with minimal SOM gains
• Expansion beyond Modern Channel & outside Asunción has captured share mainly from other players (Niko &Pulp)
• Danone capturing +6pp in NARTDs (5 years) driv-en mainly by Plain Water
• Flavored Water still an under-developed business
• Started operations in late 2013 • Present in 3 main cities with focus
in Santa Cruz, currently importing products from Peru
• 3rd Party Distribution System• Categories: SSDs, Water, Sports,
Juices & Juice Drinks• -15% Price Gap vs. TCCC
• Acquired MILOTUR (Nativa Water #2, SOM 15% and NIX SSD B-brand, SOM 6%)
• Plans to enter Beer market, importing from ARG
Transandina Facts |
↘ Launched as a tactic action under Teens Campaign “Efervescencia” from August to September 2013. “Coca-Cola Names” activation PET 500ml labels was complemented with a strong BTL and digital support: 153M BTL contacts to print customized bottles, 100M contacts through Facebook App to visualize customized names in our digital OOH. From the business perspective, results were excellent: volume grew +22% vs. PY, capturing +1 Pts in SOM.
8
Machu Pichu, one of the 7 wonders of the world, is located in the
city of Cusco
Lake Titicaca, South America´s largest lake at 3821 meters above sea level, is the highest navigable lake on earth
Top Culinary Destination
The Coca-Cola Company in Peru |
9
Favorable operating context
NSE Distribution
NSE A
NSE B
NSE C
NSE D
NSE E
2005 20131.3%
5.7%
16.8%
26.5%
49.7%
1.9%
9.4%
23.1%
27.1%
38.4%
SOCIOECONOMIC INFORMATION
Inhabitants
2 of 3 households are located in urban areas
Gross Domestic Product % vs. PY
5.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
6.8%7.7%
8.9%9.8%
8.8%
6.9% 6.3%5.0%
0.9%
Consumer Inflation
3.5
1.51.1
0.2
3.9
6.7
2.1
4.7
2.6 2.9
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Foreign Investment BB US$
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1.52.5
3.4
5.46.9 6.4
8.4 8.2
12.213.6
MACROECONOMIC INFORMATION
| The Coca-Cola Company in Peru
7.8MMhouseholds
RURAL AREA
22%
URBAN AREA
78%
10
Infrastructure Mapping
IQUITOSProducts: SSD’s & Water
Lines: 2Capacity: 10.4 MM UC
per yearDISTANCE FROM LIMA 1,009 km
CUSCOProducts: SSD’s & Water
Lines: 2Capacity: 19.1 MM UC per year
DISTANCE FROM LIMA 1,165 km
AREQUIPAProducts: SSD’s & Water
Lines: 6Capacity: 66.7 MM UC per year
DISTANCE FROM LIMA 1,030 km
TRUJILLOProducts: SSD’s & WaterLines: 6Capacity: 116.4 MM UC per yearDISTANCE FROM LIMA 570 km
LIMA RimacProducts: SSD’s, Water, Stills, Energy & Sports DrinksLines: 6Capacity: 74.9 MM UC per year
CallaoProducts: SSD’sLines: 6Capacity: 116.3 MM UC per year
Frutos (Zarate)Products: Water, Nectars, Stills & Sport DrinksLines: 10Capacity: 93.3 MM UC per year
The Coca-Cola Company in Peru |
11
Infrastructure Mapping
INVESTING FOR THE FUTURE
Pucusana Products
SSD’s, Water, Stills, Energy & Sports Drinks
Lines Capacity
165.9
Investment
US$ 200 MM
Completion
November 2014
| The Coca-Cola Company in Peru
↘Plant Bottle was launched in October 2013 with a complete IMC. Special events targeting media and key influencers generated aproximately US$ 50,000 in free publicity.
Un paso más haciala botella del futuro.Hecha hasta con 30% de materialde origen vegetal. 100% reciclable.
conoce más enwww.coca-cola.com.pe
13
KO participating in 71% of volume & 77% of value
NAB’s INDUSTRY
Pack & Price Architecture
Channel Mix & SOM
NARTDi.e. LIMA LOW SEL
Package Mix
KO
SS OW 34%SS OW 25%
SS REF 9%
MS REF 19%SS REF 10%
MS REF 16%MS OW
41%MS OW
47%
100%90%80%70%60%50%40%30%20%10%0%
0% 10% 20% 30%
M&P OP SS S&H
40% 50% 60% 70% 80% 90% 100%
53.9%55.1%
38.7% 41.6%
2.1%4%
3%
52.2%
7.5%
23%
7%8.6%
10.7%
30%
7%
8.1%
16%
7%13.8%
TCCC AMBEV AÑAÑOS MILLER OTHER
10.7%
SSD's Reg 296.5 -2.8 55% 69.2% 1.1 100
Plain Water 105.0 4.4 19% 35.5% 0.3 45
Dairy 30.0 7.0 6% - - 192
Juice Stills 24.9 3.2 5% - - 76
Juice Nectars 23.2 -8.0 4% 52.1% 2.4 124
Bulk Water 22.1 6.5 4% 54.8% -2.5 30
Sports Drink 20.4 -5.6 4% 26.8% 4.5 125
Tea RTD 7.9 83.8 1% - - 95
Flavored Water 4.8 1.7 1% 81.5% 2.6 104
SSD's 0-Cal 4.4 3.1 1% 89.1% 3.1 130
Energy Drink 0.3 -30.5 0% 4.5% -9.0 801
KOMM VAR VS PY (PTS)
UC MIX PRICEINDEXVAR VS PY
(PTS)
SOM
SOM KO
| NAB’s Figures
192 ML RGB
SOLESUS$
0.500.18
1.000.36
1.200.43
1.500.54
1.800.64
400 ML RGB
330 ML RGB
500 ML RGB
625 ML RGB
LIMA LOW SELENTRY FREQUENCY UPSIZE
RGB 1.0 L
SOLESUS$
2.50.9
4.01.43
4.51.61
PET 1.5L RP 2.5L
MM UC MM UC
14
PORTFOLIO
NAB’s Figures |
SSD’s# of SKUs SOM (UC) SOM (TX) SOM (Val)
2013 vs PY 2013 vs PY 2013 vs PY
20 25.0% 0.5 26.8% 0.3 25.1% 0.3
18 28.5% 0.6 32.4% 0.7 29.0% 0.1
23 7.3% 0.4 7.2% 0.6 8.5% 0.8
16 4.2% flat 4.2% -0.1 4.7% 0.5
5 0.2% 0.2 0.3% 0.2 0.1% 0.1
13 2.9% -0.6 2.6% -0.6 2.7% -0.5
Zero Cal.
12 1.4% 0.1 2.0% 0.1 1.6% 0.1
Total SSD's 113 69.6% 1.2 75.5% 1.2 71.6% 1.5
15
PORTFOLIO
| NAB’s Figures
Stills# of SKUs SOM (UC) SOM (TX) SOM (Val)
2013 vs PY 2013 vs PY 2013 vs PY
20 52.1% 2.4 55.0% 3.1 52.9% 1.6
12 37.7% 0.2 38.5% 1.3 35.4% 0.3
8 81.5% 2.5 86.4% 4.2 85.4% 6.3
10 22.3% 0.3 22.1% 1.0 23.1% 0.1
2 4.6% 4.2 4.0% 3.6 4.6% 4.2
2 4.5% -9.0 4.1% -7.6 4.9% -8.8
Total Stills 54 34.4% 1.6 36.3% 2.6 35.5% 1.9
16 Business Priorities |
2014 Business Priorities
LEAD A HEALTHY & ROBUST GROWTH OF
SPARKLING SOFT DRINKS CATEGORY↘ Promote Category Trust
↘ Focus on Core Sparkling brands (lead by Coca-Cola and Inca Kola)
↘ Develop Multi Serve Returnables Portfolio
EXPAND SINGLE SERVE↘ Ensure Entry Pack
massive presence↘ Build the Habit
across key targets
ENSURE QUALITY LEADERSHIP IN STILLS↘ Win in Plain Water & Isotonics
ACCELERATE BOTTLER CAPABILITY DVELOPMENT↘ Be our customer´s preferred partner in all key channels↘ Win at the point of sale
GROW INFRASTRUCTURE TO MEET FUTURE CONSUMER DEMANDS
17
↘Early in 2013 the 8Oz NRGB Coca-Cola iconic bottle was introduced, aiming to offer Peruvian consumers the great taste and experience of an ice-cold Coca-Cola, targeting to develop leisure at home ocassion.
LEAD A HEALTHY & ROBUST GROWTH OF
SPARKLING SOFT DRINKS CATEGORY↘ Promote Category Trust
↘ Focus on Core Sparkling brands (lead by Coca-Cola and Inca Kola)
↘ Develop Multi Serve Returnables Portfolio
EXPAND SINGLE SERVE↘ Ensure Entry Pack
massive presence↘ Build the Habit
across key targets
ENSURE QUALITY LEADERSHIP IN STILLS↘ Win in Plain Water & Isotonics
ACCELERATE BOTTLER CAPABILITY DVELOPMENT↘ Be our customer´s preferred partner in all key channels↘ Win at the point of sale
GROW INFRASTRUCTURE TO MEET FUTURE CONSUMER DEMANDS
18
The Execution Model
Market Execution @ Traditionals |
19
The Execution Model
Segmentation model is updated on an annual basis, and allows us to:
321
| Market Execution @ Traditionals
Aspiring for a “Design to Execution’’ process integrated under a single platform
Segmenting our Customers
DESIGN OUR ROUTE TO MARKET
FOCUS OUR INVESTMENTS
DEFINE OUR PICTURE OF SUCCESS
KNOW
AC
TIO
N PLA
N
LEARN
EXEC
UTE
DESIG
N
UN
DER
STA
ND
MEASURE SEGMENT
Current Focus on main enablers to assure our Design Execution Process:
IT Developments Data Base Management
Commercial Routines
Structure &Capabilities
We maintained our segmentation process based on leadership and collaboration.
Defining our execution strategies and resour-ces allocation by cluster.
Establishing a dynamic Collaboration Matrix to match a constant changing industry…
…maintaining our model, but simplifying our market strategy: 2 clusters segmented by NARTD investment.
Lead
ersh
ip
TP SP
TP TXCollaboration
MIX PDV
S/. 200
2010
26% 8%
54% 12%
INCREASESOVI
EFFICIENCY INCREASETXS.
DEVELOP
OCASSIO
N &
CATEGORIES
MIX PDV MIX VOL
S/. 450
2014
24% 9%
48% 19%
69%
31%
20
1 DEFINE OUR PICTURE OF SUCCESS
The Execution Model
Securing 3 pillars to continuously develop occasions at the Point of Sale.
A SKUs Prioritization
A SKUs Prioritization: better matching market potential and Point of Sale reality
B Market Assets
C Shopper Marketing
S/370S/200
S/100
31 SKUs
16 SKUs
Di�erent realities, not only by SEL but also by investment capacity
The defined portfolio was not aligned with the real store outlays levels
Min WEEKLY outlay to fulfill Picture
of Success:
S/280
Weekly Avg Investment Avg SKUs Handled by Month
Market Execution @ Traditionals |
Low Sel
High Sel
… to a strategic Picture of Success by SEL & Store Potential(4 Pictures of Success by Potential & SEL,
2014
Adjusting our Portfolio by:• Matching POS investment to potential
(# of SKUs)
• Maintaining Competitiveness and covering max occasions.
• Executing Strategic Priorities by SEL
• Looking and executing at Competition’s PARETO.
Low Sel
High Sel
We migrated from a Picture of Successdefined by SEL...(2 Pictures of Success - HIGH & LOW SEL)
2013
21
B Market Assets: even though we have maintained a strong investment Plan over the last years, we still have massive potential in executing assets introduction…
FULL
Activation intensity
MEALS
Meals as core occasion.
FULL ACTIVATION
TRANSITION• Poster Frame
• Stopper• Permanent material
• Table and Chairs
DESTINATION• Value Wall• Rack NBs
IMPULSE• Promo Cube
Hig
h SS
MIX
PO
S
Co
mp
. Par
eto
PO
S w
ith
hig
h ac
t. le
vel
Value Wall
PromoCube
RackIC
TableKit
3.2%
6.2%
3.2%
43.1%
KITCoverage
MID
STANDARD
StillsRack
Store Front
BASIC
Execution Theme Kit defined per Strategic Occasion + Strategic Occasion defined per Point of Sale clusters = Mapping of Execution Theme investment potential and opportunity
| Market Execution @ Traditionals
‘09 ‘10
CDEExecuted 84 US$MM over 5 yrs.
But only 40 CDE / 10M PopExecution Themes
Cov. Per 10M Pop
US$MMCAGR + 36%
‘11 ‘12 ‘13 ‘14 ‘09‘08 ‘10 ‘11 ‘12 ‘13 ‘14 ‘20
PE 78›84PY 90UY 78
Acum. Investment
Meals standard Activation Model:
12.6% Coverage in TP/SP
18 28 43 54 7210 15 19 25 30
36 40
‘09 ‘10 ‘11 ‘12 ‘13 ‘14
US$MMCAGR + 65%
Biggest RDIC investment in the
SLBU:
+ US$ 6MM
›29
Acum. Investment
2 5 8 15 24
Low Sel
High Sel
… to a strategic Picture of Success by SEL & Store Potential(4 Pictures of Success by Potential & SEL,
2014
Adjusting our Portfolio by:• Matching POS investment to potential
(# of SKUs)
• Maintaining Competitiveness and covering max occasions.
• Executing Strategic Priorities by SEL
• Looking and executing at Competition’s PARETO.
Low Sel
High Sel
We migrated from a Picture of Successdefined by SEL...(2 Pictures of Success - HIGH & LOW SEL)
2013
22
C Shopper Marketing: We complement our execution through a Shopper Marketing process which allow us to maintain continuous communica-tion of key ocassions at the Point of Sale:
Hot Spots Possible elements to be activated
Priorities by campaign, aligned with the number of elements to be activated by commercial dynamic
Covering most important Hot Spots at the Point of Sale, thru a different layout designed by commercial dynamic:
Outside
Frugos Nutri Defensas
125 ml
Inside
Display CC/IK Entry Pack
Inside
Aquarius New Flavor
Outside
Coca-Cola Consumer Promotion
1. Storefront2. Socializing and Snacking3. Entrance4. Beverages Sector5. KO CDE6. Client CDE7. Counter
Market Execution @ Traditionals |
1 2 3 4
1
2
3
4
23
Share of Wallet
48% 71%
Through our segmentation survey, we have identified Point of Sales with High potential- KO NABs share of Wallet.
Clients in main cities(Lima/Arequipa/Trujillo)17M
LASER PLAN: Focus on 10% of Competitor’s Pareto
Representing a 4MM UC Opportunity
Competitors Pareto
D&Bs
Commercial Figures
Promotions Ad-hoc execution
Tracking Routines
Value Relationship
Programs
Assure Right Number of FOS
• Minimize FOS rotation levels• Secure right level of FOS bench• Minimize impact of high season
Execution Capabilities
• Curricula and JD re-designed• Hiring process established• Establish training platform
leveraging CCC
Compensation Schemes
• Secure compensation level @ in-dustry standards
• Evolve variable Compensation Schemes in line with Picture of Success & RED
3 years experience working with new commercial figures → Migrating to DIRECT DISTRIBUTION as key enablers of our RTM evolution
Commercial FiguresSupervisorAccount DeveloperSales RepProspectorTell SellMerchandiser
| Market Execution @ Traditionals
2 FOCUS OUR INVESTMENTS
3 DESIGN OUR ROUTE TO MARKET
Ad-hoc execution plans in competitors stronghold
Evolving RTM as our LRP ASPIRATION….. Consolidating the basics our IMMEDIATE PRIORITY!
2016 vision
70%Direct distribution
territory under
24
Supported by our Execution & Commercial Tools:
COVERAGE 12 main cities
Point of Sale 22M
Volume Coverage 23%
NEW Field Supplier: IPSOS
Operating system and field tools updated with RED@Global standards
Clear execution dashboards and routines de-fined by hierarchy
We have started our migration from basic commercial tools with limited information and multime-dia management…
...to a high-tech tool, in order to facilitate commercial and executional routines on the street.
ISI: Point of Sale management platform:
• Picture of Success design: Assets, SKUs prior-itization, planograms and shopper materials by Point of Sale & Channel.
• Investment level & Break Even Point by Picture of Success.
• Internal Picture of Success approval and commu-nication process.
• Opportunity mapping: constant support to Sales Force on the street.
• Define & automate executional dashboards es-tablished by hierarchy.
• Interfaces with commercial and execution tools: RED & @migo.
Market Execution @ Traditionals |
25
Modern Channel Execution Model
| Market Execution @ Modern Channel
Communication with consumption ocassion
Meals athome BreakfastImmediate
consumptionOtherconsumptions
Noveltiescommunication
Leads: Coca-Cola Trade Mark
Focus: Multipacks Multi Serve
Leads: Coca-Cola Trade Mark
Focus: Multipacks Single ServeFrugos Aquarius, San Luis, Powerade
Product LaunchSpecial Events
Promotions
Includes SSD’s flavors& Inca Kola
Includes SSD’s flavors,Inca Kola & Stills
Interior Activation
ENTRANCE
CENTRAL ISLES
PRIMARYBEVERAGESSECTOR
ADJACENCIES
CHECK OUT
In store media with Meals communication
Connection point with Meals communication
SSD’s sector:Header with Meals
communication
Connection points in grocery and meals
sectors.Coolers with mealscommunication in
bakery.
In front of cashier lines: isle gondola headers
with coolers with meals communication. Multi
serve load.
SSD’s sector:At Single Serve
shelves, immediate consumption
communication.
Coolers at check out with immediate
consumption communication.
Single Serve load.
Juices Sector: Header with breakfast
communications.
Connection points in bakery, dairy, fruits
and vegetables sectors with breakfast
communication.
Primary Sector shelf with communication
by brand.
Connection points in fruits and vegetables
sectors with communi-cation by brand.
In Store media with novelty’s
communication.
Connection point close to the entrance
with novelty’s communication.
At shelf edgings with novelty`s
communication.
26 Market Execution @ Modern Channel |
BEVERAGESSECTOR
COLD DRINKEQUIPMENTS
JuicesRTD
PlainWater
FlavoredWater
DAIRY SECTORADJACENCIES
BAKERY SECTORADJACENCIES
VEGETABLE & FRUITS SECTOR
ADJACENCIES
MEAT SECTORADJACENCIES
CENTRAL ISLE
GROCERY SECTORADJACENCIES
CHECK OUT
CENTRAL ISLE
ENTRANCE
SSDs
Entrance• Doors• Alarms• Parking lot communication • Trolleys
Communication priorities: 1º Meals at home, 2º Novelties
Central Isles• Experiential OBM: Communication of meals at home• OBM activated under Meals at Home pataform adjacent to beverages sector• OBM activitated with Novelty’s communication
Beverages SectorSSD’s Primary gondola: first position• Header: Meals at home communication Secundary support by brand• Immediate Consumption activates under Leisure at home plataform
RTD Juices Primary gondola • Header: Breakfast communication• Shelf eding/Movies/Stoppers: Frugos communication
Plain Water Primary gondola• Shelf edging/Movies/Stoppers: San Luis communication
Flavored Water Primary gondola• Shelf eding/Movies/Stoppers: Aquarius communication
Isotonic Primary gondola• Shelf eding/Movies/Stoppers: Powerade communication
Cold drink equipment• Header: Meals at homn communication• Ending: brandcommunication
AdjacenciesBakery Sector• Rack with breakfast communication• Cooler with Meals at home communication
Dairy Sector• Gondola header with breakfast communication
Grocery Sector• Rack with Meals Home communication
Meat Sector• Charcoal Rack with Meals at Home communication
Check Out• Fast line CDE with annexed connection points with Immediate Consumption communication (Single Serve Load)• Cold drink equipment in front of fast line CDE with Meals at Home communication (Multi Serve Load)
Optimal Execution Scenario
27
260MM
ANNUAL VISITS
| Market Execution @ Modern Channel
Key Accounts Management
On Premise Channel took advantage of Peru’s economic expansion
Different chains strengthening their presence through…
Currently representing...
7%
20%
2001 2010
↘ QSR CAGR 10 years: +13 pts
Aggressive growth of the Informal Eating Out Index
New Franchisees & International Players Accelerated Geographical Expansion
OUTLETSF R O M
102IN 2000
TO
897IN 2013
36KEY
ACCOUNTS
8MM
ANNUAL UC’S
20MM US$ KO SYSTEMREVENUES
28 Market Execution @ Modern Channel |
KO Brands as 1st beverage option at QSR’s
In 2012 we closed a great partnership with the biggest franchisee group in Peru - Delosi
Implications of this new partnership for KO system
43% 39% 36% 34%
36% 42% 40% 38%
7% 6% 6% 8%
Gain SOM by recruiting Yum Brands! and BK (PepsiCo´s partners for the last 10 years)
KO Volume Performance
2010
2011 2012 2013KO SOM
DELOSI BRANDS
2013
74% 83%
+ 8.8 pts+30%
KO SOM
Consumer preference (%)
2MMUC’s per year
6MM
YOUNGAdults
5MMTEENS
CONNECTIONS25MM
TRANSACTIONS
per year
29 | Business Life
The presidential couple receives the FIFA World CupUpon arrival, the Cup was carried to the Government Palace, where the Peruvian President Ollanta Humala and his wife, welcomed the Trophy with great joy.
Great expectations in Bolivia
During the previous days, Bolivians were with great expectations for the arrival of the aircraft with de World Cup. This Trophy visited the presidential palace, where Evo Morales, The President
of Bolivia held it with passion.
Huaca Pucllana dresses up with Coca-Cola!A VIP event was held at the Huaca Pucllana, which is a great adobe and clay pyramid, popular historical monument in Lima. Mr. Zogbi, Mr. Odriozola and Francisco Boza, the President of the Peruvian Sport Institute welcomed the Trophy there.
One big step toward the bottle of the future: PlantBottle
Coca-Cola presented PlantBottle packaging. It is the new plastic bottle made from 30% plant
materials and 100% recyclable and represents an important milestone in the evolution towards
the future since the company introduced the first PET plastic container back in 1978.