At Coca-Cola Oceania (CCO), we are responsible for the marketing of 20 brands owned by The Coca-Cola Company (TCCC) in New Zealand which are featured on over 120+ different products that are sold in thousands of outlets across the country. In addition to the Coca-Cola® variants for which TCCC is best known, TCCC’s options also include Sprite, Fanta, Lift, Fuze Tea, Zico coconut water, Keri, Kiwi Blue, Schweppes, MOST, e2, Powerade and Glaceau vitaminwater.
TCCC’s brands are manufactured by our bottling partner Coca-Cola Amatil NZ (CCANZ) across 12 bottling lines around New Zealand with 99% of these non-alcoholic beverages made locally. CCANZ also owns a number of non-alcoholic beverage brands, including L&P and Pump. CCO and CCANZ work closely together to market and sell the combined portfolio of brands. Together we employ more than 1000 New Zealanders spread across every corner of our country.
As a significant New Zealand business responsible for global brands, we take corporate responsibility seriously. Our marketplace actions have been implemented to address one of the key community concerns, obesity. In New Zealand our focus is on two fundamental principles: provide more beverage choices and provide more information.
PROVIDE MORE BEVERAGE CHOICES
We have invested significant time and resources in recent years to innovate some of TCCC’s most popular drinks, providing consumers with greater choice. We know that while many people want to reduce their kilojoule and sugar intake, they do not want to compromise on taste. This is a difficult balance to achieve but is something we work hard with TCCC to get right. Successful innovations have been made possible with new ingredients, such as stevia leaf extract, which makes it possible to produce lower kilojoule drinks that still taste great.
1. More choices of lower kilojoule options
One of TCCC’s first no-sugar, low-kilojoule colas, Diet Coke was introduced to New Zealanders more than 30 years ago. Coke Zero followed 10 years ago and in April 2015, we launched lower sugar and kilojoule Coca-Cola Life. More than 44% of the cola we sell is now Coca-Cola Zero, Diet Coca-Cola and Coca-Cola Life.
At the end of 2015, all TCCC’s top selling brands in New Zealand had a low-kilojoule alternative, including Coca-Cola (Diet Coca-Cola and Coca-Cola Zero), Sprite (Zero), Fanta (Zero), and Powerade (Zero). One in four of the non-alcoholic beverages we produce with our bottling partner CCANZ is low and no kilojoule, and one in three of our products purchased is low and no kilojoule.
2. More choices of smaller serving options
We are working with our bottling partner CCANZ to increase the range and popularity of smaller packs for those who want to reduce their sugar and kilojoule intake but still enjoy their beverage of choice.
We are focused on ensuring that smaller portions are available in more stockists throughout New Zealand. At the end of 2016, our 300ml PET pack was available in 52% of retailers outside of supermarkets (up from 38% in 2015) and the 250ml x 6 mini can multipack was available in over 95% of supermarkets.
Our smaller packs continue to grow in popularity in New Zealand and now represent 65% of all single serve packs purchased.
The average transaction size of the packs we sell continues to decrease, with a 10% reduction over the past eight years.
The 250ml x 6 minis multipack is 10% of all cans consumed in home (balance in 355ml), up from 1% in 2008.
Within our larger multi serve sparkling packs, the smallest (1 litre) is purchased over 1 in 5 times.
PROVIDE MORE INFORMATION
A key priority for us is to provide our consumers with the clearest possible nutrition information about our beverages, helping them to choose the best option for themselves and their families. We have long been committed to providing clear and transparent nutritional labelling so that people can make informed choices about our products.
1. Clear, transparent labelling on pack
We voluntarily introduced the % Daily Intake Guide label on all our products in 2007 which provides clear information on both the amount of kilojoules per serve and what this represents as a percentage of an adults total daily energy intake.
In 2014 we committed to adopting the Government’s voluntary Health Star Rating System (HSR) to assist consumers in making informed choices. The beverage category is part of the ‘integrated HSR’ approach and as such needs to have a minimum display requirement of energy (kilojoules) only.
2. Clear, transparent labelling on vending machines
More recently, we introduced nutrition information panels on our vending machines, reaching 75% by the end of 2015.
An online tool aimed to help consumers make informed decisions by easily comparing nutrient information and ingredients of Coca-Cola products side by side. Users select the two Coca-Cola products they wish to compare by clicking on the images. The tool provides a drop down menu with a full list of ingredients and nutrients listed in both kilojoules and calories, depending on which unit of measure you prefer.
4. Responsible Marketing practices
We have important policies for our marketing practices to ensure we provide meaningful and responsible information.
Globally, The Coca-Cola Company has a long-standing policy not to market beverages to children under age 12. This means that we do create nor buy advertising directly targeted at audiences that are more than 35% children under 12. This policy applies to television, radio, and print, and, where data is available, to the Internet and mobile phones. In New Zealand, Coca-Cola Oceania and its bottling partner CCANZ is committed to complying with the new ASA Children’s and Young Person’s Code that has a 25% audience threshold for children under 14.
- Global School Beverage Guidelines – introduced in 2010
In primary schools, we do not offer our beverages for sale unless requested by a school authority. We retain records of sales to primary schools which are audited annually.
- Advertising Standard Authority Children and Young People’s Advertising Code
The new ASA Children and Young People’s Code replaces the Advertising to Children Code and Children’s Code for Advertising Food which comes into effect on 3 July 2017 for new advertisements and 2 October 2017 for existing advertisements. Coca-Cola Oceania and its bottling partner CCANZ will continue to voluntarily adhere to the ASA Codes.
In December 2016, Coca-Cola Oceania and its bottling partner CCANZ endorsed and committed to the Ministry of Health’s Healthy Kids Industry Pledge. The pledge includes commitments to reformulations to reduce sugar, enhancing labelling (HSR), responsible marketing, providing more information to help families make healthy choices, and a focus on Maori and Pacific peoples. We have already made a number of changes within our product portfolio, packaging and communications and will continue to seek ways to support healthy beverage consumption in New Zealand.
- NZ Voluntary Schools Agreement – introduced in 2009
In an historic agreement with the NZ government in 2008, CCANZ agreed to no longer directly supply full-sugar carbonated soft drinks and full sugar energy drinks in all NZ schools, including high schools, by end of 2009. This agreement remains in place.
Choice and information is at the heart of our business. If people want great taste without sugar and kilojoules, we have the drinks to meet that need.
We have made good progress, but know we can do more. This is why we are developing ambitious new actions for the years ahead. Key among these is the commitment to increase availability of smaller size packages, to offer more lower sugar and kilojoule beverages options, and to increase the access of transparent nutrition information.
Together, we believe all of the actions we are taking will help more people make the decisions that make sense for them and their families.