Coca-Cola Europacific Partners (CCEP) has announced an investment in Pipeline Organics, a climate tech startup hoping to revolutionise the generation of clean and renewable energy.
Pipeline Organics’ technology uses advanced chemistry and manufacturing processes to convert sugar-rich wastewater into a continuous supply of renewable electricity.
This breakthrough technology has the potential to power essential processes across CCEP’s sites, from lighting to powering production lines.
CCEP aims to scale this innovative technology by providing Pipeline Organics with access to its sites where the technology can be trialled, using the sugar-rich wastewater that is created as a by-product of drinks manufacturing.
CCEP has been steadily progressing towards its renewable electricity goals, with renewable electricity already used in 78% of its operations in 2023. By investing in breakthrough solutions like Pipeline Organics, CCEP aims to accelerate the adoption of clean energy technologies and drive positive change in the industry.
Coca-Cola Europacific Partners will be the name of the company as Coca-Cola Amatil (Amatil) and Coca-Cola European Partners (CCEP) join together following completion of the acquisition in May.
Coca-Cola Europacific Partners will be the world’s largest Coca-Cola bottler and one of the leading FMCG companies in the world. The company will employ over 33,000 people, serving approximately 2 million customers in 26 countries.
The proposed acquisition of Coca-Cola Amatil was announced in October 2020, and was approved by Amatil’s shareholders on 16 April 2021. Following the completion of the acquisition in May, the new company name will come into use.
The company will continue to be listed on Euronext Amsterdam, the New York Stock Exchange, London Stock Exchange and on the Spanish Stock Exchanges, and will continue to trade under the symbol CCEP.
Peter West, currently Managing Director of Coca-Cola Amatil (CCA) Australia will become Vice President and General Manager for a newly created Australia, Pacific and Indonesia (API) Business Unit and will join the executive leadership team of Coca-Cola European Partners (CCEP).
The leadership of CCEP’s existing business units and central functions remains unchanged. The new business unit’s operations include Australia, Indonesia and Papua New Guinea, and New Zealand Fiji and the Pacific Islands.
The company’s name will change to Coca-Cola Europacific Partners (CCEP). CCEP will combine the strength and scale of a large, multi-national business with an expert, local knowledge of the customers we serve and communities we support.
Investing in new technology that lets consumers make and pour their drink at the push of a button.
Coca-Cola European Partners (CCEP), the world’s largest independent Coca-Cola bottler, has completed an investment in Lavit, a leading maker of multi-beverage, counter-top dispensing machines.
Using globally patented technology, the Lavit system lets consumers make and pour their drink in seconds, by dispensing a range of cold beverage options “on-demand” at the tap of a button and offering customisation of beverages based on carbonation and flavour. Since commercialisation, Lavit has a growing network of customers in the US and Canada.
The partnership with Lavit will further CCEP’s intent to explore and test new dispensed delivery solutions as a key strategic route towards eliminating packaging waste and reducing its carbon footprint, while providing consumers with the convenience, choice and experience they expect from drinking Coca-Cola beverages.
The funding and partnership with CCEP will help Lavit test and develop new product capabilities and explore growth opportunities by gaining further insight into customer and consumer demand for dispensed delivery solutions. It follows CCEP Ventures’ recent acquisition of a 25 % stake in Innovative Tap Solutions (ITS), investing in the company’s self-pour, self-pay drink dispensing technology.
The investment in Lavit was led by CCEP Ventures – the innovation engine and investment arm of Coca-Cola European Partners. It builds on previous investments in disruptive, technologically advanced companies and start-ups that enable CCEP to explore new ways to bring innovation into its delivery model and consumer experience.
Coca-Cola European Partners announced the introduction of CanCollar®, an innovative paperboard packaging solution, for multipack cans in Spain. The move supports its work, in partnership with Coca-Cola, to remove all unnecessary or hard to recycle plastic from its portfolio, avoiding the use of more than 11,000 tonnes of virgin plastic a year across Western Europe.
Initially, Coca-Cola European Partners will launch the new, PEFC certified1 recyclable and sustainably sourced paperboard CanCollar® in the Balearic Islands in November 2020, a first in Europe.
Innovative packaging design is a core principle of Coca-Cola’s World Without Waste strategy and through collaboration with WestRock, a global company that provides its customers with sustainable differentiated packaging solutions, Coca-Cola European Partners will start to use the CanCollar® paperboard can ring technology in the Balearic Islands, replacing the current Hi-cone solution and saving more than 18 tonnes of plastic annually.
Coca-Cola European Partners has invested 2.6 million euros in its Barcelona plant to support this initiative. The installation of WestRock’s CanCollar® Fortuna™ manufacturing equipment will enable multipack cans to be grouped in a sustainable and environmentally friendly way, with a process that does not require the use of glue or adhesives.
1PEFC, the Programme for the Endorsement of Forest Certification, is a leading global alliance of national forest certification systems. As an international non-profit, non-governmental organization, PEFC is dedicated to promoting sustainable forest management through independent third-party certification.
Coca-Cola European Partners (CCEP), the world’s largest independent Coca-Cola bottler, has taken an important step on its journey towards 100 % rPET for its plastic bottles by funding CuRe Technology – a recycling start-up which seeks to provide a new lease of life for difficult to recycle plastic polyester waste.
The funding from CCEP, through its innovation investment fund, CCEP Ventures, will enable CuRe to accelerate its ‘polyester rejuvenation’ technology from pilot plant to commercial readiness. Once the technology is commercialised, CCEP will receive the majority of the output from a CuRe-licensed, new-build plant.
Once operational, CuRe has the potential to support CCEP’s ambition, in partnership with The Coca-Cola Company in Western Europe, to eliminate virgin oil-based PET from its PET bottles within the next decade. This will contribute to removing of a total of over 200,000* tonnes of virgin oil-based PET from CCEP’s packaging portfolio a year and support the transition to a circular economy for PET packaging.
CuRe Technology – a start-up, created and led by a consortium of world-leading recycling innovators and experts led by the Morssinkhof Group and the Cumapol/DuFor Group, with strategic partners DSM-Niaga and NHL Stenden University of Applied Science – will initially apply its end-to-end partial depolymerisation recycling process to transform opaque and difficult to recycle (ODR) food grade PET to high quality recycled PET (rPET) that can be used again for food and drink packaging in one continuous process on the same site.
Towards a Circular Economy
The CuRe funding from CCEP Ventures builds on existing strategic investments by The Coca-Cola Company to explore and support the scaling of ‘enhanced’ full depolymerisation recycling technologies in order to make a circular economy for PET a reality.
Depolymerisation recycling technologies complement existing mechanical polymer recycling processes. They have the potential to upcycle lower grade PET that cannot currently be recycled via mechanical recycling means and is instead currently downcycled, incinerated or sent to landfill. These depolymerisation technologies could play a role in significantly increasing the supply of rPET whilst also accelerating the transition to a circular economy for PET bottles by reducing the reliance on virgin oil-based PET.
The Coca-Cola system in Western Europe is working towards a future source vision for its PET material which will help remove the need for virgin oil-based PET (figurative future sources of PET in Western Europe: 70 % derived from mechanical recycling with 25 % from depolyemrisation recycling and 5 % PET from plant-based renewable sources, all while remaining 100 % recyclable*).
About CuRe Technology
CuRe Technology uses a partial depolymerisation process – shortening the polymer chains just enough to allow the removal of many impurities and to rejuvenate food grade PET to high quality rPET – and can be less energy intensive than full depolymerisation offering lower associated C02 emissions. It’s like pressing a ‘reset’ button to partially break down plastic PET into its component building blocks to produce a high quality rPET. Due to the modularity of the process, the longer term ambition for this technology is to upcycle all polyester waste streams including product to product rejuvenation of carpets and textiles.
Joe Franses, Vice President, Sustainability at Coca-Cola European Partners said: “CuRe is an exciting technology start-up with transformational potential developed by an experienced consortium, making it an ideal investment for CCEP Ventures. Our investment in CuRe underlines our commitment to supporting innovations that have the potential to drive growth in our business and our sustainable packaging goals. It also offers us the potential to access vital rPET volume that will help to accelerate delivery of our 100% rPET ambition for our PET bottles.”
As part of their joint Sustainability Action Plan, This is Forward, Coca-Cola European Partners and Coca-Cola in Western Europe have pledged that by 2025, Coca-Cola will: collect a can or bottle for every one it sells and ensure that all its packaging is 100 % recyclable and by 2023 will: ensure that at least 50 % of the content of its PET bottles will come from recycled content, accelerating towards its ambition to use zero oil-based PET in its PET bottles in the future, using instead 100 % recycled or renewable content.
Josse Kunst, Chief Commercial Officer at CuRe Technology said: “Polyester is one of the world’s most reversible plastics and should not go to waste. In the pilot plant phase of the CuRe process, we were supported with a subsidy from the European Union and the three northern provinces of the Netherlands. Now our ambition to create an energy-efficient solution for product to product polyester transformation will be accelerated because of this funding.
The support of CCEP Ventures will enable us to start with opaque and difficult to recycle food grade PET and take the first step towards our ultimate vision of recycling all polyester, again and again.”
*By 2019, CCEP was already using 60,000 tonnes of rPET in its bottle and has committed to using 50% rPET by 2023.
Coca-Cola European Partners (CCEP) will invest over EUR 500 million in 2019, as part of an ongoing multi-year EUR 1.5 billion investment programme.
The announcement was made at CAGNY Conference for investors in Miami. The programme focuses on delivering more for our customers by investing in new technology, supply chain capabilities and coolers.
Damian Gammell, Chief Executive Officer at Coca-Cola European Partners, said: “We’re investing in key areas of the business to make it easier for customers to do business with us, and to offer consumers a wider range of great products. Last year our targeted investment programme helped to create EUR 8.7 billion in value for customers – nearly EUR 600 million more than 2017.”
Next generation digital solutions
Making it easier for customers to do business with us by developing and investing in new digital solutions. Highlights include:
- Mobile sales tools which not only improve the customer experience but also increase productivity and optimise sell time
- New business analytics capabilities to improve promotions and forecasting with customers
- Expanding digital services for customers, such as Kollex, a recently established digital joint venture for the beverage wholesale trade and the away-from-home market in Germany
Boosting capabilities across our supply chain
Increasing capacity and capabilities to service our customers quickly and easily, and support our growing portfolio of drinks sustainably. Highlights include:
- New manufacturing lines in Halle, Mannheim, Barcelona, Seville, Ghent and Wakefield to provide consumers with a greater choice of products and packs
- Increasing the amount of recycled plastic in our products, such as the ongoing work with Ioniqa to transform hard to recycle plastic waste into high quality, food-grade PET
- Increasing capacity for refillable glass bottles and trialling new routes to market, such as our new partnership with Loop and Carrefour in France for returnable and refillable glass
Increasing product availability
Expand cold drink equipment, making it easier for consumers to find our drinks on the go. Highlights include:
- Placing 69,000 more coolers in customers’ outlets in 2019
- Better outlet targeting and segmentation through an expanded range of cooler sizes and types
CCEP Ventures
At CAGNY Conference, CCEP also announced the creation of an innovation investment programme.
The programme – CCEP Ventures – will focus solutions across customer experience and support, logistics and distribution, future packaging design and technology, prediction and pricing analytics
On the launch of CCEP Ventures, Mr Gammell said: “Our business faces future disruptive trends that need innovative solutions and we need to adapt and learn quickly. CCEP Ventures will help us bring the best minds and ideas from the outside world into our business. It will help us find, fund and foster new solutions and scale with speed.”
Coca-Cola European Partners plc (CCEP) announced its interim results for the six months ended 29 June 2018 and maintains full-year 2018 outlook.
Highlights
- First-half diluted earnings per share were € 0.85 on a reported basis or € 1.00 on a comparable basis, including a negligible impact from currency translation.
- First-half reported revenue totalled € 5.4 billion, flat versus prior year, or up 1.0 percent on a comparable and fxneutral basis. Volume decreased 3.5 percent on a comparable basis, partly reflecting the impact of recent strategic portfolio and pricing decisions.
- First-half reported operating profit was € 605 million; comparable operating profit was € 699 million, up 4.5 percent on a comparable basis, or up 5.0 percent on a comparable and fx-neutral basis.
- Second-quarter diluted earnings per share were € 0.60 on a reported basis or € 0.67 on a comparable basis, including a negligible impact from currency translation.
- CCEP affirms full-year guidance for 2018 for comparable and fx-neutral diluted earnings per share growth of between 6 percent and 7 percent when compared to 2017 comparable results.
- CCEP raises full-year guidance for 2018 free cash flow to a range of € 900 million to € 950 million.
- CCEP declares quarterly dividend of € 0.26 per share.
“We are pleased with our execution and performance in the first half as we continued to make bold portfolio and pricing decisions. We are confident that these are the right strategic initiatives for our business in the long-term, while acknowledging the near-term negative impact on volume,” said Damian Gammell, Chief Executive Officer.
“This strategy is reflected in another quarter of solid growth, including strong revenue per unit case gains as we focus on improving our pack and pricing architecture. Overall, we are encouraged by our first-half performance given business disruption in France owing to customer negotiations; unfavourable weather in Iberia; and new industry taxes, notably in Great Britain.
“Given our solid progress in the first half, we have affirmed our 2018 profit outlook. We are committed to implementing our Beverages For Life strategy; investing in our business; better serving our customers; and improving our in-market execution,”
Mr. Gammell said. “Importantly, we are confident that we have the right strategy and the right team in place to deliver strong cash generation and ultimately generate long-term value for our shareholders.”
Please download the full report under: https://bit.ly/2MheRqO
