New Zealand & Fiji George Adams Managing Director, New Zealand - - PDF document

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October 2005

New Zealand & Fiji

George Adams Managing Director, New Zealand & Fiji

13 October 2005

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October 2005

New Zealand NARTD market presents a significant growth

• pportunity

Source: AC Nielsen scantrack. MAT to 14-Aug-05. Market share based on volume. CSD 58% CSD 43% Juice 26% Juice 26% Water 9% Water 10% Energy 3% Energy 13% FMlk 5% FMlk 3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Volume Value

• 94%

Sports

• 57%

31% Energy 15% 37% 35% Water 5% 45% 31% Juice 15% 7% 76% CSD House- brands Frucor CCA

Market Shares CCA has growth potential with <40% share in the major non- CSD categories

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October 2005

CCA Outgrowing the market in all but one category

Source: AC Nielsen scantrack. MAT to 14-Aug-05. Growth based on volume.

MAT Volume Growth

• 10%

0% 10% 20% 30% 40% 50% 60% CSD Water Energy Sports & Lifestyle Juice

CCA Rest of Market

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October 2005

Consumer preference changing

NZ NARTD Market - 2004

Other 7% Juice 24% Sugar CSD 49% Water 7% Diet CSD 13%

NZ NARTD Market - 2005

Juice 25% Other 10% Sugar CSD 43% Water 8% Diet CSD 14%

NARTD volume growth 6% Growth driven by Diet CSDs and Non-Carbonated

Source: AC Nielsen scantrack. MAT to 14-Aug-05. Shares based on volume.

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October 2005

Our Success Continues to be Driven by Execution of

• ur Pillars of Growth
• 1. Product and package innovation
• 2. Non-carbonated beverage expansion
• 3. Growing product availability through cold drink

placements and outlet expansion

• 4. Customer service improvement
• 5. Revenue management and cost discipline

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October 2005

Changing preferences being met through innovation and focus on diets and non-carbonated beverages Water - Pump & Kiwi Blue

• 1H Volume +44%
• Pump #1 single serve brand

Energy - E2Energy, Lift Plus and Lift Plus SugarFree

• E2 Energy 1/3 size of Lift

Plus

• Energy category +50% H1
• V entrenched as category

leader but CCA making inroads - combined YTD Market share in petroleum 28.1% vs 20% last year.

L&P Sweet As

• Launched late in H1
• Contributed to L&P 1H growth +12%

Near Water - Aquashot

• Launched July ’04
• 4 flavours – Apple, Berry, Lime, Mandarin
• Latest market share in Flavoured Water in

Petroleum is 24%

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October 2005

L & P Successes delivers 12% growth

Reinvigorated this CCA owned brand

Repackaged Kiwi iconography

Supported launch of “Sweet As” sugar free variant H1 12% growth overall Australasian Television awards – 5 top awards Kodak Gongs (best in advertising across the whole of the Asia Pacific region)

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October 2005

L & P award winning advertising

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October 2005

World First – Coke Raspberry

In a global first for the Coca-Cola System, New Zealand launched ‘Coke with Raspberry’ and ‘diet Coke with Raspberry’ in June 2005 It was the first time that the Coca-Cola flavour and the diet Coke flavour have been launched simultaneously Sales are in line with expectations Early 2006 rotation planned

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October 2005

20.7% 20.5% 20.0% 19.8% 19.5% 19.4% 19.0% 19.2% 19.2% 19.3% 19.4% 19.6% 19.8% 20.3% 12.5% 12.6% 12.7% 12.5% 12.6% 12.4% 12.6% 12.6% 12.8% 13.0% 12.9% 13.2% 13.4% 13.6% 4.6% 4.7% 5.0% 5.2% 5.7% 6.1% 6.4% 6.7% 6.9% 7.0% 7.1% 7.2% 7.5% 7.6% 1.9% 1.9% 1.9% 1.9% 2.0% 2.1% 2.2% 2.2% 2.3% 2.4% 2.4% 2.2% 2.1% 2.1% 20.1% 20.7% 21.1% 21.6% 21.8% 22.3% 22.7% 23.1% 23.3% 23.3% 23.5% 23.3% 23.0% 22.5% 7.5% 7.4% 7.5% 7.5% 7.5% 7.5% 7.3% 7.2% 7.1% 7.1% 7.1% 7.1% 7.0% 6.9% 3.0% 2.9% 2.6% 2.5% 2.2% 1.9% 1.7% 1.6% 1.4% 1.3% 1.1% 0.9% 0.8% 0.7% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.3% 3.4% 3.4% 3.5% 3.6% 3.6% 3.7% 3.8% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.6% 4.6% 4.4% 4.3% 4.2% 4.1% 3.9% 3.8% 3.7% 3.7% 3.6% 3.6% 3.5% 3.4% 3.4% 8.3% 8.0% 7.8% 7.7% 7.4% 7.1% 6.8% 6.4% 5.8% 5.5% 5.2% 5.0% 5.0% 4.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 12 SEP 04 10 OCT 04 07 NOV 04 05 DEC 04 02 JAN 05 30 JAN 05 27 FEB 05 27 MAR 05 24 APR 05 22 MAY 05 19 JUN 05 17 JUL 05 14 AUG 05 11 SEP 05

• T. JUST JUICE
• T. FRESH UP
• T. CITRUS TREE
• T. TWIST
• T. KERI
• T. KERI THEXTONS
• T. KERI SPLICE
• T. SIMPLY SQUEEZED
• T. CHARLIES
• T. GOLDEN CIRCLE

TOTAL CONTROLLED LABEL

MAT Fruit Juice/Drinks Brand Shares | Grocery

Maintained excellent juice market share over past 12 months despite heavy competition

Keri Brand #1

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October 2005

2nd Half 3L pack innovation to restore value to category Move focus away from price competition exclusively to packaging and price Launch of Easy Grip bottle a competitive advantage for CCA according to consumer research Price increase of 16% in September 2005 Some volume decline anticipated, but positive profit contribution

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October 2005

Easy Grip Bottle Ad

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October 2005

Targeting 2,500 (16%) Net New Customers

1,500 non-traditional new business 1,000 cafés – HORECA strategy

New Customers Being Won For The Business

200 400 600 800 1000 1200 Jan Feb Mar Apr May Jun

New Customer s T a r get 14

October 2005

Bars and Pubs being targeted with mini mixers – a $12m

• pportunity annually

175ml TCCC and 150ml Schweppes mixers

Mini Mixer Conversion Targets

50 100 150 200 250 300 350 400 450 500 1 2 3 4 5 6 7 8 9 10 Months Number of Outlets 2 4 6 8 10 12 14 Volume Per Outlet Per Week Target Outlets Actual Outlets Target VPO Actual VPO

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October 2005

Reinvigorating the C&L channel

In October 2005 we established a new 50 seat National Contact Centre Changed sales model to conceptual sell Result Sales staff spend quality time with customers, understanding the needs

• f their business and how best to

grow it

Promotions, ranging, asset placement etc

C&L channel in growth

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October 2005

Auckland Automated Warehouse to reduce costs and improve customer service Key Benefits – Payback of 5.8 years on $80m investment Eliminating the costs of up to 5 external warehouses Reduce the costs of multiple handling of product Create efficient warehouse system with single pick face for the upper North Island Reduce heavy vehicle movements of up to 30% Reduce working capital Operational early 2008

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October 2005

Fiji continues to deliver excellent growth and returns for CCA and the outlook remains very positive Market share 80% - 4 out of 5 products consumed by Fijian’s are CCA products Significant progress made in cooler location, focusing on increasing self service availability from 33% to 49% of coolers this year. Product and pack innovations, particularly cans, contributing to growth. YTD September ROCE in excess of 30% Volume growth of 11% EBIT growth 26%

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October 2005

First half performance effected by change of ownership of Progressives and juice pricing.

CSD decline due to Progressive supermarkets shifting focus to profit rather than revenue and volume growth. Combined with the lower retail price of juice cost the business 6% EBIT v PY COGS increase ahead of NSR increase High value product strategies slower off the ground than planned e.g. Mini Mixers

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October 2005

Improved outlook for 2nd half of 2005

Juice value issue addressed in October New agreement on promotional strategy with Progressive will help to deliver Q4 volume growth of 6% Cross channel price increase of 5% taken in July to fully recover COGS increase Product Launches in last quarter include Coke Citra and Keri Fruit Freshers 2nd half NZ$ EBIT improvement expected on PY with Full Year expectations for volume and EBIT in line with 2004

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October 2005

Confident outlook for 2006

In the event that the transaction is completed, CCA welcomes the arrival of Woolworths in Q1 – excellent relationship in Australia Juice market returns to long term profitability Strong new product pipeline for both Carbonated and Non carbonated categories Coke Zero in the pipeline for early in Q1 C&L momentum to grow driven by Sales Force Effectiveness programme Continued focus on outlet development, volume per

• utlet growth and cooler placement