Profitably Growing Per Capita Consumption in Australia Warwick - - PDF document

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October 2005

Profitably Growing Per Capita Consumption in Australia

Warwick White Managing Director

13 October 2005

Pat Malloy Director, Sales & Customer Service Jeff Maguire Operations Director

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October 2005

Capitalising on the Health & Well-being Lifestyle Trend Warwick White Cementing stronger customer relationships with tailored solutions Pat Malloy Leveraging our capital and scale for value and service Jeff Maguire Current Trading Environment Warwick White Overall Agenda

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October 2005

The Australian business continues to grow strongly

$M

50 100 150 200 250 300 350 400 450

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

1993 to 2000 CAGR +7.0% 2001 to 2004 CAGR +15.2% EBIT Growth of CCA Australia

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October 2005

Our Success Continues to be Driven by Execution of our 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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5

October 2005

Our Success Continues to be Driven by Execution of our 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

The Australian Beverage Market: There Is Still Significant Potential for Growth

Total market size: $9.0bn

Source: Industry Estimates/ACN Food & Convenience T1/T2

CCA share in each category

CSD 60% Water 35% Juice 6% Sports 46% Energy 8% RTD tea 4%

0.5% 1.6% 1.7% 0.4% 19.0% 19.0% 58% CSD Energy Other RTD Coffee/Tea Sports Juice Water

Market Size based on Litres consumed

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October 2005

We still have not maxed out the per capita consumption growth

Source: TCCC Infact – Market Estimates

New Zealand UK Belgium Australia Canada Germany Spain USA Mexico

1021 1142 1178 1266 1377 1415 1511 1659 1912 2278

500 1000 1500 2000 2500 In 2004: Total Industry Non-alcoholic ready to drink beverage per capita (8oz Serves)

France

• Each week, every Australian drinks one more of our beverages than they were in

2000

• CCA volume growth of 5.2% pa since 2000.
• Consumption of Commercial Beverages In Australia has increased from 1,218 per

capita in 2000 to 1,266 per capita in 2004

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October 2005

The Coca-Cola System: Bringing You A World Of Refreshment

Simple Pleasure Sugar CSDS Better for You Pleasure Sugar Free CSDS Health & Lifestyle NCBs & NPD

We now have a Strong Portfolio of Brands to Tap into all the Consumer Needs States

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October 2005

Global Comparisons Highlight That There Is Still Significant CSD Growth Potential…

• The Carbonated Soft Drinks Market ($4.9bn, 2,400m litres)
• Australia consumption patterns and consumer habits follow the

US

• Australian CSD per capita at 63% that of the USA

Source: TCCC Infact – Market Estimates

339 379 400 428 463 493 497 624 777

100 200 300 400 500 600 700 800 900

Germany New Zealand UK Belguim Canada Australia Northern Ireland Mexico United States

In 2004: Total Industry Carbonated Soft Drink Consumption Per Capita (8oz Serve)

CARBONATED SOFT DRINKS

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October 2005

In Australia, Sugar Free Products Have Grown From 23% to 27% of The Market in 7 Years

ACNielsen Food & Convenience (T1/T2) - Value Sales (000s)

1998 1999 2000 2001 2002 2003 2004

Sugar Free CSDs Sugar CSDs Source: ACNielsen Food & Conv (T1/T2)

27% 23%

5.1% 5.6% 8.1% 3.9% 1.9% 6.9% 0.8% Value Growth

CARBONATED SOFT DRINKS

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October 2005

Sprite is Leveraging Its Urban Youth Connection and Zero Young Adult Opportunity Sprite highly responsive to support – and Sprite Zero communication haloing back onto Sprite brand Sprite Sales +8.4% YTD

The Opportunity

Source: TCCC Infact – Market Estimates

CARBONATED SOFT DRINKS

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October 2005

Sprite Zero Ad CARBONATED SOFT DRINKS

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October 2005

Against This Background, Diet Coke Has Grown in Volume by 25% and contributed $498M to growth since 2000

Launched in Australia in 1983

• Core user base of loyal female drinkers (70% of volume)
• 70% of volume from highly loyal daily drinkers

Diet Coke – Australia’s favourite diet brand amongst Australian women

• Campaigns over time have developed a sexy, confident, female character
• Flavour variants over the last 3 years have brought in new users to the

franchise

2006

• Driving Equity: “Its Good to be Me”

CARBONATED SOFT DRINKS

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May 2005

Diet Coke Ads – The Business Presentation

CARBONATED SOFT DRINKS

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October 2005

INCIDENCE (PAST 24HRS) CSD X AGE

33% 16% 7% 55% 26% 32% 43% 9% 13% 8% 6% 9%

0% 10% 20% 30% 40% 50% 60%

Total 12-19 Years 20-29 Years 30-39 Years 40-49 Years 50-65 Years

SUGAR DIE T

However, As Older Consumers Reduce Their Frequency Of Consumption of Sugar CSDs, Not All Of Them Move into Diet CSDs….

Source: COG 12MMT May ’05 – All Beverages

CARBONATED SOFT DRINKS

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October 2005

To fill this Gap, We are Introducing….. CARBONATED SOFT DRINKS

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May 2005

And now lets taste it..

CARBONATED SOFT DRINKS

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October 2005

Household penetration remains low relative to the long term potential

• f the category

80% of consumers claimed they consumed tap water in the last 24 hrs Bottled water has only 17% household penetration

47 96 152 152 240 402 522 576 580 585 760

100 200 300 400 500 600 700 800 NZ Netherlands UK Australia Canada USA Germany Belgium France Spain Italy

International Markets Highlight Overall Potential Of The Water Market (Currently $1.2bn, 740m litres)

Source: TCCC Infact – Market Estimates

In 2004: Total Industry Packaged Water Consumption Per Capita (8oz Serve)

WATER

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October 2005

Our Increased Investment in Water Driving Results with 12% Volume and 21% Value Growth pa Over the Last 3 Years

12.2% 10.2% 10.2% 14.6% 11.2% 20.8% 21.1% 31.6% 14.5% 16.9% 5.7% 10.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

1999 2000 2001 2002 2003 2004

Water - Volume & Value Growth

(ACN Food & Conv)

Volume Grth Value Grth

Source: TCCC Infact – Market Estimates

WATER

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October 2005

No 1 share of voice in Water

We Have The Most Powerful Portfolio of Water Brands in The Australian Market Place

At Home Out & About Younger Older

WATER

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October 2005

Key Brand Initiatives to Increase Total Water consumption ensure We have an Offering for every Water Occasion Mount Franklin

Sparkling & still in glass Premium glass multi pack Drive in home availability of 1.5 litre

multi serve & 6 x 600mL multi serve Pump

Introduce 4 x 750mL multi pack

Pump 4 x 750mL Pump 4 x 750mL

WATER

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May 2005

Mt Franklin Commercial

WATER

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October 2005

Key Brand Initiatives to Increase Total Water consumption ensure We have an Offering for every Water Occasion Peat's Ridge

• Drive Value through pack innovation

Neverfail

• Leverage the brand with the 5 litre pack

WATER

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October 2005

Relaunch of Deep Spring

Re-ignite as the adult carbonated good for you

• ffering

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May 2005

Deep Spring Commercial

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October 2005

Building on Fruitopia’s Early Success, We Will Continue To Drive Value Ahead of Volume Growth In The Juice Market

• 2nd largest NARTD category behind CSD (21% share of NARTD

market)

• Juice growth driven by consumers desire for healthy beverage

solutions

• 1.5%
• 1.0%
• 0.5%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2002 2003 2004 2005 E st

Juice & Juice Drinks - Volume & Value Growth

(ACN Food& Conv)

Volume Grth Value Grth

Source: ACN Food & Con (T1/T2);

Market Size: $1.4bn 766m litres

JUICE

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October 2005

Fruitopia Classic is now the Number 2 Brand in Foodstores ahead of Golden Circle

Source: ACNielsen Foodstore

Manufacturer % Share of Juice

2 4 6 8 10 12 14 16 % $ share of Juice

TCCC Golden Circle

Launch of Fruitopia Classic

Jun 05 Sep 05 Aug 05 Jul 05

JUICE

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October 2005

Further Fruitopia product & pack launches will continue the growth momentum

Alive’s “Juice bar” in a bottle Fruitopia Carafe

JUICE

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May 2005

And now lets taste Alive..

CARBONATED SOFT DRINKS

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October 2005

Powerade is “Powering Ahead” with +7.8pts Volume Share Gain in Quarter to Sept 2005 in Foodstores SPORTS

Powerade Volume % Share gain versus year ago

• 5.6
• 4.1
• 4.2
• 1.9
• 2.9

1.1 9.0 8.0 7.7

• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0 6.0 8.0 10.0

4W/E 4W/E 23/01/2005 4W/E 20/02/2005 4W/E 20/03/2005 17/04/2005 4W/E 15/05/2005 4W/E 12/06/2005 4W/E 10/07/2005 4W/E 07/08/2005 4W/E 04/09/2005 Source: ACN Foodstore

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October 2005

We see a Big Opportunity to make Powerade a Mainstream Beverage

11 15 15 16 19 49

10 20 30 40 50 Spain Canada Netherlands Australia New Zealand United States

(Estimated size: $0.3bn, 75m litres)

Source: TCCC Infact – Market Estimates

In 2004: Total Industry Sports Consumption Per Capita (8oz Serve)

SPORTS

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October 2005

Over the last 3 Years the Sports Market has grown by 14% in Volume and 20% Value CAGR

6.0% 9.1% 6.2% 13.4% 7.1% 16.2% 31.6% 32.6%

0% 5% 10% 15% 20% 25% 30% 35%

2001 2002 2003 2004

Sports - Volume & Value Growth

(ACN Food& Conv)

Vo lume G r th Va lue G r th

Source: TCCC Infact – Market Estimates

SPORTS

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October 2005

Powerade : “It ain’t over ‘til you say it’s over”

Watch this Space

SPORTS

New 1.0 Litre Powerade Grip bottle

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October 2005

Significant Opportunity to Expand our RTD Tea Offering with Market forecast to grow at more than 50% Volume in 2005

1 1 2 2 9 14 15 33 35 49 162

20 40 60 80 100 120 140 160 180 UK Mexico Brazil Australia Spain Indonesia France Canada USA Germany Japan

(Estimated size: $0.05bn, 20m litres)

Source: TCCC Infact – Market Estimates

In 2004: Total Industry RTD Tea Consumption Per Capita (8oz Serve)

RTD TEA

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October 2005

We Will Drive Profitable Growth Through Communication & Innovation

Launch Q3 05 – New Packaging Jan 06 Launch New Label & Packaging Q3 More to Come

RTD TEA

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October 2005

And the Energy Phenomenon Continues with Market Growth at Double digit levels each year since 2002

Source: TCCC Infact – Market Estimates

• 2nd largest growth category behind RTD Tea
• CAGR from 2001 to 2004 was 12% Volume and 17% Value
• Coke system is committed to the Energy Category and we have

grown 40% MAT 2005

In 2004: Total Industry RTD Energy Consumption Per Capita (8oz Serve) New Zealand USA Australia Spain Germany 10 20 30 40 50 UK Japan Netherlands Belgium

ENERGY

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October 2005

We are Upping our Energy Credentials

Recharge Idea: “Obey Your Thirst For Energy”

Watch this Space

Q4 2006 ENERGY

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October 2005

But to capitalise on our marketing investments this business is all about execution & our superior customer relationships

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October 2005

Our Success Continues to be Driven by Execution of our 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

Dimensions of the Australian Business

• CCA satisfies Australia’s thirst, taste and refreshment by delivering the

equivalent of 20 million 8oz serves per day; 75,000 Convenience Customers 5,000 Grocery Stores (supermarkets) 55,000 Venders

• 1,000 Representatives in the field every day helping our Customers
• 200 Call Centre Representatives focussed on Customer Service
• $2.0 billion of revenue delivers approximately $3.5 billion in retail sales

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October 2005

CCA responding to Australia’s changing Retail Market

2005 2005 1995 1995 RETAILERS RETAILERS

Multi cultural – Vietnamese/ Thai/Greek/Indian, etc., sophisticated Al Fresco Consolidated with increased shopper frequency Essentially Chinese/ Foodservice takeaway Fragmented Restaurants/Cafes Pharmacies McDonalds/KFC/Subway/ Domino/Red Rooster/ Nandos/Michel’s/Muffin Break McDonalds/KFC/Cinema National Convenience Grocery/Discount/Variety/ Petroleum/Liquor Supermarkets/Discount/ Variety Major Chains

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October 2005

50% of shoppers visit a supermarket several times a week (24x7) 58% of households have 2 or less people (more households but smaller) 56% of females in workforce Convenience/range is critical 28% of main shoppers are male Time poor (longer working hours) Generally shop twice a week Monday to Friday (daytime) 53% of households have 2 or less people 48% of females in workforce Less than 20% of main shoppers were male

SHOPPERS SHOPPERS 2005 2005 1995 1995

CCA responding to Australia’s changing Retail Market

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October 2005

So how has CCA changed (2001-2005)?

Invested in highly skilled customer teams (focussed on conceptual selling rather than order taking) Tailored customer solutions by customer & channel Introduced channel based selling teams (Grocery, C-Stores/Petroleum, Foodservice, HORECA, Route, Vending) Invested in National Call Centre Innovated package/product solutions to meet changing consumer demand (additional 350 products) Invested in the exploitation of Scan Data to maximise revenue & share Continued to invest in Customer Service Improvement to differentiate CCA from others 15.2% CAGR EBIT growth from 2001 15.2% CAGR EBIT growth from 2001 – – 2004 2004

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October 2005

CCA’s Two Major Objectives

Continue to grow per capita consumption profitability Continue to grow our customers’ profits

How does CCA do it?

CCA Strategies are based on five core pillars:-

COLD DRINK

(immediate consumption)

OUTLET EXPANSION DEVELOPMENT

(by channel/ by customer)

NEW PRODUCTS

(a beverage for every consumption

• ccasion)

CUSTOMER SERVICE REVENUE MANAGEMENT

(right pack, right product, right price, right channel)

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October 2005

Equipment penetration is a key driver to Immediate Consumption Growth

CCA Australia 25.0 35.0 45.0 55.0 65.0 75.0

2003 2004 2005 2004 Mexico Coolers per 1 0,00 0 population

332 8oz. serves per capita 517 8oz. serves per capita Cld Drink Cold Drink

CCA only 50% through cooler rollout

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October 2005

Space & Equipment Type have changed

37% increase in space for products in the past 3 years 342,000 2003 2004 2005 467,000 411,000 CCA Shelves in the Australian Market

Cold Drink

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October 2005

Tailored Cold Drink Solutions, Woolworths

Cold Development: Open Front Coolers: Express Lane & Checkout Solutions Opportunity: To promote impulse sales at front of store Number of Placements: 1,760 units nationally

Cooler Investment

Before After Before After

+24% +12%

Cold Drink 48

October 2005

Tailored Cold Drink Solutions, Coles

Cold Development: Open Front Cooler: Express Lane & Checkout Solutions Opportunity: To remove barriers to purchase at the checkout Number of Placements: 1,100 units nationally

Cooler Investment

After Before Before After Cold Drink

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October 2005 1 8 7 6 4 5 3 2 9

We have increased the points of engagement in corporate grocery* from 7.6 to 8.9

Availability of beverages throughout a Supermarket provide greater likelihood of a beverage sale in every shopper basket

*Corporate grocery is defined as Coles & Woolworths grocery stores

Outlet Expansion Development 50

October 2005

Ambient Water Racks compliment our cooler investment

16,000 additional racks to be placed in 2006 to drive volume & profit growth Dimmeys (Vic) – Ambient Water and Open Air Cooler driving +15% volume, +30% Net Contribution Village Cinemas (Karingal & Glen Waverley, Vic) – Ambient Water and Open Air Cooler driving +20% volume, +37% Net Contribution

Outlet Expansion Development

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October 2005

CCA continues to grow its Outlet Base CCA Australia - C&L Customer Base

50,000 55,000 60,000 65,000 70,000 75,000 80,000 2002 2003 2004 2005 2006

Actual Forecast

Outlet Expansion Development 52

October 2005

Success in Emerging Markets requires tailored solutions to suit the Customer & Consumer

Pharmacy Stockists 1,475 outlets +31% growth

PHARMACIES PHARMACIES

Outlet Expansion Development

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October 2005

HORECA has delivered 50% growth in contribution over 3 years

“Picture of Success” - HORECA Specific Sales Training

FROM TO

Outlet Expansion Development

Pr imar y Oppor tunitie s

• Staff tr

aining & inc e ntive s

• Visible e quipme nt
• T

able ac tivation

• Ambie nt display

Se c ondar y Oppor tunitie s

• Waitstaff br

anding

• Umbr

e llas & br e e ze bar r ie r s

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October 2005

New Products 2004 – 2005:

A beverage for every consumption occasion

2L

Non Carbonated Carbonated

Water Water Tea Tea Sports Sports Juice Juice Energy Energy

New Products

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October 2005

New Products 2005:

A beverage for every consumption occasion

New Products

Additional ambient PET pack to drive promotional frequency & store traffic; PET options (1.25L, 1.5L & 2L) to suit light, medium & heavy users; Fast tracked opportunity into Qtr 4 2005; Entice consumers into the category. Build shopping basket incidence; Tailored solution for:

• Light Consumers
• Top Up & Impulse Shoppers
• Smaller Households
• Introducing New Buyers;

Clear differentiation of can packs & pricing.

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October 2005

The next big opportunity is to exploit scan data & work with our Key Customers to: Grow the number of bottles purchased in each basket (AWOP) Increase basket penetration (bottles in more baskets) Optimise profit Optimise share

Revenue Management

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October 2005

TCCC AVERAGE RETAIL UNITS PER PURCHASE

1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 JANUARY 2004 JANUARY 2005 AUGUST 2005 AVERAGE RETAIL UNITS PER PURCHAS

18 Pack +8% 2 Litre +8%

CCA has grown the number of retail units purchased

1.64 bottles per purchase 1.12 packs per purchase 1.78 bottles per purchase 1.21 packs per purchase

Source: Aztec Temple Data AVERAGE RETAIL UNITS PER PURCHASE

Revenue Management 58

October 2005

AUSTRALIA GROCERY SCAN MARKET TCCC

43.3 45.4 50.8 $1.28 $1.27 $1.32

10 20 30 40 50 60 70 80 90 100 JANUARY 2004 JANUARY 2005 AUGUST 2005 VOLUME SHARE (%) OF TOTAL SOFT DRINK $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 PRICE PER LITRE ($

TTL TCCC SFT DRK % SHARE TTL TCCC SFT DRKS $ / LITRE

TCCC has increased share & revenue per litre for core CSD brands

Source: ACNielsen ScanTrack for the 4 weeks of the month

Revenue Management

PRICE PER LITRE ($) VOLUME SHARE (%) OF TOTAL SOFT DRINKS

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October 2005

CCA has grown C&L revenue over the last 3 years

+8% +8% +4% Net Contribution +5% +5% +3% Net Sales Revenue 2005 2005 2004 2004 2003 2003

Revenue Management 60

October 2005

Step Change in Customer Service, shelf ready packaging

Working with Retailers to develop shelf friendly packaging, that will:

Reduce handling Increase speed of shelf replenishment Facilitate good product presentation on shelf Not increase cost of goods Conform to OH&S requirements Be an industry/market solution

Customer Service

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October 2005

National Call Centre continues to lead in Customer Service 2003 2003 2005 2005

Calls Received 960k 1.3m Average speed of response 15 sec 8 sec Hours speaking with Customers providing In-Bound Customer Service 31k 55k 1 million calls p.a. answered within 5 seconds 2.6 million p.a. proactive sales calls

Customer Service 62

October 2005

Making it easier for our Customers to do business with CCA

Customer Service

In the last 12 months, CCA has introduced 4 additional payment options for our Customers:

Electronic Payments Easy Pay October 2004 BPAY July 2005 Pay-By-Phone 10 October 2005 Pay-By-Web 10 October 2005

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October 2005

Our Success Continues to be Driven by Execution of our 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

64

October 2005

Comprehensive distribution reaching 90,000 customers

15 production plants will make 7.6 billion serves of beverage this year

Neverfail Juice Carbonated Beverages Peats Ridge Springs

• 36 Production Lines
• 528 million serves of

Juice

• 215 million serves of

Powerade

• 792 million serves of

water

• 6.1 billion serves of

Carbonated beverage

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October 2005

• 8 Primary

warehouses

• 70 satellite

warehouses and cross docks

• 450 trucks
• 90,000

customers

• 7.6 billion 8oz

serves delivered this year

Comprehensive distribution reaching 80,000 customers

66

October 2005

Customer Service – 316 million unit cases ordered 99.8% delivered in full.

2001

289 million unit cases ordered 97.3% delivered in full

2005

316 million unit cases ordered 99.8% delivered in full

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October 2005

Labour productivity has increased through automation and production line reliability

2001

276 million unit cases manufactured 245 SKUs Manufacturing Productivity of 124 cases per man hour

2005

311 million unit cases manufactured 294 SKUs (↑20%) Manufacturing Productivity of 133 cases per man hour (↑ 8%)

68

October 2005

Investment in production equipment has created capacity and matched growth product strategies

• An extra 4 million litres per year

ensures NSW meets anticipated growth for 10 years.

• Reduced costs by $800,000 per year

$2.6 million Small PET Line in NSW Carbonated Soft Drinks

• New products – still water in glass and

improved tasting juice products

• An extra 18 million litres water and 27

million litres of Powerade per year.

• Meets anticipated growth for 2-3 years

$5 million Pacific Beverage Line Upgrade Powerade & Juice

• New packaging formats
• An extra 134 million litres per year,

meets anticipated growth for next 10 years

• Reduced cost

$18 million QLD Water Line Water

RESULTS INVESTMENT PRODUCT TYPE

HIGHLIGHTS OF 2005 MANUFACTURING INVESTMENT

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October 2005 Planned I nvestment 2006-2009

CSDs 24% Hotfill 22% Juice 25% Water 29%

We will manage next 3 years investment with our current capital structure

Product specific manufacturing investment e.g. excludes warehousing, IT etc.

Carbonated Beverages Non-carbonated Beverages

Investment envisages 1 line per year for 3 years @ $15 – 20M per line

70

October 2005

Mentone performance under-pins confidence in Sydney & Auckland

13.8 39.7 Pallet Movements per 1000 cases sold 10% 10% Cost per Case % reduction

(inc depreciation)

0.8 2.9 Error order picking (errors

per 1000 cases picked)

98.6% 90% Accuracy of inventory records 183 96 Productivity (cases/man hr) Mentone Average from CCA’s traditional warehouses Measure

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October 2005

Northmead Plant Smithfield DC Smithfield Plant Newcastle Break-Bulk Canberra Break-Bulk Route Customers Grocery Customer DCs Outside Storage 102 Briens Rd Route Customers Route Customers Interstate Outbound Interstate Outbound Interstate Inbound Interstate Inbound

Current NSW Logistics Network NSW opportunity to reduce complexity in distribution 2005

72

October 2005

NSW logistics will be simplified by 2008

Northmead Plant Eastern Creek DC Smithfield Plant Route Customers Grocery Customer DCs Interstate Outbound Interstate Inbound

Future NSW Logistics Network 2008

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October 2005

Northmead bulk warehouse will provide 50,000 pallets of storage capacity and reduced operating costs

Production Expansion Warehouse Office Space W a r e h

• u

s i n g

$180million investment gives: 50,000 pallets of storage, a picking facility with capacity till 2015, space for 4 more production lines

74

October 2005

Eastern Creek mixed pallet warehouse will increase customer service & reduce cost

38

75

October 2005

Current Operating Environment

• Increased market share in Q3 despite large price

gap to competitor

• Higher COGS environment
• Petrol Prices
• Q4 weather
• Retailer pricing

76

October 2005

Key Drivers for last Quarter Performance

• Coke 1.5L and 6 pack cans in Grocery
• Sprite momentum with Sprite Zero advertising
• Mt Franklin / Pump racks and multi packs
• Deep Spring relaunch
• Fruitopia Alive launch
• Cold drink coolers / new outlets
• October price increase

Strong NPD pipeline led by Coca-Cola Zero