Coca-cola Company (the) · NYSE:KO
Coca-cola Company (the) — The Coca-Cola Company — Investor Presentation (September 2023)
19 slides from Coca-cola Company (the)'s investor presentation, Sep 29, 2023
Slide 1: Raising the Bar: Marketing & Innovation
Raising the Bar: Marketing & Innovation As of Third Quarter 2023 MANOLO ARROYO & NANCY QUAN Global Chief Marketing Officer & Chief Technical and Innovation Officer The Coca-Cola Company Note: The information contained in this presentation is as of September 29, 2023. The information contained herein
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expres
Slide 3: Delivering amidst a dynamic landscape
Delivering amidst a dynamic landscape #1 #2 #3 External trend Aging global Media consumption Fragmentation population disruption System Recruit new Digital-led Balance scale, intimacy marketing consumers brand experiences and speed to market focus Human- Hyper- Data- Faster Smarter Centric
Slide 4: Marketing is the critical driver of our growth algorithm
Marketing is the critical driver of our growth algorithm Four pillars of our transformation Step change Shaping our Shifting approach New marketing effectiveness growth portfolio to innovation operating model and efficiency +9% (a) ~50% fewer brands (a) ~25% (b) 6K+ WPP Gross profit per $1 26 $Bn br
Slide 5: Investing differently to recruit consumers
Investing differently to recruit consumers Past Today PERCEPTION FOCUS BEHAVIOR FOCUS Brand Love Recruitment Population Weekly+ Intenders Neutrals Rejectors Marketing $ per person $ $ BETTER SEGMENTING CONSUMER BASE TO IMPROVE EFFECTIVENESS 5
Slide 6: Future of marketing will be experiences
Future of marketing will be experiences Product experiences Occasions & rituals Innovation (e.g., Meals + Breaks) Digital experiences Human-Centric Brand Experiences Retail experiences Passion points Sustainability (e.g., Sports + Live Music) experiences 6
Slide 7: Digital first and data driven
Digital first and data driven TCCC digital spend as a % of total media Pioneering with AI ~60% ~30% Creating engaging 2019 YTD Sep. 2023 brand experiences Leveraging 2.2 billion QR codes on packs daily servings to gather As a first enabler to drive traffic first-party data to our owned platforms 7
Slide 8: StudioX: a modern digital ecosystem that powers our marketing
StudioX: a modern digital ecosystem that powers our marketing ONE globally connected network Creative Ad Ops Production Biddable Adaption Media Audience Planning Dynamic Distribution Social Creative Community Mgmt. Media Integrated Standardized Step-changing Data-led disciplines data and tech capabi
Slide 9: Significant progress made to date
Significant progress made to date Organic Revenue(a) Growth vs. Long-Term Target (a) Organic revenues implied by long- term growth algorithm (mid-point) $106B (a) Actual organic revenues Recruiting 10th most valuable (b) weekly+ drinkers brand, up 7 positions #1 Top 10 '17 '18 '19 '20 '21 '22 '23
Slide 10: Raising the bar on innovation
Raising the bar on innovation Partnering across our System Smarter Competitive End-to-end innovation edge system value $ Margin Bigger Bolder accretive 10
Slide 11: New frameworks sharpen approach
New frameworks sharpen approach Leverage data Point of Ecommerce Ecommerce Google Social science & AI sales sales search search(a) listening(a) AI/ML Approach based Category development Enter Here BODYARMOR Flash I.V. Growth First to scale on S-Curve stages & S-curve Aquarius NEWATER Time Lift & shi
Slide 12: Taking consumer understanding to a new level
Taking consumer understanding to a new level Translating Decoding Novel sensory Flavor global voices behavior profiling mapping >20 Billion >26,000 ~1,200 Thousands conversations Facial coding products mapped of compounds in >10 languages videos to measure via AI sensory reviewed unarticulated profi
Slide 13: Innovation encompasses products, packaging and equipment
Innovation encompasses products, packaging and equipment Products Packaging Equipment 13
Slide 14: Products: delivering competitive edge and taste superiority
Products: delivering competitive edge and taste superiority Science of taste & aroma Product superiority Added functionality Understanding all senses, coupled Delivering market Science-based with expertise on taste and aroma winning solutions with taste credentials Five senses Sparkling ARTD Stills
Slide 15: Packaging: step-changing our approach
Packaging: step-changing our approach World class packaging center Reducing plastic & improving performance 4-5X Longer Freshness + = Shelf-life(b) ~38% ~35% PET Light Closure PET Glass-like Lightest Weight(b) Light coating weights(a) Weight(b) ~30% Lower Recyclable Carbon Footprint(b) Across multi-
Slide 16: Packaging: maximizing transactions and reducing our footprint
Packaging: maximizing transactions and reducing our footprint Affordability Sustainability Advanced Universal Bottle 1.25L Dual-packs Lightweighting & Refillables Bottle KEELCLIP® Tethered Cap Paperboard Packaging(a) Premiumization Coke Premium 12.9oz. Sleek Mini-Cans Label-free 100% rPET(b) Creatio
Slide 17: Equipment: winning with consumers and customers
Equipment: winning with consumers and customers Category variety Increased accessibility Connected in a digital ecosystem 17
Slide 18: Driving growth with our new innovation approach
Driving growth with our new innovation approach Sparkling Adult Sparkling Coffee Tea Juice & Dairy ARTD Mixed Cocktails Advanced Hydration Packaging Solutions Equipment 2x +12% ~25% 2019 2022 2019 2022 Contribution of innovation to 2023 gross profit growth(a) Increasing success rate Gross profit per
Slide 19: Reconciliation of GAAP and Non-GAAP Financial Measures
THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) Organic Revenues: Less: Adjustments to Reported Net Revenues Impact of Reported Acquisitions, Indexed Net Divestitures Impact of Organic Indexed Organic Revenues Currency and Structural Accounti
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