ANNUAL REPORT PORTUgAL, AdAPTiNg TO EACh COUNTRY S REALiTY
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1 84 portugal, adapting to each country s reality
2 annual report , adapting to each country s reality
3 86 portugal, adapting to each country s reality Adapting to each country s reality The integration of Portugal into Coca-Cola Iberian Partners operation map, with a model adapted to the local features, has been critical during the 2014 financial year. Andrés Curbelo Director of Operations, Portugal The strategy in Portugal has been focused on creating more value for our customers and consumers.
4 annual report Portugal in 2014 Key figures (Millions of liters) Ncsd Non-carbonated Volume of liters of our products sold CSD Carbonated Total % +5.60% +5.40% Variation Variation Variation ENVIRONMENTAL ratios 0.41MJ/lpf* The energy consumption ratio stayed at the same level as the previous year Reduction of water consumption in the period 2013/ l/lpf* Improvement of the water consumption ratio, from 2.02 l / lpf* to 1.88 l / lpf* *lpf: per liters of product produced Net Turnover (Millions of euros) Variation events In 2014, the Coca-Cola System has held 129 sports, social and cultural events in Portugal
5 88 portugal, adapting to each country s reality ı Our team Building the... future Vanessa Ferreira Business Planning & Controlling Manager We ended the year with total sales of 197 million liters and a net turnover of 128 million euros (+7% in 2013). In line with our future strategy and Coca-Cola Iberian Partners growth, Portugal has focused its business plan on bringing greater value to clients and consumers. These plans have been developed through three key pillars of action: a new Route to Market model, the strengthening of the Modern Food channel and expansion into the Organized Horeca (Immediate consumption) channel. Additionally, 2014 has been a key year, as the contribution of Portugal's production and logistical capacities has been critical for responding to the Iberian market demand as a whole. On the other hand, the year has also been marked by the consolidation of financial management. The integrated management of finances, planning and control has provided the operation in Portugal with a position that is more robust and more aligned with the rest of the company. 2014: a key year The contribution of Portugal's production and logistical capacities has been critical for responding to the Iberian market demand as a whole.
6 annual report We prepare our team for the future Organizationally, we have established the foundations for adapting the management structure and team to the challenges of the market and to our way of bringing value to clients and customers. The renewed Portuguese team acquires lines of coordination of all the different functional responsibilities, thereby increasing the exchange of better practices and aligning the work systems with the rest of the company. 100% of staff participated in the 'Don t be lost for words' sessions. Coca-Cola Company, with activities for promoting healthy lifestyles among our employees. The launch of a new continuous improvement facility, focused on aiding implementation of an Operational Excellence methodology in the continuous improvement process, was also a highlight. This centralized coordination goes hand in hand with high autonomy, and can adapt responses to the specificites of the Portuguese market. In 2015, the new operational model is prepared for full deployment of the management team with clearly defined roles and responsibilities, and supported by new work processes and information systems. Plans for employee communication As in Spain, the Ambassador program arrived in Portugal during the year. 100% of the staff participated in the Don t be lost for words sessions. Additionally, the Move Week initiative was developed, driven by The
7 90, adapting to each country s reality ı Consumers Offering a variety of quality products to our consumers With the aim of providing greater value to the consumer, the channel and of generating a higher turnover, a series of promotional activities has been developed in Portugal, including the following: Sampling Coca-Cola Zero Sampling Coca-Cola Zero in the Horeca Channel, conducted in Area IV (Northeast). The project functioned through the distribution to homes of a Coupon for a Coca-Cola. Fanta Coupons This promotion has been launched in the areas of the country that are most densely populated (Central-Northern, islands, Algarve). Directed at the Horeca and Food channels, more than 1.6 million informational leaflets have been distributed to consumer homes, with different offers for each channel. Share a coke Share a coke, the successful bottle personalization campaign has been implemented in the whole country and in multichannels (Modern and Traditional Food, gas stations, movie theaters, cash & carry branches,...). We have used digital platforms in the development of this campaign. World Cup in Brazil The promotion of the World Cup in Brazil, also at a national and multichannel level, was developed in the months of May and June. Fanta summer Fanta summer (Get them to drink Fanta), at a national and multichannel level (Horeca, gas stations, Food), gave out free gifts through pin codes located on each bottle. Other promotions At Christmas the Make somebody happy campaign was launched in the gas stations and Food channels, reaching all parts of the country. Other promotions have also been activated regarding food and on the go consumption opportunities.
8 annual report
9 92 portugal, adapting to each country s reality ı Customers ı suppliers We managing to help our customers grow Portugal's supply chain also has evolved, with a clear aim for optimization, contributing to all the Iberian market. Development of the Supply Chain This evolution has led to new logistical organization in the areas of storage and transport. Additionally, in order to bring more value to our customers and consumers, a new Route to Market model has been launched, the Modern Food channel has been strengthened and a commitment has been made to grow the Organized Horeca channel. The new Route to Market model is based on the philosophy of benefitting from the commercial strength of our distribution partners on the basis of an exhaustive portfolio and greater operational efficiency of the commercial functions. Trucks + 3,700 trucks + 90,000 Tons + 128,000 Pallets Stores + 6,000 Pallets/Month +115,000 Whole pallets issued New exports warehouse Capacity 5,000 Pallets This model allows Coca-Cola Iberian Partners to have a greater focus on development of the market. In 2014 we launched a pilot project which enabled us to test and improve the model so that we can begin deployment in 2015 on a larger scale.
10 annual report Establishing ties of responsibility with our suppliers Modern Food has begun a three year plan to reduce the promotional hyperactivity which is characteristic of the Portuguese market. The operation of downsizing the family bottle, promoting the 1.5L PET bottle over the 2.0L PET bottle has brought a more accesible price to the consumer, increasing sales transactions and the total volume. Portugal has subscribed to the new Purchasing model that follows the 7 steps sourcing process, based on the collaboration and joint decision-making on the Purchasing Board, and which ensures long-term sustainability of the model and of the supplier-customer relationship. Rationalization of promotional pressure will help all in the sector to improve profitability throughout the distribution chain. Additionally, a commitment has been made to develop Organized Horeca, strengthening our ability to close commercial deals with key customers, both at national and regional levels.
11 94 Portugal, adapting to each country s reality ı Environment ı Society Respect for the environment Several projects have been carried out in connection with the environment, following Lean Six Sigma methodologies, with the aim of analysing processes and reducing water and energy consumption ratios. This has allowed us to optimize water consumption throughout the year, from 2.02 l/lpf* to 1.88 l/lpf*, and to maintain energy consumption at 0.41 MJ/lpf* (*per liters of product produced). Even more important than this has been the analysis of environmental processes by carrying out a mapping (Process Management Control System) and defining KPIs, which allows us to have greater control over the processes. In consequence, our plant in Lisbon has received the ISO Energy Efficiency certificate. Recognized and awarded projects for best practices The Six Sigma project won the The plant in Lisbon has been prize for Best Reduction Project recognized by the TOP 10 Energy among the 270 projects worldwide Savings, promoted by the WWF that are represented by the in conjunction with the Coca-Cola Coca-Cola System. Company. It was also a finalist in the Six Additionally, since 2006, it has the Sigma Excellence Awards by the Water Savers recognition from IQPC (in conjunction with projects WWF and The Coca-Cola Company, from companies such as GE, making it the first plant to receive Bosch and VW). this award.
12 annual report Participating in society to promote well-being, solidarity and culture In 2014, the Coca-Cola System in Portugal held 129 sports, social and cultural events. Sports arena Among the most notable are: Coca-Cola Cup. The youth football competition in which 300 teams participated. Additionally, around 30,000 people visited the Vida Activa Park that was used for the competition. Desporto MTB. This MBT competition, which is run from Porto, enjoyed the presence and collaboration of the Powerade brand. Desporto Running. The Powerade brand was also present at this athletics event carried out in Porto. Social activity Higlights of the company s focus on social solidarity are: Mais para todos was a solidarity campaign developed together with Lidl to raise funds for those who are most in need. Together with the Food Bank, launched diverse activities for food collection. In the campaign Give and Receive, another social initiative, the company collaborated with Cáritas Portugal. Finally, and in our desire to give greater value to our customers, we opened the doors to our factory so that the Portuguese Hotel and Restaurant Association could hold meetings there. Share a coke To support the arrival to the market of the Share a Coke campaign, we took the campaign to the streets. In doing so, different activities were developed together with customers, collaborators, etc., in which personalized bottles were given out. Additionally, we have taken advantage of relevant events to boost the campaign motto. Such is the case for the Champions League match between Sporting Lisbon and Benfica, for which a presentation was made, with the footballers Buyo and Futre as hosts.
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