Responsible Sales and Marketing

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Commitment 2020 About This CRS Report A Message from Our Chairman and CEO Our Business at a Glance Corporate Responsibility and Sustainability at CCE CRS Governance CRS in Action

Energy Conservation/Climate Change Overview Understanding Climate Risks Our Energy Conservation/Climate Change Strategy Reducing Our Core Emissions Our Carbon Footprint Our Product Footprints Reducing Emissions from Our Sales and Marketing Equipment Partnerships and Public Policy

Water Stewardship Overview Understanding Our Water Risks Our Water Stewardship Strategy Reducing Our Water Use and Improving Our Efficiency Our Water Footprint Recycling, Reclaiming, and Responsible Treatment Protecting and Replenishing Our Watersheds Partnerships and Public Policy

Sustainable Packaging/Recycling Overview Understanding Our Packaging Challenges Our Sustainable Packaging/Recycling Strategy Reducing Our Packaging Reusing Materials and Increasing Recycled Content Developing Renewable Resources Recycling at Our Facilities Effective Recovery and Consumer Recycling Partnerships and Public Policy

Product Portfolio/Balanced and Active Lifestyle Overview Understanding Our Product Portfolio Challenges Our Product Portfolio Strategy Providing Choice A Selection of New 2009 Products Nutritional Labeling School Beverage Guidelines Implementation Responsible Sales and Marketing Supporting Balanced and Active Lifestyles Partnerships and Public Policy

Diverse and Inclusive Culture Overview Understanding Our Diverse and Inclusive Culture Challenges Our Diverse and Inclusive Culture Strategy Measuring Diversity Building Our Diversity and Inclusion Infrastructure Recruitment Retention and Promotion Safety Providing Equal Opportunities Partnerships and Public Policy

Stakeholder Engagement NGOs and Public-Private Partnerships Employees Our Suppliers Customers Consumers Our Communities Public Policymakers Our Shareowners

Product Portfolio/Balanced and Active Lifestyle Overview

Understanding Our Product Portfolio Challenges

Our Product Portfolio Strategy

Providing Choice

A Selection of New 2009 Products

Nutritional Labeling

School Beverage Guidelines Implementation

Responsible Sales and Marketing

Supporting Balanced and Active Lifestyles

Partnerships and Public Policy

Responsible Sales and Marketing

By engaging with parents, educators, nutrition experts, and public health authorities, we helped lead the development of industry guidelines that voluntarily restricted beverage sales in schools.

In the United States, we have nearly met our goal to achieve 100-percent compliance with these guidelines by the 2009–2010 school year. Our compliance rate is currently 98.5 percent. The remainder (constituting fewer than 300 schools) are non-compliant for contractual reasons.

The guidelines are all founded on the same premise: that we respect the right of parents and other caregivers to decide what beverages and serving sizes their children should consume during the extended school day. Throughout the U.S. and Canada, we restrict serving sizes depending on type of drink and the age of the children concerned, limit the calories, and provide more nutritional and functional options. At least 50 percent of the beverages we offer in North American high schools must be water and low- or no-calorie options. Since their implementation in May 2006, these guidelines have removed 88 percent of beverage calories from U.S. schools.

Implementing these guidelines was a huge task. In the United States, we removed full-calorie, non-compliant products and changed our vending machine fronts in each of the 31,000 schools. To monitor our compliance, we developed new tracking mechanisms and held bi-weekly management reviews over the three-year period. We have now fully integrated the guidelines into our ordering systems so that non-compliant products cannot be purchased by schools. We continue to track against our commitments.

As optimistic a person as I am, I have to admit that I am stunned by these results. I commend the good faith and aggressiveness of these companies in leading the industry to deliver healthier beverages to our schools.

— FORMER PRESIDENT BILL CLINTON, FOUNDER OF THE WILLIAM J. CLINTON FOUNDATION
AND CO-LEADER OF THE ALLIANCE FOR A HEALTHIER GENERATION

In Europe, our activities differ slightly by country, depending on local concerns and legislation. In France, for example, we do not provide any drinks to schools; in the Netherlands and Great Britain, we provide drinks only to secondary schools, either indirectly through catering operations in the Netherlands or as controlled by law in Great Britain. We provide only waters and juices to primary schools in Belgium and a wider range of products in Belgian secondary schools. Independent monitoring has verified high levels of industry compliance with similar guidelines in previous years.

Although we now largely meet these commitments, we continue to engage in dialogue. In Great Britain, for example, The Coca-Cola Company published a Responsible Marketing Charter. This in-depth document not only guides our approach to marketing, but it also serves as a discussion of dilemmas and challenges.

Media Advertising

The Coca-Cola Company’s global marketing policy prohibits marketing to children under the age of 12. This policy covers all of its products and all marketing techniques.

This commitment was reinforced by the introduction in 2008 of global industry guidelines on marketing to children by the International Council of Beverages Associations. During 2009, the first independent assessment of compliance was conducted in 12 countries, including the U.S. and Canada. In these two countries, our industry was 99.8-percent and 98.7-percent compliant, respectively, with regard to television advertising. No violations were found in print or online media.

Similarly, the European food and beverage industry published the first report of its compliance with the EU Pledge, a voluntary commitment to the European Commission on advertising to children. Independent monitoring found that there was a 99.8-percent compliance rate for TV advertising and virtually 100-percent compliance for both online and print advertising. France was the only CCE country of the six surveyed.

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