3. Swire Beverages environment impact
CO2
Greenhouse
Gas
Emission
Focus issues:
Water
Solid
Waste
Only 1.3%
from Beverages
Division
A vast 70.5%
from Beverages
Division
1 billion unit cases*
sold in 2013
*a unit case = 24 servings
Source: Swire Pacific 2013 Annual Report
Issues Coke Stream Return & Restore Implementation
4. The impacts of waste
Environment Public Health
1.Causing air and water
pollution
2.Landfill sites
which can damage the
plants and trees
1.Causing diseases,
e.g. water borne diseases
2.Causing breathing
problems
Issues Coke Stream Return & Restore Implementation
5. Current sustainability approaches
Packaging design
• Materials: rPET, PlantBottle
• Lightweighting
Educating consumers
to recycle with the
innovative
Reverse Vending Machine
Issues Coke Stream Return & Restore Implementation
6. But, more needs to be done
Annual domestic waste:
China
360 million tons
Hong Kong
1.9 million tons
Taiwan
8.3 million tons
Source: chinadialogue, FEHD-HK, EPA-TW
Issues Coke Stream Return & Restore Implementation
8. Current sustainability approaches
Improving water efficiency Treating wastewater
Treated wastewater is transported
through 2430 m pipeline to Lianhu
Park artificial lake
By using air system to rinse bottle,
epoxy floors, filterbed wash water
recovery, returnable bottle washer,
water use ratio has been decreasing
-39%
Regenerating water sources
Source: Swire Pacific 2013 Annual Report
Issues Coke Stream Return & Restore Implementation
2.87
2.56
2.33 2.23
1.95 1.9 1.81 1.75 1.74 1.76
9. Still, more can be done
Drought in China's Gansu Province
has left about 7,000 people and
420,000 cattle lacking adequate
drinking water
Farmers in China’s Henan Province
have been forced to irrigate their
fields with wastewater, because
groundwater sources have dried up
Source: CRI, Epoch Times
Issues Coke Stream Return & Restore Implementation
11. Coke Stream: zero waste Coca-Cola
Not just an ordinary vending machine
Ordinary vending machine: Coke Stream:
Insert the money
Select the item
Take the bottle/can
Insert the
money
Select the
item
Bring your
own bottle
Fill your
bottle
Issues Coke Stream Return & Restore Implementation
12. Free extra drink
Rewarding consumers for bringing their own bottle
Extra drink for the same price
Persuade consumer to use
personal bottle more often
• Reduce packaging consumption
• Less waste impact
Issues Coke Stream Return & Restore Implementation
13. Target consumer
Aiming for consumers in two specific target areas
Universities Residential
buildings
Reasons:
Many universities students have no
problem bringing their own bottles
to campus
Bottles are readily available for
consumers in residential buildings
1
2
Issues Coke Stream Return & Restore Implementation
14. Benefits of Coke Stream
Reducing waste, cutting cost
Reduce the use of plastic and aluminum packaging
Core benefits
• Minimize the Post
Consumer Material (PCM)
waste
• Reduce the impact to the
environment
Core benefits
• Lower production cost in
the long run
• Improve profitability
Issues Coke Stream Return & Restore Implementation
15. Return & Restore campaign
Engaging the most significant stakeholder
Consumer
Engagement
Increase people’s awareness
for the environment
Intention to help other
people in need
Aims:
1
2
Issues Coke Stream Return & Restore Implementation
16. Leverage consumer engagement
Encouraging consumers to take part in sustainability goals
Return empty
packaging to RVMs
Earn points
online
Redeem the points:
• Reusable tumbler
• Free Coke Stream
Donate for
Coca-Cola’s
charity projects
Issues Coke Stream Return & Restore Implementation
17. Collection of recyclable packaging
Utilizing Swire’s existing technology
Reverse Vending Machine
Strategic location
• Near to the regular vending machines
• Places where Coke Stream is not viable
Collection method
• Partnership with waste collector/recycler
in target markets
Issues Coke Stream Return & Restore Implementation
18. Reward points system
Giving incentives to encourage participation
Consumers earn 1 point
for every empty
packaging returned
Points are accumulated
online and manageable
via a smartphone app
Smartphone Penetration (%)
47
35 35
49
63
51
33 31
26
32
44
56
70
60
50
40
30
20
10
0
China Hong Kong Taiwan USA
2011 2012 2013
Source: Our Mobile Planet
Issues Coke Stream Return & Restore Implementation
19. Offering flexibility for consumers
Linking the incentives to sustainability goals
► Redeem the points for gifts ► Donate the points for charity
Redemption Donation
1.Free Coke Stream (X points)
Persuade consumers to try the
new zero waste Coca-Cola
2.Reusable tumbler (X points)
Further encourage consumers
to try the Coke Stream
Allows consumers to contribute to
Coca-Cola’s charitable water
replenishment projects:
• Irrigation infrastructure in Henan
• Clean water for people in Gansu
Issues Coke Stream Return & Restore Implementation
20. Consumer awareness
Aiming the consumer behavior trend
“Consumers are willing to contribute and play a role in companies’
efforts to abate critical environmental issues”
American
consumers
Consumers in
Greater China Region
92% U.S. consumers would buy a
product with social and/or
environmental benefit
83% of Chinese consumers try to
buy products made by companies
that do good things for the
environment or community
“They want to interact and engage with the brands they buy”
Source: Cone Communications, Echo Global, KRC Research
Issues Coke Stream Return & Restore Implementation
21. Twofold benefits of Return & Restore
Addressing both waste and water issues
Encourage consumers
to recycle their waste
Core benefits
• Help Coca-Cola to obtain
more recyclable materials
• Reduce the impact from
waste to the environment
Provide a platform for
consumers to contribute
Core benefits
• Moving consumers to
repeat usage
• Accelerate Coca-Cola’s
charitable water
replenishment projects
Issues Coke Stream Return & Restore Implementation
22. Criteria to evaluate launch market
Where to launch the solutions?
In order of importance
Ease of launch Cons. behavior trend Market size
Geographic proximity
Distribution capability
(new Coke Stream)
Partner availability
(collector/recycler)
Use of personal
reusable bottle
Recycling habit
Philanthropic spirit
Existing consumers
Potential new
consumers
FEASIBLE LAUNCH MARKET WITH THE MOST SIGNIFICANT RESULTS
Issues Coke Stream Return & Restore Implementation
23. Evaluating the launch market
Where to launch the solutions?
Ease of launch Cons. behavior trend Market size
China
Launch
priority
Hong Kong
Taiwan
USA
2
Source: Swire Pacific 2013 Annual Report, Team Analysis
Issues Coke Stream Return & Restore Implementation
1
1
3
24. Launch of solutions to markets
Phased time launch
SELECTION
Ease of
Consumer
CRITERION
launch
behavior trend
Market
size
Time phases:
Locations:
Phase 1 Coke Stream
Phase 2
Phase 3
• Universities
• Residential buildings
Return & Restore
• Airports, stations
• Stadium, public places
Issues Coke Stream Return & Restore Implementation
25. Main investment
Investing for sustainability
Coke Stream: Return & Restore:
Distribution App and database
Coke Stream RVMs
machine
to store the points
Marketing
Issues Coke Stream Return & Restore Implementation
26. Suggested performance indicators
Measuring progress with KPIs
KPI (within 1 year)
Reduction in PCMs waste %
Reduction in carbon and water footprint %
Reduction in total production cost
Ratio between sales from Coke Stream
and regular vending machines
%
Coke Stream
%
Issues Coke Stream Return & Restore Implementation
27. Suggested performance indicators
Measuring progress with KPIs
KPI (within 1 year)
Percentage of sold packaging that are
returned
Accumulated amount from donated
points
%
HK$
Return & Restore
Issues Coke Stream Return & Restore Implementation
28. Moving forward to sustainability goal
Coke Stream Return & Restore
Reduce the environment
impact from packaging
waste even further
• Recycle more PCM waste
• Replenish water for those
in need
Issues Coke Stream Return & Restore Implementation
31. Smartphone application
Leveraging the mobile and social trend
The smartphone app presents a limitless
possible uses beyond managing points.
The app can also allow the consumers to:
• Compete with their friends on their
recycling points and share their
achievements to social media.
• Find the nearest RVM machines.
Achieve maximum engagement and impact
Issues Coke Stream Return & Restore Implementation
32. Social marketing
Minimum investment, maximum impact
Use social media for inviting and encouraging the mass audience to try
Coke Stream and participate in Return & Restore campaign
Sina Weibo
Qzone
Tencent Weibo
Facebook
Sina Weibo
Facebook
Plurk
Sina Weibo
Facebook
Twitter
Source: GO-Globe, Business Insider, Pinterest
Fashionbi, eBizMBA, Alexa
33. Risk mitigation
Prepared for unfavorable possibilities
Risk Mitigation
Coke Stream
Poor take-up rate of Coke Stream
by target consumer group
Provide periodical promotions
Unwillingness of partners to take-in
Coke Stream machine
Give trial period
Return &
Restore
Low packaging return rate
• Search for next promising
places to put the RVMs
• Registration bonus
Issues Coke Stream Return & Restore Implementation
It is impossible to achieve zero impact of waste just from the efforts of Coca-Cola alone.
Coca-Cola needs to engage its most significant stakeholder: the consumers themselves.
A lot of people consume Coca-Cola beverages as part of their daily life, yet there are only a small amount of them who really care about the waste.
“Return & Restore” campaign aims to increase people’s awareness for the environment as well as their intention to help other people in need.
If consumers buy Coca-Cola beverages and later put the empty packaging into a reverse vending machine, they will get some points that can be accumulated online.
After accumulating some amount of points, the consumers can then choose whether to redeem the points for special Coca-Cola merchandises or to donate the points as money for Coca-Cola’s water replenishment projects or charities.
This campaign addresses both waste and water issues.
By encouraging consumers to recycle their waste, it helps Coca-Cola to obtain more recyclable materials, and more importantly, reduce the impact of waste to the environment.
Furthermore, consumers can also choose to take part in Coca-Cola’s water replenishment projects or charities (building irrigation infrastructures, providing clean water for people in need, and many other possibilities).
