Bioeconomy Forum Finland 2012 April 2012 Dr. Klaus Stadler The Coca-Cola Company, Europe Group

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PET packaging has fueled our growth

for over 40 Years

lightweight : shatter resistant : re-sealable : formable : inexpensive : recyclable

1979 2009 1992

2

Our Strategic Framework

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RESOURCE

SCARCITY

ECO

IMPACTS

CONSUMER

VALUES

CUSTOMER

DEMANDS

To stay competitive we must do more with less impact

Traditional Way of Making Polymers using Fossil Fuel

4

Once upon a time ….

• some million years ago (in this context of time: NON RENEWABLE resource = fossil fuel)

• anaerobic decomposition of organic material

Today

The Idea: from Non-Renewable to Renewable

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Fossil Fuel

Carbon Dioxide in atmosphere

Today: cane sugar Tomorrow: Non-food biomass

REFRESH

REDUCE

RECYCLE

REUSE

RENEW v1

toward sustainable growth…

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First, some Definitions

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• What are Bioplastics ?

Plastics made from renewable resources.

• Where do Bioplastics come from ?

From renewable resources chemically converted into polymers.

• Why Bioplastics ?

To decouple from the use of fossil resources.

• Renewables versus bio-degradable ?

Renewable versus Bio-degradable

NO YES

Bio-degradable (compostable) (end of life question: micro-organisms can „eat“ it)

Re

new

able

N

O

YES

Wh

ere

do

es t

he

Car

bo

n c

om

e fr

om

?

pet

ro b

ase

d

pla

nt

bas

ed

PLA

ecoflex PET

PlantBottle *)

*) plantPET currently has 30% of the polymer made from plants (via MEG from bio-ethanol) and 70% are petro based (terephthalic acid).

bPP

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Why Not Biodegradable? Recycling vs. Composting

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• Composting biodegradable plastic bottles is a less preferred resource management approach versus recycling

• Environmentally - and economically - it is better to capture the raw material and the embodied energy in a plastic bottle and use it again instead of wasting it into dirt

• Biodegradable bottles do not offer a clear environmental advantage over PET plastic even if landfilled

Bio-MEG (30%)

Ingredient 2

[MEG] 30% by Weight

Ingredient 1

[PTA] 70% by Weight

Petro-

Material (oil, natural gas)

PET

Plastic

A (r)evolutionary innovation

Bottle Consumer Plant-

Material (sugars)

Recycled PET

* Patent pending on claim “Plant-based PET material with 1% to 100 % plant based content from bio MEG and/or bio PTA”

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Renewable Recyclable High Quality

+ + =

The only plastic bottle made with plants that is 100% recyclable and able to

meet the high quality standards of The Coca-Cola Company

Less Waste Less CO2

Less Oil/Natural Gas Same Performance

Bottle + Plant + Recycling

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2009

Introduced innovative

PlantBottle™ package

2010

Over 2.5 Billion bottles

10 Countries

2011

Over 10 Billion bottles

20 Countries

2020

All bottles made with

PlantBottle™ plastic

Scaling Across the World

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Canada

United States

Mexico

Brazil

Argentina Chile

Great Britain

Norway Sweden

Denmark

Germany

South Africa

China (Shanghai Expo 2010)

Japan

Benelux

2 Years, 20 Markets, +10 Billion Bottles

Switzerland France

Spain

Australia

2020 Goal: To have all plastic PET bottles include responsibly sourced plant-based materials that are fully recyclable

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Some early market learnings…

+ PlantBottle idea is well liked and resonates globally

+ PlantBottle can improve opinion of a brand

+ PlantBottle can improve trust and overall perception of the Company

+ PlantBottle has the potential to drive meaningful increased consumption (if in step with consumer awareness)

+ PlantBottle is relevant to strategic customers

- Awareness of PlantBottle in most markets is still very low

[Supporting Marketing K&I Research Data Available] 15

External Awards:

Strong External Recognition

Coca-Cola: Impressively Green

UVM: 1,429,880

"Green" Is More Than a

Buzzword at Opportunity Green

UVM: 12,622,200

Plastic from Plants: Is It an

Environmental Boon or Bane?

Circ: 702,840

Unique Visitors per Month (UVM)

Lessons Learned from

Creating Coke’s PlantBottle

UVM: 246,595

Coca-Cola's Green

Bottle, One Year On

Circ: 734,336

Bioplastics Boom

Circ: 2,092,523

Coca-Cola’s PlantBottle:

Digging Up the Roots

UVM: 174,076

Top Opportunities in Green

UVM: 6,570,563

The Coca-Cola Company

UVM: 25,420,966

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PRODUCTIVITY

LEADERSHIP

PLANET PORTFOLIO

PARTNERS

PROFIT PEOPLE

(14MM retail shelf impressions per month)

(680MM kitchen table impressions per month)

Strategic Collaboration:

Heinz PlantBottle™ Packaging Partnership

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Marketing Leadership: No. 1 Brand

Overall, PlantBottle™ has not just radically changed the way plastic can be produced, but it is beginning to radically change the way businesses view their sustainability initiatives.

PlantBottle Germany

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Introduced in 2011 67 Million bottles in 2011

14 – 17% from renewable resources 35 % recycled PET ~ 50% not from fossil resources !

Bio-MEG (30%)

Ingredient 2

[MEG] 30% by Weight

Ingredient 1

[PTA] 70% by Weight

Petro-

Material (oil, natural gas)

PET

Plastic

Bio-PTA (70%)

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Just Getting Started: Investing in technologies to commercialize 100%

Bottle Consumer Plant-

Material (sugars)

Recycled PET

* Patent pending on claim “Plant-based PET material with 1% to 100 % plant based content from bio MEG and/or bio PTA” 21

PlantBottle © Packaging R&D Journey

30% Bio-MEG Commercial Solution Now Building Supply Chain

Bio-Mass Feedstocks Commercial Solution 2015 – 2016 + Leveraging Bio-Fuel Industry R&D

70% Bio-TA Commercial Solution 2015-2016+ Multi-year R&D Program

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performance transparency

Life Cycle Performance Responsible Sourcing End of Life: Recycling

zzz

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A (r)evolutionary step…yet ahead

REFRESH

REDUCE

RECYCLE

REUSE

RENEW v1

RENEW v2

RENEW v3

Thank You ! 24

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Source

Cana-de-

açúcar

(Brasil)

Milho

(EUA) Trigo (UE)

Beterraba

(UE)

Country Brazil USA EU EU

GHG emissions

reduction 90% 35% 34% 45%

Energy balance 9.3 1.4 2.0 2.0

Productivity

(liters/hectare) 7,000 3,800 2,500 5,500

*Note: reduction of avoided emissions with ethanol as a gasoline substitute and calculated according to life-cycle analysis. Source: World Watch Institute (2006) and Macedo et al. (2008) – energy balance. Productivity: IEA – International Energy Agency (2005), MTEC and UNICA. GEE: IEA – International Energy Agency (2004) and Macedo, I. de C. et al. (2004 and 2008). Elaboration: UNICA

Not all feedstocks created equal

SOURCE: UNICA 26

Avantium PEF – The Next PET? 100% Plant-based, Small Barrier Bottles

EG

(Ethylene Glycol)

TA (Terephthalic Acid)

PET

EG

(Ethylene Glycol)

FA (Furanic Acid) PEF

+

+

PEF - A New Bio-Based Research Phase Polyester similar to PET – But With Improved Physical Properties: • 2X CO2 barrier = Longer Life / Lighter Weight Sparkling Small PET • 5X O2 barrier = Longer Life/Lightweight Vitamin water, juice, etc. PET • 11ºC higher Tg Thermal Performance - Reduced hot fill weight & costs • 50% higher modulus = Stronger Material = Significant Light-weighting Opportunity • 100% PlantBottle Bio-Based

Challenges • Eliminate yellow color, obtain FDA approval, establish separate recycle stream

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Bioplastics – A Fast Growing Market

Source: European Bioplastics Assocition

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