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CCEP Coca-Cola Europacific Partners

Participants
Sarah Willett VP, IR
Damian Gammell CEO
Nik Jhangiani CFO
Bonnie Herzog Goldman Sachs
Eric Serotta Evercore ISI
Sanjeet Aujla Credit Suisse
Edward Mundy Jefferies
Mitch Collett Deutsche Bank
Bryan Spillane Bank of America
Fintan Ryan JP Morgan
Charlie Higgs Redburn
Carlos Laboy HSBC
Sean King UBS
Simon Hales Citi
Call transcript
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Operator

Hello. And thank you for standing by. We would like to welcome everyone to today’s Coca-Cola Europacific Partners H1 2021 Conference Call. All attendee lines have been muted to avoid any background noise. After the speakers’ remarks, we will have a question-and-answer session. my of hand Investor now to conference It’s President Vice Relations, Instructions] pleasure today’s to over [Operator Sarah Willett. it give I to Ma’am, you.

Sarah Willett

Damian for I’m Nik Thank us our Gammell, with Jhangiani, all and our you CFO. CEO, joining here today.

considered made as statements on release, comments as will with Dutch, quarter conjunction accompanied the and detailed comments contain in today’s copy in remarks year available in slide a by forward-looking remarks half found a authorities. should cautionary our other website, results reminder for by management Before be we reports of cautionary Spanish with opening well of reflecting Damian statements. the U.S., the UK, and our These our language cautionary is information Prepared begin on XXXX, our be the our second Nik statements outlook. deck. this A and This with and call filed www.cocacolaep.com. and will contained

occurred the your of unit, CCEP a if Australian, call two measures methodologies beginning in These accordingly. as of these at transaction results pro this year. slides of the and We Comparable The May. the on will & Indonesian reflect Amatil Pacific over forma be Amatil deal, of then questions. the and presented will Coca-Cola to API, will remarks turn reflect basis. between distinguish had impact today metrics timing business completed the the the which our Many prepared our

to will will Damian. turn as on I possible full CEO, now a soon transcript over our call call, be made the as available Following the website. our

Damian Gammell

everyone to thanks many us joining and Sarah, today. you, Thank

strong environment. half by one delivered in engaged Let’s start quite highly performance a our takeaways. colleagues, key A dynamic with

to colleagues, to and the sincerely close CCEP you’ve I continue shown all hard work So out for show XXXX. to and we commitment that as my grateful all am

alongside win market our to one the Critically, And to online and that share Europe. with areas, two to key integration our plans across underway the I’m are are across joint FMCG XXXX. digital creator both we on even of value NARTD look again accelerate say continuing Coca-Cola are we growth well investments exciting very to as I’m pleased working number on-going Company an and in-store very continue our that The sustainability We customer category. we transformation. the in Western API agenda, forward pleased is more we And

We and the and We all future for believe simple our as Europacific critically by digitized the purpose difference mentioned Europe, bottler, on in for stakeholders. but our most and our be have I aspiration do bright a agenda. a a refresh make we strong commitment Coca-Cola our Coca-Cola communities vital Indonesia to move led delivering our our Pacific as ambitious sustainability earlier, world’s as to business, forward and to Partners to

We have Europe. as do track we of retain and Western our solid in position I’m delivery pleased X value a creator record very customer execution, number and

a growing leading We all a portfolio geographies. valuable exciting are and enjoy fortunate products category. of and and With we position attractive, operate to highly in brands, scale packaging, our across our

to great We continue API. unit, opportunity a also unlock business of have acquired potential newly to our the

sustainability invest our creating digital for to we greater, sustainable go to people, Despite will and our agenda. value all growth, Further our competitive we ourselves stakeholders. for We know portfolio, fit for our the continued have and We Together, in longer-term. position of COVID, continue particularly to journey be our more long-term

service, done great focus around great simple beverages, future. for better a great a sustainably, have shared people, We

this the So now, to on first we year. I’d look half these on like of of as touch areas each back

of safety priority. our number the wellbeing colleagues absolute know, is and you As our one

in the our to pandemic, recent and Belgium the as of Germany. the unfortunately well as occurred challenges support evolving that colleagues through continued widespread We flooding

continue barriers work to down to inclusion. We to break

arm, Europe, also Euro Our been platform, of in get shared years. colleagues first do we across initiatives. cold being great levels Zealand’s already Zealand, digital consecutive support revenue receive And New Papua and the a have and invest high-XXs, with program the accelerating the friends maintained and to we out engagement growth placing despite challenges XX,XXX the these our we across and plans. can In France growth in continue photos service, our story and to our also and to it gold stories progress pandemic, and we three a customer shown in-sourcing engagement first includes easier a the via campaign been models during customers survey our our family. Both generated lockdown our with customer of for our management in ventures, across only the over are Monster in a world. the critical equipment Coca-Cola to year. beverages in launched and of and year we our Europe GB, initiatives and capacity priority, New to enjoy This and award Coke just Portugal, “We culture number do And sell a about will we privileged markets aseptic and Great ventures on canning CCEP that they Europacific line line of to all BXB capacity us. excitement and and first launched has colleagues we and an CCEP support to our digital in creative Choice and consumers not across in communication HoReCa completed. as StarStock, an service Pride and and Partners HoReCa” in Coca-Cola and XXXX, our work”, customers summer, to we France our from place in marketplace and of are in New recognized and key all of make outperform our across installed growth in move business continue be In which extremely the engagement. celebrated football high Redline. Employer named and units were drinks the Supporting customized Germany. have customers of of for a reopening a Spain And markets company as and what strong for as our our our in to people Guinea in could our and Zero many of the lastly, have This sites platform the for the focused is were we “great activation new with online half, global do half offices, efficiency make, as love but half. And Wabi, course first of as eco-system our has recently best increasing the thrilled both continued to eased such explore

Zero new campaign for Coca-Cola been in great and look new has Our new a taste, Sugar success. Europe

Monarch, eight markets, New Our we have our supported Fiesta Monster and also Monster Fuel European innovations Super in launched impressive launched Ultra Zealand. and in and growth, of Mule, Mango Australia

of great about readily outside We expanding are this brand excited Costa and we Coffee GB. are very

Spain. six progress we of launched In have received an Coco We in to be and Pandan, Germany, in European launched Norway, Ramadan. and Express Fanta well Costa recently Topo are exciting and a opportunity, in Belgium our Chico for flavor, now new And Indonesia, markets. good we launched continues making

value as we of our and progress have business, Australia, expected recycled JV is will know commercial X heart entire fronts. am capacity do to that up further Across tons number these and recycling focused circular build our our help rates. center, we much making XXX%. we towards PET our facility, on partnership. a stimulate accelerate bottles over a Contributing the plans, to XX,XXX we likewise of Europe XX,XXX our across across faster chain. recycling creating with PET towards is in clearly Indonesia are net Both progress and on industry In per a great greenhouse new with have accelerate in PET plastic our collaboration process sustainability industry XX% that need emissions reduction step of this front year we pleased around an go to collaborations are signed target year. As construct a this are of agenda. billion emissions, our And Indonesia virgin have economy operate in announced of goal and produce towards rPET to at This packaging the we save recycling we within XXXX the by improvement zero ultimate will clearly facility agenda gas needed to each mindset to forward we and of tons to for recycling a a industry. and around and a I Carbon move continuing we

Spain to manufacturing also a in the am the XXXX. sites achieved of Sweden, at further two end to I by packaging, Beyond certification neutral extremely and proud carbon of of aim have with four our status extending this sites

have making benchmark responsible Coca-Cola for the system consumers. Practices make to up achieve in choices signed the And of stewardship and Business recently plant water Responsible finally healthy Marketing EU we easier which aims in an met & for Netherlands, the Conduct such the to this We for global just to food five Code one sustainable accreditation. our of

we faster. all to a with great future go more a a there’s shared clear half towards better So, first that in all and acknowledgement do must

a our strong now in turning performance, Just are performance the report first pleased to to half. we

impressive brands performance and customers, our to performance new our in We sales been of share European double key continue flavors, gains European the energy resulting XXX XX the our Europe some our compared portfolio great core points critically, with Strong our Monster from points area, growth win distribution, in HoReCa nearly Europe. by has I having reopening markets to touched basis the Across XXXX. as online. XXXX. earlier. we in of of business track absolute created Energy gained size Supporting basis in of of any to meaning on basis Flavors XX% since we relative share gained XXX on than has supported led Energy. both was of XXXX, combined increase value volume well a versus Western and double our are wider in-store value And to has share more in markets The peers to in our points

increase reflects a in All volume forma in comparables. of performance. X% pro easing comparable The line obviously solid soft these the of prior combined the QX deliver and to restrictions year elements top very

was will recall, QX the worst last year. period As impacted you

pace particularly given continued of the to We impressive the growth mix above face pre-pandemic been continued growth driven has our An focus result levels. case year. in revenue this and management with during unit I have half of am the revenue we have per volume encouraged recovery, that headwinds on pleased first

I’ll and back on the remain capabilities year. benefits are provide with with moving combination integration, Together start efficiency you made the on later. focused to efficiency the and shared more little digital come at to are We we detail We this pace deliver do on great accelerate this And a our and we’ve programs next going slide. this on finally, to earlier track I’ll Further the that API a and

highlights all digital So, of on to be CCEP, us a at most to world’s lead for our journey journey, critical Coca-Cola aspire the some bottler. transformation and we digitized to as

points. online on We ordered our online grocery, XXX also platforms. have and were most beverages beverages RSV continued basis by our Europe, in share food strong gains up up aggregator grocery share with performance and seen the XX% our In

year on track of is portal, deliver to Our record over €X My.CCEP.com, revenue. billion a own in BXB

an help and example identifying the our enables business brewers. strategically that of launched GB, CCEP And our expect in I’m increase more sustainable of also focused in It’s can Portugal. the partners CCEP partnership which to Wabi, of of that is with companies by and directly Ventures. great year, a excited platform marketplace over customers using we’ve future-proof. from Ventures end platform was efficient, a how licensed XX,XXX new the very online relevant We In an the make StarStock drinks on eBXB venues order is to launched reach XXX%. StarStock platform number major

with launch your average to consumers. product aided subscription platform, cans, order DXC of by for our occasions. great personalized the directly value develop is recent innovation recent Coca-Cola. to Encouragingly One way special is engage a us increasing. for special and and This platform’s the continue We was fun our bundles services innovation,

We are consumer insights. learnings valuable taking generating and

provide also savings. on The our with partnering power system From over Source-to-Pay are We for need launched they which now a workplace all need detail achieving find to financials. together, brings leverage I will automation a Nik? And touchless Nik making tools services progress as that use on time the SAP we like they the Company over efficiency single process is to recently them. of insight And easier workplace, the journey. of of hours to our and integrated it the our of The to and of perspective, chain through we CCEP. and to the Coca-Cola of Compass, across efficiencies to in note, automated driving Ariba digital colleagues talk XXX,XXX digital implementation all invoice when translation more in cost supply would the hand

Nik Jhangiani

Thank you, for you all and joining Damian today. thank us

Let start now on more I areas. and summary. some financial through touch our these with these me detail half one go each shortly on will of

profit pro an of efficiency increased on We forma, XX% at an basis, X.X% spend closely. And and our pro on revenues up €X growth XX.X% FX-neutral and forma our nearly FX-neutral pro per on by COGS ongoing basis. our unit forma basis. €XXX delivered was and pro and case forma reflecting up comparable FX-neutral with that’s in comparable on starting XX% a revenue our So of the areas discretionary billion, the increase of a on continuous the million, an efforts overall managing programs our operating benefit

comparable we calculated comparable the resulted by tax unrecognized from declined tax uncertain XX% and to of priority strong earnings free comparable XX% flow million basis. per of us, driven when This to and in utilization losses flow basis. up €X.XX, a year core rate our Free positions. previously a FX-neutral continues comparable a XX.X% of reduction a The effective €XXX basis. generated similar Our for of diluted last on approximately cash cash reassessment is be share on generation on and

pro revenue highlights. both importantly forma in was unit at driven looking our increase case. per by revenue increase volume the The Now an and

encouragingly, by impacted pack Revenue QX our end Damian, in encouraged versus in mix and worst versus we performance lapped reflecting positive headwinds. away-from-home restrictions increases. unit And period brand in channel channel, as XXXX, X% the last mix XXXX, channel mentioned reopenings from we’re most positive up As the following improvement earlier mobility has quarter. eased favorable the generally significant case Unsurprisingly, by been mix on we’re by the and year. as per rate increased the volume grew underlying of despite away-from-home our the the X.X% and second towards

Overall, benefitting half. with XX% the Strong down up result, a home the X.X% this mobility. versus As increased well occasions channels XXXX that across in increased total impacted QX at-home XXXX, in was continued one. versus doubling from away-from-home in perspective, were channel with From volumes trading volumes in in the as during continued, Europe volumes on-the-go growth immediate positively consumption channel first was as half XXXX. meant versus grocery, down online pack both X% to due a

On you the XX.X% pro year, half API half half throughout compare in tougher of revenue XX.X% down reopening when has and QX an segment, X% during last with in reflecting FX-neutral away-from-home versus one restrictions by last QX months. Now basis versus restrictions up the obviously in forma versus if in up place Australia flat on geography by you’ll commentary release. minimal and more few one year. XXXX, the first look during you of Europe changed revenues in the at But, reflecting which FX-neutral and and an XXXX, New in detailed revenue was the Zealand basis were see the obviously XXXX

performance Europe of away-from-home As second in in both segments. driven I and reopening cycling strong mentioned softer by the was earlier, quarter comparables of

to comparables year to therefore compared easing resulting see the third-quarter, now year. QX quarter of initial an tougher into that are We in last last started restrictions, a well progressed

broad-based by are weather our colder we factors cautiously markets. we the of encouraged are at recovery challenging most markets and While several seeing therefore we remain across seeing the has optimistic, wetter across and are been our Generally, play.

can of Portugal France. and as pressure Softer in ongoing availability, global context alongside referenced I Britain. which of travel and on on Great like as a clearly, course, Spain, given in increasing earlier. international pressure moment, Indonesia, does restrictions will especially is impacting Australia, I seeing we’re renewed commodities talk to OpEx, in supply, New and And, And markets haulier tourism Zealand in the remain restrictions

our quarter-to-date July slightly As for result, volumes August XXXX. down forma pro QX are a and versus

a We this QX that will course our November this the at on will our update and into few of factored guidance been update in trading for discuss year I in has moments. full

at to Moving look COGS. now

model, with in XX% line mainly which more relate further with have XX%, slide. that on to case for increased around seeing aware, go And total our are Commodities improvement higher are I goods, and I we’re upward our PET COGS and and largely for talked naturally accounting earlier. which are variable. pressure per you purchases manufacturing incidence XX% XX% our a into in typically aluminum, have As reflecting to unit commodities This fixed. and of will on finished D&A, the includes prices. revenue concentrate the next detail of adverse both approximately finally, been sugar on account the

as we volumes comes the on manufacturing unit recovery back half. fixed favorably given saw positive the well. mix our And as impact the impact has into topline, favorable first a a the resulting COGS of expected, COGS As per this from higher during the costs for case us

basis. So, combine by per COGS comparable FX-neutral has increasing these forma, when case you of factors, all unit on pro a X.X% in this resulted and

current I per color a as for opportunity as do continue case the want to some commodities full there to moving parts, well COGS year. to unit take While the on number on be view of give

around due pressures and spot experiencing in driver the half. upward a are Unsurprisingly, pressure significant movements global is the in from you prices supply. increase to As see on commodities we with can up first aluminum of can the chart, X% the total

We’re commitments expect recycled PET to use due due increased our accelerating year. hedging the are portfolio our PET to we these next sustainability market we Virgin the sugar higher seeing PET recycled towards and our but we impact as and subside increasing, profile across prices also of elements feedstock. also are versus progress demand prices from to

at Taking full we As for we for largely around our is an to view the commodities upward both of account, into so of This the for case year, trend around per exposure the recover, in X% clearly inflation volumes pro remainder Europe API half translates this the XX%, of to XXXX. commodities continue half. hedged, COGS of year, unit our of out anticipate year, to on all and for look a two X% versus latest first year the this full an assuming on forma basis. comparable increase over

commodities As you the increase so XX% of expect an will for when currently mid to exposure. range see see high are commodities to on compared here, on a hedged we approximately XXXX in we next year, to single-digit

continue have update look depending levels exposures the to manage pressures We view. levers several conditions. our And a do at on to trigger to you of more appropriate. lock as on through market multi-year We right in these we’ll

in seen, create successful have with underlying customers have and price will focus jointly you we to driving our As will first continue look been on we them. during with this the value as half to

operating base and next. and to to wider cost which normalize, our longer identify to expect will touch and benefit volumes take we competitive on continue As be meaningful for the continue fit leverage. on from our positive actions term, And continued to we I mix

efficiency, committed base efficiency programs. pre-pandemic at communicated we earlier alongside in year, cost versus announcing are the wider and the API levels rebasing Europe we their as as both to look So,

API. efficiency million $XXX a As in Aussie million about to €XX €XXX Europe announced million million or €XXX and we reminder, of for savings

for XXXX beyond, functional we structures. best also €XX continuous spend benefits to are communicated the €XXX while €XXX ensuring you the pre-pandemic with and efforts ongoing and track. to total discretionary the profits pre-announced the can total is fit compared longer-term. increase to absolute combination helping supply our of will million the percent group in in These in first €XX see, and that combination as broadly our half, compared and levels. margins be programs, benefits to more equate now, million, optimization to from OpEx practice OpEx on protect In only lower our was listing short-term, we on cost on and revenue, which and to savings weighted procurement, terms, volumes a to sharing largely million in competitive We chain of despite importantly These but along last us year, not flat, remain efficiency or

would support to as manage in such recovery I achievement that a the possible to in great also recovery far volume as mentioned some investments mitigate the upward pressures focused some our as inflationary labor the in we point, at TME continues, and Although OpEx increases to related business as as and half-year haulage. areas earlier, we against need anticipate

moving guidance the which full magnitude of the around for of assessment of scale the current year, Now uncertainty continued and and the to our the timing reflects the recovery. pandemic and pace

growth are XX% We reflect to expect Amatil, based completed and basis operating figures XX%. growth and revenue Coca-Cola the to rates. which are acquisition these Each FX and of XX% the timing comparable in actual therefore of of of profit on a full May of on year XX% growth

We of EPS, effective previously on XXXX to a XX%, around XX% as tax are year is The reassessment XX% approximately is vuma which The calculated when available cent on losses current rate from positions, basis. year consensus tax on guiding XX largely uncertain full reduction last unrecognized tax down similar a to effective the I utilization expected and due touched equates to from our also on to of increase earlier. of website. rate the

increases anticipated is between rates for corporate Our upward markets. and latest XX% in driven some see XX%, to certain mainly thereafter pressure tax estimate in income we and XXXX by expect

growth update on of also objectives, and our enlarged which our our of Amatil XX%. We dividend be giving will the base confidence transaction the in increased I are earnings business, This our as based event payout in finally, underpins QX combined course at trading ambitions. medium-term of free us operating our cash May, we adjusted the flow range billion annum target between times of our to greater us per to cash giving to reflect X generation, X.X incremental to to revenue commit update. approximately at target firmly the mentioned the leverage to ratio mentioned least we I net reiterating to our And greater Finally, year, with guidance will confidence debt XXXX €X.XX returning for on with for ratio investor we progressive just the line competitive in three-year this will EBITDA to And period. payout within maintain continue around our dividend at XX%. a and

So Damian going back then, to with closing Thank thoughts. Q&A. I’m that, Damian? hand take to we’ll for And some you.

Damian Gammell

Nik. Thank you,

on now exciting Amatil transaction. Just to touch the very

top It brand and is at practice in as all our tangible for with that time. we Europe. from from bottler Coca-Cola Candler reminder as recent XXXX it which we example a great competition, As move, Cup, business an global of a of benefits our happened stronger champions and is the an line best momentum a transaction stakeholders. growth is a CCEP. opportunity other relationship well system create reasons believe event, our great transaction value right significant this the for crowned investor and us all indeed can The combination New being of this Zealand a news exciting partners of really bottom annual are will at all truly sharing, and with the business acquiring us and that Coca-Cola a learn story, The of Company even

first underway days. the progress we the in the XXX made with well On we extremely have pleased and am are I integration,

one on have GM our emerging people From extensive to market key New together, across place, operate to us to We of bring allow Jorge, Papua digital addition started Coca-Cola is the collaborate to Guinea, and perspective bottlers. multiple from experience timezones. who new have Indonesia and a as in of great systems us talent recently joined and processes team. journey has Jorge a we our the one including our Mexican and

for number to our sharing We Australian are example are practices we been combination business a mentioned Nik the is and use that has learnings of programs and this of progress years. and already And deliver. are on doing benefits committed the earlier, excellent analytics one the we of best making efficiency as

minority Group, been growth is also sustainability working, yoghurts in portfolio, in We the Fiji. a a Paradise heart interest course. the updating close business alcohol example all Company premium on sale across to of in focusing have simplifying more you are on as of Australia, to with The most importantly, arguably water, Made coconut acquiring on as our interest look forward already ways better working our creating know, this The momentum Beverages, broader juices you in and our Coca-Cola core. align business aligning such minority long-term great And, we our plans we of are we further due And to and in commitments the CCEP. our

in not May a forward slide the Now event priorities have this changed. and looking to is we this our showed at the second of investor half year. In nutshell, a

of the We continue on API. to work successfully integration

to maximize core and employee front digital as our in as better consumers their to We go our creating want earlier, to and our their mind progress customer, Investment Further on and Together is are I and around great journey to remain development our transformation, said to people, the are net navigate always online of our we as will our also value always, focused support making opportunity wellbeing COVID. the continue growing on ever-changing and accelerate And for on we our zero. sustainability And, focus needs. situation customers. both we as

and are CCEP in of level. of at completion this will we progress area review in great a today, heard API update targets our have will our you making this we be area align following As and able to

examples especially of here So, some beyond, with and rest XXXX the are excited of I about. in indeed mind am what

our continues. We as the the recovery customers will support from continue to pandemic

their Zero will to Net zero be GB, a helping raise climate journey through example to Pub aiming our in the customers project the our We hospitality & of awareness involvement net initiative in sector. Bar in on the for impact

Zero Sugar which the launch Australia, packaging On exciting the and in watch taste of exciting look Coca-Cola Vanilla out and new marketing Coca-Cola by GB, core, No and be supported both variants new new in campaigns. will our the Sugar for to

Europe across range mentioned roll the Monster Chico. not is the initial on which more we through in seeing Christmas. are the the roll-out Express as early least, X And ready-to-drink performance latte Reign to innovation in new I our out European positive of but earlier, we continue energy We business. continued last markets innovation results across still will Topo machines gingerbread energy are especially our And all its days but Costa track way with brand. drive launched. doubling including of flavors, to on we It for have new well

We with with into move brand plans Spain channel awareness And, finally takeaways performance dedicated CCEP start the category at at engaged close will one, half in A to with and the which the strong by for colleagues you on beginning the that Netherlands I whom of shared this I the to sincerely focusing am months call. building away-from-home throughout key grateful. and ahead. to and delivered highly

in am in-store in Europe, and FMCG again the volume, with that market I customer and online. both creator in we continue are to number the pleased share Western value, We value one win gains

in the CCEP for of Company, part And unit. with over the ongoing years. and now our our sustainability accelerate the of we’re we digital as plans particular underway in mentioned very well The are Importantly, API investments, very Xth transformation. integration growth to I business heavily Indonesia invest is the continue our excited earlier, to And is family developing and coming we much Coca-Cola with as it also

up So, Over operator. for now, And we would you. open questions. thank to like to you,

Operator

the is Goldman you. [Operator of And from going Herzog, today Instructions] our first come Bonnie Thank line question Sachs. to

Bonnie Herzog

color to Damian of balance recent and these your can Hi, in guess, how might potentially maybe some what markets? received sticking? these you And guys you’re inflationary accepting? you you pricing on or And seeing, you. of have pricing retailers need your that have finding hoping you your to I touch the to about the in been been pressures get in Thank how year? other on pricing have Nik. levers how pressures? thinking think actions was and pull And I offset finally, actions some certainly that Thank some are to you’re aggressive then you you. are do be the been offset general, of

Damian Gammell

most this for and into Hi pricing Bonnie. the of that first our on broader customer of we end year agreements. mean, of concluded know, ‘XX, as finalized Yes, the you I really we’re kind was quarter at XXXX as --

really So supporting to into of clearly, a year. the half with of is from and half and which ‘XX that very our with level ‘XX we’ve our the investments to strategy ‘XX since happy the from of suppose I this year, perspective tools. that’s back think, around some benefit a given channel revenue the making is of I’m I achievement, particularly one revenue support we’ll seeing strong that we are headwinds of happy definitely the think metrics ‘XX, the year, we’ve case management some mix the ahead enjoyed. first pricing and also performance the growth of I a in we’re is phenomenal per of starting We’ve been continue second been, and

So, pricing. I getting are think we the

are more cost Nik into as that second of to ultimate it to look of to end. the a smarter we headwinds become to that’s alluded offset some even through and half this and use ‘XX, clearly, year And We pressure. need that toward capability going of the going around the managing the some we’re to commodities

mean, conversations anybody. new not having is I this already. We’re to being those

end obviously, updating So, pricing will we’re and the calendar first different customers are type year look and as at some sales forget, in to other of be And the our towards engaging or our at of competitors. own They finalize the not how a headwinds quarter, years, with environment at everybody our you customers they’re look plan for in pricing obviously on right. to be, the be let’s ‘XX. when going Europe more also in we’ll our into of progressing. suppliers it’s Well, big their

these by headwinds are really felt So, being everybody.

shorter we’re to So, we’re navigate confident term going from them We in more those nature. that perspective, see be that to challenges. able

So, But as said, we going I for the our jeopardize not would particularly to to those we’re ultimately, of near. we headwinds, are health engaging on anything working long-term of will already with that, our brands. price customers. ‘XX the be mix do offset need and But category our accommodate that what

per net So with revenue for ‘XX, happy, our particularly case happy very performance.

good CCEP way, For ‘XX, consumers. helps, our make sustainable critically capabilities pricing the we of to to and which we in sight don’t of always on that and line so inside now brands damage great challenge, sure visibility a can and our on pass long-term any to do the health

subscriptions we’re this end ‘XX. at clearly, into QX looking into get how update at we that’s So, we’ll And the of the year those at as moment. and pricing

Operator

the going next with to ISI. Eric is Serotta question from Our line Evercore come of

Eric Serotta

supply any impact seeing more or of on side? you the Is impacting supply are across seeing constraints your side can Europe the constraints address Could that or logistics any your goods topline from cost or any markets the more, you of you’re of it broadly?

Damian Gammell

has Hi, some line aluminum suppose, I ‘XX. some Eric. broader Yes, in had, with can challenges been in we’ve supply. interesting on again, the the around pressures industry, one And and

done stocks. supply our minimize a our has chain out really cans think of I sourcing team good to job

the high-XXs. customer service in levels remain Our

So, our levels, it hasn’t shortages. service unique been that. and sure performance impacted in there We’ve some for that’s critical had you’ve I’m is haulage to maintain where UK really our customer some the situations us read, top-line and

relatively to haulage and at minimize with So, Germany that ‘XX, of in again, business. the a couple ways the solutions. around And impact water couple we’re Belgium but of again, customers in a shortage. mitigate in working go small looking plants, We’ve and had we one-offs innovative our transport we’re different total our to into flooding mix as the of using of

at great have sustain, that. in levels been service say, pass the done a impact over terms to challenge, we’ve has mitigating our Nik on just look that has I’ll when So, And job but been the a our of products. able to I to I team had it it

Nik Jhangiani

clearly, COGS significantly and coming I pricing higher challenges we’ve going the terms also forecasted. what through then can shortages of terms outlook of And supply are just for in we Yes. in had half some those mainly and from think of of prices than as two highlighted, aluminum spot

Damian been factored in particular, some seeing the and we importantly our into into been XXXX actions then, that haulage to, with in type labor issues. for And for factored of we’ll taking So, some term. pressures guidance. again, just OpEx some but more to talked alluded guidance, all be longer But into Damian And GB of XXXX. protect our about that’s markets, as then that’s the COGS the thinking the just are overall business

Eric Serotta

follow-up. a And then, Great. quick

to update big needs yet, you high-level could thinking to no the in us Any portfolio evaluation process? terms could announced update your picture, you alluded be process? done you you know have transactions that about are or the In there? provide any helpful. Where would but I work Australia, had be of provide on the Where of the are been in you color cleanup

Damian Gammell

identified value work lot Eric. for That the Yes. ongoing, is transaction to Coke something of on in early the source It’s that align has been and we brand system, the portfolio company us for both a our better. a

the set the view work Australia really So, out concluded. just of concluded value category. Peter at, some work we we’ve now within and to that is over brands ownership maybe, will That clearly, And want the And what we that we’re working And comment West piece. a decisions landscape that next now we’re where to timing and and team around to the to been of Nik, brand company the of the to finalizing believe create that other you transaction, three with in then, the need that long-term the Coke moment. the medium is win on then, timing since at we’ve and five And to portfolio. years. lead

Nik Jhangiani

Yes.

as also particular, assessing look that And we’ve said, and cetera. of we’re the coffee, some partner, choices through portfolios Damian cider, what of we spending longer-term at is brand with what beer, do we some in with such and time alluded we’re at the as looking So, other our categories some of we’re working right for might then flavors, the water to. Coca-Cola as et profile when

So, we’re working through that.

to we’ll hopefully, and on with able So, plans. the an year, target on be the I give towards but think end of track very all update, much you our

Damian Gammell

of really our the on it’s that, lot assumptions think, I and confirmed a good as our pre-deal news well ideas. Eric, is

we’re So, Thank that happy very with you. as well.

Operator

come going with line Aujla Our to Sanjeet next from the Suisse. question is of Credit

Sanjeet Aujla

please. A from of couple me, questions

or of assuming more that I Is Firstly, should are tax the that we in of I Nik that to just mid tax impact beyond implications interpret a And single-digit on be medium is commodity outlook guidance sort about on to cost per high unit reasonable reasonable slightly cash and range Thank you. for into guess, top should tax COGS to to next X.X some to impact, the it XX% guidance rate? above on there on X.X And going that? one be then, as XXXX. commodities mix XX% up year, factoring P&L rate think term? a any case

Nik Jhangiani

Hey Sanjeet.

COGS. obviously, On through the commodities overall right on we’re now, elements guidance, various working

largely as -- still aware, a COGS it profile similar. post overall I little the be premature, the acquisition you’re said as of remains So, can mix but our

So, you’re looking at about COGS piece. XX% commodities of the overall being

concentrate, will module, and impact to, line two an our other pricing, incidence which on then, alluded at we Damian as had be looking clearly in clearly, Now with factors.

think on side. I support and have manufacturing will back, the come I clearly, mix And revenue think implications will Obviously, a positive. mix volumes continue a then as net which be recovery that the will impact depending us will COGS well. should on

So, in tax impact continue to at what does medium-term we’ve days we to we to on trends of give what obviously, that like. In the completely but guidance, question, in ‘XX terms some early look you look look at initial COGS clearly, assess able overall of this that and ‘XX, estimates be commodities guidance. years to based relation seen

an some range. from think angle of ‘XX, we’ve I given

one ‘XX. that reassessed to as continue about. any for well. that move there are statutory doable that Remember, is, think should only in keep we the can in might be mind come the to is one planned that changes ‘XX the need well. I in factor know rate in and UK ‘XX be But as that about we potentially, Today, is, what main

being to at continue see sustainable. absent we’ll next you XX% keep to So, couple rate XX% changes, the that we on least updated of for But years, that.

Sanjeet Aujla

Got from tax? that just on cash P&L And income it. should differ tax,

Nik Jhangiani

we’ve cash effective the but in past, will a you and delta the tax Well, tax rate. to the continue between -- won’t seen cash piece defer, bigger the

delta that see will You narrow.

the piece. having of in impact see But, So, an past. on tax with I don’t much cash we’ve you’ll think line the what been in as that’s

Operator

to going of line is question Jefferies. next from come with Mundy Our Edward the

Edward Jefferies

Two questions, please.

on next this with or specific assume that sort flu phasing and fluid is the €XXX And second any guidance And you for first assume year? instance, no the to in guide you the you API season? your Europe The to still are the difficult do full is for update us of appreciate of situation that Are making one’s assumptions much got really on guide? to -- the million For QX COVID ball. into year things in and think savings. on do I in do you on then, deteriorate you a remainder of QX? And done? within things any the world €XXX year, million how so is into improve and But the more also into able crystal it’s the the around color

Nik Jhangiani

probably we’ve the there indicating reopening that thereof, start guidance, coming is what be today, based clearly, to and things that’s is the on kind up. domain that known will Septemberish, on API a opening or in in public about in mean, assumed of QX, in I which Yes.

or continue despite as the we the are perform not anything not impact In obviously, in So, of changes. severe, given of strongly, news has catastrophic is to watch of business good challenges. continues been we that. restrictions some some for significant those the planning Europe, The that terms and to

hope expect now, should and trajectory continue. right current we QX the For that

have know today. kinds been if all we go it to of just gazing with try crystal to of assumptions kind what obviously, make would have ball we we because So

look XXXX much ahead is of would that deliver delivery. factored for of to that that if but as areas we that’s I not be would very work and slightly In those And range in commodities, right with numbers, at might we’ll we ‘XX the terms we will into have update of to probably into accelerate provide plans, to an those offset the particularly as €XXX some the some of provided. pressures, terms ‘XX phasing we might of everything the in to particular, of you, ‘XX. able million, indications that some we of on, we in see guidance to versus are, all track of say The et €XXX those committed cetera, to challenges million been inflationary from we on will finalize we I business units on you, late how But, you our year. say what

Damian Gammell

of to think bit wanted suppose new spite we’ve that’s at in API I I and I that is moment these color give with learning I demonstrating that great. think think with and Yes. lockdowns. And lockdowns, just in business more mean, on API I to performed, particular, a the has Nik’s and very how comments. we perform been I are operate pleased to

the a year, think through positive we it’s we the we of really half gave. the could give As I that guidance second look

the year at of being I’m despite macro we I could factored element, that our our when confidence to weather think in the what think in some I year, look about outlook. in the And a we’re I in the UK, of I we demonstrates talk challenge our particularly certainly June. that’s as in of based that also And came those second out half we something as business, that full say suppose another happy the uncertainties. seeing

believe, bottler, little will earnings said great patchy look results have again. I kind believe would in ‘XX. to as have spite to bit even being in then, reopenings ‘XX come we more slower the And we we than of we That be weather liked. Having an seen a of ‘XX, still that, and through as on call a suppose reference to a So, able we in we’re stronger that. it’s bit delivering nice obviously, back to

the pressures we the see also year we that mix is of reopening benefit into those call going to ‘XX some a for end of through us look on ‘XX. a So, as about of as when we’ve more get full we be talked at away-from-home having

that something through look into as about ‘XX also ‘XX. that’s excited So, we we’re and

Edward Jefferies

a good how Zero, up follow-up much on of sort opportunity? type which your has you you’ve Coke traction, seen us What’s a behind Thanks, quick it money view also really and just Damian. runway gone the give And XXXX that’s for Coke more Zero, reformulation? perhaps of versus the the given levels. Could penetration of on XX% got

Damian Gammell

Yes.

lot of got we’ve ahead. think, room a I

we’ve a formulation market. accepted I think, on the well that’s in really landed been

iterations And developed great. on I had a identity looks number think of and different that graphic the Zero, brand. we’ve Coke we’ve visual

and we’ve giving us think and consumers look are now landed positive I on a feel feedback.

which any also momentum it given in And coming on to some varieties. and around will been evolve has the us that you’ve stores, If our great then pack looks of more innovation, be confidence some shelf. flavor continuing of

taste that long some it. I being format in great in on way that’s the about a big the brand said, looks So, see got long two momentum. And time category come. as markets, the part growth certainly, It’s a I a moment. Obviously, still we’re the it at for to great shelf. and of free to and positives sugar And excited go, our playing against of real

few going years. the be that’s talking part to think I be a of for what next will So, big we about

Operator

come Collett the Mitch is line with from Our next Bank. question of Deutsche going to

Mitch Collett

commodities. a got I’ve on there. back questions Hi, of couple

at able the Are P&L? So, give input like think headwinds hedge any, maybe some basis? level three-fourth there’s the what quantify us on within unhedged an able if costs on seeing, logistics you now? are is not XX% would a you to also to costs? it the costs for spot to that as Are normally you’re rate, I how whether guess, like steer on through that sounds And And the you ‘XX. OpEx, you we’re stage is material increase sit which perhaps mentioned the overall and probably You similar what of roughly of right your to there. able of on comment the gave inflation this look Would you at I be normal Are way helpful. very hedging or cost comment year. XX%? that’s logistics logistics

Damian Gammell

time at picked I -- So think, and because I your I you Mitch, the were been to at to would of a on somewhere I that be basis coverage up hedge year. levels liked XX-month towards you look patching would to would coverage, XX%. that have say be where question at But that the out. in than lower have Typically, XX%, on on our hedging this we rolling

We’ve been, where spot have to prices clearly, looking done with some the PX pricing primarily And from for appropriate of we’ve continue obviously, some to those and be sugar. been when lock So, year areas okay of we well next can. in have as said, open is, the that given I the PET as where aluminum. we perspective. should the think, see a MEG I And we

which piece, high, is premium challenge significantly cash look main as to real piece is aluminum, the and So, and we as added at the when pricing in around should lock be the continue able to that’s we as both, spot well well.

having a perspective that go the how said I about give we not mean, the have look that, we an coverage our when you we you just So, at hedging, type if and example, we XX%. had as back went levels of close XXXX, to look into at year where of to do

to right? at see seen look that of of could can hedging lock it upward at and again, of And does that to pay you. have moving, do number, ball that be forecasts there hopefully, want don’t clearly, hearing And right? we any in, ourselves our So €XXX-plus-million COGS continue depending impact also might that pricing But expect, and have. we’ll our on doing lock us we right but the time, on what we’re spot upwards on how You in, we an off. some for things no might be crystal some

right. as is costs, into -- that and managed how that’s because that freight we’ve in through of on That et Clearly, So, do some between to OpEx your that part cetera, have we’ll largely logistics well. our plays guidance. the depending of plants see you On cost out. factored in warehouse, element you’re a yes, COGS,

better to I will be premature think for indications until have you now, it view. XXXX a on any we give

an provide in we’ll that course. So, you due update on

Mitch Collett

Okay. today. the my for, wasn’t which what back And second but looking was just maybe quality on spot is I great sound question, to my come time, at really the

on now, weren’t at be you -- your that you sort year you had costs mid you’d a as what to level hedged to you inflation high versus If and looking of range for roughly at of basis? spot single-digit haven’t gave next hedging cover of the

Damian Gammell

lock-in to, Well, be not if about. that it the that I hedging, with high of of that would low-teens probably even, XX% areas talked some and that

Operator

next Our going question from line Bank is America. the Bryan to come of of with Spillane

Bryan Spillane

ones. -- better It’s of Can lot question it are just pressure, couple in a of just lack on last there any issues the I we’re seeing to -- not follow-up but here One, quick A labor a guess, it. you that availability, cost like with it’s put labor? We’ve COGS. way for on just states. labor a

cost either those, just just importantly, pressure I question on whether is, it’s pressure, staying labor of So, first but one the more that’s maybe guess? staffed, fully there any is

Damian Gammell

keep to invested at we’ve our a any also have CCEP, time would say, during obviously, to safe and pandemic No. minimize we’ve those our health fundamentally. of efforts of lot employees and the some disruption to challenges really navigated I to protect well all of

haven’t So, it CCEP. seen internally we at

haulage suppose, UK externally on have, haulage external back I is know, really because sourced. earlier which the comment to is of you challenges, We as most my our

struggling number seen in people large COVID combination our of and the the [Ph] work. Brexit a partners and that’s impact in have a where we drivers. demand, So, contract finding labor, UK of And to

kind that focus problem levels, maintaining to in the that’s And But continue hasn’t the reasonably all that So of can good the one generally UK, how it we’re and us mitigate on area been of we service touched even I has for challenge. across that. markets, other CCEP. we suppose again, despite

at been looking So, in haven’t the going what’s on we I’ve been U.S. --

trend Indonesia. Europe in seen that API We or or haven’t in

Bryan Spillane

plans Can And how guess, the is identified I because you the the probably affecting some just, give sense just to -- the what now that changes planning can you timing Damian, just API, or then delay any you is this swapping look the at environment the any So that the going next or developing in to conducive? terms of you’re how just as effect commercial environment is practices. us change might best looking not things is just or plans understand one right execution? trying COVID commercial or more just and of some is of have you will implementing there then there -- I’m maybe be in to

Damian Gammell

I in practices really been API, mentioned from think with moved don’t integration, my in [indiscernible] not as that, with from learning we’ve you Actually, I as sharing I and from, really we’ve it but and I Bryan. getting how from we’ve a a and Zealand -- best suppose, Australia quickly see of the New Europe. formal just comments, pleased integration said,

the pandemic further experienced Europe went with gone able I at of to we’ve been have as reapplying. been because So, lot ways, sharing haven’t seen anything in we something this we’ve some we now terms a particular unfortunately, in and in navigating. but of through slowing In they’ve share lockdowns quite into what because of Australia down

So Jorge recovery, I together. faster lot can we think and business the lead happens. at recovers very company. we and as go suppose through the both together in because again pleased it a that no, in there’s the I I’m has with do to that ‘XX, looking even Coke pandemic, joined Europe are how Australia we as can our into go we Indonesia

and as despite by to ahead we I’m really, honest, my team pleased at to where some really a a physically challenge this get to are the other it that, than be of expectations, to regulations, So, Australia stage. of really, due with being

Bryan Spillane

request next one, I this Okay, of great. deck Nik Maybe the last need to slide Candler with And Sarah. posing call, for the picture just next you and made Thanks. Cup. the a you

Damian Gammell

Chris …Do our to in you see want New Litchfield, GM Zealand…

Bryan Spillane

cup. see to Need the Thanks guys.

Damian Gammell

Thank you.

Operator

Morgan. JP next will Ryan Fintan line question from with the of come Our

Fintan Ryan

a answered, presenting I’m that the just Most the you point this the sort API And But, secondly, that interested not again, costs of Topo again. now commodity by that if have route how three over there next to there sort of third-party, insights or but go learnings conversation range in going I back down think major what that going what’s weeks Europe, that could so you’re potentially? there of How your is any sort color give tension few you be my at have place? business from Indonesia business. alcohol just ones the to to been it development of of would in of a Australia, sort with Suntory? plan in held is specifically Chico any And come sort business the Australia the Topo of Is taking around be for would relationship but can months, of launch relates there Any to the and and Beam year, Thank bring commercial you. post-COVID? welcome. the within launch you in Europe? also, in Chico And I appreciate that any

Damian Gammell

Thanks, Fintan.

to API. maybe on touch first So,

On brands serve. about, as on time at really decisions a focusing core full the are. pointing of industry levels, clearly I good that’s that the to in very there, API our I the a taken at population, business As feel to our top-to-bottom we it’s be around has we’ve market ahead GM very we’re when categories think on the look a where since opportunity over at of to it’s we route Indonesia, from Building alluded packs that Fanta, per the cost with we you We’ve on the in Sprite. our Unfortunately, started not Indonesia, to it’s our about impossible particularly number business on particular, a small to, excited particularly and of Coke, our particularly capita with and to of GDP at number looked and But, do Clearly, expectations suffering pleased levels, the pleased look when to in look that I’m some market, on we the taking growth. affordability, place. moment. the sparkling macros, size we business. analysis the the and COVID that taken of and new work Amatil on suppose of at

Indonesia, that forward the ongoing. end and share conversation. work very both we plan for detailed period that lot to in bringing to with of as to is but obviously his Jorge, is some for good Markets insights experience, our even more able next So, will Obviously, happening, Ramadan great a look and year And into around business. our we Asia the Day, be the Mexico, Capital

some continuously us us distribution That’s at encouragement. something and The we taking third party. relationship in we given with said, alcohol, Coca-Cola was a great Amatil, acquiring obviously business that’s So a as Chico there. Topo prior to with we’ll Topo the on through great and obviously, have and Company. mind, Suntory Beam a look On Chico have you And

that are of look alcohol was and of system, that there’s to bit we’ve see something as a that by Chico, time, for distribution that Peter very well we’re at the to of we’ll way clearly, being it’s and a a also, something that that been would in so Australian And in pleased I’m outside around from we’re Europe. that’s markets we have over the do the beer, weather just at Europe, how partnerships, ultimately, at to better structured Topo back honest. category. if at continuing where number we we as a Europe, what together. learn? come we a Europe business interesting can we’ve looked look had business look have later you at been know, And benefited But, moment, move as and see to the agreement suppose, So encouraged little it’s time. learn That’s But very the we On the is combining at all with I in looking And lot something from. of, cider. experimentation

Operator

Our to with come Charlie line Redburn. Higgs the of from next going is question

Charlie Higgs

two got I’ve questions, please.

services, Coca-Cola you impact one, like to platform have great seen your was seen year about come? that’s guns. And wondering the business still and here any The GB you particularly from could flavors? Coca-Cola, DTC going be the then, Company’s last change trademark business, I any looks Coca-Cola one, things then benefits decision structure, separating the to its in have first on if business to or talk if also, second you The And your from

just other about was wondering thoughts you. any any markets. So, Thank I into if you had of potentially expanding that your

Damian Gammell

Charlie. Yes, lot with still think move maybe proven it’s fun It’s of a days, of with start to point. I I’ll excitement last interesting business had lot a early a we’ve but in Yes, be our people the and proposing build and really feedback direct-to-consumer dedicated birthdays. Thanks, And cans with message us with different way. and one engage brand of value lot to of both using by people for of to a consumers our to, positive a GB. in I we’re mean, a getting

that’s Germany we’ve been something learned that we’re and going look to whether are other so, markets. we can Australia, clearly, to lot And particularly at reapply a that big Spain, from, markets,

And in that’s alignment. collaboration improved work So, more think are Company, on I seeing progress. Coca-Cola The we and

candidly, how having around and in need even network we also, to has an system the they my the culmination and to of stronger collaborate. in the And bigger we challenges due around and think work I COVID priorities organization to faster just how view make has to place COVID the closer. a to decisions due think brought together I quicker moved the and bolder made us moves just align

by market we’re And think around aligned Zero new and think, the performance. role as I on they’re decisions mentioned with brands, very with market the very I also much happy of obviously, the Coca-Cola made we earlier, flavors.

also as Australia. our wanted deal what portfolio particular, lot the validate can businesses, some And and do of with a the positive. about we to closer assumptions Australia as overall, them, chance talked had in in earlier, those So with we’ve in Yes. to work brand particularly around we and we Indonesia,

level happening with what’s collaboration transparency, of think, of due stronger certainly those to and So a both factors. I

Nik Jhangiani

more is learnings and think finance integrated I that cross-enterprise I a moved services, group lot the more lot up cross-enterprise on Yes. is I as and was technology, great shared both across such sharing positive the And business which in a areas, a services, well. there’s having system, process there that set vein ensure engagement with of add. group to leveraging mean, as procurement a just and as what collaboration same would the platform

Operator

going the is to from Carlos line question come next with HSBC. Laboy of Our

Carlos Laboy

don’t enough costs, raw up the cover of that your management this offset want this maybe is of these advanced pricing journey impact? that digital get your to for capability some stage trade Damian, you’re lot that can at discount these year you you of having you in next through tools material if a

Damian Gammell

most but I also where when invest at the of has some on one promo effectiveness capabilities we that we on value the promos look to building the coming of given ‘XX CCEP analytics profit us ‘XX, both that been of and think, certainly, areas and level. the our return price around to out digital has started understanding whole we and obviously to retailers, the a insights

a ‘XX, from business money As lot in we at top biggest investment of promotions. spend line. look through look the to we it you It’s on our when our straight

be pricing mentioned about we’re to comments, use in we want capability clearly, take to, to going as the in that my to ‘XX. So I smart

hedging. we’re clearly, So

business it which customer that health relationships. use give is becoming way on smarter that analytic out, deltas going called a tools, of a that’s price about pricing and years we headwinds. for some as more the take efficient is lot be ultimately, or those our to it certainly a offset the us jeopardize of of of do have didn’t one number in ago. we we And We’re you’ve want what our we investments developed company, promo. a to how but, existing predictive and transparency, we’ve the to ‘XX something in are But to that And doesn’t long-term

and part use customers, do of cash how make mitigate big, we absolutely process how on pricing, take smarter decision that do it’s negatives or do So, price of we decisions. to on investment any around consumer that promo our we bucket big how

but -- So correct. answer, long yes, short absolutely

Carlos Laboy

you investment. is thinking you speak look Can refillables? spoke quickly. on as a how market you about On very there recycling just your evolving And Indonesia, at that

Damian Gammell

moment see It for the out certainly in but number sustainability. the refillable system years That’s exited to I’ve at, at that affordability packaging of was looking drive the markets a a role and it. Yes. Indonesia. to something emerging format is ago, It’s many, done there of pack many used we’re in

to we’re something look pack to So clearly, it’s of future part pricing that be should our mix. going see at

moment, the that’s of we’re So, doing the some Carlos. at work

that So, get of roll the of able towards be Indonesia. the bit as clarity refillables on we provide to we’ll in a year, end the color more in

looks shelves. refillables to continuing ml We the also recently, use was that We’re Germany, pack glass in RGB XXX Europe. in market just great in refillable. on a launched I

premium, not a more very around that’s but so much refillable, and in So, much affordability on-the-go. the different and on use of play, that’s sustainability

just So, some role, we’re the continuing in to play how from look at sustainability refillable markets. not agenda piece, can ongoing a traditional on the affordability but

on So, it that, Indonesia, be will absolutely. key to

Operator

is Sean question Our UBS. King next to going from come of with the line

Sean King

this, any efforts away-from-home into reopening you’re shares the I And lean they but kind apologize to if what channel market in making I return? terms opportunity? that you missed that of seeing of in that are

Damian Gammell

to put Thanks, Yes, really and initiatives, in drink basic reopening mix support gone on readiness through very we in the actually a seeing, coming Europe, our cold obviously, strongly. into Sean. equipment to second Digital reopening of And have well. particularly GB, quarter promotions. from in away-from-home customers number France post Northern we’re programs

supporting obviously share. our our that’s So, supporting customers and

during the we’re But, In reopening. in well other about on a and in it’s particularly tourism So, mainly we away-from-home. in extremely slower, summer. seeing reopening back a markets, tourism that’s XX% the and recovery of to bit Iberia, of outlets slower perform the continue

anticipated. probably that’s we So, than higher originally

it’s very resilient So, a our of across markets. all in HoReCa segment

expect ‘XX. that footfall. And be then, we’d So, continue obviously, will delta to the into then biggest

European markets people in other So, already footfall get is HoReCa we’ll We early as tourism, like see some which continue office, improve. UK, the see markets. back the to of can that to than transportation, in further probably ahead our

going got terms through inventory track customers back come away-from-home a look as ‘XX even how make sure we can we’ve that’s got progress in pretty So, We’ve our as benefit of to I mentioned will earlier, kind with and as in we that much to of And to the stronger. and place. channels then our mix place. in work the be promotions

Operator

Simon for with our from Citi. come the line of Hales question And will last today

Simon Hales

we when pricing we Damian, over around the line? cost can And digital question, able assumptions relative think to over My companies about customers if are evolved FMCGs, question as wonder head years, given to there secondly, moves, those pricing significant that sort specifically then, there’s headwinds demand to price. a consumer the an of perhaps first answered the into you price et negotiations negotiations other your are elasticity you most back whole of CCEP side couple we’ve to sort the with get there from those Carlos’ perhaps But, package you just in business? the coming anything there? to partly capabilities. to year-end, Is to think perhaps, this, be in need advantage mix, of gives portfolio change changes facing to with the and response share last I the clearly, anything seen, how of cetera, us you

Damian Gammell

that of gives of think the something and pricing leading our some value-creation on story Thanks, price/mix CCEP, very we Simon. it’s confidence pricing laid conversations that been story part created is Well, and we’ve out. that clearly, What whole focused around since we’re -- I those me with degree we’ve strategy, our really it’s customers.

for our drinks, decision and us our to businesses. amount CPG. for highest generated but at discuss So, the the not with table the a we’ve gives across think revenue what’s within I obviously, to customers, consistently for of our And the right both good of that just proactively make customers category seat

scale look strong now of that at I a So, think platform, profitability, just our I clearly something on think customers’ size and platform. revenue and gives the that’s that us we value-creation if you represent

clearly damage Secondly, decisions pricing across brands not and brand the take and to brand love. think some mix, consumers mix we some pack come today. to in a fortunate we premium impacted we And back, of lot That that we a the have I support objectives. in elasticity never why that shop to flows made. of us But, clearly, introduced more well, we’ve And that’s the mix But packs. pandemic. On-the-go that perspective, And beverage that realized CPG, I is have more best certainly, a going also granted, about channels mean, IC come we take lot a should very our probably certainly a number relationship. pricing should haven’t for brands talked [indiscernible]. I some on the to then some we years with through we think you’ve that that lot better occasions And our pricing -- of And confidence and gives point are know a very, the terms back. just elasticity by because from been got obviously, than of that a we basis want small and beverage lot strength. has ago. don’t category one-year best

ahead and whole clearly, we’re focused of getting per headwinds. that’s revenue pricing, commodity while direct in plays the evolution, So, on not net case what is the which that it

all think, So, that of together, I helps.

we second continue to is invest business. the aspect we’ll in I raise that that our think

sit that Coke multiyear we’re the the investment still about remains, media we company company. Monster the talk of the our advertising, innovation, Coke in in and or investment with So, back doing with with remains with and capital we’re customers and on company investing marketing when pricing, we investments trade our whether it’s

best never as think it’s we’ll as So, in I a today. But, out easy and that. And we’ve do who talk to And they’ve already what confidence pricing. sat we anybody think I us ourselves discussions. positioned for about that I started. front can gives said, customer in And we’ve laid affirm of those

Operator

now for his Gammell conference Thank comments. like to over closing today’s you. to Damian I would turn

Damian Gammell

I want us just joining to afternoon operator. everybody thank again, for and morning. you, this this you And to Thank

and very continues to start a out, pleased go Nik and our the in of we’re first to year really very, really pleased integration the very have half, with myself laid As well. that that. strong Also, API

year we’ve COVID of focused delivering continue restrictions very-much the we’re as our we and pandemic to now XXXX. full looking seen the through the XXXX business on of that excitement XXXX, in across out with forward come to and are We

some term long manage very business on we’re and people. digital much As and both particular, most investments, parallel, we’re across of to talked today, believe have we of our our Nik number myself the importantly, but shorter-term well-positioned sustainability headwinds. great to inflationary And focused finally a in of those areas, this and in journey, our

again that, joining to today’s And to Thank look about CCEP. with for So, I’d you, like you end at And us. much again, to we call. speaking you thank very forward everybody. great business

Operator

call. to Once today’s participation. on conference appreciate your We again, we participating Coca-Cola Partners Europacific would like you for thank

disconnect. may You now