UNITE Winter 2017 – West

CANADA

ASSOCIATE NEWS | ISSUE 21 | WINTER 2017

UNITE

Going the

EXTRA MILE to grow our business

CANADIAN NEWS

QUICK HITS

FROM BILL Welcome to the winter edition of UNITE and Happy New Year! Before we get into our huge plans for the year ahead, I want to thank you all for an outstanding 2017.

We pulled together at the end of the year and finished strong with our Share a Coke holiday campaign (you can see some of the incredible holiday displays on the back cover!).

In addition to growing revenue above 3% in the fourth quarter of 2017 – which is an important gauge since that’s our Business Plan in 2018 – we delivered our stretch objective of $62 million in cost reduction, and made important strides in safety and quality. Perhaps most important, through accelerated growth across our five big bets and through major initiatives like the Empowerment Model with our Freedom in a Framework, Operating Unit and Lean Centre structure we have improved our competitive position for growth in 2018.

Thank you to the hundreds of people who completed the UNITE Canada survey and sent in feedback – based on your suggestions, you’ll being see some changes to the magazine in future issues. Maintenance Mechanic, Melville D’Mello, in Brampton, Ontario was the lucky winner of the tablet. Congratulations Melville and thanks to all for your valuable feedback!

Finally, we retained nearly all of our customers that were up for renewal (the largest of which was Pizza Pizza); and added both national and local new customers, headlined by Tim Hortons and including Les Sommets in the East, McMaster University in Central, and the University of Calgary in the West.

We’ve started the year off strong with the launch of Peace Tea – our new player in the value tea segment. Peace Tea adds to our powerhouse tea portfolio along with NESTEA and Gold Peak, expanding our coffee/tea offering. We’ve also rolled out Monster Hydro, Monster’s first energy drink to include electrolytes and B vitamins, which made its debut alongside Monster Ultra Violet. I know Ultra Violet will be a huge success because we had an enormous Gronk launch last year, and in the United States and in Couche-Tard here in Canada, Monster Ultra Violet is much bigger than Gronk! We should easily cycle Gronk with Ultra Violet, since it’s four times bigger than Gronk and Monster Hydro should be all incremental.

DEAR LEO

But it doesn’t stop there – we’re launching more innovation in 2018 than ever before! This issue of UNITE is filled with details on the nearly 50 SKUs we’re launching in the first quarter of the year alone! Our category offerings will further expand in February with the launch of four new Diet Coke flavours – just a piece of the total Diet Coke relaunch. It’s critical that we always merchandise the new flavours with base Diet Coke to drive total Diet Coke trademark. In addition, we’ll launch glaceau fruitwater and vitaminwater active; and we’ll continue our tea and coffee revolution with the introduction of new Gold Peak flavours!

Our Local Ethics Officer (LEO) is here to answer all of your questions about operating ethically.

Dear LEO, All these new innovations are so exciting! When can I tell my best friend about all the new Diet Coke flavours?

It’s a big year for us. In addition to all this innovation, it’s the year of sports with the Olympics, FIFA and Big Game all in the first quarter. And it will be an exciting time operationally with the roll out of CONA and the System of the Future.

Some teams may find this intimidating. But if I’ve learned anything about this team, it’s that I know we find these changes exciting and energizing. We’re setting the agenda in the market, getting our cost structure right and building capability to compete and win for the long term.

- Pumped about Product Dear Pumped, You’re right – it’s really exciting news! However, sharing Company information before it’s made public to consumers is a breach of the Code of Business Conduct. To get your friends as pumped as you are about the new launches, let them know there’s something so good coming that it’s top secret! They’ll be checking the shelves constantly.

I’m very proud of this great team!

Cheers, Bill

- LEO

WE WANT TO HEAR FROM YOU! Email canadacommunications@coca-cola.com

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Associate News ISSUE 21 • WINTER 2017

CANADIAN NEWS

COCA-COLA WINS TIM HORTONS BUSINESS Canadians can now pick up a Coca-Cola beverage with their favourite Tim Hortons menu item at any of the chain’s 4,000 outlets nationwide.

Coca-Cola won the Tim Hortons business after a very competitive bidding process against the competitor, led by Vice President of Food Service On-Premise for CCL, Mike Medor.

The bid brought together the power of our brand portfolio, our strategic selling capability, commercial best practices, customer-centric insights and world class service commitment. The transformational win was a true cross-system collaboration with several teams working on the market test last fall, preparing the pitch or simply sharing a Tim Hortons memory.

The new long-term partnership with Tim Hortons in Canada is a huge competitive win for the system and offers incredible opportunity. President of CCRC, Bill Schultz said of the win, “as we think about the transformational impact Tim Hortons has on the business, let’s think of the thousands of new points of connections our brands will have with our consumers in Canada.

Let’s also remember the importance of customer service, as driver, McPherson Al-Hassan did recently” (see article below).

With approximately 15% of Canadians visiting a Tim Hortons each day, the possibilities for growth only continue.

DRIVER MCPHERSON AL-HASSAN GIVES HIS ALL FOR TIM HORTONS During the critical Tim Hortons test pilot last fall, driver McPherson Al-Hassan (pictured left in Brampton) was given an important task from his supervisor, Jim Beach. A Tim Hortons in Guelph that had just been selected as a market test location was running low on NESTEA. The franchise had a delivery scheduled, but changed it mid-afternoon to request a same-day delivery. The Brampton Distribution Centre immediately created the hotshot order and gave McPherson specific instructions.

A dock time was scheduled for the evening and McPherson took to the road an hour after the Tims call came in.

McPherson arrived two hours later – and two hours before his scheduled dock time.

It was just after 5:00 p.m. when McPherson arrived that the dock time changed – to 11:00 p.m.

McPherson informed Jim of the delay, and Jim asked if he was still okay to extend his day so late. As a daily visitor of Tim Hortons himself, McPherson was quick to say, “I wanted to be a part of this. I was ready to wait until we got it done.” Through the combined effort of McPherson and his supervisor Jim, they realized how critical delivering for this potential customer was.

McPherson waited six hours, and ultimately worked a 12-hour shift to ensure Tim Hortons had the product they needed.

It was through efforts like McPherson’s that the Tim Hortons test pilot successfully led to the chain signing a customer agreement with Coca-Cola. The collaborative system effort is one of the largest wins Coca-Cola Canada has had in recent history. When asked about the important role associates play in winning with customers, McPherson said, “we’re all part of the team, and we’re the front line people of the company. They don’t know my name, but they see me wearing the Coca-Cola shirt. Since I’m working for the best brand in beverages, I should be one of the best employees too. I want to go out there and wow my customers.”

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Associate News ISSUE 21 • WINTER 2017

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CANADIAN NEWS

DIET COKE RELAUNCHES ACROSS NORTH AMERICA

For the first time since its Canadian debut in 1982, Diet Coke is being re-introduced with a North American-wide launch, fully supported by a marketing campaign, bold new packaging (pictured right) and a host of sales tools for activating in market.

In addition, starting February 5, four new flavours will join the Diet Coke line up - Feisty Cherry, Ginger Lime, Twisted Mango and Zesty Blood Orange. Available exclusively in the 310 mL sleek can format, these bold new flavours are designed to draw consumers’ attention back to the original Diet Coke they know and love.

Consumers can pick up individual sleek cans in small and large retailers, as well as in a new multipack that includes eight sleek cans.

REVVING UP THE ENERGY CATEGORY WITH NEW MONSTER PRODUCTS Energy is off to a fast start this year with the launch of Monster Hydro and Monster Ultra Violet.

Monster Hydro provides the energy boost consumers want with the electrolytes and B-vitamins they crave. The non-carbonated, lightly sweetened Hydro is available in three flavours: Mean Green, Manic Melon and Tropical Thunder in 550 mL PET bottles.

Monster Ultra Violet, a zero-calorie, top selling citrus grape beverage, has also joined the Monster lineup this winter. Ultra Violet is the second largest Ultra SKU that is expected to be even bigger than Monster Gronk. Vice President of National Retail Sales, Rich Leslie, said of the launch “even before the launch, Ultra Violet was already a top-selling SKU at Couche-Tard. It’s a SKU that will deliver big results in 2018.”

ENERGY. eLECTROLYTES. B-VITAMINS.

With 6,400 new tools in-market – Ultra Violet and Hydro should be merchandised together with the other Monster offerings.

17-MN3-373

* PLUS TAX & DEPOSIT WHERE APPLICABLE

*Subject to availability, while supplies last. Plus applicable taxes, deposits, fees and levies. Both products must be purchased at the same time. Single units at regular price. This product may not be suitable for everyone. Please read the label for instructions. © 2018 Monster Energy Company.

DOCKET#: 17-MN3-373

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FILE NAME: Channel SS Hydro Launch Cling EN

FLAT SIZE: 7" × 3"

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Associate News ISSUE 21 • WINTER 2017

CANADIAN NEWS

CHECK OUT OUR NEW PRODUCTS! 100+ NEW SKUS LAUNCHING IN 2018 Take a sneak peak of the first 50 SKUs launching in Q1 alone!

COLD AT CASH EXPANDS Cold at Cash will continue as a priority in 2018 with new small footprint counter top coolers at affordable price points to secure placements in non-traditional retail outlets (pictured left). The new Arctic Chill (pictured right) serves as a truly unique consumer beverage experience offering the coldest Coca-Cola with ice right in the bottle.

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Associate News ISSUE 21 • WINTER 2017

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WEST REGION NEWS

FROM JEFF

First off, thank you to the entire team out West for a strong finish to the year! It was a year that tested our perseverance and we did a great job pushing through all the obstacles that came our way. With Holiday complete, we need to ensure we keep the momentum and space in stores to guarantee a successful start to 2018. We have some exciting innovation coming in the first quarter that will help us start the year off strong, however we need to continue to push our core products and high revenue packages as well! Early execution is going to be essential to our success!

The West OU will be kicking off the New Year with the West SLM, hosted in Calgary. For the first time in seven years, the Sales leadership team in the West will gather to share 2018 plans and get the team energized and excited for what the year has to hold!

2017 was a year that tried the West’s tenacity, so once again thank you for all your hard work and I look forward to what 2018 has to bring!

- Jeff

COCA-COLA SWEEPS SKI RESORTS CCRC continues to paint ski slopes red across the West OU. Berezan Hospitality Group, which operates Sasquatch Mountain (pictured right) has just switched to become a Coca-Cola account.

The mountain is expected to generate $64,000 in revenue annually – with a huge portion coming from a focus on immediate consumption and cold at cash beverages.

Berezan has also recently approved expansion plans that will make Sasquatch Mountain the largest ski resort property between Whistler and the Okanagan.

As the expansion continues, we can continue to look for opportunities to be available on the slopes and apres-ski.

FREESTYLE CONTINUES TO EXPAND IN THE WEST AT PRESS’D Since opening their doors for the fi rst time in 2009, quick service sandwich chain Press’d has been a Pepsi customer. Thanks to the work of Key Account Development Manager, Jennifer Tessier, the account was converted late last year.

With 16 locations across Alberta and Saskatchewan, Press’d is quickly expanding its reach and is now doing so with the placement of 14 Coca-Cola Freestyle countertop placements at nearly all of their shops.

The three-year deal – and competitive win – will see $480,000 in revenue and just shy of 25,000 standard physical cases over the next 36 months.

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Associate News ISSUE 21 • WINTER 2017

WEST REGION NEWS

CUSTOMER CORNER: BIG WHITE SKI RESORT

Canada’s favourite family resort for skiing and snowboarding will continue to exclusively serve Coca-Cola products for another five years.

Home to 118 runs, Big White Ski Resort in Kelowna, British Columbia just signed a renewal that will result in $750,000 in revenue. District Sales Manager, Matt Starkes and his team worked to sign on two additional outlets on the mountain to increase the size of the deal.

With the start of the new contract comes an opportunity to add Coca-Cola Freestyle to the Happy Valley Lodge for skiiers and guests to enjoy. This Freestyle placement will be the first at a local customer in Kelowna, as well as the first Freestyle at any ski resort in Canada.

CELEBRATING OUR PEOPLE Retiree Recognitions

West Region

Milestones

Milestones

YEARS OF SERVICE

YEARS OF SERVICE

YEARS OF SERVICE

Robert Cruickshank

BC

40

Danny Johnson

BC

45

Russell Giannasi

BC

20

Ross Campbell

BC

36

James Mackinnon

AB

30

Ralph Fiore

BC

20

Peter Ludwig

AB

35

Thomas Sumlak

BC

30

Kimberley Coonfer

AB

20

Joe Pires

BC

25

Ben Hogarth

BC

20

Todd Harper

MB

25

David Horwood

BC

20

Colin Picheniuk

BC

20

Mandeep Rakkar

BC

15

Darren Losier

AB

20

Brian Hlookoff

BC

15

Michael Coulthurst

BC

20

Scott Mcgahey

AB

15

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Associate News ISSUE 21 • WINTER 2017

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CANADIAN NEWS

SECOND ANNUAL WEEK OF THE DSM THRILLS CUSTOMERS The second annual Week of the District Sales Manager was a great success, with over 45 leaders and 75 District Sales Managers participating across the country. From November 6 to 10, the Executive Leadership Team visited markets across Canada, giving them an opportunity to meet employees and customers, share learnings and best practices and discover new ways to excel in the marketplace.

Pizza Girls owners, Johnny Dib and Connor Stoilov (centre) are visited by Mark Scholtes (left), Allan MacDonald (second from right) and Mohammed Al Shaghay (right) in Halifax, NS.

District Sales Manager, Lauren Epp (pictured left), hosted several CCRC leaders in Ottawa (pictured left to right: Ipek Onder, John Lavergne, Tova White, Ryan Kuzoff and Mike Clancy). Epp took the leaders on a tour through local outlets and recalled that, “our customers felt privileged to be a part of the experience and see our leaders’ dedication to their businesses.” The week underscored the importance of working with our customers to find creative solutions that offer mutual benefits. Whether it’s thinking outside the box when executing in market through displays, developing creative ways to add our branding to customer outlets or simply finding smart placement of displays in-market.

Bill Schultz and District Sales Manager, Rhianna Leggat, drive mix in Kelowna, BC.

CONA SET TO LAUNCH IN MAY With the new year comes a new, modern IT platform for the Coca-Cola system in Canada. Built entirely with the Coca-Cola bottling operation in mind, Coke One North America seeks to simplify our day-to-day operations through enhanced, user-friendly technology.

Training for super users of the CONA system will begin in early February and a dry run of the system will take place starting March 5 – the same day that we launch dozens of new SKUs. Coca-Cola Refreshments Canada joins several other markets in the world on the Coke One system, including China, Germany, Philippines, Singapore, Malaysia, South Africa and the United States.

“Our business environment is constantly changing” says Johnson Mbuthia, Group Director of Infrastructure and Field Operations, “and in markets around the world, the Coke One system allows us to streamline and standardize our processes, improve our capabilities and ultimately get to market quicker.” With the Coke One system used widely in Bottling Investment Group operations, Coca-Cola Refreshments Canada will implement the technical solution to allow the Canadian system to keep up with demanding speed of our ever-growing operations.

COCA-COLA PRODUCTS NOW SOLD ON Coca-Cola is now within a finger’s click of desire on Amazon.ca! Select Coca-Cola products are now available for sale – and convenient home delivery – in all provinces, excluding Quebec through the e-commerce giant. Coca-Cola joins the world’s largest digital marketplace ahead of our primary competitor in a major step towards digitizing our business and brands.

Making the deal with Amazon official was a collaborative effort across the system, led by National Account Executive, Matt Harpur.

As the portfolio availability continues to expand online in the new year, Harpur highlights the significance of the new partnership saying, “having our portfolio of beverages available for convenient home delivery via Amazon.ca marks a tremendous step forward for our organization.” Through Amazon, customers can purchase Coca-Cola directly and have it shipped through the site’s expedited delivery service, Amazon Prime.

As the retail landscape changes and e-commerce becomes the fastest growing retail channel, Harpur recognizes the amount of opportunity, “Amazon is by far the largest e-commerce retailer in Norther America and we expect growth with this customer to be exponential.”

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Associate News ISSUE 21 • WINTER 2017

TRANSFORMING OUR FUTURE TOGETHER

AN EPIC YEAR OF ACTIVATING BEVERAGES AND SPORTS AHEAD With massive sporting events lined up for 2018, this year is going to be a great one for sports fans, providing us with many opportunities to activate beverages and sports with our key customers. We kick the year off with Olympics, win summer with FIFA and the Blue Jays, and close the year strong with hockey.

For the 2018 Winter Olympic Games, our National Retail Sales teams have secured best-in-class activations to drive revenue, share, and help our customers meet their shoppers’ needs. Our program includes over 50,000 point of sale tools, custom programs at Loblaws and Petro-Canada, and activation of the Olympics at virtually every major national customer.

This summer, we’ll be activating our FIFA programs, focused on POWERADE and our 500 mL single serve, 4 x 310 mL, 6 x 222 mL, and 10 x 222 mL Sparkling packages. We’ll also leverage the Blue Jays to further drive revenue and share on POWERADE, and starting in the fall, we’ll activate hockey with perfect snack and beverage pairings.

2018 is our year to win, and win big with sports properties!

Vice Presidents of National Retail Sales are pictured left to right: Phil Cox, Trevor Lamb and Rich Leslie.

DID YOU KNOW?

“Media at Home” is one of the top beverage consumption occasions, and is growing rapidly, as more Canadians tune in to games via television, internet and radio. With all of our sports properties and programs with key customers, this is an opportunity not to be missed.

CLUB COKE 2.0 FOCUSES ON FOODSERVICE Club Coke will continue to focus on driving revenue, especially in the foodservice segment as the focus shifts to a new program designed to tailor to the customer’s specific needs. The new program has been created with customers in mind – developing a package mix that’s built to their pricing level, and that rewards them based on execution.

Director of Field Sales Support, Jeff Rodrigue (pictured right), highlighted that, “we’re focusing on growing our operating income by providing clear benefits to the customer by providing what the consumer wants: bottles, tea and energy.” The new Club Coke model aims to add value and create mutual profitability for both CCRC and our customers.

The focus in 2018 is to grow our customer base through profitable customers and we’ll focus on net new outlet revenue, rather than just counting net new outlets.

Rodrigue added that the key to success lies with our competitive innovations in foodservice, “with great new FSOP specific packages, Coca-Cola Freestyle and our Design Centre, we have advantages that our competitor just can’t beat.” With both customers and consumers in mind, Club Coke is designed to drive value, availability and profitability.

UNITE

Ontario foodservice chain, Chicken Squared, is a Club Coke customer that has integrated our branding on their packaging and onto their menu boards (above).

Associate News ISSUE 21 • WINTER 2017

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TRANSFORMING OUR FUTURE TOGETHER

GOLD PEAK EXPANDS ITS FLAVOUR OFFERINGS The coffee and tea revolution continues with the expansion of the Gold Peak portfolio.

Two new flavours – Slightly Sweet Green Tea and Slightly Sweet Peach Tea – will be launching on February 28.

The two lower-calorie, lower-sugar tea options will be available in the 547 mL package and the 1.75 L carafe.

In-market, Gold Peak should be co-promoted with the other Gold Peak flavours, along with the Simply beverages.

The great tasting flavour of Gold Peak Lemon and Raspberry are also now available in a new fountain offering. Dispensed in the tea tower (pictured left) alongside Minute Maid Lemonade and Fruitopia, this new FSOP offering will bring premium tea growth to new outlets and customers.

SAY HELLO TO A whole new segment of tea is launching with the introduction of Peace Tea to the Canadian market. With five delicious flavours – Raspberry, Tea + Lemonade, Green Tea, Peach and Lemon – Peace Tea is making a splash in the value tea category.

In-market, 14,500 tools will be placed across large and small store customers including stackers, slim racks (pictured), game changers, case cards and cling wraps.

Peace Tea, which replaces the NESTEA king can should be merchandised alongside NESTEA and Gold Peak to emphasize all of the options we have in the tea category.

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Associate News ISSUE 21 • WINTER 2017

TRANSFORMING OUR FUTURE TOGETHER

vitaminwater active vitaminwater active blazes a new trail as the first premium sport drink in Canada with natural electrolytes and antioxidants. the 100-calorie beverage will hit shelves in 450 mL bottles on april 2 in three flavours: orange mango, lemon lime and strawberry black cherry. the new isotonic beverage is made with 10% coconut water and has naturally-sourced electrolytes from sea salt – making it an excellent source of vitamins C and E. to launch the new premium sport drink, more than 150,000 samples will flood the market and 2,000 brand new launch tools will be available. vitaminwater active should be merchandised alongside vitaminwater and smartwater. with this unique new offering, look for cooler placements in gyms and recreational centres.

fruitwater, a naturally flavoured sparkling water beverage, makes its debut on march 5 with three flavours: black cherry vanilla, peach mango and pineapple passionfruit in the 500 mL immediate consumption bottles and 310 mL sleek cans. the launch will be supported with thousands of case stackers, cooler cling wraps and counter cards. fruitwater should be strategically placed near smartwater sparkling and everywhere that flavoured sparkling water is sold.

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Associate News ISSUE 21 • WINTER 2017

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Share a Coke Holiday Execution

Top left: A snowy display at Sobeys South Bedford in Nova Scotia by Tracy Naugler, Andrew Brodie, Jean Forbes and Kara Purdy.

Top right: A heavily mixed holiday house at Your Independent Grocer in Ingersoll, Ontario by Chris Zandreski, Zachary Gyles and Steve Woytaz.

Bottom: A festive showcase at a Sobeys in Millrise, Alberta by Ryan Mantz.