Successes, Challenges and Opportunities

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1 Successes, Challenges and Opportunities Marge Leahy, PhD Director, Health and Wellness American Heart Association Added Sugars Conference May 5, 2010

2 The Coca-Cola Company and the Beverage Industry The world is changing and we are too Products Expanded no- and low-calorie offerings, new sweeteners, innovations in packaging Policies Enhanced nutrition labeling information, marketing guidelines, school beverage guidelines Programs Working with public and private organizations to advance Active, Healthy Living

3 The Coca-Cola Company Today Over 500 brands and more than 3,300 beverage products sold in more than 200 countries around the world.

4 Today we offer more than more than 150 low & no-calorie products in the U.S. and more than 800 globally

5 Innovation: Zero-Calorie Colas Beverages are essentially the only foods that can be calorie-free. Most successful product launch since Diet Coke Real Coca-Cola taste; zero calories #1 zero-calorie drink in the U.S. Sweetened with aspartame Our first zero-calorie soft drink Sweetened with saccharin

6 Increasing Sweetener Options TRUVIA Natural zero-calorie sweetener extracted from the stevia leaf ~200 times as sweet as sucrose Worldwide, we now have 23 products sweetened with stevia extract in combination with fruit juice or other sweeteners from natural origin to reduce calories. Sprite Green 50 calories/8 fl. oz. VitaminWaterZero 0 calories/8 fl. oz. Odwalla Quencher 50 calories/8 fl. oz.

7 U.S. LIQUID REFRESHMENT BEVERAGE MARKET CALORIES PER OUNCE PRODUCED 21 M. Storey, Physiology & Behavior, 2010

8 The Coca-Cola Company Calorie Changes in Product US & Canada Total Portfolio 15% decrease in average calorie per serving in US over the past decade 1/3 of our volume is no- and low-calorie 50% of our incremental volume growth has been in no- and low-calorie beverages over last 15 years All incremental sparkling drinks volume growth has been in no- and low-calorie beverages over last 15 years

9 Ca & Vitamin D #1 Juice Brand Globally Enhanced Nutrient Density Leader in calcium fortification since Sponsored research showing D-fortified OJ increases serum vitamin D levels Petitioned the FDA to allow vitamin D to be added to calciumfortified juices and juice drinks which it did in Petitioned the FDA to add vitamin D to the approved osteoporosis health claim which it did in Vit A, B, C, D & E DHA, choline, Vit B12, C & E Protein, Ca, K, Vit B6 Whole grain, Vit A, B1, B2, C & E Phytosterols

10 Policies and Guidelines Global policies on nutrition labeling, front of pack labeling Advertising and marketing to children policy Global and US school beverage guidelines

11 Expanded Nutrition Labeling Voluntary dual-column nutrition labeling in the U.S. began in 2005 Per-serving and per-package calorie information Front-of-pack calorie labeling initiated in 2009 Front-of-pack calorie labeling

12 Clear on Calories Answering the First Lady s Call for Action Clear on Calories extends our commitment to include more prominent calorie labeling on: Product Labels: Total calories for the entire container, up to and including 20-ounce products, will be displayed on the front of labels. Vending Machines: Total calories for the entire container to be displayed on the beverage selection buttons of Company-controlled vending machines. Fountain Machines: Calorie counts will be shown prominently on Company-controlled fountain beverage machines. America's non-alcoholic beverage companies are coming together to make the calories in their products even more clear and consumer-friendly. - American Beverage Association

13 Responsible Marketing The Coca-Cola Company has policies and practices in place regarding marketing our beverages in a responsible manner. We respect a parent s role in making dietary choices for children, and therefore we do not market any of our products directly to children under 12 years of age. 98.8% compliant 3/8/2010 independent audit This means that we will not buy advertising directly targeted at audiences that are more than 50% children under 12. This policy applies to television, radio, and print, and where data is available, to the Internet and mobile phones. In addition, our advertising will not show children under 12 drinking any of our products outside the presence of a parent or caregiver

14 U.S. School Beverage Guidelines: Final Progress Report A Beverage Industry Alliance Success Story 88% cut in total calories shipped to schools between 2004 and the 2009/2010 school year. 95% reduction in shipments of full-calorie soft drinks to schools during that time. 98.8% of all contracts between bottlers and schools or school districts achieved compliance by beginning of the 2009/2010 school year.

15 Working Together to Promote Active, Healthy Lifestyles The Heart Truth logo is a trademark of HHS. Participation by Coca-Cola does not imply endorsement by HHS/NIH/NHLBI.

16 Diet Coke Heart Truth Consumer, Medical education Focus on action Big event advertising In store activation Fashion show Digital programming

17 Supporting Physical Activity Globally US Initiatives Behavior changes with Boys & Girls Clubs Recreational spaces Athlete, organizational support Youth sports facilities and leagues

18 Promoting Active, Healthy Lifestyles: U.S. Launched in This after-school program encourages kids to become more physically active, eat healthier and feel more self-confident. Coca-Cola has been building facilities and creating opportunities for the Boys and Girls Clubs of America for more than 60 years.

19 More Education Consumer info Front-ofpackage calorie information Advertising the facts Online tools Professional programs & resources

20 Challenges and Opportunities Beverages are essentially the only food category with the unique opportunity to be zero calorie Partner to promote safety and benefit of low-cal sweeteners to help achieve healthy weight Multi-faceted public and private partnerships needed in support of Active, Healthy Living

21 The World is Changing and We Are Too Products Over 150 low- and no-calorie products in the US, over 800 globally 15% reduction in average calories per serving in US over last decade Policies Expanded nutrition labeling Calorie labeling FOP, vending machines, fountain machines 88% reduction in total calories to schools, 95% reduction in fullcalorie soft drinks to schools ( ) Programs Working with government, academic and other public and private organizations to support Active, Healthy Living

22 Promoting Active, Healthy Living think drink Active Healthy Living move

23 Thank you!

24 Appendix

25 U.S. LIQUID REFRESHMENT BEVERAGE MARKET SHARE OF VOLUME BY SEGMENT PRODUCED M. Storey, American Beverage Association,

26 U.S. LIQUID REFRESHMENT BEVERAGE MARKET CALORIES PER CAPITA PER DAY BY SEGMENT PRODUCED Includes liquid fruit juice and fruit drinks; excludes powdered fruit drinks and vegetable juices M. Storey, Physiology & Behavior,

27 . Source: USDA ERS, M. Storey, Physiology & Behavior, 2010

28 School Beverage Guidelines Elementary Schools Bottled Water Fat-free or low-fat Milk and 100% Juice (8 fl. oz. servings) Middle School Bottled Water Fat-free or low-fat Milk and 100% Juice (10 fl. oz. servings ) High School Bottled water No- or low-calorie beverages with up to 10 calories (8 fl. oz. servings) Fat-free or low-fat Milk and 100% Juice (12 fl. oz. servings ) Other drinks with no more than 66 calories / 8 fl. oz. At least 50% of non-milk beverages must be water and noor low-calorie options See ameribev.org for more information

29 More Choices for Consumers Introduced new 90-calorie mini cans in 2010 Coca-Cola Freestyle, a new fountain dispenser for beverage choices 60 no- or low-calorie Introduced TRUVIA, a natural, zero-calorie sweetener >150 low- or nocalorie beverage options in the U.S. Building $1 billion brand Coke Zero

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