Returnables

Why

Returnables ?

This Chapter Explains How the Returnables business works and why Returnables are Critical for The Coca-Cola System

How does returnable packaging work?

Returnables business by nature connects various key stakeholders and create end to end value. It changes single-use packaging without changing the fundamental purchase situation.

Throughout this guide, you will see why Returnables is a core component of the TCCS to drive our competitive advantage, consumer loyalty and our sustainability agenda. With its unique benefits (as well as constraints), reaching the right balance of making Returnables a strategic play within our portfolio will enable us to have an important tool address multiple stakeholders

Why returnables & how are returnables relevant across the multiple stakeholders?

Please click on each card to see more information

Returnables packages are highly attractive and a great value pack from a Consumer & Shopper perspective. They offer:

Good value for money. Returnables delivers against the omnipresent consumer and shopper needs for one’s perceived affordability..
Positive emotional connections. Crates stand for order, tidiness, safety and family caring. Better for the environment
Greater convenience. Better solidity and stability of Returnables bottles is perceived as more convenient. Perceived better taste, preservation of gas and cold temperature
Iconic Experience for glass. Preferred drinking experience

Returnables are powerful tools for Customers to drive value, shopper relevance, loyalty and incremental revenue providing:

A “subscription model”. Enables a habit that retailers create with shoppers by buying and returning the bottles/empties.
More profitable Fast Moving Consumer Goods (FMCG) baskets. Returnables shoppers in developed markets often over-index in high-income groups and generate more attractive FMCG baskets and revenues vs NR shoppers
A source of channel differentiation and premiumization in the immediate consumption space.
An important space allocation. Returnables protects a very important space allocation within outlets (SOVI), which otherwise would be shared with competitive products.
Drives Traffic in store,. Increased Loyalty due to same store visit. Important tool to increase frequency
Foster loyalty in periods of crisis/ economic downturns

From a TCCS perspective, Returnables are one of the few things that cannot be easily copied

Stronger and Protection of Consumer Base
Frequency Enabler. Increases Consumer Loyalty as packages serve as purchase reminder
Enables Affordability and non-affordable segments
Enables OBPPC Strategy Differentiating Packages – One Way
The model is not easy to replicate, therefore, entry into Returnables is typically limited. Coca-Cola’s largest competitors typically do not have Returnables, and mostly focus on NR packages. This makes Returnables a Unique Selling Proposition for the Coca-Cola system (where we have it) vs our largest competitors.

Our sustainability agenda makes business sense. Not only it is one of the key drivers to enable stakeholder connection, but it also permits us achieving these 3 important goals:

Lower environmental impact by reducing our carbon footprint. Promote Circular Economy by investing in more sustainable packing, reduce content, and/or collection programs
Strengthen stakeholder impact, and promote business alliances with governments, NGOs, and local entities
Protect against potential packaging tax