News
Meet the markets: introducing the Philippines
28/02/2024
At Coca-Cola Europacific Partners, we serve over 2.1 million customers across 31 countries. Our CCEP Meet the markets series shines a spotlight on our great teams across the regions in which we operate.
This month we completed the acquisition of Coca-Cola Beverages Philippines Inc. (CCBPI), jointly with Aboitiz Equity Ventures. So what better place to visit for the next edition of Meet the markets.
CCEP PHILIPPINES
The Philippines is the second most populous country in Southeast Asia after Indonesia, with 117 million people. It has a young population, and a fast growing middle class.
It was the first market outside the Americas to sell Coca-Cola, which has been sold locally for 112 years.
At CCBPI, we have almost 9,000 highly engaged employees, who call themselves “Coke Tigers”. We also won the 2019 Candler Cup - a competition run by The Coca-Cola Company, designed to recognise the best Coca-Cola bottler globally. They have also won two Asia Pacific Execution Cups – the regional semi-final for the main Candler Cup.
OUR SITES
Our employees are spread across the 7,100+ islands in the country, including at 18 manufacturing plants and 39 distribution centres. Our support centre is located in Bonifacio Global City, Taguig Metro Manila.
We have also made a number of investments in our sites in recent years, including new lines for cans, Tetra Pak, and Returnable Glass Bottles (RGB). In 2019, we also invested in new trucks.
Production lines
Manufacturing plants
Distribution centres
OUR BRANDS
OUR CUSTOMERS AND KEY SELLING MOMENTS
Our largest channel is traditional trade, which is composed of 1.2 million sari-sari stores (SSS). Sari-Sari stores are small local provision stores that serve the local community. We are able to serve these stores through our extensive route to market.
We serve over 120,000 customers, who in turn cover 93% of SSS. We also serve modern trade both directly and indirectly, and we cover 32,000 modern trade customers - mostly made up of supermarket chains and convenience stores.
We have two peak seasons in the Philippines. First, as a tropical country we have a scorching hot summer. Coca-Cola is the perfect drink for a hot summer day - it's the drink that Filipinos will have on their table as part of any summer celebration.
The second is Christmas, which is a massive holiday in the Philippines. We love big celebrations and there is no bigger celebration than Christmas spent together with family and friends, over an extended period of time - Christmas carols start playing as early as September! Again, Coca-Cola is widely consumed over this season, making this period a key selling moment for us.
Here are a number of traditions we observe during the Christmas season:
- Belén, which sees colourful nativity scenes depicting the birth of Jesus Christ displayed on houses and buildings.
- Simbang Gabi is a popular Christmas tradition unique to the Philippines, where people attend church for nine consecutive days from December 16th to 24th. It culminates with a mass on Christmas Eve.
Regional fiestas are a renowned tradition of the Philippines every summer, and sit at the heart of our culture. They are held in almost every town and province across the country, and celebrate a range of things including patron saints, ethnics traditions, and important local milestones. Examples include:
- Sinulog Festival (Cebu): Involves a parade, fireworks, a beauty pageant. There is also a re-enactment of Ferdinand Magellan offering the statue of Sto. Niño to Raja Humabon and Hara Amihan to highlight the religious significance of the festival and commemorates the Christianization of the Philippines.
- Ati-Atihan Festival (Kalibo, Aklan): Traces back to the Barter of Panay, where Aeta people received gifts from Malay chieftains who found refuge on Panay Island in the 13th century.
- Dinagyang Festival (Iloilo): Dagyang (Hiligaynon) stands for “merrymaking.” It commemorates the feast of Sto. Niño with lively street parades and cultural performances
Our products play a key role in these celebrations. Coca-Cola Original Taste in particular has been a part of these celebrations for many years, and has become a staple beverage in many of these traditions.
VOLUME MIX
83%
Carbonated Soft Drinks
15%
Water
2%
Stills (includes juice, tea, energy, dairy and sports)
SUSTAINABILITY
We have a strong sustainability focus, particularly in returnables (packs that can be returned to be used again). Approximately 50% of our business is in Returnable Glass Bottles (RGB) and we are continuously growing this. On energy, in 2020, we installed 14,000 solar panels in our plants in Davao del Sur, Bacolod and Misamis Oriental. There are 12,000 more underway at the Zamboanga and Sta. Rosa plants.
Find our more about our other sustainability initiatives below:
Recycling
As part of our recycling efforts, we have introduced a number of collection initiatives as well as partnerships with local stakeholders:
1. PETValue Philippines
We have partnered with Indorama Ventures to establish PETValue Philippines, a full operation recycling facility that is the first of its kind in the country. The facility is helping to drive collective action toward a circular economy for PET plastic.
PETValue Philippines creates more direct and indirect job opportunities for Filipinos. An asset not just of Coca-Cola but of the entire Philippines in its collective pursuit of a more sustainable future. In 2020, PETValue was granted pioneer status by the Philippines’ Board of Investments, a mark of its innovation and positive impact.
2. Tapon to Ipon
In 2021, we launched our Tapon to Ipon, Basta klaro, Panalo! (“Discard to Earn: If it’s clear, it’s a win!”) Programme. A nationwide collection program for PET bottles — accepting not just Coca-Cola packaging but also those of competitors. It has been carried out across multiple channels through our multi-stakeholder partnerships with local government units, agencies, private organizations, and MSMEs.
Tapon to Ipon has become a pillar in our aim to create a fully circular economy for our packaging. It has already reached 170 cities and municipalities and we continue to grow this even more.
Water
Our goal is to return every single drop of water we use in our products to communities and to nature – what we call Reduce, Reuse, Replenish. To that end, we have introduced a number of water savings initiatives and operational efficiencies in our manufacturing sites, as well as community programs:
- Reduce and Reuse: water efficiency in our operations
From sourcing water up to the finished product – we have stringent systems in place to manage our water use. Our Top 20 Water Savings Initiatives includes strengthening systems in three water-intensive processes, among others.
- Replenish: returning to nature and communities
We’re also ensuring that we’re making the right investments in technology and equipment in our manufacturing plants. Our plants are equipped with state-of-the-art wastewater treatment facilities that process used water into a quality that is viable for return to the ecosystem and can support aquatic life. We are continuously making sure that our facilities are properly maintained and updated.
- Water for all: Agos
Coca-Cola Foundation Philippines’ flagship water initiative, Agos, is focused on accelerating programs to ensure water access and water security in our communities. Achievements of this programme include:
- 301 hectares of watershed areas reforested in Iloilo, Cebu, Negros Occidental, and Bulacan
- Over 674,000 people reached for productive and domestic water use in a range of areas including Cavite, Quezon, Camarines Sur and Negros Occidental
- 3,768 farmers supported for productive water use in areas across Philippines including Negros, Bulacan, and Batangas
Packaging
We are reducing the weight of our packaging to lessen its impact on the environment. This means that our packaging is now anywhere between 17-25% lighter per pack type compared to our previous packaging. And we continue to look at more ways to reduce virgin plastic use.
We have made bold moves towards our World Without Waste commitment, including:
- 2019: Transitioned our iconic Sprite packaging from green to clear
- 2022: Removed sachets from our packaging footprint, for example in our Eight O'clock powdered juice
- 2022: Transitioned to paper straws from plastic straws for our dairy and juice products
- 2022: Launched our 100% rPET packaging for our Wilkins Pure 500ml, Coca-Coa Original Taste 190ml and 390ml (using locally produced recycling resins from PETValue PH)
DIVERSITY AND INCLUSION
We are continuing to make progress on gender diversity, building capabilities for all and creating opportunities for development. We seek to promote even more women to leadership positions. Between 2019 and 2022 we have increased our women in leadership from 21 to 108. We recognise we still have work to do, but are proud of our progress to date.
We aim to put the spotlight on our female leadership particularly in manufacturing, where women are often underrepresented. Now, for the first time in our 112 year history in the Philippines, nearly half of our plant managers are women.
WORK IN THE COMMUNITY
The Philippines experiences an average of 37 typhoons each year, as well as 100 earthquakes. We have been at the forefront of disaster and climate response, providing support to help affected communities:
- In January 2020 we distributed over 90,000 litres of products to affected communities during the Taal Volcano eruption
- In December 2021 we distributed over 60,000 litres of Wilkins drinking water during Typhoon Odette. We also allocated a 5 million Philippine peso (equivalent of over 80,000 euros) disaster relief fund for our associates who were affected by the typhoon.
- In July 2022 we distributed over 9,450 litres of Wilkins during an earthquake that heavily damaged the Abra area in July 2022
AWARDS
Asia Corporate Excellence & Sustainability (ACES) Awards, Industry Champions of the Year 2022 - Given to outstanding businesses and distinguished leaders in their respective sectors. CCBPI was cited for its clear competitive advantage, ability to set market trends, and implementation of industry best practices.
Asia Corporate Excellence & Sustainability (ACES) Awards, Top Sustainability Advocates 2023 - Awarded to CCBPI for dedication to its core values of great people, great beverages, and great execution, toward the integration of sustainability and corporate responsibility. CCBPI is now a two-time recipient of the ACES Awards, a sought-after recognition for inspiring sustainability advocates and exceptional leaders across Asia
FMCG Asia, ESG Initiative of the Year - Awarded to CCBPI's Tapon to Ipon: Basta Klaro, Panalo! Program to recognize its comprehensive service to local communities and collective campaign for sustainability. The FMCG Asia Awards is presented by Retail Asia Magazine.
HR Asia Winner 2023
20th Quill Award, Communications Management - Awarded to CCBPI's Tapon to Ipon: Basta Klaro, Panalo! Program under Community Relations and Corporate Social Responsibility. The Philippine Quill is the country’s most prestigious awards program in the field of business communication organized by The International Association of Business Communicators (IABC) Philippines.
Shell Sustainability Award - Awarded by Shell Pilipinas Corporation to CCBPI as a Shell's sustainability partner for its Tapon to Ipon collection program across Shell Select Stores.
Coca-Cola has been sold in the Philippines for over 112 years. In that time, we have seen the business grow and prosper through many chapters of our history. We are now entering what feels like a historic chapter with the transition and integration of our amazing business with CCEP and Aboitiz. Our teams across the Philippines are really excited to be joining the CCEP family.
As for the Philippines, we see amazing opportunities, growth with our customers, growth for our people, done sustainably. Now more than ever, we absolutely believe our best days remain ahead of us and I speak on behalf of our 9,000 dedicated associates who work tirelessly to Refresh the Philippines and Make a Difference. Mabuhay!