This Interview was broadcast 6.22AM on The Today Programme on BBC Radio 4.
Simon Jacks (SJ R4), BBC Radio 4 Today Business Correspondent interviewed by telephone John Brock, Chief Executive Coca Cola Enterprises (JB CCE).
SJ R4: Now my Friday boss this week is responsible for producing and distributing one of the worlds most famous brands. John Brock is Chief executive of Coca Cola Enterprises (CCE), one of the companies that bottles and sells the fizzy drinks owned by the Coca cola Company: Which owns the Trademark and handles global marketing. He is in the UK this week for “Resource 2012”, as some of the world’s business figures have been discussing sustainability. Which has become a big for Coca Cola….
JB CCE: We at CCE and the Coca cola company work together have put sustainability at the very heart of everything we do. We don’t consider a marketing decision, a capital investment or anything else without considering the sustainability component. And I believe that we are on the cutting edge frankly. We’ve been at it for a number of years, and we feel very good about the progress we have made.
SJ R4: It’s interesting you talk about sustainability because “sodastream”, as you well know, have been critical of the Coca Cola Company saying a billion cans, bottles etc are added to the environment everyday!.. from the Coca Cola Company. I don’t see how you are the cutting edge what does that mean?
JB CCE: Well we’ve made some very clear commitments. For example we have said in energy conservation we aim to reduce the carbon footprint of the beverage in your hand by one third by 2020. Just last year for example we sold 3.5% more unit volumes of our products in Western Europe, and we reduced our carbon footprint by over 8%. We have just invested some £15 million in a new joint -venture in Great Britain with Eco-Plastics which puts in place a state of the art recycling facility..er.. for plastics. Just to put it in perspective within 6 weeks from the time a bottle is picked up it’s actually reprocessed and back on the shelf as another bottle.
SJ R4 : Do you do that because you care about that or because people like me will give you a hard time if you don’t do that stuff like that?
JB CCE: We do it because it’s the right thing to do, and oh by the way 99% of the stuff that we do from a sustainability stand point, saves money. Reduces energy, reduces water, increases recycling, and it’s a good business proposition.
SJ R4: Lets talk about the Olympics. The coca Cola Company has been sponsoring the Olympics since 1928 and its signed up to sponsor it to 2020. In that time you will have spent billions of dollars on supporting the Olympic Games. I just wonder why you do it and think its a good fit?
JB CCE: We think Coca Cola as a company, and Coca Cola as a brand fits beautifully with the Olympics. The Olympics are all about sports , all about active and healthy lifestyles…. (interrupted)
SJ R4: Well.. you talk about active and healthy lifestyles, well that is exactly the point of my question which is that the Olympics ideal ..are fit and healthy. How does a highly sugared, highly calorific soda drink… in anyway.… reflect those values?
JB CCE: Well over 30% of the products that we sell today are low and no calorie, and frankly even brand coca cola is a very appropriate product to consume as part of a total menu of diet products… as part of an active and healthy lifestyle. By being involved in the Olympics… (interrupted)
SJ R4: Just…To be clear it makes any diet worse?
JB CCE: No I don’t think so… not at all,.. it’s er (pause) …Absolutely having a coke as part of a total programme , a menu, is a very reasonable thing to do on a daily basis.
SJ R4: I’m sure its fine…you know a little of what you fancy can’t hurt but even Jacques Rogge, the head of the IOC (International Olympic Committee, President) said there are serious question marks over the suitability of sponsors like Coke and McDonald’s?
JB CCE: Well I think… we love our relationship with the Olympics. We plan for it to continue, we …if you look at the Coca Cola advertisement that we have in the Olympics you will see a number of sporting figures that are moving and their active and their winning.
SJ R4: I just wonder do you have children?
JB CCE: Yes I do…
SJ R4: How many cans of coke would you let them have a day
JB CCE: I have been in the soft drink business a long-time, and we have never restricted our children to anything. Frankly it’s all part of a consumer choice. And we let them choose want they want to have…We actually have four grand children and they’re in the same category.
SJ R4: Ok …Just a little bit about your business. When you have got a company whose product saturates the entire globe.. what do you do next?
JB CCE: Looking at per capita consumption in Western Europe of our products it’s broadly half of what it is in the United States. We grew our red, black and silver Coke business 3.5% last year, which again we think is a good indication of the kind of potential that existing. You know we have had six consecutive years of volume, and profit growth, and frankly we don’t see any reason why that won’t continue
SJ CCE: And how does the advertising play into that? Because obviously you are one of the biggest advertisers in the world. If you stopped sponsoring the Olympics would everyone stop drinking Coke? I just wonder whether you have to spend that much money?
JB (CC): The Olympics is one crayon in a box; it’s a big crayon. But frankly it’s one crayon in the box of all the various types of programmes that we want to use, to communicate effectively, both with consumers and customers around the world.
Marketing Pathology 