Coca-Cola Europacific Partners PLC (CCEP) Earnings Call Transcript & Summary

Enjoying the end of a nice summer. So it's good to be in the sunshine. I thought I'd take the opportunity just to share with you a brief update on CCEP, and then get into some Q&A. So obviously, what I'll talk about today contains some forward-looking statements. Nothing new there. We've changed quite a lot. So I'm sure a lot of you have hopefully been following us since 2016. We've been on a great journey both in Europe and then most recently in the Philippines. So we've really diversified our business. I'll talk a little bit about that later. And you'll see the benefit of that in our results and in our guidance going forward. So we're a much more balanced business between Europe, obviously, the great parts of Australia, New Zealand, Indonesia and the Philippines. We're a big business now, 31 countries, 42,000 colleagues. A lot more customers committed to our business. Revenue of just over EUR 20 billion, volume of just under EUR 4 billion and our market cap around EUR 37 billion, and that's changed quite a bit over the last few weeks, and we're obviously very happy with that. And clearly, a big, big partner for the Coca-Cola Company and Monster, obviously, our 2 key brand partners. So if I look at the journey where we've kind of come from, clearly, genesis of it back in 2015, 2016 in Europe, primary goal was to consolidate Western Europe, return markets that really hadn't been growing, haven't been creating value for our customers, get them back on a growth track, bring back the belief in a great, great category, great, great brands, and we did that very successfully. Relentless focus on free cash flow. It's our passion at CCEP. We love cash, and our new CFO loves cash, too. So that's great. And that gave us a lot of optionality, both in terms of returning value to our shareholders, but also doing some really value-accretive M&A. And that really started with the acquisition of Coca-Cola Amatil, transformed us into being a multi-geography bottler and then most recently with the Philippines, an acquisition that we're really, really happy with and very excited about the future of that business. So quite a journey on that. We've created a lot of value for our customers. We continue to expand our margins, and we continue to build a business that's more diverse. When you look at the growth profile of CCEP, and if you look at our guidance on that 4% revenue guidance, it's really built up across our key markets. So in Europe, we see a sustainable growth level of about 2% to 3%. We see it slightly higher in the Pacific, particularly in Australia and New Zealand. Clearly, we see the Philippines and Indo, in the midterm, growing at a high single-digit level. So quite a good growth profile, quite dynamic and obviously, quite a profitable business as well. I talked a little bit about diversification. Apologies. It's a busy slide, but I think it really demonstrates the strength of CCEP. So on the left, you'll see the brands that we have, obviously, led by brand Coke. But clearly, we enjoy great brands, Sprite, Fanta, Fuze Tea, Monster range. We're getting into alcohol ready-to-drink with Jack and Coke. We've got Costa Coffee. So we've got a very diverse portfolio of any RTD brands. If you move over, you'll see the dramatic change in our revenue and our volume split. So from a very Western European business to a much more diverse revenue profile, that sustains that 4% guidance. Good pack mix. So we continue to look at how we can make our business more sustainable, that is in the area of packaging. And I think what sets us apart from a lot of consumer goods companies is about 50% of our revenues or more come from non-retail. So we love our retailers. It's a great part of our business. It's very profitable. It's growing, but we do benefit from having a lot of business in on-the-go convenience, restaurants, bars, hotels, transportation, and that gives us a very balanced revenue profile, and that's quite different to most CPG companies. Very simple model, built on a really, really great relationship with the Coca-Cola Company. They bring us those loved brands, great innovation. I'm sure some of you may have tried Coke and Oreo. So a lot of excitement behind our brands. That brings world-class consumer marketing. You'll hear that from the Coke Company, Manolo, around the way they've reengineered our marketing organization. We bring world-class customer relationships based on great talent, great service levels and a great value-creation story. And then ultimately, as a bottler, our passion is around execution. So more stores, more doors in terms of coolers, more distribution, more activation. And that's what we do every day as a bottling business, and we're really, really passionate about that execution muscle that drives value creation. So that's really how we look at our relationship with the Coke Company and also there with Monster. That flows into what we focus on. Quite a simple model that we've had since day 1, whether we should keep changing it as we always do, but we land our work. So it's about great brands, great people, great execution and obviously, they're all done sustainably. So we have a very keen focus on our ESG credentials and getting to that net-zero ambition. So what's working on our strategy? Right in the middle of this slide, I think, is an unwavering commitment to value creation for our shareholders and our customers, and we're delivering on that. We've clearly landed with a EUR 0.74 interim dividend per share. We've got a lot of focus on cash returns, over EUR 6 billion since 2016. Sarah keeps updating our slide on TSR. So we're about 160% at the moment. So we're very happy with that. We're gaining share in NARTD. We're focused a bit more on volume in the near term than value as we see some of those affordability challenges, particularly in Western Europe. And clearly, we've committed with Ed and the team to deliver over EUR 350 million of productivity savings in the near term to support margin expansion and fuel that top line growth. So very clear strategy, and one that is creating value for our customers and for our shareholders. We've made some commitments around our midterm. And again, I think a lot of you are familiar with our goal. So 4% comparable revenue growth. Getting leverage on our P&L on productivity initiatives delivers a 7% operating income growth. That free cash flow number is really important to us. So we're targeting in the range of EUR 1.7 billion. That gives us great optionality on M&A. And absent M&A, gives us optionality on returning cash to our shareholders. So very excited about that. We're well ahead of our journey in terms of getting below that 3x net debt to EBITDA, so we're happy with that. We are improving our ROIC. We've taken our CapEx guidance of -- to 4% to 5% from a previous 4%. That just reflects what we see as a really exciting environment in the Philippines. And we know to unlock more of that growth, we're going to be spending a little bit more capital, particularly on capacity. And we're very pleased to maintain a healthy dividend payout ratio of 50%. So that's our midterm guidance. We're committed to it for, obviously, 2024, and then into 2025 and beyond. So what gives us belief and optimism about our future in this business. We've got a very healthy price/mix balance, and that's delivering volume growth. We've invested a lot in technology, and we're becoming a much more data-driven insights business. Our customer portal will do close to EUR 2.5 billion in revenue. So one of the biggest portals globally of any industry. So we're excited about that. Very solid allocation mindset around our capital returns. And obviously, we continue to invest in people who have a great passion, belief and a growth mindset in our business. We're also more diverse. So we've unlocked that growth, particularly in markets like Philippines, Indonesia, Pacific Islands and P&G, and that really supports that 4% midterm guidance on revenue. So that's a quick run-through of CCEP. As I said, very excited about our half year results for '24, reiterated guidance, looking forward to '25 with a lot of excitement. And clearly, we believe that, that will also look at some more returns for our shareholders. So with that, I'll join Lauren and get into some Q&A.

Perfect. So Damian, it's great to have you back at the conference after a few years. So thank you for being here. Ed, very nice to meet you. We look forward to putting you in the hot seat in the future. So take notes. So maybe just to start after the sort of overview to get a little bit shorter term, if we can. And just maybe latest appraisal on European consumer environment because it was very topical over 2Q earnings season and certainly continues to be a tougher year.

Yes. So I suppose I'll start with the -- we're very comfortable with our guidance for this year on the revenue side. I think in Europe, I think the mix of that revenue has been where the challenge is. I mean if you look at our half year results, good first quarter, a bit weaker in the second in Europe. I'm not going to give a weather report, but clearly, that was a dynamic. You were in Europe, I think, in August. So I think you will have seen that summer did eventually arrive. And we saw the consumer respond to that. And I think that's kind of a short-term challenge. I think what's probably more midterm and into '25 is that we do see consumers still responding to value. So while inflation is coming down, we still see affordability being a key pillar of our strategy. And with that, you'll see in Europe, in particular, our promo focus more on value packs, better value communication. And I think that's going to be with us into '25, Lauren. I think while inflation is coming down, it takes time for that to filter through into consumers feeling that they can spend a bit more. So we're seeing it in retail. And I suppose what that means in the near term is you don't probably hear us in Europe talk a lot about mix. So if you go back, typically, our algorithm is a point of volume growth, pricing and then a bit of mix, we don't see mix playing a role in the near term. That will change. And I think our packaging and our premiumization is still there. So I think that's retail. I think the other area that you're seeing it is away-from-home footfall is still a challenge in Northern Europe. You can debate is that economic and weather, it's probably a combination of both. That will recover, but that has been a challenge. And I suppose for us, what we like is that despite that, we can deliver that type of operating profit in the half year, we can still deliver the revenue growth. And clearly, we're happier with what we saw in August, where we saw the consumers getting out again away from home, came back and obviously, volume respond. For the rest of the year, I mean, September is a key month in Northern Europe. We've had a really good year in our other markets, excluding Indonesia. And then, obviously, it's Christmas in Europe. So all to play for. And we've got a lot of innovation. We've got Oreo. We've got Beetlejuice and Fanta coming out. I'm really excited, we've got a big campaign in diet Coke, in GB, in particular, which is a market where I think we've underperformed in that brand. So we're certainly not short of activation on volume going into this -- into the end of the year.

Okay. Great. And just in terms of list price, how should we think about -- I mean you've spoken to the value-seeking behavior, but you've been really measured and disciplined on realizing list price over the last several years now. So how should we think about list price going forward and into '25?

So we'll continue with the same program. I mean we're in the market. Germany and the U.K., we're passing pricing this month. Again, we take a multiyear view on pricing. We didn't price up as much as some other CPGs on the back of some of those commodity pressures. We took a longer-term view. We didn't want to lose shoppers or consumers because the cost of getting them back is a lot more than you benefit in 1 year. So we've been typically in Europe at that low price realization. We believe that allows our customers to expand their margins, and they've been doing that. So we're really happy with that. But most importantly, we believe it keeps the brands price-relevant for the consumer. And I think growing transactions, growing volume. We've added about 1 million households in Europe, and I think we're excited about that. So pricing will remain. I think it's a good habit. If you get out of it, it's hard to get back. But I think pricing at a level that the consumer will respect is really important. So pricing in GB in Germany this month, and then we'll be back in the markets' normal cadence in January.

Okay. Great. And if we stick with Europe for a moment, where do you see the biggest opportunities left from an execution standpoint on the long term? You're investing in manufacturing capacity, which you mentioned and really means conviction and growth ahead. But I think it's helpful to break down a bit more execution-wise, like kind of what's the most intriguing investments in capabilities or infrastructure to help unlock that?

Yes. So I'd look at it kind of a couple of ways. I think on our core business, so brand Coke, Coke Zero. I think the big opportunity there is Diet Coke, particularly in GB and Australia, as I talked to. I think we still have an opportunity in Fanta. If you look at our market share goals were 60%, 70% value share. That drops to 25-30 on flavors. So we clearly have an opportunity in execution on our flavor brands. I think innovations on Fanta flavors are working. The Beetlejuice Halloween activation will work, so that will help. And then if I move beyond that, I get really excited about brands like Powerade. So when I'm in the U.S. or when I'm in Australia, that brand just plays a different role in our portfolio, and you don't see that in Europe. And yet the consumer need states are similar. So I think Powerade is a brand that we can track more value on. We've got a good tea platform with Fuze. And then we're getting into categories that are not really reflected in our guidance, like alcohol ready-to-drink. We've seen the power of that category in Australia and New Zealand with Beam. Obviously, we'd love to replicate that with Brown-Forman and some of our other partners. And in coffee, we still haven't cracked the code. I mean we've done some really good stuff on Costa and ready-to-drink, but beyond that, we haven't cracked that yet. So we're working hard with the Coke Company. And that excites me. But again, it's not at a stage that I would reflect it in that 4%. So I feel good on our core and on some of those other brands and categories, that excites me. And then there's still some optionality around alcohol, coffee. Energy is still a massive play for us. And it's still the fastest-growing category. If you're in Europe now and you're standing at a supermarket or a convenience store, the biggest category is soft drinks. The next biggest category is energy. If you go back 10 years, it was water and juice, and you just see a big transformation. So -- and a lot of innovation. Celsius is coming to Europe, a lot of competition that's growing the category. Yes, so all of that gives us a lot of confidence in the 4%.

Okay. Great. Let's shift maybe to talk about the emerging markets footprint and let's start with Indonesia, which you mentioned sort of the one spot that's not so great at the moment. It's been a challenging market for many, many years. and there's some geopolitical dynamics at play currently. So just kind of cut through those things, are there green shoots that are showing you evidence that the strategies are working or starting to work? Or do you need to adjust, particularly on sparkling category relevance?

Yes. So I mean, fundamentally, Indonesia is a great market for us mid-long term. If you just look at the -- as you said, if you read through the current challenges, which are obviously very challenging for lots of people to deal with, but you see the demographics, the age profile, GDP growth, stability. So we're -- I think it's a great business, and we're really happy that it's in the family. When we look at -- some areas of Indonesia are less [ impacted ] [Audio Gap] strategy that we've put in place works. And that's what we're admitted to, and it will turn, right? Eventually, these things will turn. What we've decided to do is to keep executing the strategy anyway because we feel that, that market deserves it. And ultimately, we will get the payback. So we've just launched refillable glass back into Indonesia after a long absence. We've changed our packaging. So we've gone from 1.5 liter to 1 liter. We've put in an affordability play, which we believe is necessary in building on what we've learned from the Philippines. We've restructured the business. So we've reduced a large number of roles, and we're changing our route to market from a very complex cost-heavy to a distributor model. and that's happening now. And yes, we're not seeing the payback of that in today's sales report for all the reasons we know. But ultimately, that will change. So we don't see any reason to wait. That business deserves that level of investment and change. And ultimately, it will come back. And I suppose that green shoot is in areas of Indonesia because it's a vast country with very different cultures and backgrounds, where there is less of those external factors, we're seeing that high single-digit growth. And I think that's important, particularly for our teams on the ground because it gives them confidence and it gives us confidence.

Okay. Great. What's the role of refillables in that market? How does it fit in?

It's purely affordability. So very much mirroring what we see in the Philippines. So we know out-of-pocket spend, an absolute kind of price point is key. We have a 250 ml PET pack at about INR 3,500. And the RGB will come in slightly below that. What is very interesting for us, again, building on what we see in the Philippines, it will be very much focused on that eating and drinking occasion, which when you're in Indonesia, every street is just covered with small eating and drinking, and that's mainly a refillable opportunity. So you drink it there and you give it back, so the deposit isn't an issue. It's very much linked with food, and it's very price-competitive. And I think our goal and intent is to grow per capita is sparkling, and that's where that happens. I mean you can do it in home. Obviously, QSR is important. But in those markets, it's those kind of everyday street food occasion. And we think RGB will play really well there. So it's very much affordability.

Okay. Great. And then latest on tea on the platform.

In Indo?

In Indo.

Yes. So I think it's a -- 2 elements to it. I think, on flavored tea, which is about 30% of the market, we're doing really well. We've got good products. I think on a traditional original tea, we're looking at reformulating what we have. And we're working with the Coke Company, we're looking at a few formulations across the globe and doing some consumer testing. So on flavored tea, we feel really good. On original tea, our product is not delivering what it needs to at the moment, and that's a change we make in '25.

Okay. Great. Let's move on to Philippines. So first half results really highlighted the benefits of geographic diversification, right, where there's sort of the growth in Philippines kind of offsetting some of these challenges in Indonesia. I think investors have generally thought about the best practices that you can take from the Philippines and apply them to Indonesia, as you just referenced with the RGB. But what about the lessons from kind of elsewhere in the footprint that you can bring back to the Philippines?

Yes. So I mean the Philippines is a great business. As I talk about it, it's like a developed soft drink business in an emerging market. It's very different you see in Asia, high sparking per caps. Very different consumer behavior around food, family occasions, so it really fits well with our brands. I think one area that we've already sent some of our best key account people to Philippines. So modern trade is about 30% of the business there. We do well there, but I think it's evolving very quickly. We got big customers, big growth agenda. So I think a lot of the work we did in Europe around revenue growth management, data insights, price packaging. So we're bringing that to the Philippines, and that's helping us kind of step up to that modern trade opportunity. Technology, as you can imagine, that business for a while was not invested in. And one area that was weak was technology. So we're bringing a lot of our platforms from CCEP, our sales force footprint, myccp.com, our portal, so we can bring that, and that's kind of lift and shift, that's great. And I think we're also bringing a more, I would say, longer-term view around people and talent. So we've got great people in the Philippines. We want to take some of that talent and move it around CCEP. And that's something that we're doing at the moment. And then on the flip side, their route to market and their refillable strategy is exactly what we're doing now in Indo because we see the benefits of that. It gives us -- we were going in that direction. I think when our team from Indo went to the Philippines, after we did the transaction at that level, and I think they went back to Indo with a much, I'd say, more belief, and that's the right way to go.

Okay. And then I believe the goal is to improve operating margins in the Philippines to double digits from the like 6-ish percent level in '23. So how should we think about the time line to get there? I think there were some one-offs of depressed profitability last year, but I'm guessing there are also other things that aren't so one-off?

As quickly as possible, my message to Gareth and the team if they're listening. Yes, we see a very, very clear journey to that margin structure. I think some of the CapEx we've put in has unlocked more top line growth, more glass. Over time, we see a lot of efficiencies in supply chain coming out of the Philippines, probably some more planned consolidations because it's quite fragmented. We're leveraging procurement at a group level more. So we've got 4 or 5 very clear steps that will get us to that margin. Clearly, this year, we're seeing volume play that role. We're getting leverage on the P&L on the back of that. Yes, so I think near term, that's achievable. And then, obviously, we'll sit with Ed and the team and look at where do we go after that. But it's certainly ahead of our expectations. And you see that in the first half year results. I mean, to be fair, Q1 '23 was a very tough quarter because of the sugar supply issue. So the comps were favorable. But even if you strip that out, as a business, that's ahead of where we thought we'd be.

Okay. Great. And let's talk more broadly about operating margins. I know total company returned back to 2019 levels in the first half of the year, excluding Philippines. When we look at consolidated gross margins, is it possible to see them move back towards that 2019 level to kind of high 30s? So just kind of curious on your thoughts on that.

Well, we spent a lot of time getting them to that level, as you know, from 2016. So I certainly want to get back there. I think on our core business, apples to apples, we will get there. I think some of our new brand innovations, like NARTD, have a different structure, right? So but on our core kind of sparkling business in Europe, we definitely want to get back to 2019 margin. Clearly, what's getting us there is we're seeing a better outlook in terms of COGS and commodities. We're seeing pricing. We're not yet factoring in mix, but that will come, depending on the consumer dynamic that we talked about. And clearly, we've announced a productivity program of just over EUR 350 million. A large part of that sits in the gross margin line. And I think all of those together gets us back to 2019 gross margins on that like-for-like. As I said, some of the new categories have a different dynamic, but they're still very small in terms of our mix.

Yes. Okay. Okay. Free cash flow. So free cash generation, key priority for the company and the current algorithm calls for at least EUR 1.7 billion per year.

So we've been passionate about free cash flow since day 1. I think it served us well. As you know, we changed our management incentive plans to include it. I think that was -- but look back at a history of CCEP, it kind of pick moments when you think that was a decision that we didn't expect to have such an impact, but it has. It gives us great optionality. So as we look today, as you said, we're well ahead of our expectation on our net debt. So that's great. We'll be below that 3% -- 2.5% to 3%. We're going to stick with that range. We're comfortable with that. We're very keen to acquire more bottling businesses. We still believe we can add value to the Coke Company. Being pragmatic in the near term, there's not a lot of for sale signs around anywhere. So that's probably a few years out, but we'll keep looking. And then that gives us the choice for our Board to review, by the end of this year, what do we want to do with excess cash in '25. Historically, we have returned cash via share buybacks. So absent M&A, that's been our primary way of returning cash to shareholders, and that's something we'd probably look at again in '25. More to come.

Okay. And when you talk about additional geographies, more bottling businesses, even though there's nothing for sale, you've shown with Indonesia and Philippines, and Amatil, we'll say broadly, the distance isn't a factor. But is there a point where you start to think about the logic of adding territories? Would it need to be more Southeast Asia-centric, right, to keep the sort of spans of control and operation?

Yes. I mean I think we're confident in operating where we are. I think we're also humble enough to know that there's a limit sometimes and that you've got to be pragmatic. And I think we've kind of created 2 hubs now. We've got an Asian business and Europe. And I think any M&A for me would probably have to at least that sit within that framework. I mean clearly, we look at an opportunity. I know John and James probably get a copy of this. So that's why I mention it. We're always open-minded. But from a value creation perspective, that adjacency is key. So I think we look -- what I honestly know, and I think we've done really well with the Philippines and Amatil. I don't see a lot of territories that other bottlers are willing to sell. I think the bottling business now is much in demand. So trying to find assets. I don't see too many.

Yes. Okay. Let me ask the latest, if I may, on the FTSE index inclusion. Just how conversations with stakeholders has been going? And any updates you can offer us?

Conversations have been going really well. I think everybody was somewhat relieved when we got the clarity from the FDA because we've been waiting for that for quite a while. And I think they've laid out a very pragmatic set of rules that meet their objective of making the FTSE more attractive. We see that when we read them. We have a Board meeting next week in Atlanta. We'll have our kind of final conversations with our directors around those rules. But I think broadly, they've achieved what they wanted to achieve, which is to open it up to businesses. And I think they've talked openly that CCEP is a business that they would like to attract onto that premium listing. So good news is we've got clarity. I don't think there's any surprises in the rules. I think they serve the purpose that they were intended and our directors in consultation with our shareholders will make a call on that, and next week is our Board meeting. So good timing.

Okay. Great. I'm going to squeeze in one more. So just an industry-level question. So Britvic, Carlsberg, I think is going to be interesting to see what that translates into in terms of PepsiCo portfolio in GB. And it's one of their stronger markets outside of the U.S. So I guess, how are you thinking about the potential the shake-up could create in the market, both GB and also longer-term implications if Pepsi continues to make changes in that out-to-market in Europe?

Yes. I mean I think it's somewhat reassuring that a big brewer wants to allocate so much capital to soft drinks. So I think that gives us confidence we're obviously in the right category. I think to be fair, Britvic has been a really good competitor for many years. They've run a great business in GB, very competitive. So I think it's a business that's in good shape. And clearly, we've run a number of scenarios of what it could mean. I do think, ultimately, it shows the kind of attractiveness, bottling as a business, whether it's a Pepsi bottler or a Coke bottler. And I think how that will play out will be interesting. But for us in GB, we've been dealing with a really strong and good competitor. I think that will obviously continue with Carlsberg. It will be interesting what it means for some of the -- their coke franchises. So we're curious to hear more about that whenever that comes in. But obviously, Denmark and Finland is with Carlsberg on the Coke side. So that's unusual. Yes. And I suppose, ultimately, when we heard the announcement, we think it's a demonstration of the belief in soft drinks.

Yes.

And for us, that's a positive.

And maybe creates more opportunity for you in other markets.

Yes. And I think, obviously, there's a lot of beer players in GB who will now look to partner with us. So I think there will be some short-term opportunities in that space as well because clearly, when you combine 2 brands, obviously, they've got competitors on the beer side. We're not in beer. So we're happy to work with everybody. So that's a benefit.

Yes. Okay. What do you think the implications of that would be? It took my brain to thinking about the ARTD as well. I know it's early. I know it's small. What do you think are some of the kind of the key unlock to -- because both combination of category relevance and you can share across some of your Western European markets, the range of how significant the category is, let alone your own share within it and how you step-change that?

Yes. So I think if I go -- I mean we inherited a great business when we bought Amatil in Australia and New Zealand with alcohol ready-to-drink. At the time, we didn't have ARTD on our kind of mindset as being a category that the system would enter into. But with that, we got a lot of capability, the per capitas of that category are the highest in Australia. So we've got a lot of internal learning. And obviously, we're now partnering with Brown-Forman and Absolut. I think what we're seeing is taste. Nothing beats taste, and I think the product formulations are great. I think there is a benefit of having branded alcohol and soft drinks compared to a cola or a whiskey. And I think having a range is going to be important. So what we've seen in Australia is having 4 or 5 propositions that build out scale, and that's what we're working towards in Europe. And I think some of the consumer dynamics convenience, as I said, taste, price, I think they will play a role in building the category in Europe. So again, it's something that it started better than we expected in Europe. Next year, we'll exit our Beam relationship. So it will be a bit of a headwind near term in Australia and New Zealand. But then within the Coke Company, I think they're working on some great brand partnerships. So yes, for us, it's a great category. It's all single-serve. It's cans, same route to market, same customers, profitable. So in that 4%, clearly, it's not in there yet.

Yes. And is awareness something that gets built by like in-store and availability? Or is it targeted marketing?

It's both. I think when you go to some of our markets now, I think what we brought to that category is that passion for execution, so coolers from the store, good displays. So that definitely just brings the category of what I think was a fairly weak shelf position. So lots of SKUs, didn't really stand out. And I think when you want to build a category or brands, you've kind of got to get it off the shelf and get it front of store, and I think that's something that we've just been able to bring to the category. We just need a few more SKUs to build it out, and that's what we're working on.

And then we can add it to the growth algorithm, when you are here next year.

You can ask Ed, he'll be here next year.

Okay. Well, please join me in thanking CCEP for being here.

Thanks, Lauren.