Coca-Cola HBC AG (CCH) Earnings Call Transcript & Summary

Good morning, everyone. I wish a very warm welcome to our Coca-Cola HBC Investor Day to all of you who are with us here in Rome. And all of you who are with us online. We really appreciate making the time and being here with us for what we believe is going to be a full, exciting and engaging day. We have a full agenda today, which we have broken into 3 distinct sections. Firstly, setting the scene. I'm delighted that we have with us, Anastassis David, who is going to also provide his thoughts on our company from his unique perspective as the Chairman of our Board. I will then take you through the building blocks of our sustainable and profitable growth theme for today's event. We are pleased to have with us Manolo Arroyo, who is the Chief Marketing Officer of the Coca-Cola Company. Manolo will provide us with an update on the latest thinking on marketing strategies at Coca-Cola and it's particular relevance to us at Coca-Cola HBC. There are some very interesting areas where we will be working closely together over the next couple of years. We then turn to look in more detail on our strategies for growth. And for that, I will hand over to Naya, our Chief Operating Officer, who will take you through how we are growing our categories with the capabilities to win. She will introduce four breakout sessions or growth accelerators as we like to call them. This will be very interactive part of the day and opportunity to meet more of the team that came here for you in Rome. For our online audience, we will bring to life this with prerecorded films for each breakout. Before then, we actually return to talk about how we are driving growth with our diversified country footprint, as part of that deep dive and to showcase why we brought to you -- why we brought you here in Italy. Now I will hand over to Frank, who will take you through how we have been step-changing our growth trajectory in this critical market. It's a real case, I believe, a real case study with a number of best practices. To finish off the morning, we'll have a Q&A session before we break for a lunch around 12:30. After lunch, we will return to talk about how we bring all these together by growing sustainably which will be led by Katya, our Head of Sustainability. We will then be joined by our second guest today, our partner, Nikos Koumettis, President Europe of the Coca-Cola Company. He will headline a panel session with Naya and myself to discuss the partnership and opportunities that we share in this exciting industry. I will then hand over to Ben who will describe how all this comes together in terms of, of course, financials and how we are going to grow profitably into the future. Then after a final Q&A, I will return to wrap up and conclude the presentations with couple of final thoughts. So for all our in-person guests that are here, we look forward to visiting the market to see the execution in the market where it all happens. And this will be led with our local team that will take us through a couple of groups that we will discuss later. And last but not least, those of you who are staying over tonight, we will conclude with a dinner and a further opportunity to have a chat and conversation with members of our team, and we are really looking forward to that. All in all, quite packed schedule, and I really hope you will find it interesting and engaging. So apart from team members and partners, that I already mentioned, I'm really delighted that we are joined here by a number of members of our senior management team that are here today with us. You will meet Ivo, our Chief Supply Chain Officer; Mourad, who is our Chief Digital and Technology Officer; Vitaliy, our Digital Commerce Director; Ruchika, Head of Data, Insights & Analytics; Prodromos, Head of Coffee; and Kristina, our Head of Adult Sparkling. They will be leading our accelerator breakouts and joining us for dinner this evening. So this is another opportunity to have time to understand from them as experts how with the areas of growth we are driving growth. With that, I'll pause and hand over to Anastassis for his introductory remarks. Anastassis.

Thank you, Zoran, and good morning, everyone, and welcome to Rome. This is an important day for all of us at Coca-Cola Hellenic Bottling Company. It's an opportunity to share some of the fantastic progress that has been made under Zoran and his leadership team and an opportunity to give you further insights into what makes this company great. We've got the full agenda planned and, in the process, I'm sure you will be as impressed as I am with our strong management team with all that has been achieved this year. Ultimately, successful business is about delivering consistent results. It is about creating enduring customer relationships and drive repeat purchases. It is about the culture where people can be at their best every day. When all those factors come together, that business is truly resilient. At Hellenic, this is who we are. Our record revenue, comparable EBIT and free cash flow published at our most recent full year results back in February really inspired me, not only because of the numbers, although those numbers were very nice indeed but because the performance was delivered in a year of unprecedented disruption, a year in which our colleagues and our customers have to deal with the tragic consequences of the ongoing war in Ukraine. I'm immensely proud of the way our talented, passionate people have adopted and embraced opportunities, ensuring that our company continues to enjoy such as strong recovery in performance. The Board and I would like to thank our leadership team and our colleagues for making Coca-Cola Hellenic Bottling Company a better business every day, working as a team, delivering a growth story, making impressive progress on our journey of becoming the leading 24/7 beverage partner. As you will hear from the team over the course of today, strides have been taken to execute against the strategy over recent years. Our advances have been underpinned by a core belief in the importance of culture, the goal being to deliver long-term sustainable return to our shareholders. In what has been and remains a volatile environment, the Board has carefully sought to position our company for continued success. Preparing to anticipate and seize opportunities and overcome challenges facing the business in the years ahead. In particular, reducing the environmental impact of our business and strengthening the socioeconomic role we play in the communities in which we operate, continuing as we do to focus on what is right over what is easy. This ethos will help shape our long-term success. In line with that view, we remain more committed than ever to achieving net zero emissions by 2040, and we are looking forward to updating you on our progress against that and our broader sustainability goals in more detail later today. Given the macroeconomic volatility we see, the value placed on business agility and financial discipline has never been so high. In that context, the Board's confidence in the durability of our business and the strength of the company's balance sheet is reflected in progressive dividend payments and the competitive payout ratio. I know the Board and the management team remain very focused on continuing to drive long-term value for our shareholders and realizing the company's full potential. Finally, before handing back to Zoran, I would like to extend a big thank you on behalf of the Board to all our stakeholders, particularly to our customers for their continued support and to all of you for joining us. I hope you find the insights you will receive today useful to your understanding of Coca-Cola Hellenic and that you thoroughly enjoy the day. With that, I will let Zoran kick off the main proceedings. Thank you.

Thank you, Anastassis. Four years ago, I presented a slide not unlike this one, highlighting our strong business with a well-balanced combination of emerging, developing and established markets which gave us the confidence to set up the ambitious targets of growth story 2025. And we were clear where we were on our journey. We have been through a period of restructuring, visibly improving the efficiency of the business to deliver a period of very strong recovery in profitability and operating leverage. Then in '19 with a robust foundation in place, we said we expected a faster top line growth in the future as we invested behind our portfolio and capabilities while continuing to improve margins. Over last 4 years, we have achieved, I believe, a great deal. We've grown significantly delivering on average 3% organic volume growth and 7% average organic revenue growth taking our revenue to over EUR 9 billion in 2022. At the same time, we delivered organic EBIT growth of 7% on average per annum and improved our returns on invested capital. We also added Egypt at the start of 2022, expanding our footprint in Africa to capture a leadership position in this very exciting and third most populous market in Africa. We achieved all of this despite a challenging external environment marked by COVID-19 outbreak, disproportionately affecting our industry. We also navigated a period of wider supply chain disruptions and inflation. And from early 2022, tragically, a war in the Ukraine. I'm immensely proud of the performance of the business, what has been achieved by our passionate, talented, and resilient people despite these challenges. We've adopted our ways of working, strengthened our supply chains, and proven the depth and breadth of our capabilities. This is particularly the case for revenue growth management, where we have delivered robust price and mix improvements in the face of significant commodity inflation and more recently, energy cost rises. If I would call out one of the key learnings from operating in these last couple of years, without a doubt, it would be a prioritization. We've been laser-focused and clear on the decisions we are making and what we expect them to achieve. We have honed that discipline in the organization over the last 4 years as we continue working on our vision of being the leading 24/7 beverage partner. NARTD is a large, growing and resilient industry and the same characteristics are present in coffee, making it an incredibly attractive opportunity for us as well. Back in 2019, we talked about operating with -- in categories with a strong -- with very good growth potential, and that remains true today. In terms of the industry value, we expect further strong growth in demand, both in non-alcohol ready-to-drink and coffee, and Naya is going to talk about that in -- right after me. Key to our success over the last 4 years and the foundation of our future plans is our exceptional portfolio of brands. Our 24/7 portfolio allows us to cater to meet the needs of consumers across all occasions throughout the day. At the heart of that portfolio, are our pan-Hellenic priorities, sparkling, energy, and coffee. They represent close to 80% of the business today and still with significant headroom for growth driven by penetration and share supported by continuous innovation and underpinned by our strong customer relationships and unrivaled market execution. The close and strong partnership with the Coca-Cola Company is at the heart of this. With the Coca-Cola Company, we clearly [ have ] loyalty supported by strong innovation and marketing investment. With Monster, our close partnership brings a portfolio of energy brands from premium proposition Burn through Monster itself to more affordable option with Predator. In coffee, we have a complementary dual brand strategy with the Coca-Cola company's own Costa Coffee in mass premium and Caffè Vergnano in super premium segment. Beyond the top three priorities, we have a diverse offering of locally relevant brands where together with Coca-Cola Company team, we make a prioritization of country category combinations based on the attractiveness of the profitable revenue pools in each market. These include important growth enablers such as juices, ready-to-drink tea, enhanced and premium water, sport brand Powerade as well as our premium spirits portfolio, which enhances our offering to our HoReCa customers. The consistency with which we have invested in our 5 growth pillars continues to underpin our success, we believe. Looking at our 24/7 portfolio, the last 4 years have been all about mindful choices and prioritizing the best opportunities within the business to drive growth. What especially stood out is the strength, resilience, and potentiality of sparkling and energy categories. Our ability to win in the marketplace is down to continuous strengthening of our customer partnerships, and investment behind critical value-creating capabilities, and you'll hear more about that today. Fueling this growth has required investment behind digital technology and new business models blended with our continuous focus on productivity and efficiency improvement initiatives. You will see some parts of that in our digital accelerator a bit later today. Cultivating the potential of our people has been deliberately 1 of our 5 strategic pillars as we strongly believe that only with the strength, competence and engagement of our people, we can achieve our vision and ambitious growth agenda. This is why we treat talent development as our lighthouse capability. And I'll touch on that a bit later. And finally, we have continued to play strong focus and tangible investments to support our sustainability commitments, of course, net zero by '40 and others. And over the last 4 years, sustainability has become deeply embedded in the way we run our business every single day. This is an important part of earning our license to operate and lead. Sparkling remains fundamental to the growth of our business now and in the future. A key part of that is down to innovation coming to us through a close partnership with the Coca-Cola Company, which enables us to keep delivering growth in our core sparkling portfolio. The introduction of new zero formulations across all sparkling brands Coca-Cola Zero Sugar Zero Caffeine, new flavor creations within Fanta and Schweppes brands, the relaunch of Kinley. The recent launch of Jack Daniel's and Coca-Cola are great examples of how constant innovation is keeping us at the forefront of consumer choice and customer preference. The same is true in energy as we work with Monster to help launch new flavor, variants, both within Monster and Burn as well as the launch of the new brand, Predator. Same is valid for a number of targeted innovations across still brands. We have also invested in acquiring new bolt-on and complementary businesses to strengthen our portfolio and accelerate growth. And I want to highlight four of those. In 2019, jointly with Coca-Cola Company, we bought Lurisia, an Italian high-quality premium water and adult sparkling brand with a strong heritage. We have been able to drive scale up in Italy quite well and introduce the brand to new geographies through targeted expansion. In the same year, leveraging on locally relevant and specific opportunity to that market, we added in Serbia in a targeted manner, Bambi with its high quality and high profitable snacks portfolio. This portfolio complements very well our core beverage business across several occasions thus creating a stronger customer leverage and impact on consumer impulse. In '21, we acquired a stake in Caffè Vergnano enhancing our coffee portfolio with this high-quality and super premium brand, clear strategy here is to develop complementary to Costa Brand, the relevant coffee offerings across the both mass premium and super premium segments. And you'll hear more about our coffee strategy from Prodromos in one of the accelerators. And in '22, we added a super-premium $0.03 to our adult sparkling portfolio as it complements very well our existing brands with its unique product attributes and much higher price positioning. The rollout is still in the early days, but we are very pleased with how the business is developing. As well as brands, we have also enhanced our geographical footprint by acquiring Coca-Cola business in Egypt at the start of 2022. This brings us enormous growth opportunities. Egypt is a large and growing population over 100 million people with a low average age of just 24. Per capita GDP growth is also expected to trend upwards and sparkling soft drink servings per capita are well below our group average. Overall, the combination of a strong market potential with a good opportunity on market share should allow us to drive growth. We will leverage the experience and capability development, which has underpinned our success across our other emerging markets. Now over the last 4 years, we made some significant changes to the business. Starting with a major organizational design program we launched in 2020, which we call Dolphin, reflecting our ambition that in the design approach, we merge scale with agility as the Dolphin represents. The focus was to unlock and reallocate resources for accelerated growth by creating a future-ready organization based on prioritized big bets. All this was led with a guiding principle of creating even stronger focus on the needs of the customer. In terms of progress to date with Dolphin, and this is an ongoing program, is that we have redeployed the value of approximately 1,000 full-time equivalents into new areas for growth. This has been done in a way that's effectively self-funding and directly supporting the big bets and other investments that we made into the business, and it does not stop with structures. With Project Oxygen, we are tackling simplification, optimization, and redesign of processes throughout the enterprise. Here, the focus is on creating the capacity and more time for people to collaborate efficiently on the things that matter most, which primarily starts with more focus and time on our customers. In most simple terms, this is about creating oxygen so that the Dolphin can breathe. Since we started the program, we've identified over 200 processes that we can work on to create efficiencies. In the spirit of making sure we focus and deliver in a prioritized manner, we put in fly just over 20 for now, which on their own have the potential to unlock more than 1 million hours of people's time, the equivalent of 500 to 600 full-time equivalents. A good example of this is work we've already piloted in Poland around dynamic routing. New optimization tools have reduced travel times by around 1/3 freeing up over 10% of business developers' time for our customer benefit with increased and more impactful customer visits. We are now rolling this out into the new markets. And I believe this is also a great example of how we can leverage the investments that we made into data, insights, and analytics. The result of these programs has been striking and really promising. We've diverted significant resources into areas that drive capability, enhancements, and future growth. And we've achieved this without destabilizing our effective efficient business. We maintain a lean, agile, stable core while reinvesting in prioritized capabilities like data insights, analytics, coffee, digital, and technology platforms, digital commerce, sustainability, and new ways of working through agile, cross-functional dynamic pods. The power of our prioritized capabilities has step changed since our last Investor Day, partly because we have continued to develop each one of them, but also because of our outsized investments behind data, insights, and analytics, which has allowed us to strengthen our capabilities and deepen the connections between them. As a result of Dolphin, we've been able to build a world-class expertise in data insights, analytics, and digital commerce, but also enhance our tools that allow us to deliver best-in-class revenue growth management, route to market, and customer management. Naya and the team are going to discuss that a bit later. These investments are making a real difference in our ability to execute in the market and bring us closer to our goal of achieving truly personalized execution for every single outlet. At the very heart of our business are our people. Without them, the business simply wouldn't achieve what it does. We do have great people, I strongly believe, but this is also about creating an environment and culture which cultivate the potential. Key to success as a business, as a team, as individual is creating a high-performing growth mindset rooted in a customer partnership culture supported by an agile organization and effective processes. Our talent development focus reinforces continuous learning and upskilling of our people, while giving them the opportunities for personal growth. The results continue to improve. As roles have changed in recent years, 86% of leaders have been appointed internally and this is up from 70% back in 2019. Our employee engagement scores are also very high at 85%. And now -- we have women in 40% of our managerial roles. Another area of continuous improvement and we remain committed to achieving gender balance at management level. All of us, as one team, are passionate in creating and nurturing diverse, equitable, and inclusive environment. Over the last year, we took time to reflect on our wider purpose and culture, leveraging invaluable learnings that we gained over the last 4 years. To do this, we worked with a handpick cross-functional team, but with the inclusive input from many across the organization to set out what we all see as the defining purpose of the business to open up moments that refresh us all. We strongly believe that while our work requires sealing refreshment in, the real magic and impact happens when each drink gets opened up. Our true purpose comes from opening up possibilities with our customers, partners, and our colleagues to create value for all we serve. It's the optimistic spirit that drives us towards new markets, new relationships, new innovations, development opportunities, and new ideas for a better future. We launched our purpose and newly defined values this March at our leadership conference in Cairo, and we are rolling it out across the business with very good feedback and engagement. And it's the culture that completes the circle. It works with Dolphin and Oxygen in full inter-connectivity to fuel the continuous regeneration and renewal of the business to provide the resources and focus that allows us to move forward with growth mindset, agility and efficiency to capture growth opportunities. We put sustainability at the core for everyday decision-making. This is an important driver of how we earn our license to operate and how we continue to lead the market with sustainable initiatives that make a meaningful difference to our consumers. Our ambitions are high. And as you will hear from Katya, those are very stretchy in several areas. We have a clear ambition to be net zero by 2040 and to deliver broader mission 2025 targets, which drive many other improvements along the way. In this vein, we made significant progress on the rollout of our recycled PET, moving to 100% in Switzerland, Italy, and Austria and investing recently EUR 50 million in new in-house recycled PET facilities in Poland, here in Italy, and in Romania. At the heart of our business, is our strong partnership with the Coca-Cola Company. This partnership is the bedrock of our business. The way we collaborate, support each other and work together in identifying and going after prioritized opportunities is a strong source of our belief in delivering sustainable and profitable growth. We are grateful for partnerships with all our other brand owners like Monster, with whom we are very excited in driving consistent strong growth in the energy category as well as with Brown-Forman, Edrington and few others. It's in our DNA to work in a collaborative way, and we continue to be grateful for our partners' trust and support as we push forward. Before I hand over to Manolo to provide a perspective on the business and our partnership opportunities, let me finish with a few key messages I want you to take away from today. We are continuing to grow with high expectations and targets reflecting our strong execution and attractive blend of emerging, developing, and established markets. We operate in strong growing categories with very attractive growth dynamics with prioritized strong well-invested capabilities that will drive growth across our footprint. We do this sustainably with a clear eye on the future for our people, communities and planet. We do it profitably, making agile and prioritized decisions that maximize returns. And of course, we will grow because of our excellent people and partners who are critical in enabling and driving our long-term success. With that, let me now hand over to Manolo.

Good morning, everyone. Thank you, Zoran, Naya, Anastassis, a privilege to be here today with all of you to share the transformation that we've undertaken in the marketing function at Coca-Cola. But first and foremost, forward-looking statements, I'm not going to go through them. I can't read it without glasses. So -- you have them in front of you. But let me start by saying that we are delivering in the middle of an incredibly rapidly -- an accelerating, actually, environment. For multiple reasons, the demographic dynamics around the world are getting more and more complex and faster. We see significant aging of population in multiple parts of the world. At the same time, the prior dynamics to the pandemic around of middle-class emergence and urbanization continue to be a big driving force for our industry. The digital disruption has changed dramatically how consumers consume media, actually. We come from a prior model in which we were disrupting consumers through TV advertising, but TV is not any longer. No one is watching TV. I don't know you. I got four teenagers at home. We've lived in 4 different countries. I've never seen them watch a single minute -- one single minute, none of the four of traditional TV. But when you really look into the numbers around the world, Gen Z today, and you add all the different types of screens that they use, not only the cell phones, but all the different screens. It's anywhere between 9 to 13 hours per day. This is even a scary number but that's the number, 9 to 13 hours per day. So that has reshaped dramatically how consumers and particularly the younger generation relates and connects with brands. And that required for us that we really need to reshape completely a model that was constructed or what I call a marketing factory that was traditional TV first and moving into a digital-first ecosystem. And third, as the world is very dynamic, the boundaries between content creativity, media stop to exist. They are interconnected. And it's about bringing those two underpinned by technology and data to really amplify the effectiveness of our marketing investments. So our transformation is rooted in growth. We are obviously a marketing-driven company and therefore, the role of marketing is to become and to be the major driver of the growth algorithm for the Coca-Cola Company. In the last few years, we've taken very significant actions and decisions that are clearly yielding results. The first one, we reshaped our portfolio. We come from a place where we have such a fragmented portfolio with more than 500 brands where a lot of them would really -- we didn't really need. And some of those brands were eating away some of the margins and some of the resources across the system, not only on our side but obviously in our bottling partners. So we scaled that down to what we call a very powerful growth portfolio still very large because, obviously, our size and scale is just phenomenal. It's around 200 brands, slightly less than 200 brands around the world. Today, we have 26 $1 billion or more brands around the world. And there's a good combination between global, regional and local brands. We significantly re-shifted our innovation efforts. Since 2019, our innovation has been accounting for around 1/4 of the incremental growth every year. And we can see that we have a line of sight of the pipeline coming over the next few years and that being the case moving forward. And that happens across all the different categories in which we play and across geographies. We've been focusing a lot in driving a much more effective marketing, and effective means top line and bottom line-driven marketing. So we make sure that every dollar that we invest in marketing generates and drives only gross profit but at the right margin levels. And we've got an average of around 9% on a GP per case basis. And we come from a model where we were managing in 2019 more than 6,000 agencies around the world. So you can imagine the efforts to try to connect 6,000 external agencies in a world where we need one single data and technology backbone. So we move into a new agency ecosystem under a partnership, a holistic partnership around the world for all the categories under WPP. WPP is the largest communication group in the world and they have more than 200 agencies, and we are deploying -- we have -- we're in the process of finalizing the deployment, a whole ecosystem internally of technology and data that connects all real time, all our marketing efforts around the world. We're coming across, and we see that also for this year at the top end of our algorithm -- of our growth algorithm from our revenue growth. Now this marketing transformation is driven by metrics because metrics matter. Marketing is not just about storytelling, it's about driving growth. And we were -- for decades, for couple of decades, having one metric, which is great, I mean a lot of other FMCGs have it, which is called brand love. Brand love is based on perception. But you know -- like I know that sometimes there's a significant gap between what consumers say or perceive and what they actually do, do with their pocket, which is what matters at the end of the day. And our whole transformation is trying to bridge that gap. So we've moved from brand love into consumer base. The consumer base measure an actual real behavior. And that's at the essence and that's the central pillar of all of our transformation. If it doesn't drive profitable growth, we're not going to do it. In the past, and this is what you see on the left of the chart, it's a real example from Italy with Hellenic. From the total addressable market in Italy, in the prior model, we would invest our marketing, targeting our total population. Why? Because traditional TV wouldn't allow you to target specific segments or specific tribes. So it was a bit of a model of a spray and pray, we call it. And you can imagine, sometimes when you spray and pray, if you're lucky, one of the drops goes on the right seed and you get a plant. But there's a good probability that at least 50%, if not 60%, if not 80% of the drops fall in a place for someone from which our category or the beverage offering that we are offering and to get them to consume is completely irrelevant. And that is what drives inefficiencies in marketing. The shift you see it on the right, and it's a real shift. So we are segmenting our consumer base, in this case of Italy, we know that today, from the addressable, from the total population addressable in Italy, addressable means for us, it's 13-plus because we don't market below 13 -- so from the 13 plus of age, in Italy, we have a total portfolio. This is not only brand Coca-Cola. It's around 25% of the population that consumes our products regularly. However, we have identified 3 other groups. As you can see in the middle, there's a very large group that they consume our products, but with a lower frequency. They're part of the base, but they are extremely occasional, maybe a couple of times per year, 2, 3, 4 times a year. From those, we have clear digital signs declared by them based on behavior, actual behavior, not perception and some of them are what we call positive intenders. They're today drinking the category and they love or like Coca-Cola and/or they have no issues related to the consumption of any of our given categories. And that number in Italy is 30% of the total addressable. So it's actually larger than the consumer base that we have. There's another group called neutrals. They can also be converted because they don't have fundamental barriers to become positive intenders. And there's on the right, a group that they declare themselves rejectors, they reject either the category and/or the brand. And that's a real number in Italy today, only 10%. So through digital media, you cannot target very accurately these different segments. What are we going to say to convert them from less frequent into a more regular part of our consumer base? Those positive intenders, some of them react very well to communication connected to consumption occasions. You're going to see examples later on of what we do with Coca-Cola and meals. Some others don't react to that, but they rule of football or music. They're driven more by a passion point. Others are driven by innovation. And this is a segment, which is not as small, but it's also not as big as many of us think, that they are really reacting to ESG commitments, and we can target and measure that very specifically. And we're deploying a combination -- and this is where the magic of data technology and the scale of Coca-Cola as a system but the ability to bring this at the granular level and make it locally relevant because cultures and countries are different. And there will be a combination of any of those four buckets that you see to maximize one metric that we don't compromise, we don't negotiate which is growth measured by our consumer base. Now the marketing transformation of Coca-Cola goes first to digital. So we're moving our media massively and quickly into digital first ecosystem. Those products that you see are real examples of photos today or activations in the Coca-Cola Hellenic territory. So in digital, we include influencers. We come from -- in a world where brand marketing companies were very scared of releasing the power and the control of what we say about our brands to influence is that unless they do it in their own words, without authenticity. They're not going to have the credibility with the audience. We have today in the Coca-Cola Company around the world, more than 10,000 influencers at any given point of time with different segments, with different passion points, different topics that really connect with the -- ultimately with the consumer. And that's also absolutely the case in the Hellenic territories. This transformation is not only from a traditional TV model into a digital first model. Half of our marketing happens at the point of sale. And I think Hellenic is one of the most impressive partners for the Coca-Cola Company when it comes to bring this to life to what we call retail experiences. So that connection with the consumer will also happen in each of the different channels where we're going to be recruiting and bringing those new consumers into the consumer base. And that's a real example, for example, of an activation of [indiscernible] in Egypt. But there's also a world -- in a world where you're not having any more the ability to connect to traditional TV, what we call live experiences. The third type of experience that we are going to be leveraging to build our brands. And that's the world of a street marketing. It's the world of events, music concerts, sports events. And around all of that, it's how we're going to bring the consumers to really experience and enjoy our phenomenal portfolio. In just 3 years, we've moved 20 points of our medium mix, which as you know, it's in the billions of dollars around the world every year from traditional TV to digital. Very close last year in 2022, we hit that number, 50% and growing. We got already quite a few territories around the world, well above the 50% and we're starting to see the fruits and the results of that higher level of effectiveness of our marketing. So let me give you an example. Kantar has just awarded us last week to Sprite. I'm not going to use the classical example of Coca-Cola because the scale of Coca-Cola. Sprite that a lot of people forget what -- how big it is. It's a $20 billion in retail sales value globally. Last year with this new approach, the highest amount of growth in households around the world of any FMCG. You can name it from any of our -- in our -- in beverages, in food, in household products number 1, by far, Sprite. And this transformation was at the essence of why that has happened. We're moving to leveraging experimentation. In the past, in marketing, we used to have a lot of research methodologies that we try to understand what we have just done trying to understand what works, what doesn't work based on recent activity, past activity. We're moving to a model where 80% of the focus will be in the future. And that comes through A/B testing. This is an approach that was not natural for FMCGs. It was much more natural for technology companies. So what that means is that through A/B testing in social media, connected through a partnership with retailers, whether it's in hypermarket, a convenience store, we can measure multiple messages and content and ways of connecting with the consumer with actual transactions at the point of sale, with actual conversion of those -- less those intenders into actual consumer base or not or lack of conversion. So allow us -- it is allowing us to really understand how we can drive the maximum level of growth most effectively. We're talking in the dozens and dozens of experiments of that size and scale per quarter around the world, leveraging the scale of our network around the world. So I'm going to give you just an example of how all of these can come together. It's coming together actually. It's a real example. And this is what we call the intersection between experiences, passion points and consumption occasions. Some humans need to understand rationally why I should drink Coca-Cola. Give me when, where and why I should drink this. Others don't care about that. they're moved by emotions. And for example, music, we know is the #1 passion point that has a transformative power in the heart of people. So if you breach and you think about October Fest. But in the 21st century, with digital at the core, an intersection of a massive food festival and music festival altogether, where you bring not hundreds but thousands and thousands of consumers. The retailers across a whole city. Tourism coming from other cities because of what's going on in this festival. Engaging stakeholders, including authorities around our ESG and recycling activities in one big celebration with data and first-party data at the heart of it. This is what we are talking about. We started in Saigon -- Hanoi, sorry. We move then to Kolkata. 300,000 people over a weekend, 400,000 people over a weekend. We were in Cairo together, 40,000 people in Cairo in a massive celebration and another 40,000 ready to enter and pay, by the way, you can charge them as well to join this special experience between Coca-Cola, food and music, video, please. [Presentation]

So that is just an example driving an incredible amount of growth. We've seen them before and then after, not only among the area, but across the whole city cascading then into the rest of the country in terms of growth. So our transformation is really rooted on growth first. We're driving growth because we have a phenomenal opportunity to increase our consumer base. We think we know exactly what is going to trigger that conversion into consumption. Our model is driven by data and technology at the heart with actual facts and insights that allow us to segment appropriately the consumer base. And this comes to life with a phenomenal partnership that we have with Hellenic. I've been around for 27 years, and I don't say this, people know me, I don't pay lip service. It is a real pleasure because the complementarity of the skills and capabilities that we have between the Coca-Cola Company and Hellenic segmentation, RGM, in-outlet execution is just mindblowing. We actually, as a company, learn a lot from them and our marketing comes as an intersection between what we do at the Coca-Cola Company and what they're capable to execute in millions of outlets every single day. Thank you.

Thank you, Manolo. Good morning, everyone. I'm Naya. I'm with Hellenic 26 years. I assume this role in 2020. I met with some of you in 2019 in London when we presented our growth story, and it's a great pleasure to be with you today. So let me share with you more about the first two growth pillars at 24/7 Sparkling-led portfolio and how we're winning in the marketplace. As you've heard from Zoran, we are lucky to operate in a really attractive industry with significant growth opportunities. The NARTD category overall is large. We estimate the whole of NARTD was worth about EUR 68 billion in value in 2022 across our markets. It has been growing, and we expect it to continue at 4% to 6% over the medium term. I will talk to you later about how our growth drivers within our segments are working. But for now, I will stick to categories across the group. Growth in NARTD is being led by Sparkling, where we, together with our partners from Coca-Cola company continue to see the largest opportunities across all our markets. Energy has been a great driver of growth, and we expect this to carry on driven by Monster fantastic business. And outside of NARTD as you know, we are very excited about the opportunity in coffee. In all cases, we want to continue to go ahead of the market and take share. We are proud to have a truly 24/7 Sparkling-led portfolio that caters for all consumer occasions. We are prioritizing categories with the highest potential, and these are Sparkling, Energy and Coffee. In Sparkling, we see very good growth opportunities driven by ongoing demand of low, no-sugar products by relevant consumer-centric campaigns across all brands, as Manolo mentioned, as well as further innovation opportunities. And also, tremendous potential in adult sparkling. The energy category has grown very strongly. And here, we see further growth coming from innovation, growing per capita consumption, and further distribution expansion. Our opportunity in coffee is huge. The addressable market is significant, and we are investing ahead of the curve to build our right to win to really capture this potential. These are the three categories where we see the largest opportunities, and we are making active choices to prioritize them across our markets. The benefit of a 24/7 Sparkling based portfolio means that in some categories, we play in a targeted locally relevant way depending on the market opportunities with a clear view for creating value for us and for our customers. This is the case for us in hydration, in juices, in ready-to-drink tea, Premium Spirits and in Snacks. We couldn't mention Sparkling Premium Spirits and innovation without saying how excited we are about the launch of Jack Daniel's & Coca-Cola. We launched in Ireland, Poland and Hungary last month, and the initial feedback has been amazing. Now this strategy of prioritization is working. We are winning in our priorities categories, and we are gaining share. In Sparkling, we've gained 230 bps since 2019, and are the clear #1 in 23 out of our 24 measured market. In energy, we've gained 370 bps since 2019. And in coffee, we are growing rapidly in a sizable market. We are the leader in the fast-growing NARTD industry, where we've gained 270 bps of market share since 2019. We are well-positioned to continue gaining share, driven by our advantaged portfolio momentum and capability-led share gains. Let's dive into our priorities categories in a bit more detail and give you some confidence on future growth. Sparkling is our foundation. It is sold today and it will be sold in the future. Sparkling is a growing category in all our markets. We have consistently been growing volumes and revenues and see clear drivers for this to continue. We saw from Zoran, the investment and innovation we are driving behind our core brands, beats zero-sugar formulations, new flavors, Coke Zero Sugar, Zero Caffeine. They recently launch Jack Daniel's and Coca-Cola or their relaunched Kinley. Our strong partnership with the company is critical here in identifying the exact innovations that work in the exact market or channel. We also continue to activate our drinking moment strategy to ensure we bring the right proposition for each occasion for our consumers, led by meals, snacking and socializing. Our core coke and meals association with -- resonates with consumers adds value to our customers and is the primary profit driver for trademark Coke. Coke and Meals has had dedicated activation plans across our markets, leveraging our in-market execution capabilities, and you will be seeing more in the market visit. I want to call-out two specific parts of Sparkling that we expect to continue to drive outsized growth. Firstly, low/no sugar sparkling variants. These have grown volumes 22% on average since 2019, and they now represent 26% of our Sparkling portfolio. Coke Zero has played a leading role in this, driven by a successful reformulation and targeted campaigns. Contribution varies across our markets with Ireland at 47%, but emerging markets still underpenetrated. There is more to come from Zeros with Coke Zero Sugar Zero caffeine being launched and accelerated. We're increasing the number of labels with the Zero option as well as [ coke creations, ] which Zoran mentioned. And there is further opportunity to expand our distribution and increase presence in emerging markets. Adult Sparkling is a very important business for us. Volume growth has been stronger than total sparkling and its revenue per case is accretive. All the work we're doing on mixability, which you hopefully got experience last night is critical here. And I'm very excited for Kristina to get into more detail on our segmented offering in the adult overall sparkling accelerator breakout later. Energy. Energy is one of the fastest-growing categories in nonalcoholic ready-to-drink. We've driven double-digit volume growth over the past 7 years averaging 32% in the last 4 years alone. This category now makes up 6% of our group revenue. This performance is a result of a well-defined strategy. We offer a complete brand portfolio to address various consumer needs with mainstream Monster, Premium Burn and Predator and Fury in the affordable segment. We are using disruptive marketing platforms and offer a range of flavors to give consumers choice and entice newcomers into the category. As you can see on the slide, we're aiming for double-digit contribution to group revenue from energy in the medium-term. We are very excited about the potential of these categories -- of this category, and we see three clear drivers: number one, continued expansion in per capita consumption in our markets; number two, further distribution expansion within the market; and number three, broadening our reach to new markets. You know we added Fury into Egypt early this year that is off to a good start. And on Monday, we also launched Monster there. Coffee represents a tremendous expansion opportunity with a 10 billion distributor value, and it is accretive to our core business with 2x revenue per case versus core sparkling, here, the value is the distributor value, and on the earlier slide, you saw the total industry value. We are continuing our journey to scale and invest into this business. We have a segmented portfolio approach that allows us to reach multiple price tiers from mass premium to super premium, thanks to our Costa Coffee and Vergnano brands. We have steadily expanded our out-of-home distribution of Costa Coffee, doubling the number of outlets covered versus 2021. While at the same time, we have brought our distribution of Caffè Vergnano, into 17 different markets. Our aim is to reach in the midterm, a low- to mid-single-digit market share, and you will hear more from Prodromos later. In 2019, at the Investor Day in London, we shared our execution capabilities that were critical in driving our growth. I'm so excited to show you the progress we have made since then, which has allowed us to make a step change in our ability to win in the marketplace. Our capabilities are critical for us to better understand the real and changing needs of our customers and consumers, drive profitable revenue growth and anticipate or react to new challenges faster and smarter than our competition. Put simply, by accelerating our core capabilities, we drive our growth algorithm. If there is one takeaway I want you to keep when it comes to our capabilities. This is that we are targeting to drive personalized execution for every outlet. And it is the interconnection of our capabilities in Data Insights & Analytics, revenue growth management and route to market that is allowing us to personalize execution. Now the intention with this slide is not to get into the detail of the wheel but just to see the vast sources of data we're using to drive our business. Data and Analytics is one of our prioritized growth capabilities. Ruchika and her team have been driving and scaling this for the last 3 years. And we see this as a competitive advantage to accelerate value delivery to all our customers and it is an essential driver of our customers' interest to focus. Everything we do in this space, primarily through prioritized use cases, it's done with the customer in mind and to strengthen our revenue growth management and route to market. And we have 4 prioritized use cases. Our foundational use case of segmented execution. This is where we identify the right outlets, perform the right activities, allocate the right resources and offer the right assortment. Promotion spend effectiveness is the second one, where we enable algorithms to ensure every Euro of investment gives the best returns to customers and us. Then the demand forecasting, where we'll predict demand at the most granular level, both short and longer term to be able to keep high fulfillment levels and service to our customers. And last but not least, improving retention of our business developers to give us valuable insights how to reduce churn and have better consistency, longer tenure with better performance. You may already understand RGM well, but allow me to take a little time to really flesh out how it has developed and how it drives value regardless of the macroeconomic environment. As we shared with some of you before, in 2016, we developed a new RGM framework jointly with the Coca-Cola Company. And over the following 2 years, it was rolled out across all our markets. We took on both the learnings, refined the capability and invested in tools, structures and people. It was our RGM capability that allowed us to navigate COVID and drive revenue recovery in 2021 and it was what allowed us to navigate the significant inflation in 2022. RGM allows us to improve revenue per case across our portfolio, while addressing both affordability and premiumization. Focusing always on two priorities, pricing mix and promo optimization. Let me first take pricing. Our pricing decisions are data-driven, proactive and agile. Based on our profound understanding of demand elasticities and the broader competitive environment, we can make changes to a particular pack within a category in a specific channel. It is due to the strength of this capability that we have ensured that all pricing has been executed according to the plan and while gaining share and driving value for our customers. Equally important is the mix. I have already shown in earlier slides the ways in which we're making active choices in our portfolio to drive positive category mix. Our continuous focus on Sparkling with emphasis on Adult Sparkling, Energy and Coffee is showing tangible results. Our channel mix strategy focused on HoReCa acceleration is contributing to drive healthy growth together with deliberate actions to drive package mix. This has led to an improvement of 4.4 percentage points in a single-serve mix since 2019, and we have seen the quality within this mix improve. For example, can packages grew 22% in 2022, and our 250 ml premium glass pack grew by 24%. We have also focused on the growth of multipack single serves, which has significantly grown its importance post-COVID as part of the premiumization strategy for the at-home channel. Pack mix is one of the key levers to drive both premiumization as well as smart affordability while still enhancing revenue per case. When we talk about affordability, we do not mean only large 2-liter bottles. Rather, we mean using smaller entry packs at attractive price points to meet consumer spending needs while still driving up revenue per case. Examples of that are the 850 ml pack we have in Poland and the 660 ml pack we have here in Italy, which we tailored precisely to their specific market dynamics. And in Africa, we're using returnable glass packages to make the product accessible for a large segment of the population. Finally, and in coordination with our Data Insights & Analytics, we continue to improve the effectiveness of our promotions. Our enhanced focus on promotional return on investment, enabled by analytics gives us more opportunities to profitably gain revenue. We have a vast route to market. We have 50,000 business developers across our countries that service 2 million customers every day, and we have 1.4 million coolers. This results in multiple route-to-market models with different sales force roles, different last mile models and different execution strategies. We have an appropriate 24/7 dynamic sales and distribution model and maximize profitable growth through data-driven execution excellence. We are constantly upgrading our physical route-to-market fundamentals to adapt to the digital transformation, and we are incorporating Data and Analytics as well to make it even more efficient. Let me give you some examples of how we're doing this. Starting with the coolers. We continue to invest in new coolers as they help to drive single-serve mix and revenue growth. We have focused on using data to increase our profitable cooler coverage. And in 2022, we reached 90% coverage of our top customer outlets. We have been increasing the number of coolers with online connections, which improves their efficiency and 49% are now energy-efficient or eco-friendly. When it comes to tools, I will call out three things. We now have image recognition in 24 countries to help us understand in a precise and efficient way our quality of execution at the point of sale and drive the needed corrective actions. We are enhancing our physical coverage by using dynamic routing tools, and we are supporting our indirect distribution partners by connecting them through a CCH integration tool. Finally, we are expanding our digital coverage enabled by our eB2B platforms. This evolution gives us both digital and physical coverage. We have invested in our digital commerce team over the last few years, both at the group and country level, bringing in outside experts to create a new team comprised of diverse talent, championing agile collaboration across CCH. Our digital commerce strategy is focused on both route to consumer and route to customer. Within our route-to-customer, we have been developing and investing in a suite of digital eB2B platforms and solutions. Vitaliy will get into more detail on this later and we'll be able to show you demos of the actual platforms. E-retail & FSA is a fast-growing channel for us. we have almost tripled our e-retail & FSA business over the last 2 years. Very importantly, these channels are margin accretive and have higher single-serve and low no sugar mix than the rest of the business. And the diversity of our markets means that we have markets like Ireland with highest incidents of FSA across all Coca-Cola countries in the world, right through to our emerging markets where the channel still has ever larger room for growth. This takes me nicely to customer partnership. NARTD is an attractive category, not just for us, but it's also an important driver of growth for our customers. In 2022, we were the #1 driver of incremental value delivered to customers among all FMCG players in Central and Instant Europe delivering more than twice the incremental revenue to our customers and the next manufacturer. We are committed to put the customer at the center of everything we do and creating value jointly with our customers is at the heart of our successful partnerships. To maintain our competitive advantage, we need to ensure that we listen and respond to each and every customer and can course correct almost real time. To this purpose a few years ago, we embraced a new tool, Customer Gauge, as a way to connect with customers to listen real time with the commitment that we close the loop, we close older complaints and issues with 48 hours deadline. We have this live in all our markets, and each country has -- can see actually real-time customer feedback and what their Net Promoter Score is, which ultimately links to customer loyalty and business growth. To give you a sense of the reach of the program over the last 12 months, we have passed a massive 740,000 customers, over 50% of our active customer base. And this gives us a chance to be even more customer-centric. Our people are an essential driver of our growth algorithm, and we continue to accelerate investing in development across our suite of learning academies that span our key functions and categories. As Zoran mentioned, our flagship Academy is our Sales Academy. Among several, our Sales Academy starts with the customer in mind. Before our business developers first meet a customer on their own, they pass our training to ensure they have the right knowledge to serve our customers and resolve any issues from day 1. Last year alone, we completed 180,000 hours of learning and capability building. If we break down this number, 180,000 hours, that's 20 years of learning in just 1 year. We keep developing our people, ensuring that the combination of tools and critical upscaling drives more and better customer interactions than ever before. Let's take a look at the short video. [Presentation]

So to summarize in a phrase, we are well-positioned to continue growing ahead of the market driven by our advantaged portfolio momentum and capability-led share gains. Thank you very much for listening, and I'm excited now to introduce our four accelerator breakout sessions. These sessions will give you more detail on how we're stepping up in 4 specific areas, and we are excited about those for our next leg of growth. We want to show you 2 plus 2. So 2 of our prioritized categories that we have been investing, Coffee and Adult Sparkling and 2 of the critical capabilities again, where we're investing, Data Insights & Analytics and Digital. Thank you very much.

Welcome to our breakout sessions or growth accelerators. First, we're going to cross from the plenary to coffee, and we're going to meet our coffee business director, Prodromos Nikolaidis.

Good morning, and welcome to all of you. I'm Prodromos Nikolaidis, Coffee Business Director for Coca-Cola Hellenic. I'm here together with Cezara, our coffee experts from Romania and Stathis our coffee expert from Greece. We're very excited to talk to you about coffee and to treat you to some of our coffees later after my presentation. So there are three topics I wanted to cover today in a short presentation. So -- it is why are we into coffee, what are the ingredients of our coffee strategy? What -- why do we think that end-to-end capability development gives us the right to win. So let's start with the first question. Coffee category is worth EUR 32 billion in terms of consumer spending. This is equivalent to approximately EUR 10 billion in distributor prices. Coffee is one of the biggest alcohol-free categories and it is a category that grows continuously. It is very important to our customers, both in terms of revenue and profitability, and it has great relevance and appeal across all our markets and all our consumers. Last but not least, coffee accounts for approximately 65% of consumer spending in at work. Now from a strategic perspective, we want to grow away from home more than its fair share in the category overall. The reason for that is because we have a route-to-market advantage and because the away-from-home coffee market is a lot more fragmented. We see a lot more benefits in coffee than simply the revenue and profit we will get out of it. We see that it strengthens our partnership with our HoReCa customers. It allows us to build capabilities in direct-to-consumer business away from home. And of course, it enables increased penetration for our total portfolio in the at work space. Overall, we believe that we can get to a low- to middle -- single-digit share in the EUR 10 billion category, which makes coffee a significant accelerator for Coca-Cola Hellenic growth in the coming years. Let us move now to the next question. So the ingredients of our strategy. Let's start with the brands. We have Costa Coffee, as you can see, and Costa Coffee we position as mass premium and Caffè Vergnano, which we position as premium and super premium. Of course, coffee is a lot more complicated and diverse than price positioning. This is why also the solutions we offer and the taste profile of the two brands are reflecting a complementary proposition. With Costa Coffee, we are present equally at home and away from home. And in away from home, we are equally present in HoReCa which is served environment as well as self-serve environment like petrol chains and at work and education, et cetera. With Caffè Vergnano, we are focusing right now on premium HoReCa development as the brand grows and becomes more known, we will expand the activation of the Vergnano brand also in other channels and occasions. So let's now watch the video, which will show you how the two brands complement each other, why the coffee category is so rich, and what are the tools we're using for targeted segmented execution. [Presentation]

You have seen in this short video, how the two brands complement each other and how we are well equipped through our segmented execution tools to target the right customers for its brand. Let's now move to the next topic, which is -- let's understand a bit more about the character of its brand. Costa Coffee is targeted towards younger, more modern customers and locations and it is our priority brand towards on-the-go and self-serve occasions like the ones I mentioned, at work, [ petrol channel, ] education, et cetera. Whereas Caffè Vergnano is targeted towards more premium HoReCa locations where the customers are looking for an authentic Italian espresso experience. And let's move now into capability development. We know very well that we compete in a category where there are a lot of established and very competent players. And for us to win in this category, it has to be end-to-end capability development. This has been our top priority and remains as such. This is why we recruit experts like Cezara and Stathis. This is why we set up training centers in all our markets. This is why we have developed our Coffee Academy program, which is training, all of us who touch coffee, both theoretically and practically, according to our job description. This is why we train our customers and [indiscernible] to share the perfect experience with other consumers. And this is why we're investing in telemetry and Data and Analytics so that we build a sustainable competitive advantage. It is only very confident well-equipped people that can sell a premium coffee without relying on the price discount. Now telemetry is a passion point for me, and I would like to share a bit more about it. We have installed in almost all of our machines, a telemetry device, which is transmitting data on a real-time basis. Through these devices, we received data on volume of coffee, on transactions, on quality of beverages we serve as well as other technical data, which help us with preventive maintenance and with optimized routing. These data are not only available to us, but they are also available to our customers through a mobile app. It is an innovative journey. I believe we are probably the coffee distributor with the biggest fleet of connected machines right now. And we continue to train more and more customers in how to use this data. Closing, I would like to reiterate our confidence in our ability to become a significant player in coffee and to make coffee an important accelerator for the growth of Coca-Cola Hellenic. Thank you. Ready to take your orders and ready to take your questions.

First one for me is, can you just confirm how many of your markets you're now in with coffee? And how far through your sort of development rollout journey are you in each of those markets?

Yes. Thank you for the question. Actually, we started with Costa Coffee in April 2020. Gradually, we have launched 19 markets. And we started with Caffè Vergnano last year, January 2022, and we are present in 14 markets as we speak, different stages of development per country, but always aiming towards the same direction.

Really interesting. Thank you. As you think about the medium-term market share target that you've set out today, is that based on your current brand and geographic presence? Or do you need to expand into different brands or regions in order to meet that ambition?

We believe that the two brands we have today give us a lot of space for growth and the target I shared is reflecting our current portfolio.

Another one for me, please. Can you just explain how in the HoReCa channel you displace an incumbent. What is it that you do with customers to try to make them take your products when they're already being served by another supplier?

Yes. This is an excellent question. Actually, what it takes to switch a customer from another brand to one of our brands is to build their confidence in our ability to provide the service they expect. It is important for the customers to understand that we are ready to train them and support them. So they have uninterrupted supply and uninterrupted business because the moment the machine breaks down, they run out of business. So effectively, we need to create this level of confidence to them that the way we are set up, the way our people are trained, there is no reason for them to be worried. We know that from a taste perspective, we are winning, both Costa and Caffè Vergnano score very high in our customers' preference. And over time, by recruiting more and more customers, we also provide the confidence to them that we are well-established to serve their needs.

For both brands, How do you think about where you go to market for each? And what sort of customers and opportunities you target for each?

Of course. So Costa is a brand that comes from U.K. from London. London is a scene where a lot of coffee innovation is happening. Costa is a brand which is more higher on Arabica content, lighter roast and it appeals as such to younger audiences and more modern tastes for coffee. Caffè Vergnano is a traditional Italian roast. It is darker, it has more of a blend between Arabica and Robusta, and it appeals to customers and consumers who have an affinity for Italian espresso definition. [Presentation]

I hope you enjoyed that. And always talk about coffee probably means you would actually like one. And so we're going to give you a short break and then we're going to come back with our other breakout sessions or growth accelerators. We've got Adult Sparkling. We've got Data Insights & Analytics, and we've got digital. So we'll see you in 10 minutes. [Break]

Welcome back and here we are at our Adult Sparkling breakout session.

Hello. Good morning, and welcome to Adult Sparkling Accelerator. My name is Kristina Djordjevic, and I'm a Head of Adult Sparkling in Hellenic Group Commercial. It's my privilege to be today here with you and to share what we have done [ without ] a doubt is one of our key strategic system big bets but as well, great passion point and something that we are all very proud of since many of the successful cases that we have done have already become a global best practices from our territories. In order to do so, we have prepared a video that can walk you through Adult portfolio, consumer and pricing segmentation, but as well that can be very informative for you and provide a greater context of something that we will discuss later on. [Presentation]

Adults acceleration is one of our system bet for already several years by now. Let us explore together why Adult Sparkling soft drinks are primed to go after significant revenue pools by addressing an even wider range of consumer preferences, complementing well-established brands with the new ones. But as well how to further address premiumization opportunities led by HoReCa, while replicating mixology experiences for at home. Hi. I'm Javier and a Lead marketing in Europe for the Coca-Cola Company. Our opportunity to accelerate Adult Sparkling beverages is immense, and it all starts with a relevant consumer trend, aging population. In the territories where Coca-Cola Hellenic operates, we have 60% of the population above 25 years old. There is a huge space to grow our portfolio competitiveness to capture incremental share. Today, we have around 50% value share in the better mix segment and only 33% value share overall in the European markets. And third, we also have a premiumization opportunity by accelerating the HoReCa channel. By further driving our mix to our glass and single serve and by developing a super premium segment. Therefore, to achieve our vision, we must accelerate our growth in the upcoming years. And we start from a good place with the right system portfolio to address booming socializing trends and occasions. Coca-Cola Trademark plays an important role both as a straight and mix-in consumption. In fact, [indiscernible] is the most widely used mixer with whiskey, while Zeros and lights address low sugar preferences of adults and now complemented with Coke Zero Sugar and Zero Caffeine and the most recent introduction of checking Coke is a bold move to offer convenience and mixability through a low alcohol ready-to-drink cocktail that's going to be highly attractive for the retail.

I'm Jasmin, and I'm Global Category President for Sparkling Flavors. The Adult Sparkling soft drinks opportunity is massive with a wide variety of adult consumers drinking for an equally wide variety of reasons, there is a need for a portfolio of brand solutions. By understanding these consumer segments, we are better positioned to provide the right brand and package in the right channel at the right moment. The first group of adult sparkling consumers are the self-indulgers, who we will win over with Kinley. Self-indulgers are young adults who seek activities that bring them joy. Pull for ways to reward themselves after long days of work. Kinley will target them with early evening self-love opportunities. Next, we have the socializers who we are targeting with [indiscernible]. Socializers are social explorers. They enjoy attending social gathering, intimate get together with their nearest and dearest or more adventurous communal minglings at the bar. Embracing these social environment allows them to loosen up and find fun any evening of the week. Moving up a notch, we find this consumer segment of the status signalers. Status signalers never settle for less. Always strive for more and show an appreciation for top quality experiences as a way to stand out. For these demanding consumers, we have our super premium brands, Three Cents and Lurisia. Status signalers show up confident and assured. They enjoy embodying status and letting others know it. So nothing better than Three Cents. Lurisia will please status signalers in search of top quality because it differs from other brands with its artisanal craftsmanship. With sophisticated Italian favors, Lurisia targets a slightly older group of consumers, 30-plus who are willing to pay more.

I'm Kristina, and I'm a Head of Adult Sparkling in CCH Group Commercial. Building upon differentiated consumer preferences and consumer tribes, our brands are addressing different price tiers like super premium, premium and mainstream, but as well different segments of consumption like soda, flavors, Alcohol replacers and [indiscernible] is the iconic brand for socializing. With it's unique heritage and signature feel, the brand is widely consumed and has a strong equity across our markets. Portfolio wise, it plays across 4 segments: price positioned as premium with Index 120 versus Coke trademark. Today, we have Schweppes presence in Egypt, Nigeria, Ireland, Romania, Greece and Cyprus, Adria, Serbia, Montenegro, Bulgaria, North Macedonia, Belarus, Ukraine, Moldova and Baltics. Among those countries, we are proud to share Schweppes strong cases like Egypt being the #1 country for Schweppes globally, several countries with value market share above 90%, like Romania, Serbia, Bosnia and North Macedonia, while Adria and Greece are widely recognized as European Schweppes that practices for HoReCa. Kinley is our mainstream challenger, currently playing in 2 segments with an intention to expand in core among our territories currently present in Italy, Poland, Switzerland, Austria, Czech and Slovak. Three Cents is a brand made by bartenders for bartenders with a portfolio of tonics and crafted sodas both aim for mixing of the most exclusive cocktails in the high-end bars. Three Cents displaying the super premium price segment and as such, does not overlap with Schweppes and Kinley, given it's 2.5 to 3x higher price per bottle. But as well, it's [indiscernible]. Since the whole Three Cents portfolio goes behind 200ml and RGB in HoReCa. Lurisia is a distinctive Italian brand of water and crafted sodas, mainly for straight consumption and much higher price positioning per unit case. The whole Lurisia portfolio goes behind glass with a selected coverage across Italy, Switzerland, Romania and Greece. With a combined understanding of our different consumer groups and their key reasons for drinking along with knowledge of differentiated pricing, we can execute our full adult sparkling soft drinks portfolio in a meaningful way. What does this mean? As an example, in Greece, where we have both Schweppes and Three Cents. The Schweppes Socializer goes to a premium bar because he wants to have a gin and tonic with his friends. The status signaler is drinking Three Cents at an exclusive bar with his friends because he's seeking an upscale drinking experience and finding it with a recommendation from the bartender. In Italy, where we both have Kinley and Lurisia. The self-indulger orders a Kinley flavor because he's treating himself after a long day at the office. The Lurisia drinker orders a Lurisia because he wants to look more sophisticated through a discerning choice of drink. All mentioned so far can be easily replicated in practice to explore how we invite you to the Adults bar.

With this one, let me invite you to Adult's Master Bar. So further and above to the portfolio, it is very important to emphasize the role of HoReCa, not only by its primary role as a channel of distribution, but an experience building. This is the place where brand love, consumer affection and connection to brand is built by the way we activate and position our portfolio in unique servings and events, replicating HoReCa experiences for retail further build spillover effect of occasion building from socializing away from home to socializing at home but as well creates a space for further premiumizing our brands. Our NARTD value share in the overall commercial beverages pool is estimated to be 8% which, on the one hand, gives us a significant opportunity to further grow our NARTD share, but on the other hand, it gives even broader opportunity to tap into the broader commercial beverages pool and grow from premium spirits and coffee. And what does it mean for us as Hellenic in front of our customers. Once we are operating as a total 24/7 supplier, our contribution in the customer purchasing value can vary from 50% to 75%. Let me give you a very good example from 1 outlet in Greece, where we are operating as a 24/7 supplier. Being present with NARTD category of Stills and Sparkling captures 20% of customer purchasing value while on the other hand, once we are tapping into the sizable pool of coffee and premium spirits brings additional 35%, summing up to the 55% of the customer value. And on top of this, activation wise, this is where mythology comes into place because it brings a connection to the holistic portfolio and the way that we activate all of our categories. Moreover, this portfolio builds competitive advantage and differentiates us as a supplier from the other players in the market that are skewed to one category only like in [indiscernible]. And this creates efficiencies for our customers in terms of timing, investment, negotiation and commercial policies which is highly appreciated by our HoReCa customers, and this further builds customer loyalty. And this is what builds relevance of HoReCa for us as a system. Now I will hand over to my colleague, [indiscernible] that will walk you through how we are doing this.

Thanks, Kristina. In HoReCa, one of the key success factors is to truly understand the different needs of our stakeholders. In the Bartenders mind, our relevance directly depends on our ability to affect and impact and improve their offer and their image as a bar. So obviously, our goals and our customer goals are very, very connected. We want to build the relevance of our portfolio and our brands. They want to build the relevance of their bar. If I were to describe the right HoReCa approach by answering the what, how and who, the what would be easiest. So offering premiumized, tailor-made and experiential solutions to bars, ensuring profitable growth by investing in their knowledge and their community relevance. Now on the who and how, so the person offering these solutions should be at least at the same capability level, if not higher, as its main stakeholder. They should share the passion for the HoReCa industry. They should share the same network and the same lifestyle. All of these factors are crucial and critical in becoming a part of that small inner HoReCa circle. And that HoReCa circle is our best advocate and the only type of marketing that cannot be replicated. So why not try recruiting directly from that circle? And finally, why am I the one telling the story? So I am a former bartender, then Brand ambassador, now Premium Spirits marketing manager and most importantly, for this story, a permanent member of My HoReCa circle. And now let's see how we build both internal and external capabilities through our connections with the top bartender community. [Presentation]

And now let's hear it from our customers. For me opening my first bar and making transition from bartender to bar owner and to win in this very challenging and competitive environment and knew that we ensure profitable growth and needed to differentiate my bar through consumer experience that cannot be easily replicated. This helped me a lot in defining my vision, which is focused on cocktails and mixers with bigger margins comparing to beer and wine. In order to simplify everyday work, I was looking for a partner offering full bundled portfolio of brands that are relevant for my bar and having one person to discuss about the whole business, saves significant portion of my time and money. This is where CCH Adria jump in. Tailor-made approach to my bar mission, my vision was one of the deal breakers to work with CCH. We further grew our cooperation with local bars folks and international [indiscernible], which increased my reach to premium consumers and train my bar staff to upsell, which consequentially allow me to charge more and earn more versus regular cocktail. This kind of knowledgeable approach respecting my specific needs and offering diverse approach to the consumer is something that I personally see as a difference between just a distributor and a true partner.

And with this one, we are finalizing, and we are open for your comments and questions.

Who was -- who do you view as your competitors in the Adults Sparkling Market? And does this vary from market to market?

Well, in the European territories, ironically, this is Schweppes because in several territories like Italy, Austria, Switzerland, Poland, Hungary and Czech and Slovak, we have Schweppes brand under [indiscernible] defined based on the different arrangements before the business was acquired. So in these territories, we are operating with the Kinley brand.

What consumer trends are you seeing in your markets?

Well, apart from the obvious one for the total category like health and wellness, value for money or choices that the people are making very consciously nowadays, I would say that for this particular category, we have something like a low tempo, which means lower tempo occasions like [ Aperitivo ] or afterward that younger audience tends to enjoy more and more. We have low sugar, which is obvious for the consumer audience of adults and low alcoholic categories that are growing a lot in the recent period.

What makes adult sparkling a premium category in your mind? And are all the brands within the portfolio premium?

On the one side, adults core cohort is more affluent in comparison to the other target audiences because of the higher disposable income. On the other side, adult brands are less elastic because they play a very distinctive role like mixing, but as well neighboring categories that represent the sourcing pool are playing in the higher retail value per unit case, which plays a nice opportunity to source from. Thank you very much, everyone. Thank you for your interest and your questions.

Thank you to Kristina and Kruno, and now let's walk pass these beautiful paintings down to data insights and analytics with Ruchika.

Good morning, everyone. We are glad to have you here. Welcome to the Data Insights and Analytics Accelerator. My name is Ruchika Sachdeva, and I lead the capability of DIA, data insights and analytics for CCH. I'm a seasoned analytics professional with 18 years of experience in this field. And together with my team of over 50-plus people, we are responsible for building and deploying analytics solutions that drive value for CCH. Today, I'm going to share with you how we leverage data intelligence as a competitive advantage and how we are building capabilities for sustainable growth. So let me start by sharing an interesting fact about data. Did you know that more data has been created in the last 2 years than ever before in the history of mankind? We live in an era of data and technology explosion and it's a unique opportunity if we monetize it. But data by itself is just information, the capability that translates data and converts it into meaningful insights through the use of advanced machine learning, artificial intelligence, business analysis is what we call as data insights and analytics. And that's what we do at Hellenic. Let's see how we use this today for our business. DIA solutions and data intelligence powers today the foundational elements of our business, revenue growth management and route to market. Revenue growth management defines what to offer our customers and route-to-market defines how we serve them. Data and algorithms today allow us to understand our customers better and personalize our services through segmented execution. This allows us to treat every customer as a segment in itself. Let me tell you more about it. Segmented execution is all about segmenting our customers as one size does not fit all. Our customers have different needs. So to personalize experience, we first must understand them from an internal and an external perspective. Data enables that with a 360-degree view of the customer, as you also saw in Naya's presentation, and algorithms help generate outlet-specific insights for personalization. We first start by segmenting our customers, then we understand what assortment to offer them, then we estimate the value of revenue that we could have with the customer and offer the right service model, how to serve them. Once we start serving them, we personalize the execution in every way. And as the customers engage with us in different channels, we make sure it's personalized and relevant interaction. And once we go towards promotions and we start investing together for joint value creation, we make sure we are investing in the right areas, ensuring joint value creation and profitability on every Euro that we are investing. Today, data-enabled insights power our 2 million active customer base in Hellenic across all our markets, personalizing 24/7 execution and assortment approach. This, combined with our partner network of the Coca-Cola Company, Monster, Costa Coffee, Caffe Vergnano, Brown-Forman gives us a unique competitive advantage versus any other bottler. Let me share some specific insights from our markets to bring this to life, starting with segmented execution for relevant assortment. We all know Amazon. Amazon is one of the most customer-centric organizations because they understand customers' needs and proactively makes relevant suggestions. Translating this for our business means making proactive assortment recommendations, ensuring every outlet has the right product in the right pack sizes at the right time. We deliver this experience-wise suggested algorithms. Through these algorithms, we bring the intelligence that sophisticated retailers have to our fragmented trade customers, Mom-and-Pop stores, traditional outlets. And this is how we start personalizing the assortment approach. Let me give you an example from Nigeria that you see here, where algorithms are zooming into more than 200,000 outlets and segmenting them into 80-plus micro segments. They have the ability then to zoom into a particular outlet, understand the characteristics and start making relevant suggestions. As an example, you see here a local and traditional outlet categorized with premium opportunity. So the algorithm sees highest potential for premium SSDs and energy products. A suggested order is created with Coke Zero and Monster. And the algorithm sees that similar outlets are also buying creditor and it adds it to the list. A specific order with exact pack size that is then created and business developers sees this as a targeted recommendation. Our customers see this as smart orders when they log into the customer portal. Very similar to the frequently bought feature, we are all so familiar from Amazon. And call center agents also leverage this intelligence. So irrespective of the channel, we ensure offering personalized and relevant assortment recommendations in every customer touch point. And this happens for all markets of Hellenic on a weekly basis. Let's move forward and hear about another example, segmented execution for personalized in-store activation. Today, with algorithms, we are helping our customers personalize the in-store execution based on the shoppers they serve. An example that you see from Bulgaria, where for outlets that are serving high-income shoppers, algorithms are prioritizing, placement of cooler and positioning displays of single-serve and for outlets serving primarily relatively low-income consumers, algorithms prioritized placement of affordable packs and ensuring our products are on the shelve, so we maximize shelve share. Data intelligence is also being leveraged today under segmented execution for driving targeted product activation. An example again from Bulgaria, where we draw a targeted and laser-focused approach when we launched 300 milliliter PP Coke, by selecting 1,700 best outlets that would benefit from this pack sizes based on the outlet characteristics and the shopper profile. Relevance of this selection resulted in close to 100% outlets agreed with the distribution versus the traditional average of 50%, emphasizing the relevance of our segmented approach. And as you can see, we have several other examples from our market, and this is one of the best practices now being leveraged across Hellenic markets. So let's continue moving forward and talk about coolers because we also use segmental execution for cooler management. I would like to draw your attention to the 2 pictures that you see on the screen. Can you sort the difference between the left and the right image? The cooler on the left shows our products are set in an orderly manner. The brands are clearly visible and the cooler is adequately occupied with the right product categories and right pack sizes. It's a good cooler and will drive higher sales. On the contrary, the cooler on the right does not reflect that. We have competitive products. We have empty cooler. The brands are not visible, and this cooler means loss sales, missed opportunity. Today, through algorithms, we are monetizing pictures being taken from our cooler fleet across all markets, and algorithms are helping us understand these opportunities. Combine this with door opening data, outlet sales, we are getting super targeted in assessing profitability of every single cooler place in the market of the 1.4 million fleet we have in Hellenic markets, where we are driving targeted actions. To improve coolers and to improve performance of coolers, giving guidance on where to place a cooler, where -- when to remove a cooler, how to improve the merchandising standards. And this is helping our markets and our customers grow through these cooler investments. Let's continue moving forward and now talk about promotions, such an integral part of our business because this highlights joint value creation with our customers. Today, with algorithms, we are helping determine effectiveness of our promotional investment at a brand, pack, promotion type and discount levels. This is helping us identify insights for joint value margin improvements, emphasizing when to promote, how often to promote, how much to promote and how to promote. An example that you see here for a particular customer, where Zoom in and see the data shows us the trend of the sales for the last 3 years, we can clearly see the peaks of promotion highlighted in the yellow and you can understand how insights from this data then helps guide the questions on when, how often, how much and how to promote. Today, 50% of our spending in modern trade retail customers is being analyzed by algorithms. This capability running already for 10 markets and more to come. Another important element of customer centricity is to ensure availability of our products, to maintain service levels with our customers. This is where demand forecasting comes in. Today, with demand forecasting algorithms, we are helping predict demand for our products at the customer level, location level, so we can manage the right inventory at the right point and fulfill customers. An example that you see for Romania, where we expanded these capabilities and improve the demand forecasting. This capability running already in 7 markets and rapidly ramping up for more. Last but not the least, we are also using analytics to improve the turnover of a critical part of our workforce, our sales force and our business developers. With data, we also analyzed drivers of churn in this critical population because having a longer tenure of sales force means improved continuity with the customers and improve customer satisfaction. Data clearly highlighted to us 3 areas of potential. Number one, need for improved onboarding support. Hence, we launched Sales Academy, as you also heard from Naya. Second, need for increased time with line manager, so we introduced new modules into the Sales Academy. And third, need for improved target setting, so we improved the operation target setting by linking it to data. So a BD serving an outlet into a rural area had a target, for example, on generic Fanta and not Fanta Zero. So this way, we improved the bonus settings and targeted all the 3 items that emerge from data. There are so many other examples that I can walk you through. And some of them you will also hear in the other accelerator in coffee, in digital, as truly, this is an end-to-end capability that we are ramping up and progressing very fast to drive value and monetize data. I hope these examples demonstrate how we are using data insights and analytics to support customer-centric actions at Hellenic and driving profitable growth. Now scaling these capabilities is critical for future growth. So we are also investing in our people. We have our own data and analytics academy, which is offering a comprehensive platform for improving data literacy and already more than 1,000 people in the organization are investing time to improve data literacy. This curriculum will be mandatory for critical workforce so that we continue enabling data-driven decision-making and create a work force, which is future-ready, data literate and data equipped. And as you see, this is such a critical capability for the future growth of our company. That's why we are scaling this journey. And I hope you enjoyed hearing our journey today in this [indiscernible]. Thank you very much for your time and attention.

Good morning, ladies and gentlemen. My name is Mourad Ajarti. I'm the Head of Digital and Technology at CCH. And together with Vitaliy and Ivo, we will take you through the journey of digital transformation in CCH. Almost everything that we will show you today did not exist back in 2019 when we had our last market -- Capital Market Day. It shows the depth of the transformation that we have led, both as an organization in the case of my team and the team of Vitaliy at digital commerce, but also in terms of technologies and products that we are sharing with you today. Digital transformation in Hellenic is an accelerator of business transformation, focused on delivering results on 3 business imperatives. First, customer centricity by delivering digital tools that enhance our capability on delivering personalized execution in every outlet. Employee experience is focused on team collaboration and personal productivity and digital first workplace. And then last but not least, operational productivity on an enterprise-wide fashion. To deliver this transformation, we leverage 3 digital enablers. The first one is secured scale platform that gives us the modularity and integration for seamless experiences for consumers, customers and employees. We also leverage breakthrough technologies and innovation like AI, ML and computer vision and automation. And the last but not least, we focus on transformation of ways of working, anchored on scaled agile for product and software development across all functions. To tailor execution for every outlet, we have digitized our customer relationship management by putting all -- by leveraging 3 critical and skilled capabilities. We've organized a 360 view of all our customer interaction and put it on the same system that our business developers, key account managers and the call agents have access to. We also delivered the eB2B platform where our customers can interact and order our product, 24/7. And then the last capability is a close-the-loop real-time NPS feedback from our customers with a commitment from our side to work on customer pain point within 48 hours. Digital enabled us to augment the capabilities of our business developers, leveraging data, insights and technology. We are able to embed algorithms from AI and ML that gives us adjusted orders and suggestion activities for every outlet that we visit. We also are leveraging computer vision in a way that can help us execute the shift picture of success by taking a simple photo, a simple video with the calculation of a score that happens real time for the business developers to [indiscernible] where they are still in the store. Together with Vitaliy, we continue pushing the boundaries, leveraging the latest technologies, whether it's metaverse, whether it's the automated retail for us to test and experiment new business models that defines the future of commerce. On employee experience, we are focused on the team's collaboration as well as personal productivity by leveraging Microsoft 365 and Teams on that. We democratized access to technology, we gave an access to all our employees, including the line operators in the shop floor that enables them to drive efficiency and be more connected to all the company. Compared to other FMCGs, we are ahead of the curve when it comes to digitizing the core. We are already on [ SAP 4 ] across all our markets. And that gives us access to the latest and greatest capabilities from SAP, including real-time reporting. We have created a capability in-house that we call the edge, which enables us to take all KPIs across all our markets and consolidate them and put them on the hand of our employees and leaders. It's also helps us to standardize the way we run our business and read our business. In supply chain, we are going through the transformation anchored on Industry 4.0, leveraging automation, leveraging computer vision, leveraging data and analytics. And my friend, Ivo will take you through some of the examples from the shop floor on that. Last but not least, we are co-creating with Microsoft new to the market capabilities that we call digital twinning, leveraging data and analytics, but also metaverse capabilities. For us to drive efficiency, but also sustainability when it comes to water and energy amongst others. With that, I hand over to Vitaliy to take us through digital commerce transformation.

Thank you, Mourad. And thank you, everybody, for taking the time to listen to a topic I'm very excited about. Digital commerce transformation is a real transformation because 2 years ago, when we saw each other last time, it didn't even exist as a concept. Today, we have a big business unit. We have business impact that is quite significant. It quadrupled over the last 4 years. We have over 100 professionals, 75% of them came from outside over the last 2 years. Working on this topic, we are really putting financial and organizational resources behind what we believe is a very important growth bet of Coca-Cola Hellenic. Digital commerce is represented by 2 big pillars that are scaling already and a lot of invisible things that you don't see today. In order to have these 2 big pillars that are scaling, we are constantly experimenting, learning and failing with the things that haven't worked, but we learned from them in order to get those things that are scaling and bringing business impact. So the 2 pillars I would like to talk about today are route to consumer, represented by e-retail and food service aggregator programs that we have and eB2B represented by customer portal and service our marketplace. Our vision in these 2 pillars -- and that's why the scale and pillars is quite straightforward. We want to win with the winners in e-retail and food service aggregators. We want to have higher market share than in off-line and grow faster than competition. And we want to connect digitally to 100% of customers in B2B, which means our eB2B or electronic B2B programs enhancing our physical omnichannel route to market that is arguably the best in industry and best-in-class, and we create this transformative omnichannel model that will define the future of our route to market. When I think of e-retail and FSA, I'm very excited about this channel. It's actually very profitable for us. And unlike many peers, we are profit accretive in e-retail FSA channel. We are making sure that in each of the subchannels of this exciting space, we are growing profitably. And I would like to double click and talk a little bit about our food service aggregator programs and in particular, about one of our more advanced markets Island. Food service aggregators are a very interesting space. That's where at home consumption occasions connect with out-of-home customer universe. And this means these consumption occasions are incremental to our business. Being smart about it and having strategic collaboration with food service aggregators, we are able to transform our brand programs into conversion to transactions. We are able to develop tools to measure execution online and with all this, we are able to create more profitable business for us. If you think of Ireland, 47% of all meals delivered from restaurants to homes are containing a Coca-Cola HBC beverage. This is a benchmark level from what I know, it's either the highest or one of the highest in the world. We do believe that this is a way to go for the rest of our markets, and we are growing rapidly in this direction. 30% of all out-of-home revenue growth of last year in Ireland was delivered through food service aggregator driven transactions. It's another remarkable indicator. Without food service aggregator business, our growth would have been 6 percentage points lower. Likely, we are not in that space, we are actually excited to take it higher, further and bring it to 100% one day. So this channel that is very profitable, fast-growing is, by the way, also enabling us to combine our capabilities and field execution, where I feel people work with those restaurants and our data processing and inside generation capabilities that Mourad talked about. Our eB2B platforms are represented by 2 big programs. And you might ask yourself why 2, it's quite straightforward. We have 2 large route-to-market archetypes, direct route-to-market where we sell directly and invoice directly and deliver directly to small supermarkets, bigger out-of-home outlets, some chain outlets, and we have indirect route-to-market where we rely on wholesalers to deliver to outlets. Customer Portal is the system that connects us to our direct outlets where they can order our products 24/7, have access to their invoice history, order history analytics and also equipment services like performance of their cold drink equipment or coffee machines. This is very direct, very intimate relationship with Coca-Cola that is based only on our portfolio. Service, on the other hand, is a marketplace proposition where we aggregate multiple wholesalers that supply to multiple outlets. We aggregate multiple logistics service providers that provide flexible logistics service and also financing providers because where the relationships are not one-to-one. Sometimes buy now, pay later services can really create a much better customer experience and drive transaction conversion. So we have 2 different models for 2 different route-to-markets. Customer portal is scaling fast. What is very important about this program is that -- it's a standard proposition for all our markets. We have quite a few markets in Europe and in Africa, and we are able to have a standard tech stack that is working everywhere. That is why we are scaling fast. We have over 140,000 registered customers. We have over 40,000 monthly active and this is growing, and we have already a significant share of total orders generated by customer portal. This scale means we can do digital marketing directly. We can create engagement outside of the normal working hours of our field force. And all of this is delivering results. We are not only digitizing the business. We are delivering incremental transactions and this program will continue to scale. Service is a very daring proposition. It was launched in Italy in Q3 last year, and this is a marketplace that connects many wholesalers to many outlets in Italian HoReCa universe. This is one of the most exciting and most complex markets in Europe, and that's why we believe what works in Italy will work in the other markets. We launched in Q3 last year. We already have over 15,000 SKUs on the platform. We already have external providers integrated on the platform, for example, for payment services and financing services. We have flexible logistics services on the platform where customers can decide to order from multiple locations and get flexible logistics, faster or slower, paying more or less. And this is just the beginning. We see the retention rate of 65%, meaning 2/3 of the customers who ordered once stay on the platform. And we are very excited to be taking service to former markets this year and scaling it in Italy. I hope I gave you a glimpse and a taste of our customer-facing problems and why we are in digital commerce transformation. And I'm sure you are now curious about what's happening further down the value chain. There is no better person to tell you about that, but my friend and colleague, Ivo Bjelis.

My name is Ivo Bjelis, and I'm leading supply chain in CCH. It's my pleasure to demonstrate the digital transformation in supply chain. It is completely connected with our imperative to implement Industry 4.0 solutions. Industry 4.0 solutions are covering 4 pillars: one is about data and connectivity, another one about analytics and intelligence, human machine connection and then advanced engineering. We have developed the wide range of solutions covering all 4 areas. Here, you can see just a few of them, illustrating what are the solutions we are talking about. Whenever we are implementing new solution in area of digital under the Industry 4.0 umbrella, we are looking if solution is following 3 critical criteria: one is about improving the customer service or agility of our organization; second one, do we improve the cost; and obviously, the third one, are we moving forward within our sustainability agenda? We have many solutions which are already implemented. There are a couple of solutions under implementation. And obviously, the pipeline is filling continuously with the new ones. How we are doing that? We have actively searching the market, and we are doing that through our internal resources, but also we have been approached by the best industries in the world and best providers in the world to collaborate and apply these solutions in the industrial environment. It is a pleasure to work with some of them, being the leading companies in the world. And I have a short video just to show you how this collaboration works in real life, where we have implemented solution in the area of digital metaverse, in particular, the digital twin solution in one of our lines in Austria in a very close collaboration with Microsoft. So let's see the video. [Presentation]

We should never forget that still significant part of our supply chain is connected with the physical world. We see the role of digital transformation as a key enabler to make the physical part also be more efficient. In particular, the area of machine human connection is benefiting a lot from the digital transformation. A very good example of that is our Connected Worker program, which we started a few years ago in a very small scale. The basic idea was just to digitize the paper part of the operation standards and procedures and put them in a digital world. But we can realize very fast that there is more to be used over there. We are now using the system in order to do the task management for the operators, especially in the area of maintenance, in the area of quality. Also, we are adding photos, we're adding videos. We have now connected the workers from various plants, which, of course, helps them to fix the problem in close collaboration with the colleagues who can help and overall raise their capability to be faster and more efficient. There is more to be done over there, especially in the environment of artificial intelligence, where we are going to have the new generation of solutions where the operator will be supported in real time using the artificial intelligence in a very similar way like you have seen in a digital metaverse solution with Microsoft but for the wider area of solutions. We're also very proud that our flagship capability development program, Supply Chain Academy, also went digital. So all the trainings and all the certification process over there is available online for the wider group of employees. In short, we are future-proofing our supply chain through putting in place the most innovative solutions, taking care of our sustainability agenda, which is always there, but also on top of that, building the capabilities of our people. With this, we believe that we are fully ready for today but also for tomorrow.

We hope that together with Vitaliy and Ivo, we brought to life how digital transformation is an accelerator of business transformation centered around delivering results on customer-centricity, employee experience and operational productivity. We thank you for your time.

A very big thank you to all my colleagues this morning, and I hope it's given you the chance to learn a bit more about the growth accelerators in our business. It's now time for another coffee break, and we will see you back soon in the plenary session for our COO, Naya, talking about our diversified country footprint. We'll see you soon. [Break]

So welcome back. I hope you learned a lot from our growth accelerator breakouts, whether you're in person or joining us online. So we have discussed how we're driving growth in our categories and how our capabilities are setting us up to win. What is critical to our success is how we then drive growth in our diversified markets. We have a natural advantage when it comes to our geographical footprint and the mix of countries we operate in, which span Europe from West to Central and Eastern Europe as well as 2 of the most populous countries in Africa. Each segment brings something different to the table to drive growth. Let me call out a few highlights from it. Our established markets have the highest net sales revenue per unit case in the group. Developing has a great balance of price/mix and volume growth historically with revenue growth of plus 10% on average over the last 4 years. And finally, our emerging markets where we have seen the highest revenue growth as we continue to capture share in countries that are growing sparkling per capita consumption. Let me break it down further by segment. Our Established segment comprises mainly geographies with high but generally stable per capita consumption. The exception to this is Italy, which currently has a surprisingly low per capita consumption, and therefore, is a great growth opportunity, as Frank will discuss later. This segment has delivered strong growth from category mix driven by sparkling and low or no sugar variants. The strongest performance in sparkling has come from Adult Sparkling. Energy is also very important in Established with 27% growth on average each year in the same period. Established is the segment with the highest exposure to the out-of-home channel, more specifically HoReCa. The segment benefits from tourists, for example, in Italy and Greece, but also Switzerland and Austria and even Northern Italy in the winter. We have seen recovery in the out-of-home channel, now above 2019 levels. This also helps package mix as we continue to drive growth of single serves. Our Established segment is the only one where single-serve mix is higher than multi-serves. For all segments, our top strategic priorities are sparkling, energy and coffee. As we look towards the medium term, sparkling will remain our core driver of growth. This will be fueled by low, no-sugar variants and Adult Sparkling. We see great headroom for growth in energy with flavor innovations in Monster expected to continue to drive demand. We also expect growth in coffee to accelerate in all our established markets, except for Italy where Caffè Vergnano directly manages local operations. Let me give you a couple of more examples. In Greece, we will continue investing behind our seasonal activations, taking advantage of the extended tourist spirit to drive more growth in our premium offerings and single-serve packs in out-of-home. Greece is a great example of what success can look like for our 24/7 sparkling-led portfolio as we have a significant presence in all categories, resulting in our 45% value share in NARTD. Looking across the Established segment. For FuzeTea, we want to capture targeted opportunities for growth and have specific plans in Italy, Austria and Switzerland. For Italy, more broadly, Frank will say shortly how excited we are about the opportunity here. Moving now to our Developing markets. Developing markets have delivered substantial price/mix and volume growth, while per capita consumption is the highest of our 3 segments. Single-serve mix is also the lowest due to the low exposure to the out-of-home channel but we are proud that our strategy to drive multipack of single-serves in the at-home channel has been delivering results. As a result, the volume growth of our multipack single-serve for sparkling has grown over 40% in the last 4 years. Developing markets have the most meaningful potential for premiumization and category expansion, particularly in our prioritized areas of sparkling, energy and coffee. Sparkling growth will be further supported by growth in demand for low, no sugar variants and Adult Sparkling with the relaunch of Kinley making strong progress. Energy growth will be supported by all 3 brands: Burn, Monster and Predator. And coffee has the highest volume contribution in this segment of market, now in all markets, except for the Baltics. We're really excited for the potential here. Let me give you a couple of examples in this segment. In Czech, we see opportunities to continue growing strongly in the out-of-home channel helped by Kinley. We also expect to drive further customer and consumer recruitment in Costa Coffee and Caffè Vergnano. Looking across the segment. We will continue investing behind multipack of single serves, which should support improved package mix. We will continue our efforts in premiumization behind our key strategic priorities while addressing affordability through smaller packs of multi-serves. Before moving to Emerging markets, let me double-click and briefly discuss our biggest market in this segment, which is Poland. In 2021, Poland introduced a significant sugar tax, the highest ever experienced in our markets, which required a price increase of more than 25%. This had a 1-year impact on volumes, which fell 78% in 2021 and reset our margins in the country. We were quick to adapt, driving our low, no-sugar portfolio, which was underpenetrated at that time. Our strong execution in the market during this period was critical as we leveraged all our capabilities and used data and analytics to make smart choices on pricing, and we're very proud of how the team addressed the situation. This resulted in significant [ surgence ] in the country and further improvement of our leadership ratio even though the nonalcoholic ready-to-drink market declined. The learnings we took from Poland have been crucial as taxes have been introduced in other countries in the last few years. We now have a playbook on tax introduction to put into action in any market. Looking forward, we're expecting growth to come from our sparkling portfolio, fueled by our low, no-sugar variants and Adult Sparkling again behind the Kinley launch and introduction of Three Cents in the upper end of the premium segment. Energy will be supported by all brands. Poland is also the largest market for Costa outside the U.K., and we're very excited about the rollout of Caffe Vergnano, further strengthening our coffee propositions to the Polish consumer. We are very pleased with the rebound of volumes we saw in 2022 and early signs in 2023, where we are addressing inflation and affordability challenges. We are confident that Poland margins will improve towards pre-sugar tax levels in the medium term. And last, but certainly not least, Emerging. Our Emerging markets comprise a broad range of countries, including our most recent expansion into Egypt. Emerging markets have the most attractive long-term demographics. Even though we have experienced the highest growth in per capita consumption, our Emerging markets average is still lowest of our segment. As I have mentioned, Emerging has delivered the highest volume growth in recent years. In terms of categories, sparkling has led the way, and energy growth has been very impressive driven by the excellent performance of our affordable brand, Predator, in Nigeria. Our continued focus on improving single-serve mix has delivered an increase of 45% over the last 4 years. Even though the revenue per unit case in this market is the lowest of the group, we have seen good improvement in the last couple of years due to our conscious decision to drive value through actions on pricing and premiumization. Looking forward for our Emerging markets, we remain confident despite the current macro challenges we're facing in certain markets. In Emerging, we see the biggest opportunity in serving [ per cap, ] and we will continue to deploy our capabilities to further unlock this potential in the medium term. By category, our strategic priorities are unchanged. In sparkling, we see a good opportunity for growth in flavors as well as low, no sugar and Adult Sparkling. Energy growth should remain strong due to Nigeria as well as Egypt, where we have recently entered the category, as I mentioned in the morning. Let me give you a couple of examples for Emerging. In Nigeria, we will drive growth in sparkling, supported by targeted activations in the market. We will continue to address affordability with our RGB proposition and address premiumization with further growth of energy, Adult Sparkling and juice. Serbia is another great example of our 24/7 sparkling-led portfolio with presence and strong market share in the NARTDs, one of the highest in the group, over 40%. Let me now discuss our newest acquisition, Egypt, starting with a very attractive demographics. Egypt has a population of more than 100 million, projected to grow further. That population is young with an average age of just 24 years. We see a good growth opportunity in servings per capita, right now [ circa ] 18% below the group average. Also in Egypt, we are not the market leader, and we do see this opportunity to gain market share. In the first year of Egypt being in the CCH family, we saw a promising start despite the macro challenges we faced. Our integration is progressing according to the plan. Back-office activities have been completed, and we have actively started implementing our key capabilities, driving value through revenue growth management, improving market penetration through route-to-market improvements and using data and insights and analytics to drive personalized execution for every outlet. Indeed, we have already gained significant market share, and our initiatives have helped us overall to drive revenue per unit case to record levels for the country. At the same time, we have been investing in our route to market, adding 20,000 new coolers in 2022. Finally, we have seen the first signs of portfolio improvement, reducing our nonpremium water contribution, which is one of the highest in the group. And we launched into the energy category from the start of this year. 2022 and the start of 2023 has certainly been challenging, but our experience in managing volatile emerging markets has been critical and enabled us to make fast, smart decisions in the market. As I look forward for Egypt, there are 2 key areas where we can unlock our potential in the market. First, we want to gain market leadership in NARTD. This will come from further expansion of our portfolio as we are already in the energy category. We will also continue to invest behind our key strategic priorities in sparkling, particularly with Schweppes, which is very strong in Egypt. We will balance affordability with further scaling of our RGB portfolio, which, as you know, has proven very successful in Nigeria. Our aspirations for Egypt are clear: one, drive per capita consumption; two, increase market share; and three, improve EBIT margins in the midterm. To summarize, as I stated in my introduction, we are privileged to operate in a combination of different geographies that creates a unique balance for us. This provides us with different opportunities to grow and utilize the whole spectrum of our 24/7 sparkling-led portfolio dynamic. And we have proved that we are able to capture the right opportunities and manage the challenges we see. I wanted to close my presentation with this chart. This demonstrates very well that most of countries have the room to grow more in servings per capita. And this is exactly what we intend to do. Thank you. And now, I'll hand over to Frank to talk more about Italy, our host country for this event.

Thank you, Naya. Good afternoon [Foreign Language]. My name is Frank O'Donnell. I'm General Manager of Coca-Cola Hellenic here in Italy. I've had the great privilege to work for our organization for the last 31 years, mainly in positions in commercial and general management across a variety of different countries. Today, I have the pleasure of sharing with you how we will accelerate our Italian business over the coming years. Just a few headlines about our business here in Italy. First, we directly employ 2,000 people, 60% of whom are in our commercial to our sales teams. Throughout Italy, we have a significant manufacturing footprint. We have 3 factories, we have 6 manufacturing facilities: 3 of which are dedicated to sparkling, tea and sports drinks; 2 of which are water; and 1 of which is a preform manufacturing plant, which I'll speak to you about a little bit later. Now let me talk to you about the great opportunity that we see here in Italy. Italy is a market with great potential. The chart on the left shows the per capita consumption of -- the industry per capita consumption of sparkling soft drinks for Italy compared to other Mediterranean countries, Greece and Spain. And you can see clearly that there's a significant difference with Greece being 20% higher than industry consumption for sparkling beverages and Spain being significantly higher again than that. So we see a huge opportunity here to expand our business in Italy. And the market conditions are favorable for us. Starting from the structure of the market. The HoReCa channel is huge in Italy. It's over 300,000 outlets, which represents a great opportunity for us to present our beverages to all the Italian consumers. Indeed, the retail industry is equally fragmented with 120 different retail chains operating in Italy. Tourism in Italy is very significant. Italy is the third largest tourism country in Europe. There are over 200 million tourist nights in Italy each year. That's in terms of foreign tourists. There are also another 200 million domestic Italian tourists through holiday in the country as well. So a very, very big significant tourism industry. Now many people sometimes when they think of Italy, they say, well, the population is a bit aging. Yes, it is. But there are 17 million people in Italy under the age of 30. And finally, what the Italians are really passionate about are 3 things. In Italy, they are phenomenally passionate about food. It is the absolute topic that occupies the dinner table every day in the country. There are Italian people in the audience, and they're all nodding their head, which is great. But that's also followed by football and by music quite closely. And we've really started to activate those passion points because they are the key occasions that we can match our brands to strongly. As we all know, Italy is the home of pizza. And the estimates on how many pizzas are eaten in Italy, they vary widely. But it ranges from 2 billion to 3 billion pizzas eaten in Italy every single year. It's the equivalent of a pizza per person per week. Now historically, the consumption of Coke with pizza was extremely low. Back in 2019, for every 10 pizzas that were consumed, only one had a Coke with it. And so we've put in place a very strong plan to drive the consumption of more Coca-Colas with pizza. It's part of our overall Coke and Meals program. And obviously, pizza is at the central part of it. And we have a significant level of programs in terms of outdoor, in terms of above-the-line sponsorship, what we do not only in the out-of-home outlets in terms of meals communication, but also what we do in the at-home outlets as well. And we sponsor a pizza village roadshow, which visit cities throughout Italy, and communities come together to have a pizza. In a short space of time, so just in 2 years, so between '21 and '22, we've almost doubled our incidence of Coke with pizza, but we know that looking at this opportunity, there is far more to come. The second area that we focus on in terms of our association with sparkling soft drinks is around football. And we have sponsorship relationships with some Serie A clubs. Let me talk about Napoli in particular. We formed an association with Napoli at the start of the '22-'23 season, which is actually also the year that Napoli have won the Serie A Championship in Italy for the first time in 33 years. But we've really throughout the whole year been able to leverage our relationship with Napoli by being able to execute tailor-made promotions in the stores with our customers. Our customers in Campania in Italy have really got behind the association that we have with Napoli as well, and we've also supported it with outdoor advertising. So our association with football and how we drive that, either with local teams and how we drive football association overall, has proven very successful for us here in Italy. To round football off, we're also sponsors of the Coca-Cola Football Show, Coca-Cola Super Match on DAZN. For those of you who don't know who DAZN are, they're a sports broadcaster. They're similar to Sky Sports. And on this show, it's a live commentary of a football match with the host, and they really enjoy and they make some fun of the show. But what's key for us is not that it's a Coca-Cola sponsorship of it. It's that the hosts are consuming pizza and enjoying it with a Coke as they commentate on the match. Music is the third leg of the strategy that we have to drive sparkling. Here, we're focused on 3 main areas to drive transaction. The first is around the promotions that we do in store to drive consumers with free giveaways that we have on our products. The second is that we directly sponsor music festivals. Last year, it was Coca-Cola Beach Music Festivals. This year, it's the [ i-Music Milan ] Festival, which is a huge festival in Milan. It's a week-long series of concerts with loads of international stars that are playing in it. The third thing that we do around music, and it's maybe a bit more Mediterranean what we do. But we developed a summer single with a leading music artist each year. And they -- either the lyrics of that song or the name of that song itself features strongly Coca-Cola within it. And the songs proved to be not only fantastic songs but hugely popular during the summer. When it comes to Fanta, there's 2 areas that we focus on. One is around an association with fun times, such as Carnivale. Carnivale is an occasion in Italy during February when people dress up in costumes. It comes before Lent. And also Halloween, where equally -- we sponsor Halloween, which many of you are aware of, is another time when people are dressing up and having fun together. One of the things that we identified with Fanta is around snacking and the snacking opportunity for Fanta. So we have a year-long program for Fanta in-stores associating Fanta with crisp companies as well. Now given Italy's older population, Adult Sparkling beverages are really key for us. And in 2019, we really were not playing here at all. At the end of 2019, as Zoran mentioned earlier, we acquired Lurisia, which is a really premium Italian craft soft drinks as well as a premium water business. Since our acquisition of Lurisia, we have trebled the business. In 2020, we relaunched Kinley onto the market, providing more packages, driving distribution. We've done a rebranding as well this year. But our Kinley business also in the same period of time has grown fourfold as well. So we're seeing really accelerated growth as we become a serious contender in the adult-beverage market in Italy. We've also been driving other categories, which represent very solid profitable growth for our business. As you know, at the group level, our key priorities are sparkling, energy and coffee. In Italy, we don't distribute coffee, as Naya had already mentioned. As [ Vergnano ] are the owners here. So I'll just focus on sharing a few headlines with you around energy, sports drink, tea and also premium spirits. Let me start with Monster, where we've seen exceptionally strong growth over the last 4 years, quadrupling the business again. And we are now the #1 player in energy in retail in Italy. We've achieved this by significantly widening both the availability of the portfolio of Monster, almost doubling the range that we have. And we've combined this with intensive sampling promotions and sponsorships as well. And each quarter, we were on a very successful consumer-orientated transaction driving promotion in the stores. With ready-to-drink tea, once again, it was a category that we really didn't play in up until a number of years ago. We launched FuzeTea in 2018, and it is now already the #3 tea brand on the market in Italy with over 10% share and once again, a business that we've enjoyed significant growth with. And finally, sports drinks, where with Powerade we've had great growth since 2019. And that growth and that success has been built on a very much a ramped up approach around in-store execution, tailored promotions, widening our distribution and growing our portfolio by the introduction of zero variants. We also developed a unique association with Padel. A Padel is a sport -- for those of you who are not familiar with it, is a sport similar to tennis. About 800,000 people in Italy play it. And we got on the bus early with the sport as well in terms of our sponsorship and relationship, and we leverage that with what we do with Powerade in store. In Italy, we've built up a strong Premium Spirits business over the last 5 years and wherein just that short space of time, we are now already the fifth largest distributor of premium spirits in Italy. Our portfolio is a combination of international brands, such as Barcelo, Nemiroff, the famous Grouse and others, combined with local players as well, such as Lucano and [indiscernible]. Now we've worked hard in building our capabilities. Let me start with our route to market, where we've been on a journey here to drive our execution and to drive our coverage. We've invested significantly recruiting over 200 business developers in the last 18 months. That represents an increase of 20% in our sales force, and that is helping to drive execution across a far wider number of outlets. We have grown our market coverage by 57%, calling on an extra 45,000 customers. So versus 18 months ago, we're now calling on 45,000 customers more. And supporting this strategy has been an equal uptick in the number of coolers that we've placed on the market. Between 2022 and 2023, we'll have placed an incremental 25,000 coolers in Italy. To support the business developers better and to make better use of technology, as you've seen from Ruchika already, we have been leveraging data insights and analytics to help us in 3 areas specifically. So as we go to the market recruiting these 45,000 new outlets that we've been doing for the last 18 months, prospecting, which is about identifying the right type of outlets, becomes really critical. And there, we've leveraged on our data insights and analytics tools to guide our business developers towards the right type of outlets. When they're there, it's about the type of things we ask them to do, which is around the suggested activities that are tailored for that outlet. It will be around the priorities and the cooler management programs that they have in place. And finally, around suggested orders. So how they fill portfolio gaps or what are the portfolio gaps identified at that outlet level, how they create suggested orders for wholesalers to fill. When you look at digital commerce, Vitaliy has shown you what we're developing with service. Service is an eB2B marketplace platform. It's designed to make the ordering process both easier and digitized for HoReCa outlets. It allows a HoReCa outlet to source supplies from a variety of suppliers and wholesalers in their own time. Service was piloted in Italy last year, launched fully onto the market this year, and early indications from our customers are very, very positive. Finally, we have a laser-like focus on ensuring that we drive our revenue, not just through price but through a significant effort behind mix improvement. 90% of the growth that we have had here in Italy over the last 4 years has been driven by single-serve packages. A big driver of this was, for sure, the extra coverage that I've talked about. But also, we've made sure that our category mix improves as well. So the right single-serve packages, but also the right types of categories that are growing. And our category mix, so less water and more beverages that have a higher revenue per case and a higher profitability, they've also improved by 3 percentage points since 2019. So a sharp focus on our capabilities has been critical to driving our business forward. Equal to the investment behind marketing programs and capabilities -- let me take it again. Here we go. Equal to the investment behind marketing programs and capabilities has been a strong investment behind sustainability and capacity. Now Katya will delve into this shortly, but let me share a few headlines with you specific to Italy. In 2021, we replaced all our multipack can plastic packaging with a cardboard packaging solution called KeelClip. By the start of this year, all of our PET for sparkling, tea and sports drinks was made from 100% rPET in every package that we have on the market in Italy. The 100% rPET preforms are manufactured in-house by us. It's a really great story about an older news plant that we had in [ Guyanico ] in Northern Italy that we reopened. And I was saying last night there that the guy who closed down the plant was actually the guy who reopened it for us as well. But that plant provides us with all the rPET that we need for the market in Italy. Finally, as we continue to grow our business, we need to invest in manufacturing capacity, and we are focusing investment on 3 new lines over the next number of years: one is for sparkling cans, where we see a lot of growth in our can business; second is for glass; and the third for energy. This new investment in capacity will give us an expanded manufacturing capacity of 18%. Ultimately, with all this effort, we've seen a good set of results for Italy. Our revenue grew by 22% in 2022 driven by a very good combination of volume and price/mix. That growth in volume has seen us grow our servings per capita by almost -- our servings per capita by 9%, which represents nearly 500 million more servings of our products in Italy in 1 year. In retail, we have become the #1 value creator over 2021 and 2022, generating almost EUR 190 million in additional retail value. Value creation for our customers is a very important metric. It's a key component of our customer selling story. As I mentioned earlier, a sharp focus on single-serve is delivering really the results that we see, and we see it in the improved price and mix. And finally, all this also comes together in terms of what we see in the market. So our NARTD share has grown by 2 percentage points over the last 4 years with share gains across all the key categories that we play in. So a very solid delivery of metrics in Italy, which gives us great confidence in how we will drive the business forward. Equally, we're really looking forward this afternoon to going into the market with all of you and translating what you've seen here on PowerPoint right into what you'll see in the marketplace as well. Before I move to the last slide, as I will be starting a new role as a regional director in Naya's team from June, I would like to introduce Miles Karemacher, who's the incoming General Manager of our business in Italy. Miles previously spent 3 years here with us as Commercial Excellence Director, helping to shape large elements of the strategy that you see here today. And he's been for the last 3.5 years, been the very successful General Manager of our business in Ireland. So welcome back to Italy, Miles. To conclude, we continue to see an accelerated growth potential for Italy. And we expect the Italian business to deliver organic sales growth ahead of the group algorithm in the medium term. We see huge opportunity to drive sparkling per capita consumption with Italy almost half the size of some other Mediterranean countries. Out-of-home -- and the out-of-home channel is the catalyst for this growth. It's 40% of our business in Italy. It's more than 50% in all other Mediterranean countries. We have clear prioritized categories to keep driving our strong growth. First is with sparkling. This remains the biggest growth opportunity for our business here. Start meals, not just about continuing with pizza, which, of course, we will do, but also by focusing on lunch time. Our incidence of Coke at lunch time is half of our incidence of lunch at evening time. So we see big opportunities, and we're very clear on where they are. We will continue to drive Zeros. Last year, we launched Coca-Cola Zero onto the marketplace, Zero Zero onto the marketplace. And combined with Coke Zero, we see this as a real strong driver of forward momentum. With Lurisia and Kinley and as you've seen from the adults booth that Kristina showed you, we really have 2 fantastic winning adult brands. We also see significant headroom for growth and market share with our flavors, and we expect that the momentum that I've talked to you about behind Monster, tea and sports drink that, that momentum continues. Behind all of this are our capabilities, and they continue to underpin what we do. We will continue to expand our market coverage, placing additional coolers and expanding our marketing programs to more and more outlets. Revenue growth management will stay firmly fixed on volume, price and mix. And increasingly, we will do this with an even more digitized sales force, ensuring that our customer is truly at the heart of our business here in Italy. Italy is a great opportunity for Coca-Cola HBC. We are already seeing the results, and I believe a much stronger future lies ahead. Thank you.

Thank you, Frank. I think you are due to join us for questions. So if you'd like to maybe take a seat with Naya and Zoran, that would be great. So what we're going to do is we're going to run a question-and-answer session now. We've got another opportunity a little later. So we'd like this one, if possible, to focus on the content around the strategies to grow, what you've been hearing from the teams and the accelerators from Naya, from Frank. And then, we'll bring up the larger questions about the group and the group performance after you've heard from Ben in the afternoon, and Ben and Zoran and Naya will take those questions later. I should point out as we're settling that there's an information code -- a QR code on the back of your badges, you can access all the presentation materials on that. So if you need to download a PDF at any stage today, please feel free to do so.

Right. What I'm going to do is I got online questions as well, but we'll take questions from the audience first. And if any online questions come in, then we'll do those in due course. Perhaps maybe start in the middle, and we'll work out to the outside. So Sanjeet, do you want to kick off?

This is Sanjeet from Credit Suisse. A question for Zoran. You've picked up the medium-term organic revenue growth algorithm to 6% to 7% from 5% to 6%. Can you just break that down with how you see volume and price/mix progression? And to what extent is that accelerated growth just a function of the change in geographic composition of the business? Nigeria is bigger today than what it was in '19. You've got Egypt now coming through. And what level of inflation -- consumer price inflation are you embedding within that 6% to 7% medium term.

Yes. Thank you, Sanjeet. So there are a couple of factors here. First of all, as we've seen that this last year, this year, so kind of in a time year -- 2-year time frame, it was pretty much a price/mix, a lot of price. So this period embeds more -- for sure, more balanced combination of the volume and price/mix. And we would see that from next year, there has to be more on the volume side. Secondly, this also reflects the fact that we have also a stronger coffee business. And yes, it's also the fact of the territories that you mentioned. But also we do see that overall categories in the market versus what we showed in '19 are slightly better prospect, which proves the resilience of the whole industry that we have witnessed over the last few years. So all these kind of factors -- and also, this is blended with the stronger confidence that we have today versus '19 in terms of how we feel about capability of the organization to sell through in rainy and sunny days. I don't want to -- I think we talked a lot about capabilities, but really after these few years seeing revenue growth management, how it balances not only price/mix but volumes, all the levers there, that really gives us a better view of how we think that we will be able to be in this corridor. Plus, we take the assumption that -- in terms of inflation, that it will start easing towards the end of the year. And we would expect that, that translates to the commodity and input cost from end of year, hopefully, and next year.

Got it. And just to be super clear on this, when we think about your pricing philosophy over the medium term, is CPI a bit of an anchor for the business across each of the segments? Or is there a need to accelerate affordability initiatives, particularly in the Emerging segment to drive that volume growth?

It's both. So there are very different opportunities, not only in the segment but also within the segments among different countries. So the next phase for us when it comes to pricing overall would be how to leverage all different types of pillars, pricing, but also the mix, whether this is category mix, channel mix, package mix. And very important in that, at the very core is actually balancing between what you just said, affordability in markets like Nigeria, for example, with initiatives that we shared earlier with premiumization because we still see that there is huge potential in terms of how to play and win balancing both.

So why don't we keep the microphone over there [indiscernible] maybe Ed?

Ed Mundy from Jefferies. I've just got one question, Naya, for you. You mentioned your first presentation about the importance of personalized execution by outlet. Where are we on that journey? And how much of -- my sense is a lot of the things we have from the breakout session are quite new and how much of that is still to come really in driving that execution at the next leg up?

Yes. So it's like this is a never-ending sort of journey, especially when we raise the bar in each and every market. And from the accelerators, you've got a feel in terms of the how when it comes to data, when it comes to the digital and overall digital commerce. So this is the how, the enablers, but also clear bets when it comes to the priorities in the 3 categories that we shared, sparkling, energy and coffee, but also pockets of opportunities for us. We feel very like pleased with the progress on that. We call it the strategy [ S equal 1, ] which is we treat every outlet as a segment of one. And this is very important. And pandemic really surfaced the criticality of making sure that we are very close, not only to the channel or the area but each and every outlet out there. So then what we do is we are using all the different alternative route to markets that we're having and with the main focus to be relevant in that particular area and double-clicking in that area, the specific outlet. An example from Nigeria, where from the insights, Ruchika and her team, pulled information where we saw that outlets that are close to churches. And every Sunday, church is something very important for the Nigerians, they're going there. So they open specific hours of the day. So we picked up that information, and we went in a much more targeted way towards that. So all in all, pleased with the progress. We have accelerated the last 2 years. And in the next 5 years, our plans and investments are going after this particular bet.

To briefly add here is the -- its foundational use case that we use. There was version one, segmented execution, focused on what Naya talked. Now we already rolled out a version 2.0 because the more you learn, the more you see an availability of relevant data that we are embedding into the whole algorithms and how also technology works, artificial intelligence. All these things have -- are enabling that there is going to be constant evolution. But you can't do a version 2 without starting where we started. So I feel confident that there is going to be -- this is going to be iterative evolving process to make it more sharper, clearer for those who execute in the market.

Excellent. Let's come back over to this side. Perhaps I'll start with Andrea and then move around the table.

I have a question for Frank on Italy. The per capita consumption opportunity in sparkling has been there for many years in Italy, partly because of the sort of large penetration of bottled water in Italy. What gives you the confidence now that you can really narrow that gap? Is it the data capabilities you have or something else?

Yes. I mean let me start by saying last year alone, we grew per capita [ initially ] by 8%. So we had a big jump up already. We -- everything that I kind of presented there about the use of data, the marketing programs that we've put together, the incremental outlet coverage, particularly driving the meals occasion, this is a real strong catalyst. So the pizza plan definitely worked very well, but we know that the lunchtime occasion, where we only have half the consumption of the evening occasion, when you aggregate it up, it's absolutely a huge opportunity. So we're very focused on capturing that as well. And we see strong proof points already in terms of the per capita expansion in '22 already.

Andrea, something here. The important person in the room also is the Philippine, who is the counterpart of Frank from The Coca-Cola Company side. So our confidence comes here also from the fact how we together approach, understanding of consumer, what Manos was talking about the understanding what are really the -- what Frank just mentioned and then how we blend that together. So that really gives us huge confidence that it's a momentum that we know that we are doing the right things behind the right opportunities that will drive tangible impact.

Let's pass the microphone to Robert. Thank you very much, Andrea.

Robert Ottenstein, Evercore ISI. I want to follow up with Frank, another question on Italy. I think you said that you in, was it a few years, had increased the number of customers by 45,000. Is that right?

Correct? Yes, right.

That sounds like a really big number and you've been in Italy a long time. So could you give us a little bit of a sense of how it could be that there were 45,000 customers that you weren't serving, and then specifically what you've done to bring on an incremental 45,000, which again, seems like a large number?

Yes. Look, it's a large number in a large country as well. So one of the opening comments I made about Italy is that there's over 330,000 out-of-home outlets in Italy. And clearly, there was an amount of those outlets that we were calling on, but we saw the opportunity to significantly expand the coverage, which is what we've done over the last 2 years. But there's still a large surface of outlets out there.

And I think what we can add there is that pandemic also reset the base. And Italy being a big country, obviously, had a lot of this resetting. So this, combined with what Frank mentioned plus the segmentation when it comes to execution, popped up incremental opportunities.

And Robert, that doesn't mean those customers' outlets were dry. They were served by a network of distributors. When Frank presented that we added 200 salespeople almost exclusively behind out-of-home channel, that means that we created capacity to now call on those customers and outlets, which were previously served by someone else, among other products, with this product focus, attention, relationships, prospecting everything. So that makes a quality difference.

It sounds like it...

Robert, can you use the microphone, please? Sorry.

Was it then the additional sales people was the key lever to get the increased reach?

Yes, it makes a combination of many things, big a part is that. Plus obviously, targeted actions and pulling opportunities in those outlets in the full portfolio of NARTD.

And the 300,000, is that the entire opportunity set in Italy?

Yes. Yes, it is. Yes.

And how -- and what percentage of that is still to go in terms of what percentage of that do you not call on?

Yes. Well, look, there's 2 things. I mean there's a piece here about the volume-weighted element of this, so how much of the opportunities are out there. We're capturing a much bigger amount of the opportunities that are there. There's a long tale of outlets where it may not make sense for us to call on at all. So I would say that we're already capturing quite a large chunk of the opportunities.

Excellent. Let's take the next question from...

Olivier Nicolai from Goldman Sachs. A couple of questions. First, can you talk about how categories like coffee and energy will impact your margin and ROIC over time? Essentially, how much do you expect from these categories in your medium-term guidance? That's the first question. And then just following up on one of your previous comments about input cost inflation, which is fitting. Do you expect much pushback from retailers on pricing towards year-end and next year back about?