Standard

Cornelia Folz

Manager Environment – Coca-Cola Erfrischungsgetränke AG

From Central Energy Management to 23 Plants

In a nutshell

„Coca-Cola with the same quality, taste and

packaging should be available within arm‘s reach to

everyone on earth.“

Robert W. Woodruff, President of The Coca-Cola Company, 1923

ME – WE – WORLD

Well being

• information

• Marketing

• Active lifestyle

Social

• women

• Community

• Work life rights

Environment

• Water

• Carbon

• agriculture

The Coca-Cola Company (TCCC)

• Principal offices: Atlanta, Georgia, USA

• Licensor

• Owner of trademark rights to over 500

beverage brands

• Responsible for the development of

trademarks, products and packaging

• Supply of concentrate

Divisions of TCCC in Germany:

Coca-Cola GmbH

• TCCC representative in every country

• Licensor

• ‚Trademark guardian‘

• National marketing programs

• Development of products and packaging

The bottler in Germany:

Coca-Cola Erfrischungsgetränke AG

• Agreement with TCCC

• Licensee

• Right to produce TCCC products

• Sales in a specific territory

• Operative marketing

Success factor bottling system

CCEAG – complex network ensures German

refreshment

in total 66 sites

about 10.000 employees

23 Production plants including 3 springs

43 other sites

(Warehouse, Sales & distribution, CDS)

7 sales & distribution areas:

Ost / Nord / Nord-West / Südwest /

Rheinland / Bayern / Baden – Württemberg

Photo credit: NASA

Carbon Management and Energy Management

Packaging Manufacturing CDS Ingredients Fleet

25% 18% 16% 2% 39%

0% 86 % 14% 0% Energy

CO²e

• leakage

• heat lost

• compressed air wastage

• to high temperature

• …

From lagging and firefighting

Optimized compressors

Insulated pipes

….

to leading

Film

https://www.youtube.com/watch?v=gx4UF

B0XBGw

plant performance with productivity improvements,

cost reduction, and environmental gains

1. Create behavior in the organization to continuously improve energy and water efficiencies.

2. Reduce the specific energy and water use ratios and deliver against sustainability objectives.

3. Move from a net resource consumer to one that restore and replenishes the world – zero based world

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Our mindset in the HQ

Must have‘s

The first prerequisite of being successful here is that you work as a

crossfuntional system.

Second, it’s got to be embedded in the business plan.

Third, you’ve got to have the right metrics around it; it’s got to be

measurable.

And then it’s got to be beneficial from a financial perspective.

What we did in the past and do now

Shape and Share the Vision

Establish a cross functional team consisting of

Environment, Engineering, Finance and Operations.

Start with plants which pull not push

Agree on vision

Build the Plan

Identify focus areas and select plants for initial phase

Identify SMEs to lead focus areas

Build and communicate implementation plan (kick-off

meeting)

Implement and Sustain

Implement, track progress & follow up

Communicate (quick) wins

Standard routines for project management

Best practices, Top 10 Energy

Saving Initiatives, Water Saver,

Energy Saver, BIG Must Do Lists,

Commitments, Priorities,

Resources

?

Proper Project Management helps to create URGENCY and

to stay ON COURSE to deliver

Shifting the Worry Curve

Past Projects: • No long term result

• No behavior change

Clear Project Charter with … • Scope: what‘s in, what‘s out

• Challenging timeline

• Budget allocation

Project Management Office • Gate keeper and funding

• Monitoring and weekly reporting

• Escalation routine

Performance and Planning • Time: schedule for individual actions

• Cost budget allocation and ROI prioritization

• Quality: meet WUR & EUR goals SUCCESS

Execution • Cross functional team structure with external

SMEs

• Plant owns execution

CHANGE

Results

Implementation of ISO 50001

2012 start with central Management System and 3 Pilot Plants including

certification

2013 implementation and certification of all 23 plant

2014 sustain und fix the basics of energy saving

2015 legal entity

What did we decide from a central point of view to improve

the plant

Process Utilities & Others

Beverage Production

Packing

Water Treatment

Boiler

SKU Portfolio

Filling

Washing

Waste Water

CIP

Compressed Air

Energy

Water Conveyor Lubrication

Water & Energy Cost

5 top focus areas:

- Compressed air

- Boiler

- Washing

machine

- CIP

- Water treatment

Example Boiler: huge potential

Example plant 1:

Annual saving: 69,000 EUR

Investment: 187,500

Payback: 2.7 years

Example plant 2:

Annual saving: 61,500 EUR

Investment: 84,000

Payback: 1.4 years

Saving Potential:

4-6% fuel for heating

30-75% electrical energy for operating the

boiler/heating system

Example compressed air leak: low investment, high return

EUR plant 3

Air Leak Elimination

Cost Saving 67,000 EUR

The learning from our project shows that there are a

few basics to be successful ...

• Visible top management commitment (demonstrate relevance, purpose and create

sense urgency)

• Cross functional team with finance makes the difference

• Central project coordination with local lead keeps focus

• Local accountability at operational level

• Watch out for the basics in energy and water use and go for the big fish

• Data transparency drives behavior

• Watch out for the unintended consequences

• Weekly follow up call keeps up the „worry curve“ (short, 15 -30 minutes)

• Create minimum performance levels for certain KBIs (e.g. demand of compressed air

during weekends)