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PRODUCT AGE

CONTROL

YOUR IMPACT

ON

QUALITY

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FRESH”FRESH”Product Quality December 2006Product Quality December 200612 month sales weighted12 month sales weighted

11% of all PET has low carbonation

125 samples of PET in last 12 months

Coca-Cola Light 5% has off-taste (low aspartame)

18 samples of Coca-Cola Light in last 12 months

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Keep me with care…

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Quality MeasuresQuality Measures

Specifications based on Consumer Specifications based on Consumer Perception – People can tell the differencePerception – People can tell the difference

When is PET flat? – 15% of CO2 lostWhen is PET flat? – 15% of CO2 lost

When do Light Products taste bad? – 30% When do Light Products taste bad? – 30% of aspartame goneof aspartame gone

How Do We Decide?How Do We Decide?

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We need to ensure thatWe need to ensure that our products are: our products are:

““ALWAYS FRESH”ALWAYS FRESH”

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As with most Food Products our Soft As with most Food Products our Soft Drinks have a “Drinks have a “Best TasteBest Taste” time” time

We call this time the We call this time the Shelf LifeShelf Life

PETPET and and Light Light Products have a Products have a ShorterShorter Shelf Life Shelf Life than other Productsthan other Products

Why Fresh Product?Why Fresh Product?

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What shortens Shelf What shortens Shelf Life?Life?

Storing for Storing for Too LongToo Long

Storing in Storing in Warm or HotWarm or Hot places places

AllAll Soft Drinks are affected by Soft Drinks are affected by Time and Time and TemperatureTemperature, but , but PETPET and and LightLight drinks are affected drinks are affected moremore

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Best shelf life starts…

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FRESH”FRESH” WHAT IS THE EFFECT?

HEAT

PET = FLAT PRODUCT!

TIME

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FRESH”FRESH” PET = FLAT PRODUCT! WHY?

PET is like a very fine mesh that allows carbon dioxide gas to pass through (the gas goes out not because of the pressure in the bottle).

The smaller the bottle the more of the product is in contact with the surface of the bottle, (relatively), and the gas is lost faster.

The higher the pressure in the bottle the faster the gas is lost:

Coca-Cola, Sprite: high carbonation

Fanta: lower carbonation

Higher temperature = higher pressure in the bottle

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FRESH”FRESH” WHAT IS THE EFFECT?

HEAT

LIGHT PRODUCTS = BAD TASTE!

TIME

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FRESH”FRESH” LIGHT PRODUCTS = BAD TASTE! WHY?

Light products do not contain sugar.

Light products contain artificial sweeteners:

Aspartame & Acesulphame-K (Ace-K)

The mixture is used to simulate the taste of sugar, Ace-K on its own does not taste right.

Aspartame degrades / breaks down over time.

The degradation is accelerated by heat.

When 30% of the aspartame has degraded the product is noticeably less sweet, becomes bitter.

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FRESH”FRESH” Mum/Dad, this drink tastes bad!

Just leave it.

I won’t buy that brand again!

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PoorQuality

Unhappy consumers

The Cost of Poor QualityThe Cost of Poor Quality

==

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The Cost of Poor QualityThe Cost of Poor Quality

It has been established that each person who is unhappy about a Coca-Cola product will tell approximately 50 other people.

Especially if they cannot easily contact the Company …

Of these 50 half will change brand…

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Time & Temperature…

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Time and Temperature Time and Temperature are our Enemies!are our Enemies!

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Reduce the time & temperature effects…

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FRESH”FRESH” We need to:We need to:

Get our products to our Get our products to our consumers in the consumers in the ShortestShortest possible timepossible time

Keep our products as Keep our products as Cool Cool as possible at all timesas possible at all times

Reduce the effectsReduce the effects of Time and Temperatureof Time and Temperature

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How can we reduce the How can we reduce the effectseffects

of of Time and Temperature ?Time and Temperature ?

We need to UNDERSTAND the We need to UNDERSTAND the Product Product

SHELFLIFE!SHELFLIFE!

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FRESH”FRESH” Understanding Shelf life…

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PRODUCTION DATE

SHELFLIFE IS DETERMINED

BY ADDING THE AGE

STANDARD TO THIS DATE

EXPIRY DATE

AS FOR LEGAL

REQUIREMENTS AND

EQUAL TO COMPETITION

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FRESH”FRESH” Understanding Shelf life…

PRODUCTION DATE + AGE STANDARD = SHELFLIFE

LESS THAN AGE STANDARD = BEST QUALITY PRODUCT

AGE STANDARDS IN THE REGION

PET 1.5 / 2.25 liter - 60 DAYS

300 / 500ml PET - 45 DAYS

LIGHT PRODUCTS - 60 DAYS

ALL CANS AND NRB’S - 180 DAYS

Product which is older than the shelf life might

not be saleable!

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What can I do?

The 3 steps to Quality

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FRESH”FRESH” Step1 - BEAT THE HEAT

Use curtains for extra protection

Loaded trucks to be parked in shade

Undelivered stock to be stored inside,

and used first

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FRESH”FRESH” Step1 - BEAT THE HEAT

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Step1 - BEAT THE HEAT

Light/PET is stored in the coolest part of the warehouse

Light/PET is stored away from hot walls, ceilings or

direct heat sources (3 meters space)

Light/PET is not stored in direct sunlight

Avoid repacking of product at high temperatures

(reduce the temperature of the shrinkwrapper)

WAREHOUSE

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Step1 - BEAT THE HEAT

Transport long haul at night

Use curtains for extra protection

Loaded trucks to be parked in shade

Undelivered stock to be stored inside, and used first

WAREHOUSE

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Step1 - BEAT THE HEAT

Keep product away from sources of heat

Keep product out of direct sunlight

Keep product in cooler where possible

Ensure customer understands heat issues

Market

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““ALWAYALWAYS S

FRESH”FRESH” Step 2 - WATCH THE DATES

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““ALWAYALWAYS S

FRESH”FRESH” Step 2 - WATCH THE DATES

All PET/Light shipped to depots/warehouses within 10 days of production

All PET/Light distributed to customers within 30 days of production

All product past the above dates identified as “critical”

Light above 60 days is not saleable and should not be distributed

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Step 2 - WATCH THE DATES

PET/Light product older than 30 days from production is identified as

“critical” (MOVE IT THROUGH FAST MOVING CHANNELS)

Light product older than 60 days from production is not saleable and

must be returned for destruction

PET product older than 60 days from production MIGHT not be

saleable and must be returned for destruction / testing.

500ml PET product older than 45 days from production MIGHT not be

saleable and must be returned for destruction / testing.

NRB/Cans older than 180 days from production are not saleable and must

be returned for destruction

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FRESH”FRESH” Step 3 - Move it ON!

Carry out a weekly check on the stock age and act according

to age guidelines

Ensure that all stock carries a DATE OF PRODUCTION card

Operate the FIFO System (First in, First out)

Space left between rows (for counting and rotation)

Product for destruction is in “Isolated/marked Area”

WAREHOUSE

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Step 3 - Move it ON!

Product with oldest date ready to move from storeroom

Ensure 1.5 times stock order rule applies

Rotate product on shelves - FIFO (First in, First out)

Ensure customer understands rotation system

No stock-piling

Market

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Don’t keep me in the SUN

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I am always in use…

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Carry me with care…