PowerPoint Presentation

[Audio] Good morning everyone. We are here today to discuss the joint business plan that our two companies, Swire Coca Cola and 7-Eleven, have put together. The aim of this plan is to increase sales in the beverage category by 12% in 2024. We appreciate you taking the time to join us as we review the details of this important plan..

[Audio] We aim to bring our expertise in beverages to the table and work together to create a dynamic, innovative and profitable business plan to expand the beverage market at this Joint Business Plan Meeting. Our goal is to use this meeting to define our strategy for the upcoming year, to ensure every detail is addressed and everyone is on the same page. We anticipate an engaging and fruitful dialogue..

[Audio] We are moving forward into 2024 and I'm pleased to give a joint business plan between Swire Coca-Cola and 7-Eleven. This plan will take a look at the value that we will provide to our customers, what will make us profitable, and how we will promote, place, and stock our products. We will also review the outline of the plan and what our next steps will be. To make sure that we understand the plan and our options best, we will be trying some of our products during this meeting..

[Audio] As we near the commencement of the 2024 Joint Business Plan Meeting, let us not forget why we gather today. We will assess the successes and difficulties of the preceding year and deliberate over methods to construct a profitable future. We have a unique chance to analyze our business from a strategic viewpoint and to devise inventive and groundbreaking ideas to promote our advancement. I am convinced that with our collective effort a plan of success can be crafted. Let us start!.

[Audio] SCCHK and 7-Eleven have collaborated to capitalise on successes achieved in the past 3 years, and maximise potential for 2024. A range of initiatives have been implemented such as 'Concept Store 2.0', 'BMW Labelless Prelaunch', 'DFI x BMW Collaboration' and the 'ATH Reformulation', which have helped to maintain our market advantage. Increased shipment sales YTD Sep 2023 reflect the success of our efforts thus far. Our aim for the future is to further capitalise on these successes and achieve even greater goals..

[Audio] As we can see from this slide, the growth of the CVS channel's sales value and volume is quite impressive. YTD Sep 2023 saw the sales value increase by 14% while the sales volume grew by a significant 12%. Additionally, the overall performance exceed that of the total Key Accounts by 10%. This is a very promising development for our 2024 joint business plan..

[Audio] As we near the end of 2023, our joint business plan for the year 2024 is underway. Our shipment sales data shows that 7-Eleven has performed better than the total CVS channel in terms of decline. It has contributed 27% of total 7-Eleven shipment and 22% of ATH. We are confident of achieving a steady recovery and aligning with the total CVS growth. By looking at the key package data for 2023 YTD September versus last year, we can see that 7-Eleven vs Total CVS, there has been a slight 3% decline in sparkling 330mL tall can, while there has been an 8% increase in 888mL PET and 36% increase in others. Total still saw an 25% increase in ATH, 47% in Bonaqua, 46% in KKD, 28% in Monster, 29% in Nescafe, -15% in Nestea, and a -4% decline in the grand total..

[Audio] As we look to 2024, our goal is clear - to return with a +12% increase in Gross Sales Volume. We have identified four key categories for expansion across our range of products - packaged water, energy & sport drinks, juice & milk, & coffee & tea. Specifically, we plan to increase our Gross Sales Volume by $81M in packaged water, $65M in energy & sport drinks, $30M in juice & milk, and $66M in coffee & tea. Altogether, this would represent a $562M increase in Gross Sales Volume for the year 2024..

Swire Coca-Cola x 7-Eleven 2024 Joint Business Plan Meeting.

[Audio] At the joint business plan meeting, it's clear that the focus is on delivering value. As such, 7-Eleven and Swire Coca-Cola have crafted an agreement that ensures mutual benefit for all involved. It is a well-thought-out plan meant to maximize customer satisfaction and generate profits while still keeping the risk to a minimum. With this agreement, both companies can look forward to a successful 2024..

[Audio] Expectations are high for Hong Kong's steady recovery in sales and GDP growth in the upcoming year at the 2024 Joint Business Plan Meeting, with a projected unemployment rate of 3.3% and a labor force participation rate of 58.6%. Visitor arrivals are also expected to be healthy at 40000, while the value index of retail sales is expected to reach 4M HKD. We are confident that the city will have a successful year ahead..

[Audio] Technology-enabled shopping is set to revolutionize the way we shop and pay, with apps and cashless payment becoming ubiquitous. It is of paramount importance that we recognize our responsibility to support sustainability, such as with the Bonaqua rPET and extension of Shell's sPET. Additionally, celebrating the indigenous culture of Hong Kong should also play an integral role in our strategy. Incorporating local favorites such as 7-Eleven x SCCHK, and creating an Instagram-worthy experience from the 7cafe+ BAR pop-up could contribute to building a thriving community. Recent survey findings from Hong Kong's Census and Statistics Department suggest that mobile payments are now the most popular payment method for in-store purchases, with over 77% of respondents making purchases with their phones. As we move towards 2024, it is crucial that we recognize these consumer trends and act on them appropriately to ensure our continued success..

[Audio] From this slide, it is evident that NARTD is highly influential in customer journeys, with an incidence rate of 95%. Furthermore, our research shows that sparkling beverages are the top category that motivates 36% of shoppers to make a trip to the store. Despite Hong Kong's per-capita consumption of NARTD standing at just 63.6L per year, there is a potential value of 1.7 billion that can be tapped. To maximize this growth potential, let us brainstorm ideas to increase NARTD consumption..

[Audio] Seeing that Enhanced Water/Functional Water, Flavored Water, and Energy Drinks make up 56% of the NARTD Market in the first half of 2023, it is critical that our joint business plan takes into consideration these successful categories and how to gain more from them for our future benefit..

[Audio] As we approach 2024, the Joint Business Plan Meeting serves as an opportunity to evaluate what steps will guide us to common goals. Our partnership has already brought great success and this meeting is a chance to consider how to capitalize on current achievements and devise a strategy for future growth. We will examine new avenues of profitability and market visibility, as well as methods to maximize operational efficiency and profitability. This meeting will form the basis for our relationship and collaboration going forward. Let's maximize this opportunity!.

[Audio] The partnership between Swire Coca-Cola and 7-Eleven has been successful, with a 12% growth in the IPD in the last year, and expectations of an even better performance in 2024. Our priority is to make 7-Eleven a go-to destination for high-quality and convenient food options, adding fun and excitement, while still providing competitive and profitable products and pricing strategies that meet the dietary needs and trends of our customers. We must also remain committed to our corporate social responsibility goals, including initiatives surrounding environmental sustainability and charitable campaigns. These strategies will help us to achieve success and surpass our growth goals in the upcoming year..

[Audio] At the Swire Coca-Cola x 7-Eleven 2024 Joint Business Plan Meeting, we are confident that we have thoroughly prepared our confidential assortment summary. We have conducted a thorough examination of the number of SKUs store coverage to ensure our success. We will strive to reach 95% and 90% store coverage for certain items, including Outside Home and Away, Minute Maid, Coca-Cola No Sugar, Schweppes Sparkling Water, Nestea, Nescafe, Aquarius, Hi-C and Bonaqua Mineralized Water. We have also provided navigation enhancement support to ensure our customers can easily access our products and trigger sales. We anticipate observing the results of this meeting in the upcoming year..

[Audio] We will be discussing our joint business plan for 2024 for Swire Coca-Cola and 7-Eleven. Our aim is to maximize our revenues within the constraints of our allotted resources. We will focus on our assortment summary to take advantage of our sources. Specifically, we plan to maximize the size of our prize in the unsweetened tea category and prioritize Kochakaden to improve our sweetened tea category revenue support. Moreover, we plan to capture the growth engine of energy category support. Let us discuss how we can achieve maximal success in our business plan..

[Audio] Our analysis shows an estimated total revenue of 73,912 dollars per day across all promotions, with estimated total revenues per promotion of 369,560, 49,926, and 45,211 dollars respectively. We have identified the key factors contributing to the success of the promotion and gained valuable industry insight and promotion analysis. This has enabled us to engage in collaborative learning and optimize our strategy further..

[Audio] Without the greetings, beginning with "Today" and thanks, the text would read: "From this slide, our joint business plan meeting in 2024 will benefit from a locked price strategy for 920mL LPET. Assessing the efficacy of the locked price strategy and understanding the market landscape will drive profitability and maximize revenue with optimal pricing levels. We should also consider the potential SKU for a locked price in 2024 - $15 - to remain competitive and successful..

[Audio] Our analysis based on YTD Aug 2023 data from Nielsen Retail Sales shows that the demand for no sugar soft drinks is on the rise. To meet this demand, Swire Coca-Cola and 7-Eleven have collaborated to develop a joint business plan. Sales volume and sales value ofSCCHK's 0.8L to 1.5L have increased by 4.8% and 4.6%, respectively. Data also suggests that store coverage for Coke No Sugar 888mL could reach 90% by expanding distribution. Thank you for listening to this presentation..