We are going further
together by combining
the strength and scale
of our large multinational
business with an expert,
local knowledge of the
customers we serve and
communities we support.
Our success is built on
three pillars: great
people, great service
and great beverages.
All done sustainably.
None of the websites referred to in this Annual Report on Form 20-F for the year ended 31 December 2022
(the Form 20-F), including where a link is provided, nor any of the information contained on such websites,
are incorporated by reference in the Form 20-F.
Coca-Cola Europacific Partners plc Registered in England & Wales, Company number 09717350
In this year’s report
Strategic Report
Financial Statements
1
2
5
6
8
10
14
18
20
21
26
28
38
42
46
49
53
56
58
64
72
73
74
Who we are
Our portfolio
Our operations
Our business model
Performance indicators
Chairman and CEO in conversation
Our stakeholders
Section 172(1) statement from the Directors
Our market drivers
Our strategy
Taking action on sustainability
Task Force on Climate-related Financial
Disclosures (TCFD)
Forward on climate
Forward on packaging
Forward on water
Forward on supply chain
Forward on drinks
Forward on society – communities
Forward on society – people
Principal risks
Viability statement
Non-financial and sustainability
information statement
Business and financial review
Governance and Directors’ Report
87
88
89
94
97
108
109
111
112
117
118
119
119
121
122
130
141
144
Chairman’s introduction
Board of Directors
Directors’ biographies
Senior management
Corporate governance report
Nomination Committee Chairman’s letter
Nomination Committee report
Audit Committee Chairman’s letter
Audit Committee report
ESG Committee Chairman’s letter
ESG Committee report
Directors’ remuneration report
Statement from the Remuneration
Committee Chairman
Remuneration at a glance
Remuneration policy
Annual report on remuneration
Directors’ report
Directors’ responsibilities statement
146
160
165
213
217
O
Independent auditor’s reports
Consolidated financial statements
Notes to the consolidated financial
statements
Company financial statements
Notes to the Company financial statements
Other Information
223
230
245
247
248
249
253
257
258
Risk factors
Other Group information
Form 20-F table of cross references
Exhibits
Signatures
Sustainability key performance data
summary
Glossary
Useful addresses
Forward-looking statements
Visit our online Integrated Report
at cocacolaep.com/investors/financial-
reports-and-results/latest-integrated-
report
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
1
Who we are
Coca-Cola Europacific Partners
is one of the world’s leading
consumer goods companies
– making, moving and selling
some of the world’s most
loved brands.
We serve the world’s best
brands to millions of people,
businesses and communities
every day.
Everything we do is built on
three strategic pillars: great
people, great service and
great beverages. Done
sustainably, for a better
shared future.
And our success is defined
by the passion, hard work
and commitment of the
33,000 people who work here
at Coca-Cola Europacific
Partners (CCEP).
Revenue
€17.3bn
Europe
€13.5bn
API
€3.8bn
Comparable operating profit(A)
Adjusted free cash flow(A)
Climate
€2.1bn
€1.8bn
Europe
€1,670m
API
€468m
Packaging
48.5%
% of PET used that is recycled PET (rPET)
9.4%
Absolute reduction in total value chain
GHG emissions (Scope 1, 2, 3) since 2019(B)
Read more about our financial and
sustainability performance indicators
on pages 8-9
(A) Comparable operating profit and adjusted free cash flow are non-GAAP performance measures. Refer to ‘Note regarding the presentation of pro forma financial information and alternative performance measures’ on pages 74-75 for the definition of our non-
GAAP performance measures and to pages 75-85 for a reconciliation of reported to comparable and reported to adjusted results. Adjusted free cash flow excludes cash proceeds related to historical VAT dispute refund in Spain.
(B) The Acquisition of API completed on 10 May 2021. GHG metric is calculated on a full year pro forma basis for 2019 baseline to allow for better period over period comparability.
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2022 Integrated Report and Form 20-F
2
Our portfolio
Great brands, innovation and value for customers
We work with our partners to offer
consumers a wide range of quality
drinks for every taste and occasion.
We continue to expand our portfolio
by growing our core brands, while
launching and scaling new products
in categories like alcohol and coffee.
Our frontline sales force deliver
execution and activation of our
brands to support and create value
for our customers throughout
the year.
We are reducing the environmental
impact of our manufacturing,
distribution and packaging, as well
as delivering on our commitment
to reduce sugar across our
portfolio and offering more
no or low-calorie drinks.
2022 volume by brand category
Coca-Cola®
Our Coca-Cola brands come in a
range of flavours and a great
choice of packs, with or without
sugar.
More flavours and innovation
In 2022, we provided even more flavour
extensions and innovation with a number of
limited editions including Coca-Cola
Intergalactic; Marshmello’s Limited Edition
Coca-Cola; and Coca-Cola Dreamworld.
World-renowned supermodel Kate Moss was
named as Diet Coke’s Creative Director,
revealing the highly anticipated creative
partnership – Diet Coke by Kate Moss, ‘Love
What You Love’ – celebrating 40 years of
Diet Coke and delivering exciting activation.
We also marked the FIFA World Cup 2022
with promotions, limited edition pack
designs and in store displays across our
channels. This activity focused on
attracting consumers and engaging fans
across our markets.
We ended the year with engaging
Christmas campaigns and promotions to
mark the holiday season, which is an
important selling moment for CCEP.
2022 key product
Coca-Cola Zero Sugar
continued to perform in
2022 and saw volume
growth of
+10.0%
2022 volume performance by category
Coca-Cola
trademark
Flavours, mixers
and energy
+8.0%
+11.5%
Hydration
RTD tea, RTD coffee,
juices and other
+16.0%
+7.0%
1 Coca-Cola
2 Flavours, mixers and energy
3 RTD tea, coffee, juices and other
4 Hydration
58.5%
26.0%
8.0%
7.5%
See our portfolio
cocacolaep.com/about-us/products
All references to volumes are on a pro forma comparable basis. All changes are versus 2021 equivalent period unless stated otherwise. Non-GAAP performance measure. Refer to ‘Note regarding the presentation of pro forma financial information and alternative
performance measures’ on pages 74-75 for the definition of our non-GAAP performance measures and to pages 75-85 for a reconciliation of reported to comparable results and reported to pro forma comparable results.
1234
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3
Our portfolio continued
Great brands, innovation and value for customers
Flavours, mixers and energy
RTD tea, coffee, juices and other
Our flavours, mixers and energy
category is driving growth for
our business and providing a
range of great tasting drinks for
consumers.
2022 energy volume
Volume growth
supported by solid
distribution and
exciting innovation
including Juiced and
Ultra flavour extensions
from Monster.
+18.5%
New flavours, more no and low-calorie
options, and engaging activation
In partnership with Monster Energy, we
launched the new Monster Reserve range
with two new variants – White Pineapple
and Watermelon – joining the traditional
Monster energy range.
Fanta continued to grow, as we launched
new flavours, such as Fanta Raspberry, and
the brand celebrated Halloween, supported
by marketing, promotions and in store and
online execution. For the first time Fanta
Lemon, Fanta Fruit Twist Zero, Fanta Grape
Zero, and Fanta Raspberry Zero were
included in the brand’s Halloween activity.
What The Fanta Zero Sugar returned with
a new colour and mystery flavour. It was
supported by on and off shelf execution.
Sprite launched a major brand refresh along
with its first ever global brand platform
‘Heat Happens’, to help provide a consistent
consumer experience around the world.
New Sprite Lemon+ launched, offering an
extra hit of zesty lemon flavour, sharp fizz
and a kick of caffeine, providing an enticing
new option for consumers.
Ready to drink (RTD) remains an
important category for our
business, with ongoing innovation,
and quality brands introduced to
new markets.
Value share growth for Fuze Tea
In 2022, Fuze Tea continued to be an
important part of our portfolio, with
further value share gains in Europe.
In Indonesia, we introduced new Frestea
Nusantara Original Jasmine Tea, an
authentic home brewed tea.
Hydration
2022 key product
Fuze Tea saw solid
volume growth in
Europe
+28.0%
Category growth following
restrictions lifting
Our hydration category provides consumers
with a range of beverage choices for any
occasion – when on the move, at home or in
the gym, for example. It includes waters,
flavoured waters, functional waters and
isotonic drinks.
Water volumes were up 13.5% vs 2021
reflecting its exposure to immediate
consumption across both channels, with
the rebound of the away from home
channel and increased mobility. Sports
drinks volumes were up 23.0% and continue
to be popular in both Europe and API.
All references to volumes are on a pro forma comparable basis. All changes are versus 2021 equivalent period unless stated otherwise. Non-GAAP performance measure. Refer to ‘Note regarding the presentation of pro forma financial information and alternative
performance measures’ on pages 74-75 for the definition of our non-GAAP performance measures and to pages 75-85 for a reconciliation of reported to comparable results and reported to pro forma comparable results.
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2022 Integrated Report and Form 20-F
4
Going further
on refillables
CASE STUDY
Refillable glass bottles
Our strategy for prioritising returnable glass bottles
(RGB) in the hotels, restaurants and cafés (HoReCa)
channel in France, now aligns with the approach we have
established in Belgium, Germany, Luxembourg, the
Netherlands and Spain. We are now offering all our
brands in RGB in the HoReCa channel in France, using a
deposit system. This major step forward replaces single
use glass bottles with new bottles that can be refilled up
to 25 times, saving energy and raw materials.
This move will reduce our carbon footprint because a
RGB can have GHG emissions three times lower than a
single use glass bottle. The universal format also allows
outlets and wholesalers to manage bottle returns easier.
Packaging accounts for 38% of our total value chain
emissions. This project is a significant milestone towards
reducing the carbon footprint of our packaging.
Highlights
x25
refills
Our new RGB can be
refilled up to 25 times.
~160k
outlets
Approximately
160,000 hotels, restaurants
and cafés in France will
now have the opportunity
to receive all our
beverages in RGB.
Find out more at cocacolaep.com/annual-report/case-study/
refillable-glass-bottles
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2022 Integrated Report and Form 20-F
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Our operations
Remaining close
to our customers,
communities and
stakeholders gives
us unique
knowledge of our
markets, enabling
us to provide
great service and
great beverages,
sustainably.
Our markets
Location of our shared
service centres
Region
Europe
Revenue by
geography(A) Employees(B)
Production
facilities
Iberia (Spain, Portugal and Andorra)
17.5%
3,938
Germany
Great Britain
France and Monaco
Belgium and Luxembourg
Netherlands
Norway
Sweden
Iceland
Bulgaria(c)
15.5%
6,591
18.0%
3,419
12.0%
2,516
6.0%
4.0%
2.0%
2.5%
0.5%
—
2,116
795
558
740
176
1,025
Australia, Pacific and Indonesia (API)
Australia
New Zealand and Pacific Islands
Indonesia and Papua New Guinea
13.5%
3,621
4.0%
4.5%
1,846
5,954
(A) Revenue shown is percentage of total reported revenue as at 31 December 2022.
(B) Number shown is number of employees as at 31 December 2022.
(C) Shared service centres.
11
16
5
5
3
1
1
1
2
—
13
12
11
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2022 Integrated Report and Form 20-F
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Our business model
How we do what we do
From developing close relationships with TCCC and
other franchisors and sourcing raw materials, to making
and distributing great tasting drinks, our great people
deliver great service, great beverages, done sustainably.
Associated risks
Read more about
our risks and
mitigations on
pages 64-71
1
2
3
4
5
6
7
Packaging
Legal, regulatory and tax
Business disruption
Cyber, social engineering and IT
Economic and political conditions
Market
Climate change and water
8
9
10
11
12
Perceived health impact of
beverages & customer buying trends
Business transformation & integration
People and wellbeing
Relationships with TCCC and other
franchisors
Product quality
Great people
Great service
We partner
We source
We make
Great beverages
Done sustainably
We operate under bottler
agreements with TCCC and
other franchisors, and purchase
the concentrates, beverage
bases and syrups to make,
sell and distribute packaged
beverages to our customers
and vending partners.
We use ingredients such as water,
sugar, coffee, juices and syrup to
make our drinks. We also rely on
materials like glass, aluminium,
PET, pulp and paper to produce
packaging. On average in 2022,
85% of spend was with suppliers
based in our countries of operation.
Our production facilities make
and bottle our wide range
of drinks. Over 90% of the
drinks we sell are produced in
the country in which they are
consumed.
Associated risks: 3 4 7 9 10 12
Associated risks: 2 8 9 11
Associated risks: 1 3 4 7 12
Forward
on climate
Forward
on packaging
Forward
on water
Forward
on supply chain
Forward
on drinks
Forward
on society
For a better shared future
Creating value and driving sustainable
returns for all our stakeholders
We recycle
Although 99%(A) of our bottles and
cans are recyclable, they don’t always
end up being recycled. That needs to
change. We’re determined to lead
the way towards a circular economy
for our packaging where, working
with partners, we encourage
packaging collection so that
materials are recycled and reused.
We sell
Our nearly 12,500 strong commercial
team works with a huge range of
customers, ranging from small local
shops, supermarkets and wholesalers
to restaurants, bars and sports
stadiums, so consumers can enjoy
our great products. We also provide
cold drink equipment (CDE) and
supply vending machines.
Associated risks: 1 2 7
(A) Europe only
Associated risks: 2 3 4 5 6 8 10
We distribute
We distribute our products to customers
and vending partners directly, by
working closely with logistics partners.
Associated risks: 1 3 6 10
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2022 Integrated Report and Form 20-F
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Going further
on simplification
CASE STUDY
Focusing on our core
We continued to focus on our core brands across our
broad pack offering which included the launch of a
number of strategic initiatives, including as part of the
API integration, to enable greater focus on non-alcoholic
RTD (NARTD) and alcoholic RTD (ARTD).
We significantly reduced the number of stock keeping
units (SKUs) we produce and sell in Indonesia, prioritising
sparkling and RTD tea for future growth.
Our leadership team said:
Peter West,
API General
Manager
“Portfolio, and portfolio
prioritisation, are key to
driving category growth.”
Damian
Gammell,
CEO
“Simplifying the portfolio also
enables us to run our production
lines more efficiently, and
ultimately to provide better
customer service.”
Find out more at cocacolaep.com/au/our-portfolio
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2022 Integrated Report and Form 20-F
8
Performance indicators
Financial
Revenue
Operating profit on a comparable basis
€17.3bn
€2.1bn
Revenue increased by 15.5% on a pro forma comparable
and foreign exchange (FX) neutral basis. This was driven
by a 9.5% increase in volume on a pro forma comparable
basis, reflecting the solid recovery of the away from home
(AFH) channel. In addition to fewer COVID-19 restrictions,
the return of travel and tourism, and favourable weather
in Europe also supported the recovery. Home occasion
trends continued to increase, leading to resilient demand
in the home channel, which contributed to the volume
growth.
Revenue per unit case increased by 6.0% on a pro forma
comparable and FX neutral basis, reflecting positive pack
and channel mix driven by the recovery of the AFH
channel, promotional optimisation and favourable
underlying price. Dynamic headline pricing strategies
were implemented across our markets in response to
unprecedented levels of inflation.
Comparable operating profit increased by 12.5% on a pro
forma comparable and FX neutral basis reflecting the
strong revenue growth, as well as the benefit of ongoing
efficiency programmes and discretionary spend
optimisation. Inflationary pressures, particularly on
commodities and gas and power, higher concentrate costs,
driven by the strong revenue per unit case growth, and
continued investment in our capabilities moderated the
growth in comparable operating profit.
Diluted earnings per share (EPS)
on a comparable basis
€3.39
Comparable diluted EPS increased by 13.0% on a pro forma
comparable and FX neutral basis driven by the increase in
comparable operating profit.
Adjusted free cash flow
€1.8bn
Solid adjusted free cash flow generation of €1.8bn,
reflecting strong trading performance, disciplined capital
expenditure and working capital improvement initiatives.
Europe (€m)
2022
2021
API (€m)
2022
3,791
2021 3,235
Europe (€m)
13,529
11,584
2022
2021
API (€m)
2022
468
2021
386
Return on invested capital (ROIC) (%)
1,670
9.1%
1,500
ROIC increased by 112 basis points on a pro forma basis to
9.1% driven by the increase in comparable operating profit
after tax, as we continued to focus on driving profitable
revenue growth, and capital allocation.
Comparable operating profit, comparable EPS, adjusted free cash flow and ROIC are non-GAAP performance measures. Comparative figures for API revenue and operating profit on a pro forma comparable basis. Refer to ‘Note regarding the presentation of pro
forma financial information and alternative performance measures’ on pages 74-75 for the definition of our non-GAAP performance measures and pages 75-85 for a reconciliation of reported to comparable and FX neutral, reported to pro forma comparable and
FX neutral, and reported to adjusted results. Adjusted free cash flow excludes cash proceeds related to historical VAT dispute refund in Spain.
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Performance indicators continued
Sustainability
Safety
Group: total incident rate
Number per 100 full time
equivalent employees
Climate
Water
0.87
Group: percentage greenhouse gas
(GHG) emissions reduction across
our entire value chain versus 2019 9.4%
Group: water replenished
as a percentage of total
sales volume
105.5%
Our target
Reduce our total incident
rate (TIR) to below 1 by 2025
We are working towards world class safety standards and
our Health, Safety and Mental Wellbeing policy is helping
to ensure we are adopting best practices.
Our target(A)
Reduce emissions across our
entire value chain by 30% by 2030
(versus 2019)
At the end of 2022, we submitted the short-term target
above and a long-term target to reach Net Zero by 2040
to the Science Based Targets initiative (SBTi) for their
approval. Both are absolute GHG emissions reduction
targets, covering Scope 1, 2 and 3 emissions across our
value chain.
Our target
Replenish 100% of water we use
in our beverages
Together with TCCC and The Coca-Cola Foundation
(TCCF), we have set up several replenishment
programmes across our territories in recent years. In 2022,
we managed 21 water replenishment projects in Europe
and 6 in API.
Drinks
Percentage sugar per litre reduction
Europe(B)
2022
2021
New Zealand(C)
2022
2021
Target
10% reduction by 2025 (versus 2019)
5.2%
5.6%
Target
20% reduction by 2025 (versus 2015)
15.9%
13.4%
Australia(C)
2022
2021
Indonesia(C)
2022
2021
Target
25% reduction by 2025 (versus 2015)
16.8%
14.9%
Target
35% reduction by 2025 (versus 2015)
31.6%
20.9%
Our target
Reduce sugar in our drinks
Packaging
Group: percentage of PET
used that is rPET
48.5%
Our target
50% recycled plastic in our
PET bottles by 2023 (Europe)
and 2025 (API)
In 2021, we achieved our European target four years
ahead of schedule(D). In 2022, we increased our use of
recycled PET (rPET) again, reaching 56.3%. In API 26.9%
of the plastic we used to make our PET bottles was rPET.
Note: All sustainability metrics were subject to external independent limited assurance by DNV for the year ended 31 December 2022. For details and 2022 basis of preparation, see cocacolaep.com/sustainability/download-centre/
(A) New Group wide commitment. We expect SBTi to complete its review by the end of 2023.This is in addition to the ~30% absolute reduction already achieved between 2010 and 2019 in Europe.
(B) Sparkling soft drinks, non-carbonated soft drinks and flavoured water only. Does not include water or juice.
(C) NARTD, including dairy. Does not include coffee, alcohol, beer or freestyle.
(D) In 2019, we announced enhanced packaging targets for Europe, bringing forward the deadline to use at least 50% rPET from 2025 to 2023. Since 2021, our rPET use in Europe has been >50%.
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Chairman and CEO
In conversation
Left:
Sol Daurella,
Chairman
Right:
Damian
Gammell,
CEO
Further
together
“We delivered great results in our first full year as
Coca-Cola Europacific Partners, creating value for
customers and shareholders as well as making great
progress against our sustainability commitments.”
Damian Gammell, CEO
How did CCEP perform in 2022
and what are you most proud of
in the year?
Damian: There are many achievements to
be proud of in 2022 but, as always, nothing
would have been possible without our great
people and so I would like to extend my
sincere gratitude to everyone at CCEP for
another year of incredible commitment
and hard work.
I am delighted with our financial
performance in 2022, achieving strong top
and bottom line growth, value share gains
and an impressive level of free cash flow.
Key to this was the continued recovery of
the AFH channel, supported by the return
of travel and tourism, a record Ramadan
period, and resilient demand in the home
channel. I am also extremely proud of the
way we successfully navigated various
supply chain challenges, ensuring our
products were available on shelf and online,
and maintaining our high levels of customer
service.
We also celebrated our first year as
Coca-Cola Europacific Partners in May, and
continued to make great progress against
our sustainability commitments – both of
which I’ll talk more about shortly. I am very
proud that we shared in all of our successes
with our retail customers, having delivered
more revenue growth for them than any of
our peers, highlighting the strength of our
customer relationships.
Sol: I am really proud of the progress we’ve
made in making CCEP a great place to
work. In our first full year as Coca-Cola
Europacific Partners, we have already
created a collaborative and inclusive
culture. We’ve invested in our people, their
safety and skills and are creating an
environment where everyone can share
their ideas and be empowered to
collaborate, win together and grow.
Through our close alignment with TCCC,
and thanks to our experienced leadership
team and Board, I am proud of our ability to
deliver consistent value for our customers
and shareholders, and to support our
communities.
What are your priorities and focus
areas for CCEP in 2023?
Damian: Despite the current dynamic
macroeconomic and inflationary
environment, we believe we are well placed
for 2023 and beyond. We operate within
robust and growing categories, with great
brands, that our consumers love. We will
continue to invest and innovate in these
brands and their packaging, supporting a
solid growth platform for our customers.
We will also continue to actively manage our
headline pricing and optimise our
promotions through smart and digitally led
revenue and margin growth management,
giving us confidence as we navigate
through uncertain times. And of course, our
people and our sustainability commitments
will continue to be key areas of focus.
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Chairman and CEO continued
In conversation
Sol: As we continue to face a highly uncertain
economic environment, it is clear we must
sharpen our focus on driving profitable
revenue growth and delivering best in class
customer service. The strength of our brands,
the great partnership with TCCC and our
leading capabilities give me confidence that
we will continue our consistent track record
in 2023.
What did you learn from the first year
as Coca-Cola Europacific Partners?
Damian: The more time I spend in our API
region, the more excited I get about the
opportunities ahead. The API business had a
fantastic 2022, with revenue and profit ahead
of 2019, and is moving ahead with its strategic
priorities at pace. In Australia, we have already
made good progress with the simplification of
our portfolio and a reduction in promotions.
We are sharing learnings and best practices in
both directions in areas such as IT
infrastructure and data analytics. There is so
much to learn from the teams in Australia and
New Zealand. They are really setting the
benchmark for world class execution.
And I’m even more excited about the
transformation opportunity in Indonesia, with
more focus on our core sparkling and tea
categories allowing us to manage our supply
chain more efficiently and deliver even better
service to our customers across key calendar
events like Ramadan. I am really pleased that in
February 2023 we announced the purchase of
TCCC’s 29.4% minority stake in our Indonesia
business, increasing CCEP’s ownership to 100%.
This now simplifies our ownership structure while
demonstrating our commitment to the future
of this market.
Sol: I’ve been very fortunate to join Damian
and the Board in visiting our API markets over
the last year, and the growth potential of these
regions is truly exciting. We have a strong track
record of creating value in developed markets
and we are applying these learnings to
Australia and New Zealand, while we are
already seeing great early results in Indonesia,
one of the world’s more populous and
attractive emerging markets. Our journey in
these markets is really just beginning, but I’m
very proud of everything we’ve achieved so far.
What gave you the confidence to
recently raise your mid-term growth
objectives?
Damian: Ultimately, we believe we can grow
ahead of the category, led by our great brands
and best in class capabilities; all underpinning
our objective of ~4% revenue growth(A)(D) over
the mid term. We expect our category to grow
3–4%(B) on average each year, with faster
growth from API and in particular Indonesia,
which creates an exciting opportunity for us.
We will continue to invest in the capabilities
and technology that our people need to win.
This, alongside our ongoing focus on cost
control and productivity efficiencies, should
drive ~7% operating profit growth(A)(D) and an
impressive annual free cash flow of
~€1.7 billion(C)(D) over the mid term.
Sol: We’re striving for a bigger and bolder
future by focusing on profitable organic
revenue growth. We have a lot to do, but as we
build on our current momentum, I am
confident that we have the right strategy to
deliver on our new ambitious mid-term targets.
“I am confident that we have the right strategy
to deliver on our new ambitious mid-term targets.”
Sol Daurella, Chairman
“Digital is a key enabler of growth
for both CCEP and its customers.”
Damian Gammell, CEO
How is CCEP doing on its journey
to becoming the world’s most
digitised bottler?
Damian: Digital is a key enabler of growth for
both CCEP and its customers. Today,
approximately 85% of our sales volume is
captured digitally, and while we have built a
strong foundation, we continue to learn and
build the relevant capabilities to further optimise
our digital footprint. We will continue to partner
with our customers, leveraging our data and
analytics tools, to optimise revenue growth
opportunities, and we have been taking learnings
from Australia and New Zealand in this area. We
will continue to build out our digital commercial
tools to enable our front line colleagues to
better engage with and sell to our customers.
We’ve been accelerating our business to
business (B2B) platforms to make it even
easier for our customers and wholesalers to do
business with us. We have two winning portals –
my.CCEP.com in Europe and Indonesia, and
myCCA.com in Australia and New Zealand –
collectively processing around €2 billion of
revenue, up 50% versus 2021. We will continue
to develop the existing functionality to drive
ease of ordering, profitable basket growth and
account management services. And through
our Ventures programme we will continue to
partner with eB2B platforms such as Kollex and
StarStock to make it even easier for our
customers to order our great products.
Sol: We are conscious that, as the pace of
change in consumer behaviour and technology
accelerates, we must look for ways to evolve our
business. Since the formation of CCEP we have
been re-engineering CCEP’s business processes
to be simpler, more standardised and fit for the
future, particularly within the workplace and
across our supply chain.
As we continue on this journey, we look forward
to the benefits that standardised systems and
processes will deliver for CCEP; more
automation and speed of execution through
central decision making and faster integration
of new businesses, as well as the competitive
edge that comes with reduced operational
complexity and controlled costs.
How are you developing the culture
within CCEP?
Damian: CCEP’s ambitions for growth and
sustainability depend on our great people, and
the wellbeing and safety of our colleagues
remains our number one priority. Despite
being recognised for our world class safety
performance, tragically two of our Indonesian
colleagues lost their lives during the year while
at work. We have learnt lessons from these
terrible tragedies and we will continue to
prioritise and drive further health and safety
improvements.
(A) Comparable and FX neutral growth
(B) Internal estimates based on Global Data 2023-2027
(C) Free cash flow after ~4-5% capital expenditure as a %
of revenue, excluding payments of principal on lease
obligations.
(D) Non-GAAP performance measure. Refer to ‘Note
regarding the presentation of pro forma financial
information and alternative performance measures’
on pages 74-75 for the definition of our non-GAAP
performance measures.
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2022 Integrated Report and Form 20-F
12
Chairman and CEO continued
In conversation
“Sustainability is fundamental to everything
we do as a business, and we will continue
to push ourselves to go further and faster
to decarbonise our business.”
Damian Gammell, CEO
Sol: Our success is driven by our great people and
I’d like to thank Damian and the leadership team
for creating the winning and inclusive culture that
CCEP has today. We had very strong participation
in our first global digital engagement survey with
a stable engagement score overall, ahead of our
benchmark group – a great result in what has
been a challenging environment as we establish
new ways of working post-COVID-19 and the
integration of the API markets.
In addition, I am grateful to my fellow Directors
for their contributions and support during
2022. In particular to Jan Bennink, Christine
Cross and Brian Smith, who will retire from the
Board at the Annual General Meeting (AGM) in
May. Further details on Board changes can be
found on page 87.
Damian: We are continuing to invest in digital
workplace tools and aspire to make it even
easier to move and develop internal talent
across CCEP. In 2022, we rolled out our digital
Career Hub across Europe, which provides
users with personalised recommendations for
vacancies, career paths and networking
opportunities based on their personal profiles.
I also want CCEP to be a place where different
perspectives and insights are valued at all levels
of the organisation, and we will continue to put
diversity at the heart of our culture. Promoting
gender equality is a key driver of innovation and
growth, and we are committed to achieving
more gender balance in our leadership roles. Our
diversity and inclusion credentials continue to be
recognised externally too, and we are proud to
have recently been included in Bloomberg’s 2023
Gender Equality Index for the third year in a row.
We will also continue to support our communities
and have committed to supporting the skills
development of 500,000 people facing barriers in
the labour market by 2030.
What progress has CCEP made with
its sustainability commitments?
Damian: Sustainability is fundamental to
everything we do as a business, and we will
continue to push ourselves to go further and
faster to decarbonise our business. I am
pleased that our This is Forward commitments
were extended to our API markets in 2022,
resulting in a unified action plan that we will
work towards in 29 markets across the world.
We continued to make great progress against
our commitments in 2022 and are taking
action where it matters most. In Europe, we
launched tethered closures on our PET bottles
in seven markets and moved all our brands in
France to returnable glass bottles within the
HoReCa channel. In Australia and Indonesia, we
are investing in new PET recycling facilities.
These collaborations are a step closer to
creating a circular economy for PET and will
contribute to further accelerating our journey
towards stopping using oil-based virgin plastic
in our bottles by 2030.
Four more of our production facilities became
carbon neutral in 2022, totalling six to date
across different markets, and we achieved
100% renewable electricity purchase in Europe
and New Zealand.
Sol: We have made strong progress since This
is Forward was first launched in 2017. However,
the social and environmental challenges we
face – including climate change and the
plastic waste crisis – are greater than ever.
We still have a long way to go to meet our
long-term targets, and must continue to
leverage our business and our brands to build a
better shared future for people and the planet.
Our progress continues to be recognised
externally and we are proud to have retained
our coveted CDP and MSCI ratings for the
seventh consecutive year, demonstrating the
focus and importance we place on sustainability.
CCEP was also recognised for its sustainability
leadership within the Coca-Cola system by
winning the prestigious 2021 J.Paul Austin
Award. I am proud that we were chosen based
on our considerable progress with sustainable
packaging, including the use of 100% rPET in
four markets; our ongoing collection efforts;
expansion of paperboard packaging for
multipacks; and pioneering tethered closures.
How is CCEP’s relationship with
TCCC developing?
Damian: CCEP has always been closely aligned
with TCCC strategically and we continue to
develop our joint long-term growth plans to
better align our portfolio, focusing on the core.
This includes the reorientation of our portfolio
in API, now substantially complete, allowing us
to have a more coherent category vision for
our customers. A new aligned and clear
flavours plan in Australia is already delivering
great results driven by smaller pack formats
and a focus on no sugar and innovation, for
instance the launch of Sprite Lemon+.
Together with TCCC, we are excited to launch
Jack Daniel’s & Coca-Cola RTD inspired by the
classic bar cocktail, across some of our markets
in 2023, and will continue to scale existing
brands like Costa Coffee and Fuze Tea.
Sol: Both companies are truly aligned on
strategy, sharing the same vision of where
we’re going and how to get there. This strong
relationship is also driving forward our
sustainability strategy, which is closely aligned
with TCCC’s global World Without Waste
strategy.
What will determine CCEP’s success
in the future?
Damian: Our success will continue to be driven
by our great people, great service, great
beverages, done sustainably. We are now a
bigger and better, more diverse and resilient
business, enhanced by the recently acquired
API business. We have delivered over €5 billion
of shareholder returns since 2016,
demonstrating the strength of our business
and ability to deliver continued shareholder
value. This remains our key priority for 2023 and
beyond. We have the platform and
momentum to go even further together for a
greater future.
Sol: From the great people who work at CCEP,
to the experienced leadership and strategy we
have in place, and our strong commitment to
sustainability, I’m confident we can succeed.
On behalf of the Board, I thank everyone
working at CCEP for their hard work, agility and
commitment. I’d also like to thank all of our
shareholders for their ongoing support. We
look forward to continuing our journey with all
of our partners and stakeholders in 2023.
“We have the platform and momentum
to go even further together for a greater future.”
Sol Daurella, Chairman
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2022 Integrated Report and Form 20-F
13
Going further
on digital
CASE STUDY
Factory of the future
We continued to invest in technology that improves
customer service and supports growth and productivity
across our end to end supply chain.
Key investments include:
• Improving the safety of our people with 5G technology,
providing early detection, and real time warnings, of
potential collisions for forklift and truck drivers and
pedestrians
• Achieving operational efficiencies with autonomous
self driving electric trucks for pallet transportation
across one of our production facilities in Germany
• Managing line breakdowns better with augmented
reality, enabling our engineers to connect with suppliers
for real time technical advice
Our leadership team said:
“The factory of the future is really starting
to become a reality for many of our
production facilities.”
José Antonio Echeverría, Chief Customer Service
and Supply Chain Officer
Read more about supply chain on pages 49-52
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2022 Integrated Report and Form 20-F
14
Our stakeholders
Our stakeholders are part of our business and play a
vital role in our success at every stage in our value chain.
From the suppliers that provide our raw materials, to
the communities where we operate and the people who
make and sell our products, we seek to work together
to refresh our markets and make a difference.
Our people
CCEP depends on the
great people who make,
sell and distribute our
products to customers
every day.
A comprehensive annual engagement
plan includes:
Townhalls, Speak Up channels,
engagement surveys and the
Employee Share Purchase Plan (ESPP)
Communication campaigns, e.g.
mental health, safety and inclusion,
online platforms
Engagement highlights in 2022:
Launch of global ESPP with 38% take
up rate
CCEP Australia won awards at the
Australian HR Awards and at the
Mental Health Service Awards of
Australia and New Zealand for its
Healthy@CCEP programme
Read about Board engagement
with our people on page 102
Impact/value created:
Our people create value for CCEP by
making, selling and distributing our
great products
CCEP creates value for our people
through providing a safe place to work
with rewards and benefits
Key concerns heard from our people
include:
Being rewarded
Development opportunities
Safety at work
What is measured and monitored?
Total incident rate
ESPP enrolment
% women in management
Principal risks:
Retaining talent
Health and safety
Read more about our risks
and mitigations on pages 64-71
Case study
Gender
Affirmation and
Transitioning
Guidance
Treating everyone with dignity
and respect
In 2022, we launched the first
global Gender Affirmation
and Transitioning Guidance to
make sure we had the systems
in place to support colleagues
who identify as Trans and/or
non-binary, and provide an
inclusive and supportive working
environment in the office, in the
field, in production facilities and
while working from home.
The guidance was a global
collaboration led by the Inclusion,
Diversity and Equity (ID&E)
Centre of Expertise in
partnership with the ‘Pride
Community’, our global LGBTQ+
network. It was reviewed and
verified by external LGBTQ+
experts, Stonewall.
Read more at cocacolaep.com/about-us/people/our-people
Read more about our people
on pages 58-63
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2022 Integrated Report and Form 20-F
15
Our stakeholders continued
Our shareholders
Shareholders provide
the equity capital for
our business and hold
management to
account on financial
performance and key
environmental, social
and governance (ESG)
issues.
A comprehensive annual engagement
plan includes:
AGM, roadshows, capital markets
events, analyst meetings, results
presentations and webcasts
Brokers appointed to provide advice
on market conditions, and provide
feedback on external communications
Shareholder-nominated Directors on
Board in accordance with
Shareholders’ Agreement
Read about Board engagement
with our shareholders on page 102
Engagement highlights in 2022:
Capital markets event attended by
~150 analysts, investors and potential
investors
Key concerns heard from our
shareholders include:
Financial performance, commodity
costs and inflationary pressures
Reverting to two interim dividends for
2022, maintaining our dividend payout
ratio of ~50% which resulted in record
full year dividend per share
Market dynamics such as consumer
behaviour and supply chain challenges
ESG challenges and regulatory
changes
Impact/value created:
Shareholders create value for CCEP
through voting at the AGM and
continuing to invest in CCEP
CCEP creates value for shareholders by
returning cash either by paying
dividends or through share buybacks
What is measured and monitored?
Number of meetings and % of equity
investors covered by these interactions
Analyst notes and equity investor
perceptions of strategy
Principal risks:
Market, including changing consumer
and channel trends
Economic and political conditions,
including commodity price volatility
Packaging, climate change and water
Read more about our risks
and mitigations on pages 64-71
Our franchisors
We conduct business
primarily under
agreements with
franchisors who
generally give us
exclusive rights to
make, sell and distribute
beverages in approved
packaging in specified
territories.
Regular contact with franchisors
includes:
Management contact at different
functional levels such as public affairs,
communications and sustainability,
supply chain, sales and marketing
Ongoing dialogue with General
Managers and regular top to top
meetings
Inviting franchisors to present annual
business plans to customers
Read about Board engagement
with our franchisors on page 102
Engagement highlights in 2022:
TCCC Indonesia presented to the
Board on marketing plans
Costa demonstrated packageless
solutions to the Board
Key concerns heard from our
franchisors include:
Profitable growth and value share
in our markets
Sustainable supply chains
TCCC and other franchisors presented
portfolio priorities and product
launches at commercial, sales and
country meetings
Impact/value created:
CCEP gains value from the exclusive
rights given by franchisors to make, sell
and distribute their products
CCEP creates value for franchisors by
driving sales to customers so
franchisors’ drinks are available where
and when consumers want them
What is measured and monitored?
Joint investment
Successful innovation
Category performance
Market share
Principal risks:
Misaligned incentives or strategy
Read more about our risks
and mitigations on pages 64-71
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2022 Integrated Report and Form 20-F
16
Our stakeholders continued
Our consumers
Consumers drink the
products we make, sell
and distribute.
CCEP’s ways of engaging with
consumers include:
Collection of consumer insights from
franchisors, customers or via dedicated
research
Consumer labelling, social media,
activation in store and day to day
interaction via our sales teams when
visiting outlets
Feedback from consumers on social
media and via the consumer hotlines
Read about Board engagement
with our consumers on page 102
Engagement highlights in 2022:
In store activations e.g. during
Ramadan in Indonesia, Fanta at
Halloween, Monster in Great Britain
(GB), Coca-Cola for FIFA World Cup
and at Christmas
Impact/value created:
Consumers create value when buying
our products
CCEP creates value for consumers
through providing a diverse portfolio
of drinks that are high quality, safe and
taste great with transparent labelling
to help consumers make educated
choices about nutrition and packaging
Key concerns heard from our
consumers include:
Product quality and food safety
What is measured and monitored?
No and low-calorie drinks as a % of sales
% packaging that is 100% recyclable
Environmental concerns relating to
packaging
Consumer complaints
Our customers
Our customers sell our
products to consumers.
Regular engagement with customers
includes:
General Managers engaging with
customers on strategy and planning
and owning the customer relationship
Account managers’ contact with
customers on business development
Our sales teams calling on customers
every day in the market
Engagement highlights in 2022:
Dedicated customer showroom
opened in France during September to
present our marketing and
commercial plans as well as our
sustainability ambition and progress
Customer newsletters on sustainability,
brand performance and innovation
launched
Key concerns heard from our
customers include:
New packaging solutions
Product offers to meet new shopper
and consumer trends
Read about Board engagement
with our customers on page 102
Impact/value created:
Customers create value for CCEP by
selling our products to consumers
CCEP creates value for customers
through our customer centric
operating model, portfolio diversity
and quality of products and service
Case study
Making our packs
more inclusive
with NaviLens
In 2022, our large Christmas can multipacks included NaviLens
codes on the cardboard outers to help give partially sighted
shoppers and those who have difficulty using traditional signage
the opportunity to navigate their way around a shop to find their
chosen purchases.
Find out more at cocacolaep.com/annual-report/case-study/navilens
Principal risks:
Product quality and safety
Consumer perception regarding
plastic packaging and sugar
Read more about our risks
and mitigations on pages 64-71
What is measured and monitored?
Volume and revenue growth
Customer big data and advanced
analytics, e.g. NielsenIQ and IRI,
measure brand/product performance
and value creation
Advantage Group & Ipsos research (EU
only) to evaluate customer satisfaction
Principal risks:
Pressure to promote healthy choices
Packaging
International buying groups and new
routes to market
Read more about our risks
and mitigations on pages 64-71
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
17
Our stakeholders continued
Our suppliers
Our suppliers provide
a wide range of
commodities and
services from
ingredients, packaging,
utilities, equipment, to
facilities management,
fleet, logistics and
information technology.
Processes to regularly engage with
suppliers include:
Supplier relationship management
programme through TCCC’s
procurement consortium
Partnering and collaborating with
suppliers, in areas such as business
continuity or sustainability, to foster
strategic relationships
Read about Board engagement
with our suppliers on page 102
Read more about our supply
chain on pages 49 - 52
Our communities
Communities are where
we operate and where
our employees live
and work.
Read more about our
communities on pages 56 - 57
Regular engagement with our
communities include:
Promoting skills development and
social inclusion, e.g. Gira Mujeres and
collaborating with foodbanks
Protecting the local environment,
e.g. water replenishment and litter
clean up programmes
Supporting local communities,
e.g. grassroots initiatives and disaster
relief
Read about Board engagement
with our communities on page 102
Engagement highlights in 2022:
Annual supplier day
Developing new tethered closures with
suppliers to make recycling more
efficient as there is no cap left behind
Impact/value created:
Suppliers create value for CCEP by
providing high quality, safe and
sustainable products and services, and
optimised supply chain and innovation
partnerships
CCEP creates value for suppliers
through long-term collaborative
partnerships and provides support on
sustainable practices and emission
plans
Read more about our
sustainability-linked supply chain
finance programme on page 52
Engagement highlights in 2022:
Donated €250k and >36k unit cases of
product to Red Cross in Ukraine and
organised an employee donation
campaign and support scheme for
employees housing Ukrainian refugees
Support my Cause, an employee led
initiative, expanded to API with first
donation in Indonesia to Nurani Dunia
Foundation which runs community
growth programmes
Impact/value created:
Communities create value for CCEP
through access to talented people, local
water sources, connection with local
policymakers and community groups
CCEP creates value for communities
through access to employment,
improving the local environment and
investing in community causes
Key concerns heard from our
suppliers include:
Exposure to variability in the market
place such as pricing and consumer
behaviours
Driving progress on sustainable supply
chains
What is measured and monitored?
Quality standards and delivery times
TCCC audits to ensure adherence to
Supplier Guiding Principles (SGPs) and
Principles of Sustainable Agriculture
(PSA)
Principal risks:
Rising costs
Varying availability of ingredients,
labour, packaging (including rPET),
energy and water
Potential supply chain disruption
Read more about our risks
and mitigations on pages 64-71
What is measured and monitored?
Community investment contribution
Employee volunteering hours
Principal risks:
Public perception regarding plastic
packaging and sugar
Reputational risk of not delivering
against sustainability commitments
Read more about our risks
and mitigations on pages 64-71
Key concerns heard in our
communities include:
Unemployment
Environmental impact
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2022 Integrated Report and Form 20-F
18
Section 172(1) statement from the Directors
During 2022, we acted in good
faith to promote the long-term
success of CCEP in our
discussions and decision making
for the benefit of CCEP’s
shareholders as a whole, and
in doing so having regard to
stakeholders and the matters
set out in section 172 of the
Companies Act, including:
The likely consequences of any
decision in the long term
The Board recognises that their decision
making will affect CCEP’s long-term success.
When taking decisions, particularly of
strategic importance, the Board considers
the likely consequences of any decision on
CCEP’s long-term, sustainable growth while
endeavouring to balance the interests of all
our stakeholders.
The interests of our people,
and the need to foster business
relationships with our key
stakeholders
Our key stakeholders remain the same as last
year, namely our people, shareholders,
franchisors, suppliers, customers, consumers
and communities. How CCEP has engaged
with our stakeholders more generally is
explained on pages 14-17. We identify our
key stakeholder groups as those with
significant interactions with our business
model and that we impact in the course of
our business operations. We describe how
our business interacts with our stakeholders,
and the impacts of these interactions,
throughout this Integrated Report. The
Board strives to gain stakeholder
perspectives to inform its decision making
through direct engagement, where feasible,
as well as through regular communication
with senior management. The Board also
gains perspectives from senior management
who sit on on CCEP’s Digital Advisory Board
and Indonesian Advisory Board.
The impact of the Company’s
operations on the community and
the environment
We recognise that to deliver our strategy in a
sustainable way, we need to consider the
commercial, social and environmental
impacts of our business. During the year, we
have monitored, assessed and challenged
CCEP’s progress against our annual business
plan and our sustainability action plan.
Information on our sustainability action plan
and how we are implementing
recommendations from the Task Force on
Climate-related Disclosures (TCFD) is on
pages 26-63. Our governance framework
guides the Board’s decisions as set out on
page 30.
The need to act fairly as between
CCEP’s shareholders
The Board supervises the profitable
operation and development of CCEP to
maximise its equity value over the long
term, without regard to the individual
interests of any shareholder. A minority of
our Non-executive Directors (NEDs) were
appointed by major shareholders of CCEP.
However, each Director understands their
responsibility under the Companies Act to
act in a way that would promote the long-
term success of the Company for all its
stakeholders. During 2022, the CEO, CFO
and, members of the Board and our
Investor Relations team met with
shareholders (see page 102 for more detail
on our engagement with shareholders).
The desirability of the Company
maintaining a reputation for high
standards of business conduct
Ensuring our business operates responsibly is
fundamental to ensuring our long-term
success. The Board assesses and monitors
the Group’s culture to ensure it aligns with
the Group’s purpose, values and strategy set
by the Board and oversees a corporate
governance framework as set out on
page 97 that enables the right people to
take the right decisions at the right time.
This includes our Code of Conduct (CoC)
and system of delegated authorities. Read
our CoC at www.ccepcoke.online/code-of-
conduct-policy.
How the Board engaged with stakeholders and specific examples of key areas of focus and considerations affecting the Board’s decision making process
during 2022 are set out on pages 102-103 of the Corporate governance report
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2022 Integrated Report and Form 20-F
19
Safety is important so that
my family at home feel calm
when I’m at work.
I wear safety shoes so I can play
with my children when I get
home
Ismail Yahya Putro
Syrup Operator, Bekasi 1
Going further
on safety
CASE STUDY
Get home to what you love
We want everyone getting back home safe, every day,
to what they love. This is the message we put at the
heart of our international safety and wellbeing
campaign run throughout April 2022.
Colleagues across our business took part in a
photoshoot, generating fantastic photos and messages
showcasing what they love to get home to!
Our leadership team said:
Damian
Gammell,
CEO
“ How we work together
and care for one another
at CCEP sets us apart.
Everyone should be able
to feel safe – physically and
mentally – in the workplace.”
Read more at cocacolaep.com/annual-report/case-
study/people-safety
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2022 Integrated Report and Form 20-F
20
Our market drivers
Our business is affected by a range of market
trends – from rapid acceleration towards digital
platforms to macroeconomic impacts.
Right:
Refillable glass
bottle line at
our Dongen
production
site in the
Netherlands
Our business model and culture
enable us to adapt and thrive in a
changing environment, while our
strategy reflects both current and
future dynamics.
Consumer trends
We constantly monitor consumer trends and
react to the changing needs of our consumers.
Today, consumers demand more choice as
they seek different drinks for different
occasions. Consumer interest in health and
wellness is a continuing trend evidenced by
the demand for healthier alternatives, such as
low and no sugar drinks.
During the COVID-19 pandemic, as well as
choosing to shop more online, consumers also
sought to create the away from home
experience at home, and this trend has very
much continued, requiring brands to offer the
premium products they need to create these
new occasions.
Strong brands supported by innovation is key
to meeting changing consumer needs.
Read more in Forward on drinks
on pages 53-55
Macroeconomics
Geopolitical volatility, high inflation and
increasing regulatory pressure related to
climate change and packaging impacted our
business in 2022 both directly and indirectly.
Despite these pressures, we delivered
operating profit growth of 12.5% on a pro
forma comparable and FX neutral basis by
successfully navigating supply chain
challenges, executing dynamic pricing
strategies across our markets, and by
delivering our ongoing cost saving and
efficiency programmes.
Economic disruption and an inflationary
environment also impact consumer sentiment,
meaning affordability becomes increasingly
important for some consumers. We are
mindful of a more dynamic outlook as we
move into the next financial year, but believe
we are well placed within resilient categories to
deliver our strategy and achieve sustainable
and profitable growth.
Government commitments to new climate
change and packaging-related regulations
continue to impact our business. However, we
continue to set our own ambitious
sustainability targets, and are committed to
delivering our business model sustainably.
Read more about our principal risks
on pages 64-71
Channel trends
Changes to routines and behaviours during the
COVID-19 pandemic accelerated the digital
evolution and adoption of new digital
channels, with both consumers and customers
seeking to do more online, for instance
consumers shifting to e-grocery from
traditional retail.
Accelerated growth in digital channels is
putting pressure on traditional retail, while
other consumer trends, such as creating the
away from home experience at home, means
consumption has shifted between channels.
Customer collaboration and joint value
creation is key to evolving with these changing
channel trends and achieving profitable
growth.
Consumer packaged goods
evolution
As consumer and channel trends are changing,
technology, and specifically data analytics
capabilities, are advancing. This means all
consumer packaged goods companies are
having to adapt to remain competitive.
We continue to invest in our journey towards
becoming the world’s most digitised bottler,
and in core capabilities such as revenue growth
and key account management. We moved
towards a revenue and margin growth
management focus in 2022. This will help us to
make the right decisions and drive profitable
growth.
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21
Our strategy
Today we are a bigger, stronger, more diverse and more resilient
business. We are the market leader in a profitable and growing
soft drinks category that is worth approximately €130 billion
across our markets. Our goal is to outperform the market,
creating value for our customers and delivering growth for our
shareholders while supporting our people and communities.
CCEP has already come a long way. And with great people,
great service, great beverages, done sustainably,
we’re determined to go even further together.
Find out more at
cocacolaep.com/about-us
Great people
Done sustainably
We take care of the 33,000 people who
make our business successful, and the
suppliers, customers and communities
we support. We want CCEP to be a
great place to work where people can
grow, be happy and be well in a safe,
diverse and inclusive workplace.
Great service
We support the growth of our 2 million
customers through the quality of the
service we provide, our understanding
of their businesses, the strength of our
salesforce and the value our products
create. Whether a grocer, a restaurant,
a café bar or a wholesaler, we’re
committed to delivering the best
possible customer experience by
making it easy to do business with us.
At CCEP, we’re investing now in the
ideas that will change our business in
the future, and using the latest
technology to better serve our
customers and reach more consumers.
Great beverages
Our diverse portfolio is built on our
core brands like Coca-Cola, Fanta,
Sprite, Fuze Tea and Monster, as well
as targeted expansion into categories
like coffee and alcohol.
At CCEP, we’re bringing new products
to a new generation of consumers
based on clear insights, while
developing the classic brands our
consumers know and love.
We’re reducing the sugar in our drinks
and offering low and no sugar options
- giving consumers even more choice.
Our ambition to create a better future,
for people and the planet, sits at the
heart of how we do business, and the
decisions we take. Central to this is our
new Group wide target to reach
Net Zero by 2040 which we recently
submitted to the SBTi for their approval.
We’re taking the right steps to stop our
packaging ending up as litter or in the
oceans. We want every bottle and can
to be recycled or reused.
As a local business serving customers
and consumers in 29 markets, we take
great pride in giving back to our
communities.
We’re partnering with the smartest
people to find new ways of sustainably
making, selling and distributing our
products.
Delivering on our strategy will create:
A healthy, safe and engaged
workforce
Targeted diversification
Accelerated top line(A)(D) (~4%) and
bottom line(B,D) (~7%) growth
Strong free cash flow(C)(D)
(~€1.7 billion per annum)
A more sustainable licence
to operate
Even greater relevance with TCCC
and our other brand partners
Sustainable value for all stakeholders
(A) Mid-term comparable and FX neutral revenue growth
(B) Mid-term comparable and FX neutral operating profit growth
(C) Mid-term free cash flow after ~4-5% capital expenditure
as a % of revenue, excluding payments of principal on
lease obligations.
(D) Non-GAAP performance measure. Refer to ‘Note
regarding the presentation of pro forma financial
information and alternative performance measures’
on pages 74-75 for the definition of our non-GAAP
performance measures.
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2022 Integrated Report and Form 20-F
22
Our strategy continued
Great people
Why is this
a key focus
area for
CCEP?
Our talented and engaged
workforce drive our success.
We’re making CCEP more
diverse, inclusive and welcoming
– so it’s a great place to work,
where everyone can share their
ideas and be empowered to
collaborate, win together and
grow.
Our
ambition:
People who can deliver
success for CCEP
Measuring
success:
Top quartile engagement
score
A safe, open, diverse and
inclusive workplace
Winning capabilities, agility
and a performance mindset
D
i
~40% of management roles
held by women
Included on Bloomberg’s
2023 Gender Equality Index
for third consecutive year
Safety incident rates
halved since merger
Great people
We want CCEP to be a great
place to work, with a strong
and inspiring workplace
culture.
2022 achievements
The wellbeing and safety of our colleagues
remains our number one priority at CCEP,
and our ‘Get home to what you love’
campaign really brought the importance of
safety to life across our businesses.
We launched the Career Hub in Europe,
connecting our internal systems for learning
and performance, giving employees
personalised recommendations, through skill
matching, that help them grow their careers.
This will be rolled out to API in 2023.
Our credentials are also being recognised
externally. In 2022, we were awarded Gold at
the UK Employee Experience Awards in
recognition of the digital technologies we use
across our workplace, and we were named
Employer of Choice in New Zealand, the only
company to receive the Gold award in three
consecutive years.
Read more about our people on pages 58-63
Case study | Solid results from our first global digital engagement survey
We had strong participation
in our first global digital
engagement survey with
a stable engagement score
overall, and rich feedback
(21.5k comments). This score
continues to position us ahead
of our benchmark group.
80%
response rate (+10% vs 2021)
77
engagement score,
stable vs 2021 (+2 vs benchmark)
The plan for the year ahead
To continue to offer a workplace where our
people feel they belong, and where our
inclusive culture drives innovation and
performance.
Key goals
Accelerate progress on inclusion and diversity
Ensure the right leaders are in the right roles
Continue building a culture of sustainability
Invest in the future workforce and digital tools
“We will protect our people,
invest in their talent and
capabilities, and stand strong
on our social and inclusion
commitments.“
Véronique Vuillod
Chief People and Culture Officer
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Our strategy continued
Great service
Why is this
a key focus
area for
CCEP?
At CCEP, we’re working to
deliver great service to
customers. Driving growth,
creating value and delivering
results through close support
and collaboration. Identifying
new channels and
implementing transformative
ways to do business. We have
built long-standing and
supportive relationships with
our customers and we
continue to invest in our
capabilities and supply chain to
provide even better service
and drive joint value creation.
Our
ambition:
Strong and supportive
customer service levels
Measuring
success:
Easy to do business with
Known for world class
execution
Agile and flexible
Great digital tools enabled
by data and analytics
Well invested supply chain
and optimised portfolio
#1 value creator for our
customers as measured
by Nielsen
Great customer service
levels (~90%)
Unrivalled customer
coverage (~2m)
Biggest sales force in fast
moving consumer goods
(FMCG) (~10k)
~1.5m coolers in market
85% of sales volume
captured digitally
Total SKUs reduced by 30%
(2022 vs 2020)
Case study | Smart execution for our customers through B2B platforms
To make it even easier for our
customers and wholesalers to
do business with us, we’ve been
accelerating our B2B platforms.
~€2bn
of revenue processed through
our winning portals in 2022,
+50% vs 2021.
We continue to develop the
existing functionality to drive
ease of ordering, profitable
basket growth and account
management services.
The plan for the year ahead
To continue to provide an unrivalled customer
experience and invest in the capabilities we
know we need to win in the future.
Key goals
Focus on joint profit pools and joint value
creation
Maintain leading customer service and
support growth through our supply chain
and technology
Continue to build an innovative culture
through our digital tools and CCEP Ventures
“We need to grow our
capabilities ahead of the
opportunities, putting the
customer first and driving
joint value creation.”
José Antonio Echeverría
Customer Service and Supply Chain Officer
Great service
We want to win with our
customers and maintain high
customer service levels.
2022 achievements
Most importantly, we continued supporting
our customers through the reopening of
HoReCa and maintained high customer
service levels.
In Europe, the Netherlands were runners up
in the annual global Coca-Cola bottler
competition, the Candler Cup, recognising
world class customer service and execution.
In Indonesia, we had a record Ramadan period
with our biggest ever activation. More focus on
core sparkling and RTD tea allowed us to
manage our supply chain more efficiently and
deliver even better service to our customers.
We are accelerating our digital transformation. In
2022, we hit record revenues with our B2B
platforms and grew our online market share by
80 basis points (bps). We continued to invest in
our digital workplace tools and other
technologies to improve customer service and
productivity across our end to end supply chain.
Find out more at
cocacolaep.com/about-us/partnerships
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2022 Integrated Report and Form 20-F
24
Our strategy continued
Great beverages
Our
ambition:
Why is this
a key focus
area for
CCEP?
At CCEP, we’re focused on our
great beverages. Working with
our partners to expand our
portfolio by growing and
strengthening our core brands,
while launching and scaling
new products. Innovating to
meet changing consumer
needs and become the world’s
most digitised bottler.
Category leadership with
great tasting drinks for
every occasion, and brands
people love
Broad price pack architecture
Strong and aligned
partnerships with brand
partners
Channel diversification
Measuring
success:
Solid sparkling share
of ~58%
Online share greater than
in store share
We offer choice: in Europe
48.8% of volume sold in
2022 was no or low-calorie
Great beverages
We are extremely privileged
to make, move and sell the
best beverages in the world.
2022 achievements
We aim to meet consumer needs through
our diversified portfolio, working closely
alongside TCCC and our other brand
partners. We continued to grow ahead of the
market and gained 10 bps of value share.
Coca-Cola Zero Sugar continued to grow
strongly across all of our markets with
volumes up 10.0%
What The Fanta created great excitement for
the brand, with volumes up 15.5%, also helped
by the rebound of the AFH channel
Energy volumes +18.5% supported by solid
distribution and exciting innovation from
Monster
Fuze Tea volumes +28.0% driven by further
value share gains in Europe
Find out more at
cocacolaep.com/about-us/products
Case study | Great results from Coca-Cola Zero Sugar relaunch
+50bps
+110bps
value share gains in Europe
value share gains in Australia
Throughout 2021, we rolled
out our new taste and new
look campaign across our
markets for Coca-Cola Zero
Sugar. This has been a great
success, driving our strong
volume performance in
2022 across all markets.
The plan for the year ahead
At least maintain or grow our share of the
category driven by growth in core brands and
selected expansion into newer categories.
Key goals
Provide choice within colas and flavours,
leading with low and no sugar and flavour
extensions
Drive growth in energy through innovation,
sugar free and core
Continue building leadership in RTD tea,
and scale presence with Costa Coffee
“Together with TCCC and our
other partners, we are proud
to have a market leading
position selling the world’s
best NARTD brands.”
Stephen Lusk
Chief Commercial Officer
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Our strategy continued
Done sustainably
Why is this
a key focus
area for
CCEP?
We want to deliver sustainable
growth, create value for all our
stakeholders and build a better
future for our business, our
communities and the planet.
From our suppliers and
investors, to the communities
where we operate and the
people who make and sell our
products, our stakeholders
have high expectations of us to
address many of today’s
societal and environmental
challenges. Their views and
priorities play an integral role
in the development of our
sustainability action plan.
Our
ambition:
Climate action
Sustainable packaging
Water stewardship
Measuring
success:
Promoting the wellbeing of
our people and those working
across our value chain
Offering consumers more
choice, with less sugar
Contributing to our local
communities
Achieved >50% rPET target
four years early in
Europe(A)
Achieved 100% renewable
electricity purchase in
Europe and New Zealand
Recognised by CDP for the
seventh year running,
achieving a double ‘A’
score for climate and
water in 2022
Included in the 2022 Dow
Jones Sustainability Index
for the seventh
consecutive year
Case study | Creating the largest fleet of electric trucks in Belgium
We are now using 30 electric
trucks to make last mile deliveries
to local customers in Belgium. This
fleet will cover about 40% of our
local delivery routes and each
truck has access to on-site
charging stations that are
powered by 100% renewable
electricity.
75%
saving in CO2e emissions per year
compared to diesel trucks.
The investment is a further step in
our ambition to reduce emissions
across our entire value chain.
The plan for the year ahead
Continue to build a stronger and even more
sustainable business for the future
Key goals
Focus on our new society goals to drive
diversity and support 500,000 people facing
barriers in the labour market by 2030
Conduct a biodiversity and deforestation risk
assessment
Continue to develop our carbon reduction
roadmaps
“We continued to make
progress on our ambition to
reach Net Zero emissions by
2040 and invest in making our
packaging more sustainable.”
Ana Callol
Chief Public Affairs, Communications
and Sustainability Officer
Done sustainably
This is Forward, our
sustainability action plan, sits
at the heart of our long-term
business strategy.
2022 achievements
Some of our proudest achievements in 2022
include:
We reduced emissions across our value chain
by 9.4% (versus 2019), working towards our
science based GHG emissions reduction
target of a 30% absolute reduction by 2030
By the end of 2022, four more of our
production facilities became carbon neutral,
totalling six to date
We reviewed and updated This is Forward to
cover all of our markets in Europe and API
We established a sustainability-linked supply
chain finance programme
We invested in Australia and Indonesia to help
build two new PET recycling plants
Find out more at
cocacolaep.com/sustainability
(A) In 2019, we announced enhanced packaging targets for
Europe, bringing forward the deadline to use at least 50%
rPET from 2025 to 2023. Since 2021, our rPET use in
Europe has been >50%.
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Taking action on sustainability
This is Forward
This is Forward is our
sustainability action plan.
It sets out the actions we are
taking on six key social and
environmental topics, where
we know we can make
a significant difference on
areas our stakeholders want
us to prioritise.
In 2022, we reviewed and updated This is Forward
to cover all of our markets in Europe and API. It
provides an action plan that we will work towards
across 29 markets, and includes ambitious, time-
bound sustainability commitments.
It includes our updated short-term and long-term
absolute GHG emissions reduction targets,
covering Scope 1, 2 and 3 emissions across our
entire value chain, which we recently submitted to
the SBTi for their approval. Our commitments also
align with the targets which underpin the United
Nations Sustainable Development Goals (SDGs).
This is Forward was first launched in 2017
and we have made strong progress since then.
However, the social and environmental
challenges we face, including climate change and
the plastic waste crisis, are greater than ever.
Supporting principles
This is Forward is closely aligned with TCCC’s
global sustainability ambitions and is
underpinned by a set of supporting
principles that reflect our commitment to:
• Responsible advertising and marketing –
promoting our products responsibly
through our responsible sales and
marketing principles.
• Transparency and disclosure – reporting
our progress on an annual basis and
disclosing information about our GHG
emissions and the climate risks we face.
This is Forward – CCEP’s sustainability action plan
Forward on
climate
See pages 38-41
Forward on
packaging
See pages 42-45
Forward on
water
See pages 46-48
Forward on
supply chain
See pages 49-52
Forward on
drinks
See pages 53-55
• Supporting our communities through
employee volunteering – enabling our
employees to spend up to two working
days per year volunteering for local
charities and community causes.
• Supporting innovation and new
technologies, through our investment
engine CCEP Ventures - helping to
fund and foster transformative
solutions to the biggest sustainability
challenges we face.
• Powerful partnerships with brand
owners to inspire and engage.
Read more about our commitments
at cocacolaep.com/sustainability/this-is-
forward
Forward on
society
communities
See pages 56-57
people
See pages 58-63
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This is Forward - our sustainability action plan
Our headline commitments
Pillar
Forward on
climate
Commitment
Net Zero
GHG emissions reduction
Renewable electricity
Target
Net Zero GHG emissions (Scope 1, 2 and 3) by 2040(A)
Reduce absolute GHG emissions (Scope 1, 2 and 3) by 30% by 2030(A)
Use 100% renewable electricity across all markets by 2030
Forward on
packaging
Forward on
water
Forward on
supply chain
Forward on
drinks
Forward on
society
Supplier engagement — GHG emissions
100% of carbon strategic suppliers(B) to set science based targets by 2023 (Europe) and 2025 (API)
Supplier engagement — renewable electricity
100% of carbon strategic suppliers to use 100% renewable electricity by 2025 (Europe) and 2030 (API)
Design
Recycled plastic
Virgin plastic
Collection
Water stewardship
Replenish
100% of our primary packaging to be recyclable by 2025
50% recycled plastic in our PET bottles by 2023 (Europe) and 2025 (API)
Stop using oil-based virgin plastic in our bottles by 2030
Collect and recycle a bottle or a can for each one we sell by 2030
Set context based water targets at all production facilities(C)
Replenish 100% of water we use in our beverages
Regenerative water use
100% regenerative water use in leadership locations(D) by 2030
Sustainable sourcing
Human rights
Sugar reduction
Low and no calorie
100% of main agricultural ingredients and raw materials sourced sustainably
100% of suppliers to be covered by our Supplier Guiding Principles – including sustainability, ethics
and human rights
Reduce sugar: by 10% in Europe by 2025(E), by 20% in New Zealand by 2025(F), by 25% in Australia by 2025(F),
by 35% in Indonesia by 2025(F)
Over 50% of sales to come from low or no calorie drinks by 2030 (Europe by 2025)(G)
Gender diversity management
45% of management positions to be held by women by 2030
Gender diversity
Disabilities
A third of our workforce to be women by 2030
10% of our workforce represented by people with disabilities by 2030
Supporting skills development
Support the skills development of 500,000 people facing barriers in the labour market by 2030
Note: For details on our approach to reporting and methodology please see our ‘2022 Sustainability reporting methodology’ document on cocacolaep.com/sustainability/download-centre
(A) New Group wide commitment versus 2019. Submitted SBTi target and awaiting approval. We anticipate that the SBTi will complete its review by the end of 2023.
(B) Carbon strategic suppliers account for ~80% of our Scope 3 GHG emissions (approximately 200 suppliers in total).
(C) Non-alcoholic ready to drink (NARTD) only.
(D) NARTD production facilities which rely on vulnerable water sources or have high water dependency. We have nine leadership locations in Europe and four in API.
(E) Reduction in average sugar per litre in soft drinks portfolio versus 2019. Sparkling soft drinks, non-carbonated soft drinks and flavoured water only. Does not include plain water or juice.
(F) Reduction in average sugar per litre in NARTD portfolio versus 2015. Including dairy. Does not include coffee, alcohol, beer or freestyle.
(G) Does not include coffee, alcohol, beer or Freestyle. Low calorie beverages ≤20kcal/100ml. Zero calorie beverages <4kcal/100ml.
See more details on our key sustainability
achievements on pages 249-252
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2022 Integrated Report and Form 20-F
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Taking action on sustainability
Task Force on Climate-related Financial Disclosures (TCFD)
How we have adopted the
recommendations of the Task Force on
Climate-related Financial Disclosures
CCEP is committed to being transparent
about the effects of climate change, and the
risks and opportunities that might impact our
business, and is implementing the
recommendations from the TCFD. The table
below outlines our climate-related financial
disclosures across the four pillars and 11
recommended disclosures in the TCFD
October 2021 updated guidance. Where our
disclosures are not consistent with TCFD
Recommendations and Recommended
Disclosures, the reasons for this and steps we
are taking are set out in this report. We expect
to move to full alignment with TCFD
Recommendations and Recommended
Disclosures within the medium term. Modelling
was completed as follows:
• Risks and opportunities are disclosed under
three potential emission pathways: >4°C,
+2.5°C and +1.5°C.
• Scenarios have been modelled on a gross-
risk basis, assuming no mitigating actions or
progress on our stated This is Forward
sustainability action plan, and assumes that
CCEP’s operational footprint, product
portfolio and GHG emissions remains static.
Specific mitigating actions and related
investments relating to physical and
transition risks are listed separately on
pages 34 and 36, respectively.
• Our This is Forward sustainability action plan,
including our 2030 absolute GHG emissions
reduction commitment and Net Zero 2040
target(A) are designed to help us mitigate
climate-related risks.
• Financial scenario analysis of emission
pathways has been estimated over the short
term (five years). We expect that more
significant impacts of climate change would
be seen over the medium term (2030) and
long term (2040 and beyond). Medium-term
and long-term physical and transition risks
have been disclosed on a qualitative basis
only.
• This work should not be viewed as a forecast,
and will evolve in the coming years as we
refine these scenarios.
TCFD alignment overview
Recommendation
Recommended disclosures and disclosure level
References and notes
Governance
Disclose the organisation’s
governance around climate-
related risks and opportunities
Strategy
Disclose the actual and
potential impacts of climate-
related risks and opportunities
on the organisation’s
businesses, strategy and
financial planning where such
information is material
a. Describe the Board’s oversight of climate-related risks and opportunities
b. Describe management’s role in assessing and managing climate-related risks
and opportunities
a. Describe the climate-related risks and opportunities the organisation has
identified over the short, medium and long term
b. Describe the impact of climate-related risks and opportunities on the
organisation’s businesses, strategy, and financial planning
c. Describe the resilience of the organisation’s strategy, taking into consideration
different climate-related scenarios, including a 2°C or lower scenario
TCFD, Governance: pages 29-31
Corporate governance report: pages 97-107
Audit Committee report: pages 112-116
ESG Committee report: pages 117-118
TCFD, Strategy and Metrics and targets: pages 31-37
Our strategy: pages 21-25
Principal risks: pages 64-71
Note 1, 7 and 8 to the Consolidated financial statements: pages 165-166;
pages 170-173; and pages 174-176
Viability statement: page 72
Strategy disclosure ‘c’ is work in progress: Developing a low-carbon transition plan
in line with a 1.5°C pathway. Our climate scenario analysis will inform our
understanding of our risks, and increase the resilience of our strategic plans over
the medium to long term.
Risk
management
Disclose how the organisation
identifies, assesses, and
manages climate-related risks
a. Describe the organisation’s processes for identifying and assessing climate-
related risks
b. Describe the organisation’s processes for managing climate-related risks
TCFD, Risk management: pages 32-36
Principal risks: pages 64-71
Audit Committee report: pages 112-116
ESG Committee report: pages 117-118
Metrics and
targets
Disclose the metrics and
targets used to assess and
manage relevant climate-
related risks and opportunities
where such information is
material
c. Describe how processes for identifying, assessing, and managing climate-
related risks are integrated into the organisation’s overall risk management
a. Disclose the metrics used by the organisation to assess climate-related risks
and opportunities in line with its strategy and risk management process
TCFD, Metrics and targets: page 37
Forward on climate: pages 38-41
Long-term incentives within Annual report on remuneration: pages 131-132
b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and
the related risks
TCFD, Metrics and targets: page 37
c. Describe the targets used by the organisation to manage climate-related
risks and opportunities and performance against targets
Our sustainability headline commitments: pages 26-27
Sustainability key performance data summary: pages 249-252
Note 8 to the Consolidated financial statements: pages 174-176
(A) New Group wide short-term and long-term absolute GHG emissions reduction targets, covering Scope 1, 2 and 3 emissions across our entire value chain, have been submitted to the SBTi for their approval. We anticipate that the SBTi will complete its review by
the end of 2023.
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2022 Integrated Report and Form 20-F
29
Taking action on sustainability continued
Task Force on Climate-related Financial Disclosures (TCFD) continued
The world is at a critical point. Climate change – caused
by GHG emissions – is leading to an increase in global
temperature and extreme weather events around the world.
We are committed to addressing climate change by
decarbonising our business. We recognise that our
long-term success will depend on the social and
environmental sustainability of our operations, the resilience
of our supply chain and our ability to manage the impact
of climate change on our business model and performance.
Above: Solar panel installation at our production facility in Cibitung, Indonesia
Management-level governance
Ownership and governance for
sustainability-related risks and opportunities
and driving progress towards our
commitments is embedded throughout
our business. Risk management is a key
responsibility for all senior leadership who
are assigned ownership of specific risks,
including climate-related risks.
Each principal risk is assigned an owner at
leadership and operational management level.
Risks are assessed periodically, the mitigations
determined and their effectiveness evaluated.
A quarterly risk report informs leadership
about risk developments and supports their
business decision making.
Key executive leadership and management
with responsibility for climate-related issues
are outlined in the TCFD governance
framework. The main discussion forum for the
Executive Leadership Team (ELT) on climate
matters is the Sustainability Steering
Committee. Multiple working groups focused
on the strategy, execution and delivery of
CCEP’s This is Forward sustainability action
plan have been established. Groups meet
regularly and items that require decision or
approval are raised with the Sustainability
Steering Committee as appropriate.
See our TCFD governance framework
on page 30
Governance
Board-level governance
Our Board of Directors has primary oversight
of climate-related risks and opportunities.
The Board is supported in its oversight and
with driving CCEP’s climate agenda by its
Committees and predominantly by the
ESG Committee and Audit Committee as
outlined in the TCFD governance framework
(see page 30).
There is close collaboration across these
Committees due to the role that both play
in ESG reporting, disclosure and assurance.
A joint meeting of the ESG and Audit
Committees was held in October 2022 to
discuss these matters, including this TCFD
disclosure.
The Board also receives annual training and
deep dives on climate-related issues which in
2022 included a session focused solely on risks,
including climate risks. Climate risks and
opportunities are also considered as part of
the Board’s annual strategy session, held each
September, with progress updates to the
Board throughout the year.
At the end of 2022, CCEP’s ESG Committee
recommended the Board approval of
updated short-term and long-term absolute
GHG emissions reduction targets, covering
Scope 1, 2 and 3 emissions across our entire
value chain. The following targets have been
submitted to the SBTi for their approval:
• Short-term target to reduce our absolute
emissions by 30% by 2030 (versus 2019)
• Long-term target to reach Net Zero by 2040
We anticipate that the SBTi will complete its
review by the end of 2023.
The Committees are supported by
management as outlined in the TCFD
governance framework and by the
management-level governance section.
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TCFD Governance Framework
The Board
Met six times in 2022
ESG Committee
Met five times in 2022
• Responsible for overseeing performance
against This is Forward strategy and goals
• Reviews environmental and social related
risks and opportunities, including
climate-related risks and GHG emissions
reduction targets
• Oversees ESG reporting, disclosure
and assurance
• Has primary oversight of climate-related risks and opportunities
• Receives feedback on climate-related issues from Committee Chairs and via CEO Report
Nomination Committee
Met five times in 2022
Remuneration Committee
Met six times in 2022
Audit Committee
Met nine times in 2022
• Reviews the size, structure, composition
• Aligns the Group’s remuneration policy to
• Ensures that climate-related risks and
and skills of the Board to ensure it remains
effective
reinforce the achievement of sustainability
aims
• Ensures there is sufficient expertise on the
• Oversees performance outcomes from
Board in areas such as risk and climate
the Long-Term Incentive Plan (LTIP), which
has a 15% performance weighting allocated
to the reduction of GHG emissions
opportunities are managed across the Group
• Oversees risk management process, including
annual Enterprise Risk Assessment to identify
principal risks including climate risk
• Oversees CCEP’s financial and reporting
obligations, including ESG-related reporting
• Has oversight over sustainability metrics for
capital expenditure proposals
Executive Leadership
Team (ELT)
Meets regularly
throughout the year
Climate responsibility lies with Chief Executive Officer, Chief
Customer Service and Supply Chain Officer and Chief Public Affairs,
Communications and Sustainability Officer who are responsible for
providing management updates on climate-related topics to the
ESG Committee
Sustainability Steering Committee
Meets at least quarterly. Includes ELT members
• Chief Executive Officer
• Chief Financial Officer
• General Counsel and
Company Secretary
• Chief Customer Service
and Supply Chain Officer
• Chief Commercial Officer
• Chief Integration Officer
Provides opportunity to review:
• This is Forward targets and our progress
• Chief Public Affairs,
Communications and
Sustainability Officer
against these
• Climate-related risks and scenario analysis
— including TCFD
• Ouputs raised as required to ESG
Committee (including on climate topics)
• 2022 topics included approval of This is
Forward commitments, SBTi-aligned GHG
reduction targets, and packaging strategy
Sustainable Packaging Office (SPO)
TCFD and ESG Disclosure group
Other working groups (developed as required)
• Overseen by Chief Public Affairs, Communications
• Overseen by General Counsel and Company
and Sustainability Officer and VP Sustainability
• Responsible for ensuring a sustainable packaging
strategy can be implemented across our business,
including pack mix, recycled content and improving
packaging collection
Secretary and VP Sustainability
• Oversight of our work on TCFD and climate-related
risks, as well as our broader ESG reporting and
disclosure approach
Overseen by Chief Public Affairs, Communications and
Sustainability Officer and VP Sustainability. Includes:
• SBTi GHG emissions reduction targets
• Carbon reduction roadmaps
• Assessment of our internal carbon pricing strategy
Compliance and Risk
Committee (CRC)
Meets every quarter
• Management committee
chaired by the Chief
Compliance Officer
• Reviews risk
developments, including
climate change risks
and opportunities
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Advisory
We engage regularly with a wide range of
stakeholders on ESG matters. Our
stakeholders have high expectations of us to
address many of today’s societal and
environmental challenges. They are part of our
business and play a vital role in our success at
every stage in our value chain. From the
suppliers that provide our raw materials, to the
communities where we operate and the
people who make and sell our products, our
stakeholders' views and priorities play an
integral role in the development of our This is
Forward sustainability action plan.
We also continue to respond to feedback from
our stakeholders to make progress on key
sustainability issues, and ensure that our
reporting and disclosure meets their
expectations. In 2022, we engaged with
colleagues across our European and API
markets, and with TCCC, to explore how we
align our sustainability commitments,
integrate existing market level targets where
relevant and evolve our This is Forward action
plan to cover our entire business, including API
following the Acquisition in 2021.
Read more about our stakeholders
on pages 14-17
Strategy
Climate-related risk has been one of CCEP’s
principal risks for several years, and there is an
increasing likelihood of impact to our current
business model unless we take mitigating
actions. Climate risk is covered by our risk
management framework and follows the same
risk management approach as outlined on
pages 64 and 65. The loss impact types and
impacts from climate risk on our business
objectives are highlighted in the Risk section
of this report (see Principal risks table on
pages 66 to 71).
We have adopted the use of science based
climate scenario modelling, used alongside
internal and insurance data to obtain regional
analysis of various climate scenarios. This helps
us make informed decisions and improves our
understanding of the potential climate
vulnerabilities in our operations and our value
chain. This data and resulting analysis is shared
across our business, supporting climate
resilience across our planning and operations.
There is no one single emission pathway
scenario that underpins our business and
financial planning. Our scenario analysis is
designed to inform management’s
understanding of possible risks and
opportunities. Scenarios are not intended to
be predictions of likely future events or
outcomes and, therefore, are not the basis for
our operating plans and financial statements.
In 2022, we partnered with Risilience, a
specialist risk consultancy which utilises
technology pioneered by the Centre for Risk
Studies at the University of Cambridge Judge
Business School. In partnership with Risilience,
we have developed a digital twin platform,
enabling us to model physical and transition
risks across our value chain over a 20–30 year
timeline, in line with various warming scenarios.
We have also worked with external physical
climate specialists Marsh Advisory to establish
how climate change will impact the frequency
and severity of climate-related weather events
on our manufacturing and operations, under
RCP 2.6 and 8.5 scenarios (~2.0 °C and ~4.3˚C
emissions pathways respectively). This covers
all major climate-induced threats (coastal
inundation, river flooding, surface water
flooding, extreme heat, extreme wind, wildfire,
freeze-thaw and drought-driven soil
movement) through to 2100.
Working with Risilience and Marsh enables us
to quantify our exposure and potential
financial impacts from climate change events
for different emission pathways.
We continue to mature our risk management
framework, as we start to use AI risk sensing
techniques to identify emerging risks including
those caused by climate change.
We aim to mitigate many climate-related
regulatory risks through ongoing progress
against our climate-related goals, including
reducing our overall emissions.
We work closely with TCCC to assess climate-
related risks and opportunities, driving
innovation as a system to meet consumer
needs for more sustainable products and
combat climate change.
The learnings from these exercises helps to
inform our strategic business planning and
investment decisions and support delivery of
our climate targets. Additionally, we utilise a
range of sustainability performance indicators
to track our performance across areas like
water, GHG emissions and packaging at
various levels of the business to monitor our
performance and identify improvement
opportunities.
We identify opportunities that can help us
deliver our This is Forward commitments, and
our GHG emissions reduction targets, as part
of our business planning cycles. For example,
between 2020 and 2022, we invested over €300
million to support the decarbonisation of our
business.
A proportion of this investment helped us
accelerate our use of recycled PET (rPET)
resulting in us achieving our >50% rPET target
four years early in Europe(A). Recycled PET also
provides CCEP with a significant opportunity
to increase our recycled content level in
specific countries to mitigate potential taxes,
and could help protect us against potential
new taxation, marketing restrictions and bans
on single use plastic bottles which do not
contain recycled plastic.
As consumers become more environmentally
conscious we are aiming to capture this
opportunity by eliminating the use of oil-
based virgin plastic in our bottles by 2030. In
2022 44.7% of the PET bottles we sold were
100% rPET bottles (Europe 54.0%; API 25.8%).
Through our scenario analysis to assess
transition risks we are able to model risks,
strengthen our resilience and capitalise on
opportunities that could develop as society
transitions to a low-carbon economy. The
greatest risks and opportunities were found to
be linked to packaging across policy, market
and reputation risks. Through our SPO, we
continue to monitor risks and opportunities
linked to various packaging models and
regulations, including possible strategies to
maximise return on investments and develop
resilience via a diverse packaging portfolio.
The adoption of energy and water efficiency
measures across our manufacturing
operations also provides an opportunity for our
business. In 2022, we invested ~€24.8 million in
energy, logistics and carbon-saving
technologies. We estimate that this could save
~9,000 MWh, and ~30,000 tonnes of CO2e per
year. We estimate that these investments
could help us avoid annual electricity and
natural gas costs of approximately
€1-1.2 million per year. We also piloted an
internal price on carbon in Europe and
proposed a preliminary internal carbon pricing
level of €100/tCO2e to influence strategic
business decisions.
The next phase of our climate action plan will
be supported by additional investment which
will provide targeted financial support to
decarbonise our business. We aim to finalise
this climate investment plan as part of our
2023 financial long-range planning cycle
(2024-2026) in line with our stated mid-term
financial objectives.
We believe we have a considerable measure of
resilience, built up through this analysis and
careful planning in our supply chain,
commercial and procurement functions.
The impact of climate change is not expected
to be material on the going concern period
and the viability of the Group over the next
three years. This is reflected in our viability
statement on page 72.
(A) In 2019, we announced enhanced packaging targets for
Europe, bringing forward the deadline to use at least 50%
rPET from 2025 to 2023. Since 2021, our rPET use in Europe
has been >50%.
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Risk management
Approach to climate scenario analysis
Our scenario analysis was built together with
Risilience, by developing a digital twin model
of CCEP. This used data from CCEP’s financial
forecasts, operational footprint, supply chain
information, product portfolio and
environmental data.
We then modelled scenarios under different
climate emission pathways. These pathways
were defined by assumptions about policy
change, energy outlooks, technology
innovation, and global temperature change,
underpinned by the shared socioeconomic
pathways (SSPs) which are widely used,
including in the Intergovernmental Panel on
Climate Change (IPCC) assessment reports.
This physical climate materiality assessment is
an important step to inform CCEP’s climate
resilience planning. Higher risk sites will be
furnished with operational adaptation plans and
risk engineering improvements to mitigate
against damage and business interruption.
Assessing physical and transition
risks and opportunities
We assessed physical and transition risks and
opportunities in the short (five years), medium
(2030) and long term (2040 and beyond). This
is in line with a slight extension of our business
planning timeframes, our 2030 GHG emissions
reduction target, and our long-term 2040 Net
Zero target.
The time horizon used for our short-term
financial impact assessment is five years,
during which we can influence outcomes
through strategic, capital allocation,
commercial and operational decisions. Due to
the number of variables and current
constraints of our climate risk scenario analysis,
financial impact estimates have limitations
beyond the short term. Beyond five years,
there is significant uncertainty around the
financial impact of climate-related risks and
opportunities, therefore we have only assessed
the financial impact on this time horizon.
We also performed a high-level review of how
CCEP may be impacted by climate change over
the medium and long term. We are using
scenario analysis on a non-financial basis to help
us understand where risks and opportunities are
most likely to materialise, to identify trends, and
to integrate them into our strategy.
Out of the risks and opportunities we assessed,
there are seven risks (three physical, four
transition) which we believe are significant. Some
risks (e.g. exposure to litigation or investor market
risk) were assessed in detail, but are not currently
deemed to be significant. We will continue to
monitor and refine our modelling of all
climate-related risks and opportunities.
Planned future mitigating actions, including
those to deliver our short-term and long-term
GHG emissions reduction targets, have not been
taken into consideration in the scenario analysis.
We considered the materiality of risks on a “gross
risk” basis, not taking into account relevant risk
mitigations and any opportunities that may be
linked to those risks.
We have grouped the potential five-year
discounted cash flow at risk estimations into
“low”, “medium” and “high” bands. Each
opportunity and risk threat type was assessed
in isolation and independently of one another.
These bands are based on a five percent profit
before tax estimate on a five year cumulative
basis.
We plan to utilise this scenario modelling and
apply relevant learnings as we continue to
develop and refine our carbon reduction
roadmaps. This will help increase the resilience
of our carbon reduction plans and our wider
business strategy by ensuring we fully consider
the impact of transitioning to a low-carbon
economy, particularly over the medium to long
term.
Emissions
pathway
>4°C emissions
pathway
+2.5°C emissions
pathway
+1.5°C emissions
pathway
SSP
No Policy
SSP 5–8.5
Stated Policy
SSP 2–4.5
Paris Ambition
SSP 1–1.9
Temperature
rise by ≈2100
>4°C
+2.5°C
+1.5°C
Global CO2
emissions
Global action
against
climate
change
200% by 2100
-75% by 2100
Net Zero by 2050
Few or no steps taken to
limit emissions. Current
GHG emissions levels
roughly double by 2050.
The global economy is
fuelled by exploiting
fossil fuels and energy-
intensive lifestyles.
Reliance on existing/
planned policies (not
commitments). GHG
emissions plateau
around current levels
before starting to fall
mid-century, but do not
reach Net Zero by 2100.
Immediate and
coordinated action
to curb emissions.
Societies switch to more
sustainable practices.
Extreme weather is more
common than today, but
the world has avoided
the worst impacts
of climate change.
Likelihood
Low
High
Low
Scope and methodology to assess key climate-related risks and opportunities
Physical
Transition
What are
physical and
transition
risks and
opportunities?
Includes risk of both acute
weather events (e.g. floods) and
chronic long-term climate shifts
(e.g. rising sea levels). Acute
physical risks are already occurring
– however, the frequency and
severity of these is expected to
increase.
These are risks and opportunities that
could occur while transitioning to a
lower carbon economy. The level of
impact depends on the nature and
speed of the transition. The timing of
transitional risks is uncertain, but they are
more likely to occur in the short to
medium term. Opportunities include
consumer trends shifting towards
products that have lower emissions and
are less water and resource intensive.
CCEP Scope
• CCEP sites and operations
• Key areas of our supply chain
• Downstream products
Quantification
Assessed the directional cumulative five-year discounted cash flow at risk
(assuming no mitigation). This was completed independently per risk type,
including operational disruption and asset damage (physical): loss of revenue,
increased cost implications (transition).
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Physical risk
We modelled how extreme weather events and chronic changes to weather patterns could have a direct physical impact on our business or our supply chain. Based on this analysis, the potential risk
is highest from an increase in drought/water stress and an increase in heatwaves both of which could cause disruption to our operations and key suppliers.
Short-term (five years) cumulative gross risk financial impact estimates (assuming no mitigation)
Five-year discounted cash flow at risk
Low < €350m
Medium €350m–€700m
High >€700m
Short-term cumulative gross risk - Five-year discounted cash flow (assuming no mitigation)
Physical risks
What could be expected
>4°C emissions pathway
+2.5°C emissions pathway
+1.5°C emissions pathway
Extreme weather
events could cause
disruption to
facilities and
logistics routes
Increasing severity and frequency of extreme weather
events, such as floods, extreme heatwaves, windstorms or
freezing, exposes us to the risk of our sites being
damaged and/or key transportation routes being
impacted.
Low
Low
Low
• Acute weather events such as extreme heat or flooding could limit our ability to produce or distribute our
products.
• The highest level of increased physical risk could come from extreme heat, impacting Australia and Spain
over the next five years.
• Insurance premiums could increase to cover such events.
Increasing water
stress or water
scarcity
Drought, causing an increase in water scarcity and a
deterioration in the quality of available water sources in
our territories, even if temporary, could result in increased
production costs or capacity constraints, which could
adversely affect our ability to produce and sell our
beverages.
Low
Low
Low
• 24 out of our 66 NARTD production facilities are located in areas of baseline water stress, based on WRI
Aqueduct mapping. We have experienced impacts from drought at several of our sites in prior years.
• A limited increased risk could occur at our sites in both Europe and API in the near-term. This risk marginally
increases under the >4°C and +2.5°C warming scenarios.
Changes to weather
and precipitation
patterns could
cause disruption to
supply of
ingredients
Decreased agricultural productivity in some regions of the
world as a result of changing weather patterns may
impact the yield and/or quality of key raw ingredients (e.g.
sugar beet, sugar cane, coffee or orange juice) that we use
to produce our products.
Low
Low
Low
• The areas from where we source our sugar beet, particularly in France, the Netherlands, Great Britain and
Spain, could all be subject to climate-related water scarcity issues.
• Sugar and orange yields could be negatively impacted across all emissions pathways.
• Sugar beet is likely to be the ingredient most sensitive to changing weather patterns in the short term. In
our modelling, Spain demonstrated the highest likely decrease in yield, due to potential increased rainfall.
• Our modelling demonstrates that coffee yields are unlikely to be adversely impacted.
Scenarios are modelled assuming no mitigating actions or progress on our stated sustainability action plan. It assumes that CCEP’s operational footprint, product portfolio and GHG
emissions remain static. Our mitigation strategy and our This is Forward sustainability commitments are designed to mitigate climate-related risks.
Medium (2030) and long-term (2040 and beyond) non-financial assessment
The largest increase of physical risks over the medium and long term occur under the >4°C warming scenario – driven by potential operational disruption at CCEP facilities and disruption to
ingredients supply. We conducted a detailed review of 27 high priority CCEP production facilities under the no policy (>4°C) scenario and without mitigating actions. Over the long term time horizon,
the risk of flooding is expected to be the primary threat to a limited number of CCEP production facilities, primarily in Belgium, Spain and Indonesia.
Climate change may exacerbate water scarcity and cause further deterioration of water quality in affected regions. 21 of our production facilities in Europe, and three of our NARTD production
facilities in API have been identified as being located in areas of high baseline water stress through WRI Aqueduct baseline water stress mapping.
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Our strategic response to physical risks
Physical risk
Value chain
How could this impact our business (assuming no mitigation)?
How are we addressing these risks? (Our mitigation strategy)
Extreme weather
events could cause
disruption to
facilities and
logistics routes
Manufacturing
and
operations
Increasing water
stress or water
scarcity
Manufacturing
and
operations
• Property damage to production and warehouse facilities,
• We work to adapt to and mitigate climate-related risks to our business from
logistics hubs and/or distribution fleet.
• Damage to facilities, equipment and/or key logistics routes
could impact our ability to produce and/or distribute products.
• Severe floods in 2021 impacted our production facilities in
Chaudfontaine (Belgium) and Bad Neuenahr (Germany). Similar
events occurred in Australia in 2022, which did not directly
impact our sites, but disrupted our distribution and logistics. We
expect flooding to be a key physical risk under all emission
pathways.
extreme weather events by investing in:
– Flood defence and climate adaptation at our sites.
– Business continuity planning.
• In 2022, we invested approximately €3 million in flood defence and climate
adaptation across Europe and API.
• Water stress or water scarcity could cause disruption to our
production, lead to regulation or limits on our water abstraction
which could disrupt or restrict our ability to produce our
products.
• Even if temporary, this could result in increased production costs
or capacity constraints, which could adversely affect our ability
to produce and sell our beverages, and increase costs.
• 24 out of our 66 NARTD production facilities are located in areas
of baseline water stress, based on WRI Aqueduct water risk
analysis. We have experienced impacts from drought at several
of our sites in prior years, for example in 2020, production at our
sites in Dongen (the Netherlands) and Dunkerque (France) was
impacted by drought.
• We regularly review the water risks at our NARTD production facilities through WRI
Aqueduct baseline water risk assessments, Facility Water Vulnerability Assessments
(FAWVA), and Source Water Vulnerability Assessments (SVAs).
• These risks assessments directly inform the context based water targets at our
NARTD production facilities, to effectively manage local water risks.
• At sites located in areas of higher water stress, we work with NGOs, local authorities,
and the local community to help protect the watersheds we use.
• We target 100% regenerative water use in our ‘leadership locations’ by 2030(A). This
includes reducing our water use ratio, finding a beneficial use for the wastewater
we discharge, and funding replenishment projects near our leadership locations.
• In 2022, we invested approximately €1.6 million in water efficiency technology and
processes in our sites. We estimate that these investments could help us avoid
annual water and waste treatment costs of approximately €125,000 per year.
Changes to weather
and precipitation
patterns could
cause disruption to
supply of
ingredients
Supply chain
• Changing weather patterns and/or extreme weather events
• We are asking all of our carbon strategic suppliers(B) to set their own science-based
could impact the yield and/or quality of key ingredients or raw
materials that we use to produce our products - for example,
sugar beet, sugar cane, orange juice or coffee. This could reduce
availability or increase the cost of ingredients.
• The areas from where we source our sugar beet, particularly in
France, the Netherlands, Great Britain and Spain could all be
subject to climate-related water scarcity issues (based upon WRI
Aqueduct water risk analysis).
GHG reduction emissions targets, including our ingredients suppliers.
• Aim for 100% of our key agricultural ingredients and raw materials to be sourced in
compliance with our Principles for Sustainable Agriculture (PSA).
• We invest in water replenishment programmes in our key sourcing regions –
focusing on supporting advanced water management practices.
• We support suppliers in being able to measure, set targets and reduce their
emissions through training programmes such as the Supplier Leadership on
Climate Transition (Supplier-LoCT) programme.
(A) Non-alcoholic ready to drink (NARTD) production facilities which rely on vulnerable water sources or have high water dependency. We have nine leadership locations in Europe and four in API.
(B) Carbon strategic suppliers account for ~80% of our Scope 3 GHG emissions (approximately 200 suppliers in total).
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Transition risk
Our scenario analysis was focused on the transition risks faced across our value chain under three emissions pathways. Our analysis highlighted a greater potential impact from transition risk in the
short term compared to physical risk. The level of exposure to transition risks is driven by the warming scenario, with a +1.5°C scenario showing the highest level of potential transition risk.
Short-term (five years) cumulative gross risk financial impact estimates (assuming no mitigation)
Five year discounted cash flow at risk
Medium €350m–€700m
High >€700m
Low < €350m
Short-term gross risk - 5 year discounted cash flow (assuming no mitigation)
Transition risk What could be expected?
>4°C emissions pathway
+2.5°C emissions pathway
+1.5°C emissions pathway
Policy
Market
Technology
Reputation
Carbon pricing is used as a shadow mechanism through which governments can
incentivise GHG emissions reductions. The scenarios assume the use of higher
carbon prices across CCEP markets to price and penalise GHG emissions,
including those linked to packaging materials, to drive decarbonisation.
Low
Low
Medium
Assumes negligible carbon taxes
Assumes an average €40/tCO2e of
carbon taxes in year five
Assumes an average €80/tCO2e of
carbon taxes in year five
Consumer awareness of environmental impact drives a shift towards more
sustainable, lower-emission alternative products and services. The scenarios
assume that consumer preferences will shift towards packaging options that are
perceived to be more sustainable, transforming market demand.
Low
Low
Low
Assumes low consumer demand for
packaging types that are perceived to
be more sustainable
Assumes moderate demand for
packaging types that are perceived to
be more sustainable
Assumes rapid growing demand for
packaging types that are perceived to
be more sustainable
Regulation or market forces could result in the phasing out of fossil fuel and fossil-
fuel dependent equipment and vehicles. This could result in carbon-intensive
assets becoming devalued and stranded, resulting in impairment and asset write-
offs. CCEP has a limited proportion of equipment or assets that depend directly
on fossil fuels, with our own fleet assets the primary driver of risk.
Levels of consumer activism could be influenced by how much climate action is
taken by the beverage sector and by CCEP. This assumes a potential gross risk if
CCEP falls behind the beverage sector, causing increased consumer activism
relative to our competitors. This assessment does not include packaging changes
likely to be required by legislation across the sector.
Low
Low
Low
Assumes that development is fossil-
fuel driven with little innovation
Assumes moderate investment and
innovation in renewable energy
Assumes rapid decarbonisation,
including a rapid shift to renewable
energy
Low
Low
Low
Low level of consumer activism
Moderate climate activism. Assume
CCEP is perceived to be in line with
the beverage sector
Assumes CCEP does not keep pace
with the beverage sector, causing
increased consumer activism
Scenarios are modelled assuming no mitigating actions or progress on our stated sustainability action plan. It assumes that CCEP’s operational footprint, product portfolio and GHG emissions
remain static. Our mitigation strategy and our This is Forward sustainability commitments are designed to mitigate climate-related risks.
Medium (2030) and long-term (2040 and beyond) non-financial assessment
Beyond a five-year time horizon, the level of uncertainty of transition risks increases.
Transition risks are expected to be the most impactful in the short to medium term. In the next five years, in light of the challenge of coordinating global climate action, modest political, economic,
and social changes will drive financial impact. More significant action to stimulate a low-carbon transition will accelerate the rate of transition and increase the magnitude of impacts to the business.
Over the medium term, new regulations designed to decrease the use of packaging materials that contribute to GHG emissions or that introduce quotas for refillable packaging could require
additional investments in our packaging portfolio, manufacturing capabilities and distribution network. This could be accelerated by an increasing demand from consumers for more sustainable
products. Through our Sustainable Packaging Office we continue to monitor risks and opportunities linked to various packaging models and regulations, including ways to maximise returns on
possible investments through pricing, increasing our value share and the avoidance of potential taxes.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
36
Taking action on sustainability continued
Task Force on Climate-related Financial Disclosures (TCFD) continued
Our strategic response to transition risks
Transition risks
Value chain
Policy
Packaging
How could this impact our business
(assuming no mitigation)?
Introduction of carbon and/or
packaging taxes or levies, aimed at
reducing GHG emissions from
packaging and waste, that could
result in:
• increased costs for packaging
materials
Operations
and
raw materials
Increase in carbon taxes, aimed at
reducing GHG emissions within
industry groups that could result in:
• increased energy costs
• increased raw materials costs
How are we addressing these risks? (Our mitigation strategy)
• A target to collect and recycle a bottle or a can for each one we sell by 2030. Enabled through cross industry
collaboration to increase recycling rates and driving a circular economy.
• Increasing recycled material in our bottles and cans.
• A commitment to stop using oil-based virgin plastic in our bottles by 2030.
• Innovating in refillable and dispensed solutions as a key strategic route to eliminate packaging waste and reduce
our carbon footprint.
• Between 2020 and 2022, we invested €300 million in GHG emissions reduction, a portion of which helped us
accelerate our use of rPET. Using rPET provides CCEP with a significant opportunity to increase our recycled
content level in specific countries to mitigate potential taxes, and could help protect us against potential new
taxation, marketing restrictions and bans on single use plastic bottles which do not contain recycled plastic.
• Set science based short-term and long-term GHG emissions reduction targets to reduce our absolute GHG
emissions by 30% by 2030 (vs 2019), and to achieve Net Zero by 2040.
• The purchase of renewable electricity (100% in Europe since 2018; 100% in API by 2030).
• Engaging and working with our carbon strategic suppliers to:
– set their own science based GHG emissions reduction targets by 2023 (Europe) and 2025 (API)
– use 100% renewable electricity in their operations by 2025 (Europe) and 2030 (API)
– share their carbon footprint data with us
• Aim to source all our agricultural ingredients and raw materials sustainably by ensuring our ingredient suppliers
meet our PSA requirements.
• In 2022, we invested ~€24.8 million in energy, logistics and carbon-saving technologies across our markets, saving
~9,000 MWh per year and ~30,000 tonnes of CO2e. We estimate that these investment measures could help us
avoid annual costs of approximately €1.0-1.2 million per year.
Market (consumer) Brands and
• Loss of revenue and/or missed
portfolio
growth opportunities
• Regular review of products and business models based on their carbon, packaging and water footprints.
• Removing packaging materials where we can and setting targets to work towards collecting all the packaging we
use, increase our use of recycled content and reuse packaging in a circular system.
Technology
Operations
• Asset write downs, investments in
low-emission technology to meet
market regulation
• Investment in lower-emission/renewable energy reliant manufacturing equipment and transportation.
• Commitment via EV100 to transition all of our cars and vans in Europe to electric vehicles (EVs), or ultra-low
emission vehicles by 2030. In 2022, 20% of our cars and vans in Europe were plug-in hybrid electric or pure EVs.
• Investing in the decarbonisation of our production facilities in line with our short-term GHG emissions reduction
Reputation
Brands and
portfolio
• Loss of revenue and/or missed
growth opportunities due to
consumer activism against our
sector and/or our products
target.
• Reviewing and investing in emerging technologies through CCEP Ventures.
• Set science based short-term and long-term GHG emissions reduction targets to reduce our absolute GHG
emissions by 30% by 2030 (vs 2019), and to achieve Net Zero by 2040.
• Increasing recycled content in packaging and increasing collection rates.
• Developing refillable and reusable product offerings for consumers.
• Continue to work with TCCC and other franchise partners as part of a system approach driving the sustainability
agenda of our brands.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
37
Taking action on sustainability continued
Task Force on Climate-related Financial Disclosures (TCFD) continued
Metrics and targets
Through our sustainability reporting and
disclosure we measure, monitor and manage
our sustainability targets and other
sustainability-linked metrics.
As part of our sustainability materiality process,
we have used stakeholder insights to inform
the update of our This is Forward
commitments. The targets in This is Forward
have been extended to cover all of our
markets in Europe and API, and include
ambitious, time-bound sustainability
commitments. We plan on completing a more
detailed materiality analysis in 2023.
For a full list of all sustainability metrics
disclosed within this report please refer to our
“Sustainability key performance data
summary” on pages 249-252. This section also
includes a summary of our approach to
reporting, and an overview of our GHG
emissions calculation methodology.
Climate-related targets
This is Forward includes key metrics and
targets to assess and manage climate risks and
opportunities across our value chain. Our
climate targets are:
• Net Zero GHG emissions (Scope 1, 2 and 3)
by 2040
• Reduce absolute GHG emissions (Scope 1, 2
and 3) by 30% by 2030 (versus 2019)
• Use 100% renewable electricity across all
markets by 2030
• 100% of carbon strategic suppliers to set
science based targets by 2023 (Europe) and
2025 (API)
• 100% of carbon strategic suppliers to use
100% renewable electricity by 2025 (Europe)
and 2030 (API)
Our short-term and long-term emissions
targets have been submitted to the SBTi for
approval.
To support the development of a new Group
wide science based GHG emissions reduction
target, we have established carbon reduction
roadmaps across our markets. Over the next
year, this work will help us develop a
low-carbon transition plan, supported by
long-term investment.
The table to the right provides an overview of
our GHG emissions and energy use. A more
detailed breakdown of emissions by source
can be found in our Forward on Climate
section on pages 38-41.
Water efficiency and replenishment
targets
We adopt a value chain approach to water
stewardship, focusing on water efficiency
within our own operations, and work to
protect the sustainability of the water sources
that our business, our communities and our
suppliers rely upon. Our This is Forward water
targets are as follows:
• Set context based water targets at all
NARTD production facilities
• Replenish 100% of the water we use in our
beverages
• 100% regenerative water use in ‘leadership
locations’ by 2030
Our manufacturing water use ratio(A) is a key
metric to measure water efficiency and all of
our NARTD production facilities must set
site-level water use ratio reduction targets, the
level of which is based on the local site risk. In
2022, we achieved a 5.4% improvement in
water use efficiency since 2019. We also
measure and report on total water withdrawals
and production volumes from areas of
baseline water stress. Please see our ‘Forward
on water’ section on pages 46-48 for further
details on our water strategy and water risk
assessment process.
Packaging metrics and targets
Packaging represents 38% of our total value
chain carbon footprint – making it one of the
most material areas where we can reduce our
carbon footprint. Removing and reducing
unnecessary packaging and driving the
circularity of packaging we use will reduce the
carbon footprint of our packaging and help us
achieve our climate goals. More information on
our packaging strategy, targets and metrics
can be found in our Forward on packaging
section, see further details on pages 42-45.
Carbon emissions and energy use
Group(B)
UK and UK offshore(C)
2019(D)
baseline
343,784
2022
295,904(F)
2019(D)
baseline
36,193
2021
37,501
2022
29,436
218,082
186,494(F)
37
2
2
380,173
303,597(F)
22,186
16,489
15,985
5,410,655
4,931,065(F)
712,608
682,888
700,012
5,972,521(F)
5,413,463(F)
748,838
720,391
729,449
330.7(F)
289.4(F)
248.9
228.3
215.8
36.9
27.9(F)
15.0
14.4
9.5(F)
1,276,424
1,120,774
145,385
161,015
131,111
935,478
901,588
94,622
85,390
91,904
2,211,902
2,022,362(F)
240,007
246,405
223,016(F)
Tonnes of CO2e
Scope 1
Direct emissions (e.g. fuel used in
manufacturing, own vehicle fleet)
Scope 2 (market based)
Indirect emissions (e.g.
electricity)
Scope 2 (location based)
Indirect emissions (e.g.
electricity)
Scope 3
Third party emissions (e.g.
ingredients, packaging, CDE,
third party transportation)
GHG emissions Scope 1, 2
and 3 (full value chain)(E)
Intensity ratio
Full value chain GHG
emissions (Scope 1, 2
and 3) per litre
(g CO2e / litre)
GHG emissions (Scope 1
and 2) per euro of
revenue(E)
Energy use
Direct energy
consumption (Scope 1)
(MWh)
Direct energy
consumption (Scope 2)
(MWh)
Direct energy
consumption (Scope 1
and Scope 2) (MWh)
Note: For details on our approach to reporting and methodology please see our ‘2022 Sustainability reporting methodology’
document on cocacolaep.com/sustainability/download-centre
(A) Measured as litres of water per litre of finished product produced. All beverage production facilities.
(B)The acquisition of API completed on 10 May 2021 however the baseline metrics above are presented on a full year basis for
2019 to allow for better period over period comparability. 2021 data not disclosed due to the timing of the Acquisition.
(C) Equates to Great Britain for CCEP.
(D) 2019 baseline has been restated – as described in our “Sustainability key performance data summary” on pages 248-251.
(E) Scope 2 is market based approach only. Emissions from biologically sequestered carbon in 2022 were 63,500 tonnes of
CO2e, reported outside of the three scopes, in line with WRI/WBCSD GHG Protocol guidance.
(F) Subject to external independent limited assurance by DNV. See page 252 for details
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
38
Taking action on sustainability continued
Forward on climate
The context
Our strategy
Targets and performance(A)
The Intergovernmental
Panel on Climate Change
(IPCC) has issued a ‘code
red’ for humanity, showing
unequivocally that human
activity is the cause of rapid
changes to our climate.
To limit global warming
to 1.5°C, humanity must
achieve global net zero
emissions by 2050.
We take our responsibility
to reduce our GHG
emissions seriously. Over
the last decade, we have
made strong progress
across our entire value
chain – but much more
needs to be done.
We are committed to decarbonising our entire
business. Following work to better understand
our emissions in our API business, we have
submitted short-term and long-term absolute
GHG emissions reduction targets, covering our
Scope 1, 2 and 3 emissions, to the SBTi for their
approval.
This includes a:
• short-term target to reduce our absolute
GHG emissions by 30% by 2030 (versus 2019)
• long-term target to reach Net Zero by 2040
We anticipate that the SBTi will complete its
review by the end of 2023.
Reduce emissions
Reduce absolute GHG emissions (Scope 1, 2
and 3) by 30% by 2030(B), versus 2019
Renewable electricity consumption
Use 100% renewable electricity across
all markets(C) by 2030
Group
2022
9.4%
Europe
2022
2021
API
11.4%
13.6%
Target
30% reduction by
2030 (versus 2019)
Group
2022
Europe
2022
2021
API
Target
100% by 2030
74.4%
99.5%
99.4%
We know that these targets are challenging
and we are focused on delivering them by:
2022
6.0%
2022
23.8%
• developing a low-carbon transition plan,
focused on reducing emissions across each
area of our value chain, supported by long-
term investment
• including a GHG emissions reduction target
in our LTIP for senior management. This
metric has a 15% weighting and is included
alongside traditional financial metrics,
including earnings per share and return on
invested capital
• asking our carbon strategic suppliers to set
their own science based carbon reduction
targets and to shift to 100% renewable
electricity
• developing a limited carbon offsetting
strategy for the short and long term, focused
on carbon removals, to support our Net Zero
target.
Supplier engagement
100% of carbon strategic suppliers(D) to set
science based targets by 2023 (Europe)
and by 2025 (API)
Supplier engagement
100% of carbon strategic suppliers to use
100% renewable electricity by 2025 (Europe)
and by 2030 (API)(E)
Group
2022
17.0%
Europe
2022
API
27.0%
2022
5.0%
Target
100% by 2025
Target
100% by 2023
Target
100% by 2025
(A) The acquisition of API completed on 10 May 2021. The Group and API sustainability metrics are presented on a full year
basis for 2019 baselines calculated on a pro forma basis to allow for better period over period comparability.
(B) New Group wide commitment versus 2019. Submitted SBTi target and awaiting approval. We anticipate that the SBTi will
complete its review by the end of 2023.
(C) See page 40 for renewable electricity purchased percentages for Group, Europe and API.
(D) Carbon strategic suppliers account for ~80% of our Scope 3 GHG emissions (~200 suppliers in total). A further 42% (Europe
56%; API 30%) have committed to set science based targets, including those who may have already submitted targets to the
SBTi.
(E) Complete data not available for 2022 reporting. We aim to report on this indicator in 2023.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
39
Taking action on sustainability continued
Forward on climate continued
GHG emissions | Value chain
Delivering a low-carbon transition
Between 2020 and 2022, we supported the
delivery of our GHG emissions reduction
target through a €300 million investment plan.
A proportion of this investment helped us
accelerate our use of recycled PET (rPET)
resulting in us achieving our >50% rPET target
four years early in Europe(A). Our efforts across
our entire value chain reduced emissions by
9.4% versus 2019.
In 2022, to support the development of a new
Group wide science based GHG emissions
reduction target, we established carbon
reduction roadmaps across our markets. These
focus on achieving “big bet” decarbonisation
initiatives across our value chain by 2030. This
includes initiatives such as reviewing our pack
mix, efficiency improvements to our cold drink
equipment (CDE), and our third party
transportation and distribution. This work will
help us develop a low-carbon transition plan,
supported by long-term investment.
To support our business planning, we have
embedded a carbon projection into our
2023–2025 long range plan and 2023 business
plan, providing us with greater connection
between our commercial and carbon
forecasts. We also piloted a preliminary internal
carbon price of €100/tCO2e in Europe as a way
of influencing strategic business decisions.
CCEP Ventures
Through CCEP Ventures, our investment
platform for sustainability initiatives, we aim
to invest in solutions that will help us reach
our Net Zero 2040 target, including
carbon-capture technology.
(A) In 2019, we announced enhanced packaging targets for
Europe, bringing forward the deadline to use at least 50%
rPET from 2025 to 2023. Since 2021, our rPET use in Europe
has been >50%.
In 2022, we invested in a collaboration with the
University of California, Berkeley to research
the production of sugar from captured CO2.
Building upon that partnership, CCEP Ventures
recently entered into two new partnerships
with Universitat Rovira i Virgili in Tarragona,
Spain and the University of Twente in the
Netherlands. These partnerships will explore
ways to transform captured CO2 that is
present in an emission source or even in the
atmosphere into the production of other
goods like fuel, ingredients, and packaging.
Discover more about CCEP Ventures
at cocacolaep.com/ventures
Reducing supplier GHG emissions
Over 90% of our value chain GHG emissions are
attributed to our supply chain (Scope 3). To
reduce our Scope 3 emissions, we have asked
approximately 200 carbon strategic suppliers
(representing approximately 80% of our
emissions) to:
• set science based targets by 2023 in Europe
and by 2025 in API
• use 100% renewable electricity by 2025 in
Europe and by 2030 in API
By the end of 2022, 17% (Europe 27%; API 5%)
of these suppliers had set a science based
emissions reduction target. A further 42%
(Europe 56%; API 30%) have committed to set
science based targets, including those who
may have already submitted targets to the
SBTi. Approximately 36% of our Scope 3
emissions in Europe were linked to suppliers
with SBTi-validated targets in 2022.
We are also working with TCCC to collect and
validate emission data directly from our
suppliers, initially focusing on packaging and
ingredient suppliers. This work will be critical in
helping us to reflect the impact of our
suppliers’ actions more accurately.
Reducing the carbon footprint
of our packaging
Packaging accounts for a significant part of
our GHG emissions, representing 38% of our
total carbon footprint.
We work to reduce the carbon footprint of our
packaging in many ways - including reducing
the weight of our packaging, innovating in
refillable packaging and packageless
technology, and by reviewing our pack mix .
One of the most significant ways we can
reduce the carbon footprint of our packaging
is by replacing virgin material with recycled
content across all of our packaging types. In
2022 48.5% of the PET we used was rPET
(Europe 56.3%; API 26.9%). We estimate our use
of rPET in 2022 delivered a reduction of
approximately 100,000 tonnes of CO2e(B). In
addition, we have a target to stop using oil-
based virgin plastic in our bottles by 2030. In
2022, 44.7% of the PET bottles we sold were
100% rPET bottles (Europe 54.0%; API 25.8%).
Read more about our packaging activities
on pages 42-45
Reducing the carbon footprint
of our ingredients
Our ingredients account for 23% of our total
carbon footprint. The majority of this footprint
comes from the farming, processing and
transportation of our ingredients. To reduce it,
we are collecting more accurate carbon data
from our suppliers and aim for 100% compliance
with our Responsible Sourcing Policy (RSP)
which includes TCCC’s Supplier Guiding
Principles (SGPs), Principles of Sustainable
Agriculture (PSA) and commitments and
expectations around carbon management.
Read more about our approach
to sourcing on pages 49-52
GHG emissions across our value chain
(Group)(C)
Ingredients
23%
Packaging
38%
Operations and
commercial sites
Transport
Cold drink
equipment (CDE)
12%
8%
19%
(B) Comparing 0% rPET rate vs actual 2022 48.5% rPET rate
(C) Rounded to the nearest 1%
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2022 Integrated Report and Form 20-F
40
Taking action on sustainability continued
Forward on climate continued
GHG emissions | Operations and commercial sites
Reducing the carbon footprint of our
operations and commercial sites
Our operations and commercial sites account
for 12% of our total carbon footprint.
We are working to reduce emissions from our
production facilities by shifting to renewable
electricity, improving energy efficiency,
investing in on-site renewable energy,
transitioning from fossil fuel to electric
machinery (such as boilers and manual
handling equipment) and reducing our
fugitive CO2 losses.
In 2022, we invested ~€24.8 million in energy,
logistics and carbon-saving technologies. We
estimate that this could save approximately
9,000 MWh and ~30,000 tonnes of CO2e per
year. We estimate these investments could
help us avoid annual electricity and natural gas
costs of ~€1-1.2 million per annum. For
example in 2022, we saved approximately 800
MWh per year by improving the efficiency of
high pressure air compressors at three Spanish
production facilities. In Indonesia, we carried
out more than 30 energy-efficiency projects,
which helped to reduce our energy use ratio
from 0.93 in 2021 to 0.82 MJ/litre in 2022.
Energy use ratio
(MJ/litre of product produced)
Group
2022
Europe
2022
2021
API
2022
0.35
0.30
0.32
0.56
Renewable electricity
Using renewable electricity is critical to our
decarbonisation journey. As a member of The
Climate Group’s RE100 initiative, we are
committed to using 100% renewable electricity
across all of our markets by 2030.
In Europe, we have purchased 100% renewable
electricity since 2018, with 99.5% of the total
electricity we used in Europe in 2022 coming
from renewable sources. The gap is due to a
small amount of non-renewable electricity
used in leased facilities where we do not
directly control the electricity contracts.
In API, 20.5% of the electricity purchased and
23.8% of the electricity used was from
renewable sources. In New Zealand, we
switched to using 100% renewable electricity
three years ahead of our target. In Australia,
we have signed an eight year renewable
electricity agreement with Alinta Energy to
purchase large-scale generation certificates
and 13,000 MWh a year of renewable electricity
from the Yandin Wind Farm, one of the largest
in Western Australia.
We continue to invest in renewable and
low-carbon energy projects at our production
facilities, including on-site and power-purchase
agreements for solar, wind, combined heat and
power (CHP), district heating and hydropower.
In 2022, 15 of CCEP’s facilities sourced
electricity from on-site solar, wind or hydro
power, generating ~17,000 MWh of electricity.
For example, in Portugal, we installed solar
panels at our Azeitão plant in 2022, supplying
up to 18% of the site’s electricity demand.
Purchased renewable electricity
(percentage)
Case study
Carbon neutral production facilities
Group
2022
Europe
2022
2021
API
2022
20.5%
75.0%
100%
100%
Carbon offsetting
We are focused on decarbonising our business,
in line with a 1.5˚C reduction pathway. In line
with SBTi-Net Zero guidance, we support a
limited amount of carbon offsetting outside
of our value chain in the short term.
To do this, we have purchased a limited
amount of high-quality carbon credits to
offset emissions where we cannot reduce
further – for example, to offset remaining
emissions for our carbon neutral production
facilities.
In 2022, we retired 9,375 tCO2e of carbon
credits from a VCS-certified REDD forest
protection project based in Pulau Borneo,
Indonesia. These credits were used to offset
remaining emissions from our six carbon
neutral sites. We have also purchased a limited
amount of credits that we plan to use in 2023
and 2024. In the longer term, we will be
working to directly invest in nature-based
solutions that remove carbon from the
atmosphere.
To support our Net Zero by 2040 ambition,
and reduce our absolute GHG emissions
across our value chain by 30% by 2030
(vs 2019), we are supporting our sites to
reduce their emissions and become PAS
2060 carbon neutral certified. By the end
of 2022, six sites – Chaudfontaine, Belgium;
Genshagen, Germany; Morpeth, Great
Britain; Vilas del Turbón, Spain; Jordbro,
Sweden and Putāruru, New Zealand – were
certified as carbon neutral.
To be part of this programme, production
facilities must have significantly reduced
their emissions over the previous three
years, and have a plan to continue reducing
emissions in the future.
For example, our Putāruru site switched to
use 100% certified renewable electricity
during 2022 and is transitioning from LPG
to electric forklifts to reduce its GHG
emissions further. In 2022, the carbon
intensity of production at the site reduced
by ~40% CO2e per litre compared to 2021.
Find out more at cocacolaep.com/annual-
report/case-study/carbon-neutral
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2022 Integrated Report and Form 20-F
41
Taking action on sustainability continued
Forward on climate continued
GHG emissions | Transportation, distribution and cold drink equipment
Reducing emissions from our car fleet,
vans and trucks
GHG emissions from our car fleet and vans
account for 24% of our Scope 1 emissions.
As a members of the Climate Group’s EV100
initiative, we have committed to transition all
of our cars and vans in Europe to electric
vehicles (EVs), or ultra-low emission vehicles,
and where EVs are not viable, by 2030.
To support this shift, we aim to offer workplace
charging and make it convenient for
employees to charge EVs at home, at work and
on the go. In Europe, we increased our use of
hybrid and electric cars and vans from 12% in
2021 to 20% in 2022.
In 2022, we introduced 30 electric trucks to
make last mile deliveries to customers in
Belgium, covering approximately 40% of the
country’s local delivery routes. The trucks are
powered by charging stations using 100%
renewable electricity at our production
facilities.
Making our distribution networks
more efficient
GHG emissions from our third party
distribution and transportation account for
approximately 7% of our Scope 3 emissions. To
reduce emissions, we are improving our
warehouse capacity, working with suppliers to
change the way we transport our products,
and increasing our use of alternative fuels.
By adding warehouse capacity at our
production facilities, we have reduced road
miles and can now deliver directly to
customers from our production facilities
instead of using external warehouses. In
Germany we have been recognised by the
Sustainability Heroes Awards for our
collaboration with DB Cargo, to facilitate the
transportation of our products via rail. This
project saved over five million truck kilometres
over the past three years.
By working with our suppliers, we have also cut
the distance our ingredients and raw materials
travel to reach our production facilities. Many
of these sites are located next to our can
suppliers, eliminating the need to transport
empty cans. Some of our production facilities,
including Grigny in France, Wakefield in Great
Britain and Halle in Germany, manufacture
their own PET bottle pre-forms. We have also
worked with some sugar beet suppliers to
switch deliveries from road to rail.
In several European countries, we run
front-hauling and back-hauling programmes
together with customers and suppliers. We have
back-hauling arrangements with key customers
across France, Great Britain, the Netherlands
and Sweden. We are also expanding the use of
Eco-Combi trucks in the Netherlands and
Belgium. Longer than conventional trucks, they
can carry up to 38% more per journey, helping to
reduce GHG emissions.
We are also exploring alternative fuels and new
technologies. Alternative fuels currently make up
~8% of the total kilometres driven by our hauliers
in Europe, and we are working to increase this.
Our hauliers use hydrotreated vegetable oil
(HVO100) in Great Britain, Germany, the
Netherlands, Spain and Sweden, compressed
natural gas (CNG) and BioCNG in France,
liquefied natural gas (LNG) in Belgium and
Luxembourg and gas-powered trucks in
Germany and Spain.
Reducing our emissions from cold drink
equipment (CDE)
GHG emissions from our CDE represent 19% of
our total carbon footprint.
In 2022, we reduced the energy use of our
CDE equipment per unit across our markets
by 3% versus 2021. Our efforts to replace old
and obsolete equipment, also led to a
reduction of 8% in the size of our CDE fleet
and a 10% decrease in total energy
consumption versus 2021. This helped drive a
reduction of GHG emissions of 13% CO2e in
2022. All new coolers purchased in 2022 were
hydrofluorocarbon (HFC)-free. In total, 51% of
our cooler fleet is now HFC-free.
In 2022, we launched our Connected Coolers
Technician App which helps reduce technician
visits and improves cooler efficiency. This will
also help us better track and manage our fleet.
When we do dispose of old equipment, we aim
to take full responsibility by ensuring recycling
and its safe disposal.
In API, cold drink equipment can often be a
significant source of emissions, due to the use of
fossil fuels in the national electricity grid. In
addition to working to improve the energy
efficiency of our fleet across API, we strongly
support the continued shift to renewable
electricity across our markets.
Working with customers
We also support our customers to reduce their
own emissions. In 2022, we continued to drive
our Net Zero Pubs, Bars and Restaurants
initiative in Great Britain in partnership with
Pernod Ricard and Net Zero Now. This online
platform calculates the carbon footprint of bars
and restaurants and provides customers with
guidance on reducing emissions. In Spain, we
continue to support the ECODES Foundation
Community’s HOSTELERIA #PorElClima
platform, which aims to reduce the carbon
footprint of the hotel, café and restaurant
sector, by giving guidance and
recommendations and by raising awareness of
carbon management practices in the industry.
Learn more about our stakeholders
engagement on pages 14-17
Case study
Switch from road to rail
In Great Britain, in partnership with Maritime
Transport Ltd, and GB Railfreight, we are
making the switch from road to rail to
distribute our drinks between our production
facilities and third party warehouse locations
across London and Yorkshire.
When running at full capacity, the change
will see up to 18,000 loads of CCEP’s
products – some 2.5m cans and bottles –
delivered by rail per day, reducing carbon
emissions by nearly 50% compared to
previous road operations.
Distribution km via alternative modes
~24m
In 2022, ~9% of our third party distribution km
travelled in Europe were via alternative modes
of transportation like rail, ship or eco-combis.
Distribution km using alternative fuels
~20m
In 2022, ~8% of our third party distribution km
travelled in Europe used fuels like HVO100 or
CNG.
Find out more at cocacolaep.com/annual-
report/case-study/road-to-rail
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
42
Taking action on sustainability continued
Forward on packaging
The context
Our strategy
Targets and performance
Waste and pollution,
particularly from plastic
packaging, is a significant
global challenge.
We are taking urgent action
to reduce the impact of our
packaging. We have a
responsibility to help tackle
the packaging waste crisis
and understand the urgency
and complexity around
plastic pollution.
By reimagining the way
we do business, we are
progressively moving away
from a linear model and the
waste it creates, towards a
100% circular model.
We are committed to reducing our use of
packaging where possible and ensuring that
the equivalent of all the packaging we do use
is collected, reused or recycled so that it does
not end up as waste or litter. These actions will
also reduce the carbon footprint of our
packaging. In 2022, our packaging represented
38% of our total value chain carbon footprint.
We aim to achieve this through the key pillars
of our packaging strategy:
• Removing unnecessary packaging
• Innovating in refillable and packageless
solutions
• Achieving 100% collection so that packaging
can be recycled and reused
• Increasing the recycled content of our
packaging
Our Sustainable Packaging Office (SPO)
streamlines all the technical and exploratory
sustainable packaging work across our
geographies, accelerates our innovation and
supports progress towards our goals.
Design(A)
100% of primary packaging to be recyclable
by 2025
Recycled plastic (rPET)
50%(B) recycled plastic in our PET bottles in
Europe by 2023 - other API markets by 2025
Europe
2022
2021
98.7%
98.3%
Collection
Collect and recycle a bottle or a can for each
one we sell by 2030
Target
100% by 2030
71.8%
76.7%
Group
2022
Europe
2022
API
2022
53.0%
Group
2022
Europe
2022
2021
API
2022
Target
50% by 2025
48.5%
Target
50% by 2023
56.3%
52.9%
Target
50% by 2025
26.9%
Virgin plastic
Percentage of PET bottles that are 100%
rPET(C)
Target
100% by 2030
Group
2022
Europe
2022
API
2022
44.7%
54%
25.8%
(A) Complete data for Group and API not available for 2022 reporting. We are completing an assessment across API. For
details see our ‘100% recyclable’ section on page 43. We aim to report on this indicator for Group and API in 2023.
(B) Percentage based on one way PET bottles sales (tonnes).
(C) Percentage based on one way PET bottles sales (individual consumer units).
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
43
Taking action on sustainability continued
Forward on packaging continued
Packaging carbon footprint - removing unnecessary packaging
Packaging life cycle analysis (LCA)
Together with TCCC, we have conducted life
cycle analysis to assess the carbon footprint of
our packaging. This allows us to make
informed decisions and helps us prioritise our
efforts to reduce the GHG emissions of our
packaging. In 2022, we updated our LCA work
to help us compare the carbon footprints of
our different packaging formats.
Having a solid understanding of the factors
that contribute to the carbon footprint of our
products, enables us to focus on key areas such
as increasing collection rates and recycled
content. LCA allows us to understand the
potential carbon impact of changing from one
packaging type to another. For example,
switching from PET to aluminium cans or one
way glass could currently result in higher GHG
emissions. We also know that 100% rPET has up
to a ~70% lower carbon footprint than
virgin PET.
We are working to reduce the carbon intensity
across our packaging portfolio and we know
that we will need a balanced and optimised
packaging portfolio in the future to allow
consumers to enjoy our drinks in a more
sustainable way.
Read more in Forward on climate
on pages 38 - 41
Future pack mix
In 2022, we held multiple workshops across our
key geographies to help forecast our future
pack mix up to 2030. This work is critical in
developing our overall emissions reduction
strategy. It also enables us to explore ways to
accelerate our use of reusable packages across
our markets. Our pack mix vision provides a
sustainable packaging pathway, while
delivering volume growth and mix that
supports our mid-term financial objectives.
Our work takes into account upcoming
legislation, both likely and enacted, which in
selected markets or sub-channels will require
us to reduce the use of single use plastic or
introduce refillable packaging. As a result of
this project we have started to build a
roadmap that will increase the sustainability of
our packaging portfolio. Over time we will
continue to refine and optimise our future
pack mix vision.
100% recyclable
Recyclability is the first principle of the circular
economy. For packaging to retain its value and
for the material to be recycled, it must first be
collected and be compatible with recycling
infrastructure in practice and at scale.
We’re aiming for 100% of our primary
packaging to be recyclable or reusable by
2025. In 2022, 98.7% of our primary packaging
across European markets were recyclable.
We want to ensure our packaging is not just
technically recyclable, but that it is easy and
feasible for consumers to recycle. While most
of our packaging is technically recyclable in
API, we are completing an assessment to
understand whether the collection systems in
place cover the right materials, and reach
enough people. We are also reviewing whether
existing collection systems sort and aggregate
collected materials into defined recycling
streams, and whether material is converted
into a secondary raw material which has
economic value, and can be used again.
We are continuing this assessment, and aim to
be able to report a percentage of packaging
that is recyclable in API next year.
Hard to recycle packaging
Although we are focusing on making our
primary packaging recyclable, we ultimately
want to ensure all the materials we use are
recyclable, preferably in a closed loop system.
To achieve this, we are taking steps to make
our labels, closures and shrink wrap we use for
multipacks recyclable as well. Some of the key
hard to recycle items we are working on are:
• exploring mechanical recycling for
polypropylene (PP) plastics as well as
mechanical and enhanced technologies for
high density polyethylene (HDPE) plastics.
Both plastic types are often used on closures.
• forming partnerships to increase recycling
streams for shrink wrap.
• developing mechanical recycling technology
to create recycled labels.
• joining a cross industry initiative to move to
washable inks on shrink sleeves, making it
easier to recycle labels alongside bottles.
• in Australia, we are working with the
government through the local industry
association to align new labelling with the
requirements of container deposit schemes.
Lightweighting
We have a long-standing programme to
reduce the weight of our packaging and
optimise the materials we use.
In 2008, a 500ml PET bottle weighed 28.9g.
Today, thanks to innovative work with our
suppliers, this same bottle now weighs just 19.9g,
and current projects will reduce this further.
In 2022, we continued to shift our can portfolio
from steel to aluminium in Europe. As
aluminium is lighter than steel we estimate the
volume transitioned to aluminium cans from
steel during 2022 resulted in eliminating
approximately 11,500 tonnes of CO2e. In API, we
only use aluminium cans.
Case study
Tethered closures and light weighting
In full compliance with the European Single
Use Plastics Directive which will take effect
in 2024, we are introducing tethered
closures to our plastic bottles across our
European markets.
Our PET bottles, including the caps, are
100% recyclable but not all are being
recycled. Bottle caps are often discarded
and create litter. We have started to
introduce tethered closures and a newly
designed lighter weight neck on our PET
bottles for carbonated soft drinks. The new
design means that the cap stays
connected to the bottle after opening, so
the whole plastic bottle and attached cap
can be recycled together. This move will
save at least 1g of plastic per bottle –
approximately 6,800 tonnes of plastic a
year by 2024.
This new solution was developed in
collaboration with TCCC, working closely
with multiple bottle and closure suppliers.
Find out more at cocacolaep.com/annual-
report/case-study/attached-caps
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
44
Taking action on sustainability continued
Forward on packaging continued
Innovating in refillable and packageless and increasing recycled content
Refillable or reusable
Reusable packaging will help us become more
resource efficient, and reduce our packaging
waste, material use and carbon footprint.
By 2030, TCCC aims to have at least 25% of
their global volume sold in refillable or
returnable glass or plastic bottles, or in
refillable containers through traditional
fountain or Coca-Cola Freestyle dispensers.
Refillable bottles already have a significant
presence in some of our markets. In 2022, ~15%
of the packaging units we put on the market in
Europe were returnable and refillable. In
Europe refillable PET bottles represented
~12% of the PET bottles we put on the market,
and ~84% of our glass bottles were refillable.
We continue to pilot and develop new
refillable solutions in Europe.
Dispensed delivery solutions
Compared to packaged beverages, dispensed
solutions often have a lower carbon footprint.
They allow consumers to enjoy our drinks with
less packaging and are compatible with
reusable cups or bottles.
We continue to innovate our dispensed
product offering and work with partners to
develop new digitally advanced smart
dispensing equipment. We are engaging with
customers and consumers to encourage more
sustainable choices, such as switching from
single use to reusable drinking vessels. Through
pilot projects, we are testing consumer
behaviour to better understand the potential
of dispensers and reusable containers to
reduce waste and GHG emissions.
~9%
of our volumes in 2022 were enjoyed via
dispensed solutions (Europe ~8%; API ~11%).
Case study
New Compact Freestyle® drinks
dispenser pilots in Europe
New Compact Freestyle has been
developed with TCCC as an extension of
the iconic Coca-Cola Freestyle brand and
portfolio. Designed for smaller on the go
and at work locations, it allows consumers
to personalise their drink choices, and
choose to fill their own reusable vessel.
Number of countries with trials
5
Belgium, France, Great Britain,
the Netherlands and Spain.
Number of beverage choices
~40
The smart dispenser offers consumers
greater choice and personalisation.
Find out more at cocacolaep.com/annual-
report/case-study/freestyle
Recycled and renewable materials
Using recycled material in our bottles and cans
helps us to keep valuable resources in a circular
economy and reduce the carbon footprint.
In Europe, we achieved our 50% rPET target
four years early(A) and have set an ambition to
use 50% recycled plastic in API by 2025. We also
have a target to stop using oil-based virgin
plastic in our bottles by 2030. We aim to
achieve this by using only rPET or PET from
renewable sources such as plantPET. This is a
core part of our strategy to demonstrate that
single use plastic can be fully circular.
We have made significant investments to
develop a strong rPET roadmap and increase
our use of rPET. We finished 2022 with:
• Iceland, the Netherlands, Norway and
Sweden using 100% rPET for all locally
produced bottles;
• Belgium, Luxembourg, Germany, Great
Britain, Australia, Fiji and New Zealand using
100% rPET across all single serve bottles; and
• Fuze Tea, Smartwater, Chaudfontaine and
Vio are 100% rPET brands
In 2022, we introduced rPET in our 390ml
carbonated soft drinks bottles in Indonesia,
using material from our Amandina PET recycling
plant, which is a joint venture with Dynapack Asia.
We are working with suppliers to increase the
recycled content in all packaging types,
including secondary and tertiary packaging.
High quality rPET
The current demand for high quality food
grade rPET exceeds its supply. To address this,
we are investing in long-term partnerships with
recyclers to increase recycling capacity.
Scaling up rPET production requires a
significant increase in collection rates. In
markets with beverage packaging return
schemes in place, we are advocating for fair
access to the returned materials, to build
bottle to bottle recycling loops and avoid high
quality PET being downcycled into low value
plastic and lost from the system.
In 2022, we began using materials from our
Indonesian PET recycling plant, which is a joint
venture with Dynapack Asia. The state of the
art facility, run by Amandina Bumi Nusantara,
will help towards creating a closed loop plastic
packaging supply chain by producing food
grade PET pellets made from locally collected
post-consumer plastic bottles.
Together with Pact Group, Cleanaway and
Asahi Beverages, we have formed a joint
venture to build and operate a new PET
plastic recycling facility in Victoria, Australia.
Construction started in 2022 and is expected
to be completed in 2023. This will be the
second facility built by the joint venture in
Australia, following the opening of the
Albury-Wodonga site in New South Wales in
March 2022. We estimate that each facility
will be capable of processing the equivalent
of approximately one billion plastic bottles
each year.
To address the challenge of hard to recycle
plastics, including plastic found in the oceans
or sent to incineration or landfill, new
depolymerisation recycling technologies are
needed. We are investing to help scale this
technology, including our investment in CuRe
Technology through CCEP Ventures. This
funding will enable CuRe Technology to
accelerate its polyester rejuvenation
technology to commercial readiness. Once
commercialised, we will receive access to
output to support our target to stop using
oil-based virgin plastic in our bottles by 2030.
(A) In 2019, we announced enhanced packaging targets for
Europe, bringing forward the deadline to use at least 50%
rPET from 2025 to 2023. Since 2021, our rPET use in Europe
has been >50%.
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2022 Integrated Report and Form 20-F
45
Taking action on sustainability continued
Forward on packaging continued
Driving packaging circularity
Packaging collection and infrastructure
Collecting “a bottle or a can for every one we
sell” is at the heart of TCCC’s global World
Without Waste strategy. This commitment is
also a core part of our strategy to demonstrate
that single use plastic can be circular.
Addressing collection and infrastructure
challenges is often complex. Across our
markets we are working with national and local
governments and stakeholders to develop and
fund collection solutions that provide high
quality recycled plastic. While collection
solutions will vary market by market, ultimately
they all need to support a reduction in
packaging waste, and reduce the amount of
packaging that is littered or goes to landfill or
incineration.
These solutions vary depending on the
socioeconomic and legislative context in each
market. They can include extended producer
responsibility and beverage packaging return
schemes which are driven by legislation, and
directly funded voluntary action.
In markets where collection infrastructure is
well developed, such as Europe, Australia and
New Zealand, we support legislation for well
designed, industry-run beverage packaging
return schemes. In Europe, markets with
well-designed deposit return schemes (DRS)
achieve the highest collection rates, often
exceeding 90% for beverage packaging. In
addition, the plastic collected through DRS has
very little contamination from other materials,
allowing recyclers to produce high quality
recycled material that is suitable for bottle to
bottle recycling.
Collecting packaging in Europe
DRS are in place in Iceland, Germany, the
Netherlands, Norway and Sweden.
In Great Britain we are a founding member of
Circularity Scotland, which will help develop
and administer a DRS system set to launch in
Scotland in August 2023. England and Wales
aim to introduce schemes by October 2025.
We will continue to support policymakers and
industry partners towards achieving our
ambition of having a scheme, or schemes that
operate seamlessly across Great Britain.
In Portugal, where legislation is already in place,
we continue to work closely with policymakers
and continue to support the scheme towards
implementation.
In our other markets, we continue to work
with recycling and collection organisations
including Fost Plus in Belgium, CITEO in
France, and Ecoembes in Spain.
Collecting packaging in API
In New Zealand, we have been actively
engaged with the government to help
develop a Container Return Scheme (CRS)
and welcome the announcement of a proposal
to implement a nationwide, industry led
scheme by 2025.
In Australia, we are involved in all Container
Deposit Schemes (CDS) in operation. We have
actively participated in the design and
development of the schemes in Victoria and
Tasmania, the two remaining states to
implement a CDS, with both scheduled to
commence operation in 2023.
In markets where collection infrastructure is
less developed, such as Indonesia, the Pacific
Islands and Papua New Guinea, we are
committed to voluntary action to drive
collection. We aim to directly fund and
incentivise collection solutions.
Packaging collection rate
71.8%
In 2022, 71.8% of the packaging we put on the
market was collected for recycling.
Industry collaboration
Addressing the challenge of plastic waste
requires industry wide collaboration, and we
support initiatives that make this possible.
Platforms including the Ellen MacArthur
Foundation’s New Plastics Economy Initiative,
the UK Plastics Pact, the Netherlands Plastics
Pact and the French National Pact on Plastic
Packaging send a strong signal that change is
possible.
In Australia, we are members of the Australian
Packaging Covenant Organisation, an NGO
working with governments, businesses and
other organisations across the packaging value
chain in Australia to lead the development of a
circular economy for packaging. Alongside
TCCC, we sit on the Steering Committee of
Indonesia’s National Plastics Action
Partnership, and we are working on a multi
stakeholder action plan to achieve a 70%
reduction in the country’s marine plastic debris
by 2025.
The power of our brands and our people
We continue to use the power of our brands
to encourage consumers to recycle our
packaging via on pack messages.
In Norway, we ran a nationwide campaign, in
partnership with the Norwegian Football
Federation in 2022, highlighting the
importance of collecting bottles for recycling.
The campaign resulted in the collection of
€84,000 worth of empty bottles.
In Sweden, we started a new joint initiative with
NGO Keep Sweden Tidy and customer Reitan
Convenience, to raise awareness about
recycling and reuse, and encourage more
people to recycle on the go.
We also support a wide range of anti-litter and
clean up initiatives through local community
partnerships and employee volunteering. As
well as removing and preventing litter, these
activities influence consumer behaviour and
raise awareness about littering and recycling.
See more details on our volunteering
programmes for our people on page 57
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
46
Taking action on sustainability continued
Forward on water
The context
Our strategy
Targets and performance(A)
Water is critical to our
business. It is the main
ingredient in our products,
essential to our
manufacturing processes
and critical to ensuring a
sustainable supply of the
agricultural ingredients
we depend upon.
Climate change is
exacerbating water stress
and water scarcity. In many
parts of the world we are
witnessing water shortages,
droughts and floods in
regions where we produce
our products or source our
ingredients. To address
these challenges, we have
adopted a value chain
approach to water
stewardship, focusing on
water efficiency within our
own operations, working to
protect the sustainability of
the water sources that our
business, our communities
and our suppliers rely upon.
Our approach to water stewardship is aligned
with TCCC’s 2030 global water strategy. This
includes a context-based approach to water
security, which allows us to prioritise the areas
of our value chain – both operations and
sourcing regions – most at risk from water
stress.
We have developed context-based water
reduction targets across all of our production
facilities, addressing the needs of local river
basins. We measure performance through our
water use ratio – the average amount of water
we need to produce a litre of product.
At our leadership locations(D), we have a target
to achieve 100% regenerative water use by
2030, meaning we will replenish all of the water
that we use at these production facilities
through the beneficial use of wastewater and
replenish projects in the minor river basin of
the sites.
We will continue to replenish 100% of the
water that we use in our beverages, supporting
replenishment projects in our key operating
regions, communities and sourcing regions.
Water stewardship
Set context based water targets at all
production facilities(B)
Water replenishment
Replenish 100% of the water we use
in our beverages
Group
2022
Europe
2022
API
2022
Target
100%
Group
100%
2022
Europe
100%
2022
API
100%
2022
Target
100%
105.5%
101.6%
120.8%
Water efficiency(C)
Manufacturing water use ratio (litres of water
withdrawal per litre of finished product
produced)
Regenerative water use(D)
100% regenerative water use at all
leadership locations(E) by 2030
Group
2022
Europe
2022
2021
API
2022
1.60
1.57
1.58
1.73
(A) The acquisition of API completed on 10 May 2021. The API sustainability metrics are presented on a full year basis
for 2021 to allow for better period over period comparability.
(B) Non-alcoholic ready to drink (NARTD) only
(C) No Group or regional water use ratio target currently set. Our water stewardship measure tracks if all NARTD
production facilities have water use ratio targets.
(D) New target. Complete data not available for 2022 reporting. We aim to report on this indicator in 2023.
(E) NARTD production facilities which rely on vulnerable water sources or have high water dependency. We have
nine leadership locations in Europe and four in API.
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2022 Integrated Report and Form 20-F
47
Taking action on sustainability continued
Forward on water continued
Water stewardship
Assessing water risk
Our water risk mapping is based upon a series
of risk assessments, completed together
with TCCC.
All our production facilities are assessed
through a global Enterprise Water Risk
Assessment (EWRA) using the World
Resources Institute’s (WRI) Aqueduct 3.0 tool.
This is supported by local Facility Water
Vulnerability Assessments (FAWVAs), which
assess a range of physical, regulatory and social
risks at a production site level. As of the end of
2022, all of CCEP’s non-alcoholic drinks
production facilities have completed a FAWVA.
The FAWVAs are supported by source
vulnerability assessments (SVAs), aligned with
the Alliance for Water Stewardship Standard,
which we aim to complete every five years.
SVAs assess potential risks in water quality and
future availability to our business, the local
community and the wider ecosystem.
The FAWVAs and SVAs feed into our facility water
management plans (WMPs). WMPs are used to
manage targets, enhance climate resilience, and
facilitate data sharing and reporting. In 2022, all
our non-alcoholic production facilities had SVAs
and WMPs in place.
Setting context based targets
Through the EWRA, we have identified that 21
of our 42 NARTD production facilities in
Europe, and three out of 24 NARTD
production facilities in API are located in areas
of high baseline water stress.
In 2022, the total production volumes from our
24 sites located in areas of baseline water
stress was 8.1 million m³ (7.4 million m³ in
Europe, and 0.7 million m³ in API). This
represented 49% of our total production
volumes, (56% of our production volumes in
Europe and 22% in API).
The outputs of the EWRA and FAWVAs are
used to categorise our sites, allowing us to set
context based targets on a site level. The
categories are:
Leadership locations: sites which rely on
vulnerable water sources or have a high level of
water dependency. These sites have the
highest water use reduction targets, and have
a target to achieve 100% regenerative water
use by 2030. Nine of our production facilities in
Europe, and four in API have been identified as
leadership locations, representing
9.8 million m³ (37%) of our total 2022 water
withdrawals.
Advanced efficiency: these sites operate in a
water stressed context, and will be focused on
achieving advanced water efficiency, and best
in class water reduction targets.
Contributing locations: these sites operate in
the lowest water risk areas, and have water use
ratio targets which meet industry benchmark
standards.
Improving water efficiency
We monitor our water use, setting annual
targets and identifying opportunities to
reduce our water consumption, and improve
the water efficiency of our manufacturing and
cleaning processes.
In 2022, we invested approximately €1.6 million
in water efficiency technology and processes
in our sites. We estimate that that this could
result in savings of approximately 125,000 m³
per year and help us avoid annual water and
waste water treatment costs of approximately
€125,000 per year.
For example, in 2022, three of our Indonesian
production facilities (Medan, Semarang and
Bekasi) completed implementation of
reverse osmosis technology which enables us
to reuse treated wastewater in production
processes such as cleaning and in our boilers.
Case study
Regenerative water use in Antwerp, Belgium
Our production facility in Antwerp, one of
our 13 leadership locations, has begun to
develop on-site programmes to support its
regenerative water use target.
The site used to discharge rainwater and
wastewater into a combined municipal
sewer. Working together with the local
municipality, the two water waste streams
have been separated. This has allowed the
site to direct the rainwater into a wetland
lake and infiltration canal. This allows water
to slowly infiltrate into the ground,
improving local biodiversity. In addition, the
site is working to reuse rainwater for
irrigation at a neighbouring petting zoo.
The project is estimated to have
replenished 9,200 m³ of water in 2022.
Find out more at cocacolaep.com/
sustainability/this-is-forward/forward-on-
water
Returning wastewater to the environment
We aim to safely return 100% of our
wastewater to nature. Before wastewater is
discharged from our production facilities, we
apply high standards of treatment, meeting all
local regulations and The Coca-Cola Operating
Requirements (KORE). In 2022, we discharged
9.7 million m3 of wastewater.
Most of our production facilities pre-treat
wastewater on site and send it to municipal
wastewater treatment plants, but 11 of 42
NARTD sites in Europe carry out full treatment
on site. 10 of our 24 NARTD production
facilities in API have on-site wastewater
treatment plants. For example, our production
facilities in Reykjavik, Iceland, and Barcelona,
Spain, use the methane gas generated during
treatment to heat the treatment process
itself. In 2022, we invested approximately
€3.7 million in wastewater treatment
technology.
Regenerative water use
We have a target to achieve 100% regenerative
water use at our leadership locations, in line
with TCCC’s 2030 global water strategy.
Sites with regenerative water use targets must
ensure that by 2030 their total water withdrawal
volume is replenished - either through a
beneficial use for their wastewater, or through
investment in replenishment projects in the
minor river basin of the production facility.
Across our 13 leadership locations, we withdrew
9.8 million m³ of water (37% of total), and
discharged 3.4 million m³ of wastewater (35%
of total) in 2022. We will continue to develop
our strategy and replenishment programmes
in the minor river basin of these sites.
In 2022, we began our work to establish metrics
to measure our regenerative water use across
our 13 leadership locations. We aim to report
on progress against this target next year.
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2022 Integrated Report and Form 20-F
48
Taking action on sustainability continued
Forward on water continued
Water efficiency, replenishment and biodiversity
Water stewardship recognition
64 out of 66 of our NARTD production facilities
are certified(A) under the ISO 14001
environment management standard. This
ensures we have appropriate environmental
management and stewardship resources in
place for all our daily operations.
With a gold European Water Stewardship
certificate since 2013, our mineral water
bottling plant in Chaudfontaine, Belgium,
obtained a platinum certificate for sustainable
water management from the worldwide
Alliance for Water Stewardship (AWS) in 2021,
as did our production facility in Dongen – the
first site to receive this standard in the
Netherlands. These AWS certificates are valid
for three years.
In 2022, CCEP was included in the CDP Water A
list for the seventh year in a row.
Water replenishment programmes
We aim to replenish 100% of the water we use
in our beverages, in partnership with local
NGOs and community groups. Together with
TCCC and The Coca-Cola Foundation (TCCF),
we have supported multiple replenishment
programmes across our territories in recent
years. These projects address water risks near
our operations, within our communities and in
our priority watersheds.
In 2022, we supported 21 water replenishment
projects across Europe and 6 in API. Through
these programmes, we replenished
19.7 million m³ of water across our territories -
including 15.2 million m³ in Europe and
4.6 million m³ in API. This represents 105.5% of
our total sales volume (101.6% in Europe; 120.8%
in API).
Read more about our water replenishment
projects on cocacolaep.com/sustainability/
this-is-forward/forward-on-water
(A) All outstanding production facilities are located in Papua
New Guinea where we are actively working towards
certification.
Preserving natural ecosystems
We aim to leave nature in a better state than
we find it by building adaptation and resilience
into our main operating and sourcing regions.
To protect and reinstate watersheds that
foster biodiversity, we are improving our water
use efficiency and contributing towards secure
access to water in priority areas, through water
replenishment projects.
For example, in Spain, we continue to support
the Misión Posible: Desafío Guadalquivir
project. The project, run in partnership with
WWF and TCCF, aims to improve the irrigation
of agricultural crops in the area and the
biodiversity of the Guadalquivir river by
restoring a nearby marsh. Thanks to the
project, approximately 1 million m³ of water
were returned to nature in 2022.
In 2023, we will use the Science Based Targets
Network framework to conduct a biodiversity
risk assessment of our entire value chain. This
work will inform and support us in defining
our future biodiversity strategy and
no-deforestation commitments, helping
tackle the significant collapse of biodiversity
and nature that is being experienced globally.
Case study
Farm dam restoration in Australia
In 2022, The Coca-Cola Australia
Foundation (CCAF) and Landcare
Australia announced a new partnership to
transform farm dams and boost farming
water security.
Landcare Australia will work with local
communities to install infrastructure,
including fencing and stock access
points to revegetate degraded dams
with native flora. Through the project,
three South Australian sites have been
selected to provide an initial showcase
of how degraded farm dams can be
transformed into thriving ecological
communities while also improving
on-farm productivity. The project aims
to improve water quality, drought
resilience and create a biodiverse
habitat that can support a variety of
animals, including platypuses, water
birds and frogs.
Find out more at cocacolaep.com/annual-
report/case-study/farm-dam
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2022 Integrated Report and Form 20-F
49
Taking action on sustainability continued
Forward on supply chain
The context
Our strategy
Targets and performance(A)
As a business, we rely upon
a sustainable supply of
ingredients like sugar,
coffee, tea and juices as well
as the raw materials we use
for our packaging like glass,
aluminium, plastic, pulp and
paper.
However, global supply
chains are under increasing
pressure as a result of
population growth,
increased demand for food
and the impacts of climate
change.
We recognise the
importance of having ethical
and sustainable
procurement practices that
support our business and
sustainability goals.
Sustainable practices have a critical role to play
in tackling climate change and in driving
long-term resilience within our supply chains.
We are committed to ensuring that 100% of
our suppliers abide by our Responsible
Sourcing Policy (RSP) – which includes TCCC’s
Supplier Guiding Principles (SGPs), Principles
of Sustainable Agriculture (PSAs) and
commitments and expectations around
carbon management. We track our progress
by measuring supplier compliance with our
RSP, through our SGPs and PSAs. The RSP
applies to all suppliers, and our SGPs are
embedded within our contracting and supplier
management processes.
We have a target for 100% of our main
agricultural ingredients and raw materials to
be sourced sustainably, in compliance with our
Principles for Sustainable Agriculture (PSA).
Our PSA apply to all of our suppliers of
agricultural ingredients and raw materials,
including sugar beet, sugar cane, coffee, tea
and fruit juices, and bio-based materials for
our packaging such as paper.
Our suppliers represent over 90% of our Scope
3 emissions. This is why we have asked our
suppliers to set their own science-based
carbon reduction targets and to shift to 100%
renewable electricity.
We believe that the quality and integrity of our
products depend on sustainable global supply
chains with successful and thriving farming
communities, where human rights are
respected and protected. We remain
committed to the United Nations’ Guiding
Principles on Business and Human Rights, the
International Labour Organisation’s
Declaration on Fundamental Principles and
Rights at Work and the United Nations’ Global
Compact.
Spend covered by guiding principles
100% of suppliers to be covered by our SGPs
Sustainable sourcing (sugar)
100% of sugar sourced through suppliers
in compliance with our PSA
Group
2022
Europe
2022
2021
API(B)
2022
Target
100%
97.5%
Group
2022
Europe
97.3%
2022
API
2022
97.0%
98.4%
Target
100%
97.6%
100%
90.3%
Sustainable sourcing (pulp and paper)
100% of pulp and paper sourced through
suppliers in compliance with our PSA
Group
2022
Europe
2022
API
2022
Target
100%
99.2%
99.8%
98.3%
(A) The acquisition of API completed on 10 May 2021. The API sustainability metrics are presented on a full year basis
for 2021 to allow for better period over period comparability.
(B) API previously tracked performance against Responsible Sourcing Guidelines (RSGs), with 90.3% compliance in
2021.
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Taking action on sustainability continued
Forward on supply chain continued
Working with suppliers
Our suppliers
We source products from over 17,000 suppliers,
and spent approximately €7.4 billion with them
in 2022. On average in 2022, 85% of supplier
spend was with suppliers based in our
countries of operation in Europe and API.
We work with our suppliers to procure high
quality raw materials and services, with
sustainability in mind. We take an integrated
approach to sustainability – making
improvements and launching initiatives that
support responsible sourcing, climate
resilience, water stewardship and biodiversity.
We are engaging with suppliers to identify
common challenges and work together to
decarbonise our value chain. As we grow,
reducing emissions and the consumption of
raw materials are among our biggest
challenges. The table on the right illustrates
some of the ways that we work with different
groups of suppliers on these key areas.
Our Supplier Guiding Principles (SGPs)
and Principles for Sustainable
Agriculture (PSA)
The SGPs set out the minimum requirements
we expect of all our suppliers in areas such as
workplace policies and practices, health and
safety, environmental protection, business
integrity and human rights.
The PSA apply to agricultural ingredients and
raw material suppliers and cover human and
workplace rights, environmental protection
and sustainable farm management. They also
include specific forest and biodiversity
conservation practices, such as no conversion
of forests for new agricultural production,
protection of endangered species, and, where
possible, restoration of ecosystem services
that our suppliers of agricultural ingredients
and bio-based packaging materials are
expected to implement.
Supplier identification Definition
Requirements for all suppliers
Specific requirements
Strategic suppliers
• Directly managed and influenced
by our procurement teams
• Represent about 80% of our
addressable spend
• Engagement on sustainability
extends to approximately
400 suppliers
• Subset of strategic suppliers
• Approximately 200 suppliers
• Represent about 80% of our
Scope 3 GHG emissions
• In 2022, we launched our
Responsible Sourcing Policy
(RSP), which sets out mandatory
guidelines for all our suppliers(A)
• SGPs and PSA are incorporated
into this policy
• RSP is incorporated into all new
contracts, and are part of our
standard conditions of purchase
Carbon strategic
suppliers
• Undergo an EcoVadis(B)
assessment and have a minimum
score of above 50 overall and
above 35 on each criteria
• Sustainability fully integrated in
procurement processes and
strategies
In addition to strategic supplier
requirements, carbon strategic
suppliers are encouraged to:
• set science-based targets by 2023
in Europe and by 2025 in API
• shift to 100% renewable electricity
by 2030 (Europe by 2025)
(A) Responsible Sourcing Policy covers the mandatory guidelines that suppliers directly or indirectly (such as sub-contractors) must comply with to be able to do business with CCEP
(B) Provides a leading solution for monitoring sustainability in global supply chains
Priority Ingredients
We rely on agricultural ingredients to make and
package our beverages. Ensuring these
ingredients are sustainably sourced is a key
priority for us. As climate change leads to more
extreme weather and increased water stress,
more sustainable agricultural practices will play
a vital role in promoting resilience across our
supply chain and in the communities that
produce our agricultural ingredients.
Together with TCCC, we have identified
13 priority agriculture-based ingredients and
bio-based packaging materials(C). We manage
the purchase of these key ingredients
together with TCCC and other Coca-Cola
bottlers, and therefore manage the issues that
we face in our supply chain as a joint Coca-Cola
system. As CCEP, we directly purchase sugar
beet and sugar cane, pulp and paper, and track
compliance with our PSA for these
commodities.
(C) Sugar cane, sugar beet, high-fructose corn syrup, stevia, orange,
lemon, apple, grape, mango, coffee, tea, soy, pulp and paper
Supplier risk
We assess suppliers across a multitude of
criteria such as financial value, efficiency,
innovation and risk. For our strategic suppliers,
we carry out detailed evaluations including
financial assessments and annual supply risk
analysis. We hold regular meetings with
suppliers to discuss key issues such as
performance, innovation and sustainability.
We use data gathered through EcoVadis IQ to
proactively manage sustainability risks. In 2022,
we began to use Resilinc software, an artificial
intelligence tool which helps us to proactively
identify potential risks across our supply chain.
Protecting human rights
Protecting human rights is fundamental to how
we run our business. We are committed to
ensuring everyone who works at CCEP and in our
supply chain is treated with dignity and respect.
We recognise that all our employees and supply
partners have a role in identifying and mitigating
human rights risks across our business. Employees
and managers are empowered to recognise and
address human rights risks and issues as they
conduct their work and this extends to the
arrangements we agree with workers and trade
unions, membership of which we always foster.
Our human rights training was refreshed in 2022
to focus on modern slavery for procurement
managers. Following the harmonisation of our
Code of Conduct, Speak Up policy and
Whistleblowing policy, we rolled out an internal
communication campaign and compliance
training packages across our business.
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2022 Integrated Report and Form 20-F
51
Taking action on sustainability continued
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Audit and compliance
Supplier standards compliance
We expect our suppliers to develop and
implement appropriate internal business
processes to ensure that they fully comply with
our SGPs. Together with TCCC, we routinely
verify and assess suppliers’ compliance by
using independent third parties. As part of the
Coca-Cola system, we rely on independent
audits commissioned by TCCC to monitor
supplier compliance with our SGPs. This
includes juices and concentrates purchased
from TCCC.
The audits include checks to ensure suppliers
are not using child labour, forced labour or any
form of modern slavery. To date, the audits
have covered over 95% of our suppliers of
ingredients and primary packaging. If a
supplier fails to uphold any aspect of the SGPs,
the supplier is expected to implement
corrective actions. TCCC reserves the right to
conduct unannounced audits at their
discretion and to terminate an
agreement with any supplier that cannot
demonstrate that it is upholding the SGPs
requirements.
PSA compliance is verified through adherence
to a limited set of third party sustainable
agriculture standards approved by TCCC.
Raw material
Procurement method
Quantity and brands
PSA aligned third party standards
Compliance with standards
Beet and cane sugar
Directly by CCEP
Pulp and paper
Directly by CCEP
• ~750k tonnes of beet sugar
• ~350k tonnes of cane sugar
• Bonsucro
• FSA Gold and silver
• Redcert 2
• Europe: 100% third party standard
and PSA-compliant
• API: 90.3% third party standard and
PSA-compliant
• Europe: ~85k tonnes of board for
secondary and tertiary packaging,
and marketing materials
• API: ~50k tonnes of board for
secondary and tertiary packaging(A)
• Forest Stewardship Council (FSC)
• Europe: 99.8% FSC or PEFC-certified
• Certification endorsed by the
Programme for the Endorsement
of Forest Certification (PEFC)
and PSA-compliant
• API: 98.3% FSC or PEFC-certified
and PSA-compliant
Juice(B)
The Coca-Cola Company
• Orange and lemon juice from
• Sustainable Agriculture Initiative
• Europe: 92% PSA compliance for
concentrate, not from concentrate
and puree are a key ingredients in a
number of our products (e.g. Minute
Maid)
Platform (SAI)
orange and 100% for lemon
• API: 100% PSA compliance for orange
and lemon
Coffee and tea
Directly by CCEP
• Grinders brand
• Rainforest Alliance
• 64% compliance for this CCEP owned
• Fairtrade
brand in API
The Coca-Cola Company
• Costa, Chaqwa and Fuze Tea brands
• Rainforest Alliance
• Fairtrade
• Europe: 98% PSA compliance for
coffee and 100% for tea
• 100% by 2030 in API
(A) We aim to expand reporting on this category to include additional areas such as printed and point of sale material in the future.
(B) Coca-Cola trademark beverages with juice from concentrate, not from concentrate and puree as key ingredients.
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Taking action on sustainability continued
Forward on supply chain continued
Supplier engagement on GHG emissions
Reaching Net Zero with our suppliers
Our suppliers are responsible for over 90% of
our value chain GHG emissions. We will not
meet our own GHG emission reduction targets
unless we work in partnership with them.
We are engaging with our carbon strategic
suppliers to encourage them to:
• set science based targets by 2023 (Europe)
and 2025 (API)
• use 100% renewable electricity by 2025
(Europe) and 2030 (API)
We are also working together with TCCC to
collect and validate emission factors directly
from our suppliers, initially focusing on
suppliers of our packaging and ingredients.
This work will be critical in helping us to reflect
the impact of our suppliers’ actions more
accurately.
Read about how we work with suppliers
to reduce our emissions on page 39
Encouraging suppliers to reduce
emissions
While 17% of our suppliers have already set
science based GHG targets, a further 42% have
committed to set science based targets,
including those who may have already
submitted targets to the SBTi.
Many of our suppliers will need support in
order to be able to measure their emissions,
and set GHG emissions reduction targets. To
encourage them, we are working together with
TCCC to engage suppliers in the Supplier
Leadership on Climate Transition programme,
a cross-industry collaboration, that aims to
provide suppliers with resources, tools, and
knowledge to support their own climate
journeys. Participating suppliers are invited to
attend a series of instructional seminars on
developing a GHG emissions footprint, setting
a science based target, adopting GHG
emissions abatement measures and disclosing
progress. Participants get direct mentoring,
and instructions on how to build internal
capacity and earn recognition for their
accomplishments. In 2022, approximately 100
Coca-Cola system suppliers were engaged
with the programme, and we will encourage
and support more CCEP suppliers to join in
2023.
Case study
Sustainability-linked supply chain finance programme with Rabobank
We are encouraging our suppliers to take
action, to make significant carbon
reductions in their businesses.
In 2022, we implemented a new
sustainability-linked supply chain finance
programme, structured and operated by
Rabobank.
The programme, one of the first of its kind
in the global beverage industry, incentivises
and rewards suppliers for improving their
ESG performance.
It will provide competitive financing that is
linked to a number of sustainability-driven
KPIs, via an assessment from Ecovadis.
Suppliers are able to access incremental
discounts against the initial funding rate.
This enables them to support our own plans
to reduce GHG emissions across our value
chain by 30% by 2030 (versus 2019) and
reach Net Zero by 2040.
Find out more at cocacolaep.com/annual-report/case-study/supply-chain-finance
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2022 Integrated Report and Form 20-F
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Taking action on sustainability continued
Forward on drinks
The context
Our strategy
Targets and performance(A)
We aim to meet consumer
needs through our
diversified portfolio,
working closely alongside
TCCC and our other brand
partners to provide
consumers a greater choice
of drinks and packaging
sizes. We want to make it
easier for people to
manage their sugar
consumption.
We support
recommendations made
by several leading health
authorities, including the
World Health Organisation
(WHO), that people should
limit their intake of added
sugar to 10% of their total
calorie consumption.
Consumers’ habits and preferences continue
to evolve. We know that people want a greater
variety of drinks, including low and no calorie
options, made from natural and sustainably
sourced ingredients.
Working with TCCC and other franchisors, we
are evolving our portfolio across all our
territories, introducing new low and no calorie
drinks and reformulating our recipes. Our
portfolio also includes drinks produced with
organic, Fairtrade and Rainforest certified
ingredients.
Our focus is on empowering consumers to
make more informed choices by providing
product and nutritional information that is
easy to understand, and by offering smaller
and more convenient packaging sizes.
We ensure the responsible marketing and
advertising of our products. This includes
shifting our marketing spend to increase
awareness of our low and no sugar options,
while continuing to ensure we do not directly
market any of our products to children under
the age of 13.
In addition, we are working to deliver the
highest product quality and safety to our
consumers by incorporating The Coca-Cola
Operating Requirements (KORE), which
define operational controls and prioritise
sustainable sourcing of our ingredients.
Reduction in average sugar per litre(B)
Products sold that are low or no calorie(C)
Over 50% of sales to come from low or
no calorie drinks by 2030 (Europe by 2025)
Europe
2022
2021
5.2%
5.6%
Target
10% reduction by
2025 (versus 2019)
Europe
2022
2021
Target
50% by 2025
48.8%
48.6%
New Zealand
2022
2021
Australia
2022
2021
Indonesia
2022
2021
Target
20% reduction by
2025 (versus 2015)
15.9%
13.4%
Target
25% reduction by
2025 (versus 2015)
16.8%
14.9%
Target
35% reduction by
2025 (versus 2015)
31.6%
20.9%
(A) The Acquisition of API completed on 10 May 2021. The API sustainability metrics are presented on a full year basis
for 2021 to allow for better period over period comparability.
(B) For Europe this includes sparkling soft drinks, non-carbonated soft drinks and flavoured water only. Does not
include plain water or juice. For API, this includes all NARTD, including dairy. Does not include coffee, alcohol, beer
or freestyle.
(C) Complete data for Group and API not available for 2022 reporting. We aim to report on this indicator for Group
and API in 2023.
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Taking action on sustainability continued
Forward on drinks continued
Great taste, less sugar and offering consumers more choice
Reducing sugar in our soft drinks
We are a long-standing member of the Union
of European Soft Drinks Associations
(UNESDA) and fully support its commitment
to reduce average added sugars in soft drinks
by another 10% by 2025 (from 2019) across
Europe. This would represent an overall
reduction of 33% in average added sugars in
the past two decades.
In our key API markets we also have the
following 2025 sugar reduction targets (versus
2015) to reduce the average sugar per litre in
our NARTD portfolio:
• by 20% in New Zealand
• by 25% in Australia
• by 35% in Indonesia
Focus on low or no calorie drinks
We are aiming for over 50% of sales to come
from low or no calorie drinks by 2030 (Europe
by 2025).
Over the past year, we have continued to
encourage people to reduce their daily sugar
intake, raising awareness of our low calorie
drinks via our point of sale communications
and by promoting low and no sugar options.
In API, we are introducing and promoting more
low and no sugar drinks with a focus on zero
sugar sparkling drinks. This includes the
promotion of Coca-Cola No Sugar in remote
Indigenous communities in Australia in
collaboration with our retail partners and their
communities.
Case study
Enhancing our no sugar ranges
Working with TCCC and other franchisors,
we’re continuing to reduce sugar across our
portfolio, by reformulating our recipes and by
introducing more low and no calorie drinks.
In 2022, we introduced a new Fanta Zero
flavour in Sweden and reformulated Sprite
in Indonesia to reduce sugar content. We
also launched limited edition Coca-Cola
Creations, all without sugar.
In New Zealand and Papua New Guinea, we
launched Coca-Cola Zero Sugar with a new
taste and look campaign. One in two
Coca-Colas purchased in New Zealand now
contain no sugar.(A) Following its success in
Europe, we also launched no calorie
What The Fanta in Australia.
We also offer the Monster Ultra range,
which includes seven no-sugar energy
drinks, contributing to our commitment to
offer more drinks with reduced or no sugar.
Find out more at cocacolaep.com/
sustainability/this-is-forward/forward-on-
drinks
(A) Based on Nielsen Total Measured Market RMS Scan
October 2021. Supermarkets, petrol stations, some
convenience stores and licensed retail outlets
Consumer choice
Category
Our portfolio includes carbonated and still soft
drinks, energy drinks, RTD teas, flavoured dairy,
organic soft drinks, beverages with nutritious
benefits, coffee and alcohol. We offer
consumers a wide range of drinks for every
taste and occasion, including drinks with or
without sugar.
See Our portfolio section for further details
on pages 2-3
Organic, Fairtrade and Rainforest
Alliance certified
We have a range of organic drinks that include
ingredients that are sustainably sourced. In
Europe, we have 21 organic products in our
drinks portfolio, making up 0.1% of our total
sales volume. In New Zealand, our Most brand
includes six products which contain certified
organic fruit and do not feature any
preservatives, artificial flavours or colours.
1.9% of our total sales include Fairtrade
certified or Rainforest Alliance certified
ingredients, including the following brands:
Smaller packaging sizes
We are working to provide a greater range of
smaller, more convenient packs, which can
make it easier for consumers to control their
sugar intake. In 2022, approximately 5% of our
drinks were enjoyed in packages of 250ml or
less(B) (Europe ~4%; API ~7%).
Clear, straightforward information
We are committed to providing clear and
transparent nutritional information, including
detailed sugar and calorie content. We align
with all global and local legislation and support
colour based interpretive product labelling in
Europe.
We pioneered Guideline Daily Amount (GDA)
labelling on our drinks in Europe in 2009, and
now we also include front of pack, colour
coded labelling in Great Britain, Belgium,
France, Luxembourg and the Netherlands on
our sparkling soft drinks.
In 2021, we adopted the voluntary front of pack
Health Star Rating on all our non-alcoholic
drinks in Australia and adopted the same
approach in New Zealand in 2022. The labelling
system rates the nutritional profile of our
drinks and helps consumers make healthier
choices.
In all our territories, where front of pack
labelling is not possible (for example, on
returnable glass bottles), nutritional
information is available on our websites.
Our larger bottles sold in Europe, Australia and
New Zealand feature a servings per packaging
icon, indicating the number of 250ml portions
in a multi serve packaging.
(B) Based on unit case sales
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Taking action on sustainability continued
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Responsible marketing - safety and quality of ingredients
Responsible marketing
Responsible sales and marketing
principles
We ensure responsible sales and marketing
practices by providing clear guidelines for the
marketing of our products, covering all brands
and products manufactured or sold by CCEP.
These recently updated principles cover all
media formats, point of sale materials and all
of our packaging. They provide guidance to
ensure that we are honest and transparent in
everything we do, that we do not mislead
consumers and that we take every opportunity
to help them make informed choices about
what they drink.
Our responsible sales and marketing principles
encourage responsible drinking and comply
with all relevant laws, regulations and industry
codes on the marketing and sale of alcohol.
Where we distribute drinks that contain
alcohol, we respect the local code of practice
for responsible marketing and promotion,
including messaging on responsible drinking
and marketing products in channels, such as
hospitality, where consumers are adults over
local legal purchase age. Our non-alcoholic
drinks are often consumed on social occasions
where alcohol is involved and can be mixed
with alcoholic beverages.
In API, we adhere to local industry voluntary
commitments such as the Alcohol Beverages
Advertising Code and DrinkWise, Australia’s
voluntary labelling guidelines.
No marketing to children
We respect the role of parents and caregivers
as the primary decision makers over what
children drink.
Together with TCCC, we have a long-standing
policy not to advertise or market any of our
products to children under 12. In 2022, we
raised this to include children under 13, with
higher age limits in specific regions.
We play a proactive role in leading local
industry coalitions to strengthen our actions,
particularly in the rapidly evolving digital and
social media environment.
Find out more about our marketing
policies at cocacolaep.com/sustainability/
this-is-forward/forward-on-drinks/
Research and development
We manufacture and distribute products
designed and formulated by TCCC and other
brand owners. We work to influence our
partners to innovate, creating new products
that will meet consumer needs.
TCCC’s second-largest innovation centre is
based in Belgium, where products for Europe,
the Middle East, Africa and part of South Asia
are developed. We do not have our own
research and development centre, but we do
develop new innovative packaging concepts
and work to install less energy, water and
carbon intensive beverage manufacturing
technology.
Food safety
We adhere to The Coca-Cola Operating
Requirements (KORE), which define
operational controls and prioritise sustainable
sourcing of ingredients.
All CCEP production facilities are certified to
the internationally recognised food safety
standard, FSSC 22000. In addition, all of our
European and Indonesian production facilities
are OHSAS 18001/ISO45001 certified.
All CCEP employees have a responsibility to
ensure that we only supply safe products by
following the relevant policy guidelines,
procedures and processes at our production
facilities and throughout our entire supply
chain.
Food additives
The food additives we use have been
approved as safe by globally recognised
authorities, including the Joint FAO/WHO
Expert Committee on Food Additives (JECFA),
the European Food Safety Authority (EFSA),
and the Food Standards Authority of Australia
and New Zealand (FSANZ).
We only use additives in our drinks when they
are needed for preserving, colouring,
sweetening or balancing acidity. We provide
information about the ingredients used in our
beverages, including any food additives.
Case study
Quality and food safety awareness training
Producing safe and high quality products
that our consumers can trust is at the heart
of everything we do and is an essential part
of who we are.
In 2022, we launched a new mandatory
training module for our employees –
Quality and Food Safety Awareness – to
continue our focus on safety and wellbeing.
Through the training, our employees learn
about the importance of our food safety
and quality programmes, and recognise
their own role in ensuring we can provide
high quality and safe beverages for our
customers and consumers.
Read our quality and food safety policy in
our policy hub at cocacolaep.com/about-
us/governance/
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2022 Integrated Report and Form 20-F
56
Taking action on sustainability continued
Forward on society – communities
The context
Our strategy
Targets and performance(A)
Our local communities
often face significant
societal challenges,
including high levels of
inequality, youth
unemployment and social
exclusion. Many are also
increasingly exposed to the
most severe impacts of
climate change, including
extreme weather events,
flooding and bushfires.
We are determined to
make a positive difference
in our local communities by
acting as a force for good,
championing inclusion and
supporting economic
empowerment.
We are proud to have been closely
connected to our communities for many
generations – through our local production
facilities, the drivers who deliver our
products and the employees who make
and sell our drinks.
Through our community investment
programmes and activities, we seek to
make a lasting positive contribution within
our local communities. This involves
supporting grassroots community
programmes and partnerships, promoting
inclusion and diversity, and equipping
people from underrepresented groups
with the skills, confidence and
opportunities to succeed in life and the
workplace.
We are also committed to protecting our
local environment through investment and
employee volunteering. Our volunteering
policy enables our employees to
participate in a wide range of volunteering
activities that align with our This is Forward
commitments, including litter clean up
campaigns, charity fundraising events and
skills-based volunteering.
We measure the value of our contribution
to local communities through the Business
for Societal Impact Framework and will
continue to enhance the way we measure
the social impact of our investments.
Community contribution
Total community investment contribution(B)
(€ millions)
Volunteering hours
Number of hours volunteered
by our employees
Group
12.2
2022
28,562
Group
2022
Europe
2022
2021
API
2022 1.5
2021
1.8
10.7
9.2
Supporting Skills Development(C)
Support the skills development of
500,000 people facing barriers in the labour
market by 2030
(A) The acquisition of API completed on 10 May 2021. The API sustainability metrics are presented on a full year basis
for 2021 to allow for better period over period comparability.
(B) Group total community investment contribution equated to 0.6% of profit before tax on a comparable basis
(C) New target. Complete data not available for 2022 reporting. We aim to report on this indicator in 2023.
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Taking action on sustainability continued
Forward on society – communities continued
Community investment, employee volunteering and customer engagement
Supporting skills development
We believe that everyone should be given the
opportunity to fulfil their potential – by
gaining access to meaningful employment,
learning a new skill or starting a business.
We support a wide range of programmes
across our markets, including a partnership
with the Refu Interim project in Belgium, which
encourages young, new immigrants to get
acquainted with the labour market, helping
them in their professional development.
Across Indonesia we collaborated with local
NGOs, universities and other associations
throughout the year to provide mentorship
programmes to support over 115 micro, small
and medium enterprises.
Promoting social inclusion
With TCCC, we are a long-standing supporter of
Special Olympics, which is the world’s largest
sports organisation for children and adults with
intellectual and physical disabilities. Our support
in Belgium, France, Germany, Great Britain and
the Netherlands includes volunteering, financial
support and product donations.
In 2022, we organised the sixth edition of
GIRA Mujeres in Spain, a training programme
for female entrepreneurs. The programme
offers training, education and empowerment
to women aged 18 to 60 who want to develop
a business idea through entrepreneurship
within the food and beverage, and leisure and
tourism sectors. In 2022, over 800 women
participated in the programme.
In Australia, in partnership with The Coca-Cola
Australia Foundation (CCAF), we support
IndigiGrow, a programme run by First Hand
Solutions; an organisation that focuses on
providing young Aboriginal people with the
opportunity to work, gain skills and knowledge
from positive Aboriginal role models and
community elders. With the help of the CCAF,
First Hand Solutions has been able to expand
its IndigiGrow programme, which aims to
sustain people, land and culture through the
propagation of native plants, including bush
foods. The CCAF supports the employment of
those who are empowered to take on
operational roles within the plant nursery.
Case study
Supporting skills development
Many of our existing community
partnerships already support skills
development, so in 2022 we set a new
target to support
500,000
people facing barriers in the labour market
by 2030.
For example, our GIRA Youth programme
in Spain promotes employability, skills
development and vocational training for
young people from disadvantaged
backgrounds. The programme celebrated
its 10th anniversary in 2022.
Find out more at cocacolaep.com/
sustainability/this-is-forward/forward-on-
society-our-communities
Support for local communities
Our Support my Cause initiative enables our
people to nominate and support grassroots
charitable and community causes. Following its
success in Europe, we launched the
programme in Indonesia and New Zealand in
2022.
In 2022, we donated €270,000 to 38 local
charities and community groups across our
territories. In addition, we donated over
€480,000 to support 135 grassroots charitable
and community partnerships located close to
our sites and offices.
In Australia, we continued our Employee
Connected Grants programme partnership
with the CCAF. This programme provides our
people the opportunity to support charities
that they care about or have personal
connections with. We also support
philanthropic and cultural organisations
nominated by CCEP and Coca-Cola South
Pacific employees.
Disaster response and resilience
In 2022, we assisted first responders during
environmental disasters and social unrest by
donating bottled drinks to affected
communities. We also made financial
donations to disaster relief organisations.
For example, in January we provided financial
relief and shipped 35,000 bottles of Pure Drop
water to the Tongan community within the
first week following the tsunami. In response to
the earthquake that struck Cianjur in Indonesia
we distributed 500 cases of drinks and
provided financial aid.
We have also provided support for Ukraine. To
date, we have donated €250,000 and over
36,000 unit cases of drinks to the Red Cross in
Ukraine. We also organised an employee
donation campaign and support scheme for
employees housing Ukrainian refugees.
Employee volunteering
As part of our commitment to support local
communities, our employees can spend up to
two paid working days each year volunteering
for a charity or cause of their choice.
We encourage our people to participate in
volunteering activities that align with our This is
Forward commitments, such as litter clean-up
campaigns and charity fundraising events.
In Great Britain, ahead of the 2022 Birmingham
Commonwealth Games, we partnered with the
Canal & River Trust, to improve and enhance
the environmental wellbeing of three key
areas along the Birmingham canal network.
CCEP provided funding and volunteer support
to the project.
At the end of 2022, we joined forces with
multiple organisations across Spain to deliver
more than 24,000 Christmas meals to
vulnerable families across 24 Spanish cities.
Hundreds of Coca-Cola volunteers joined the
initiative, delivering meals and supporting in
organisational and logistical tasks.
Partnerships with our customers
In 2022, we used the power of our Australian
water brand, Mount Franklin, to join forces with
major supermarket Coles, to support food
relief organisation, SecondBite. As part of this
partnership, we donated 20 cents to
SecondBite from each specially marked
20x500ml pack sold at Coles stores nationally.
The initiative continues until March 2023 and is
on track to reach its goal of donating the
equivalent of one million meals to Australians
in need.
During the year, we also established a new
community partnership in the Netherlands
with the Refugee Company, a charity that
provides hospitality industry training for
refugees who have recently settled in the
Netherlands.
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2022 Integrated Report and Form 20-F
58
Taking action on sustainability continued
Forward on society – people
The context
Our strategy
Targets and performance
We owe our success to the
passion and commitment
of our talented people.
We are passionate about
what we do and what we
stand for, and our people
are empowered to make
a difference.
We foster a workplace
that promotes wellbeing,
inclusion and respect,
where people at every level
can be heard, grow and
have a positive experience.
Our people strategy, Me@CCEP, sets out our
common culture and values. These include:
being valued, being well, being recognised,
being developed, being connected and
being inspired.
We aim to be an organisation where people
feel they belong and where our inclusive
culture drives innovation and performance,
creating a trusted and successful business
that our colleagues, customers and
communities admire and support.
Our people’s physical and mental wellbeing
remains our priority and we promote this in
our workplace. We continue to embed a
strong health and safety culture through
systems, processes and programmes. Our
Health, Safety and Mental Wellbeing policy
ensures we are working to adopt best
practices.
Gender diversity
45% of management positions to be held
by women by 2030(A)
Gender diversity
A third of our workforce to be women
by 2030
Group
2022
Target
45% by 2030
37.2%
Group
2022
Target
33% by 2030
23.8%
Safety
Reduce our total incident rate (TIR)
to below 1 by 2025
Disabilities(B)
10% of our workforce represented by people
with disabilities by 2030
Group
2022
Europe
2022
API
2022
Target
<1
0.87
Target
<1
1.04
Target
<1
0.62
(A) Excludes Papua New Guinea, Fiji and Samoa as aligned role grades not available for 2022 reporting. We aim to
include these markets for 2023.
(B) New target. Complete data not available for 2022 reporting. We aim to report on this indicator in 2023.
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Taking action on sustainability continued
Forward on society – people continued
Being valued
Inclusion, diversity and equity strategy
Our philosophy is that everyone’s welcome to
be themselves, be valued and belong. We are
committed to building a diverse workforce,
with an inclusive culture and equity at its core.
We believe this commitment will enable us to
take positive action for our people, better
represent the communities we serve, and
support our sustainable business growth.
We have created an environment for people
of every culture, faith, ethnicity, heritage,
ability, gender identity, sexual orientation and
age to contribute to the growth of CCEP; a
place where everyone feels respected and
able to share their ideas and perspectives.
Led by our Inclusion, Diversity and Equity
(ID&E) Centre of Expertise and sponsored by
our ELT, we deliver our philosophy by listening
to our people’s lived experiences, developing
action plans and tracking progress against our
five pillars: culture and heritage; disability;
gender; LGBTQ+; and multi generations.
We have dedicated groups of employees and
ELT sponsors to influence action at scale and
remove identified barriers to inclusion.
Within our This is Forward sustainability action
plan, we have set a target of ensuring that at
least 45% of management positions (middle
management and above) are held by women
by 2025.
Leadership accountability
To work effectively across our diversity pillars,
our Everyone’s Welcome Steering Committee,
comprising ELT sponsors, works with leaders
and ambassadors to provide greater
leadership accountability, to understand the
barriers for underrepresented communities,
and to identify and deliver meaningful actions
and measure impact.
Our detailed ID&E scorecard enables us to
measure and benchmark our progress. Every
quarter, we review the progress of each BU
and function against its action plans. In
addition, each executive sponsor has their own
performance objectives.
Our progress
Throughout 2022, we ran three targeted
campaigns aimed at further embedding our
Everyone’s Welcome philosophy. We focused
on established, internationally recognised
celebrations: International Women’s Day, Pride
month and International Day of Persons with
Disabilities.
Promoting diversity in recruitment
To ensure a sustainable pipeline of diverse
talent, our programmes and activities promote
inclusion and diversity at every stage of the
candidate and employee journey; from
recruitment and apprenticeships, to training,
development and progression. These activities
are supported by our clear inclusion and
diversity policies, and in 2022, we launched our
first Inclusive Recruitment Principle and
Candidate Charter.
We use targeted attraction strategies and
specialist job boards, with inclusion and
diversity-specific audiences and content to
promote our inclusive culture. We share
information and stories from our own people
on their inclusion experiences on social media
and our careers website to showcase our
philosophy that everyone can be themselves
and belong at CCEP.
We work with specialist external partners to
help us reach underrepresented communities
across the markets we serve and to learn how
to improve our pipeline of diverse talent.
We work to support and protect our people,
now and in the future. We welcome people
from all backgrounds, faiths, cultures, sexual
orientation and abilities, ensuring we have the
appropriate training and support for the
employment and progression of people with
disabilities.
Partnerships to support diversity
As part of our commitment to building a
workplace that embraces ID&E, we partner
with relevant organisations, and support
industry-wide pledges to build a more diverse
consumer sector.
As well as signing the LEAD Network pledge
and the Valuable 500 pledge to accelerate
gender parity and inclusion, and put disability
inclusion on our business leadership agenda,
we have also signed the UN Women’s
Empowerment Principles. This set of seven
principles guides us in promoting gender
equality and women’s empowerment in the
workplace, marketplace and community –
based on international labour and human
rights standards.
We are also members of the Business Disability
Forum, Stonewall’s Diversity Champions
programme, global LGBTQ+ leadership
community RAHM, the European Network
Against Racism and the Social Mobility Index.
In 2022, we proudly became the first beverage
company to be listed on the Global Stonewall
Workplace equality index achieving Bronze
status.
Workforce diversity 2022
Female
Male
Total employees
(including part time employees)
Total: 33,295(A)
7,922
25,372
Board of Directors
Total: 17
5
12
Leadership
(senior management grade including ELT)(B)(C)
Total: 3,379(D)
1,256
2,123
Directors of subsidiary companies(C)
Total: 116
28
88
(A) CCEP full time, part time and temporary active corporate
employees. Full time equivalent employees as at 31
December 2022. Includes one employee who did not
declare.
(B) The members of the ELT and their direct reports consists
of 109 female and 175 male employees.
(C) 20 female and 51 male directors of subsidiary companies
are also included in the workforce diversity statistic under
leadership.
(D) Excludes Papua New Guinea, Fiji and Samoa as aligned
role grades not available for 2022 reporting. We aim to
include these markets for 2023.
23.8%76.2%29.4%70.6%37.2%62.8%24.1%75.9%
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Taking action on sustainability continued
Forward on society – people continued
Being well
Wellbeing and safety strategy
We prioritise our people’s physical and mental
wellbeing, and provide a safe and healthy work
environment. We expect all employees,
contractors and individuals under our
supervision to follow our policies, procedures
and processes to mitigate risks at all times.
We encourage our people to take action if
they become aware of any activity, situation or
behaviour that could compromise the physical
or mental wellbeing of another person, and
report any harms avoided. Managers are
responsible for ensuring that workplaces,
processes and equipment are kept safe, and
must prioritise the wellbeing of their people.
If our people are injured or suffer any mental
or physical health issues, we endeavour to
make any reasonable adjustments to their
duties and working environment to support
their recovery and continued employment.
Our Board receives regular updates from the
CEO on the health and safety of our people,
including COVID-19 challenges.
Safety commitment
We believe all injuries are preventable and that
no task is so important that it can’t be done
safely. We aim to reduce our total incident rate
(TIR) to below 1 by 2025 and our lost time
incident rate (LTIR) to below 0.5. Tragically, in
2022, there were two employee fatalities in
Indonesia. The incidents were investigated
with the local authorities and we continue to
improve our safety procedures to prevent a
reoccurrence.
We consult in each BU with employees and
employee representatives through committee
meetings, risk mitigation workshops, works
councils and union meetings. We have
quarterly performance review meetings with
local leaders as well as the ELT, with clearly
defined annual plans. We set and
communicate targets throughout the
organisation, based on actual performance
and sustainable improvement. All our health
and safety policies are signed and approved by
our CEO.
Measuring safety performance
Our integrated management systems and
programmes measure our safety performance
using TIR and LTIR(A).
We have a contractor management system in
place across all our territories. Under this
system, all contractors are required to pass a
risk-based assessment before they are
permitted to work at our sites. We track
contractors’ lost time incidents, but we cannot
calculate their LTIR as we do not have visibility
of their work hours, only their hours spent on
site. In 2022, there were 13 contractor lost time
incidents across our markets.
Safety management systems
Our health and safety management system
covers our supply chain (production facilities,
procurement and distribution), our
commercial teams, our support functions, and
contractors, aiming to mitigate risks and
promoting a culture of safety for our
employees to learn from.
Tools like dynamic risk assessment,
management safety walks, safety
conversations, capturing learnings through
near-misses and potential events are
commonly used. Any potential hazard or work
incident is investigated by a diverse
investigation team to identify and prioritise
the short-, mid- and long-term action plans
and communicate learnings.
(A) TIR counts any injury per 100 full time equivalent (FTE)
employees that requires medical treatment beyond First
Aid. LTIR calculates incidents per 200,000 hours worked,
which is equal to 100 FTE employees resulting in time away
from work.
We provide health and safety training to our
employees because it is essential for capability
and competency development. We align the
training to the required global Coca-Cola
system health and safety procedures and
CCEP risk management procedures. All health
and safety training is aligned with local health
and safety regulations. CCEP is an active
member of the TCCC Global Safety
Committee and proactively corresponds to
any learnings coming through the network.
Supporting our people
We communicate clear expectations and role
descriptions, and provide constructive and
appreciative feedback to our colleagues. Our
managers ensure that workloads enable
employees to do their best and are not
overwhelming or under-demanding.
We offer flexible working where possible,
respecting the right of employees to work or
to be disconnected outside of their regular
working hours where appropriate based on
their personal needs, according to our “Ways of
Working” policy. In Great Britain, employees
can request home-based, remote working and
flexible hours. In Germany, they can request
reduced annualised or compressed hours.
Some countries have also negotiated working
from home collective bargaining agreements.
At a number of our sites, we provide childcare
services. In France, we offer day care solutions
for the children of our employees in our
headquarters and some production facilities.
In Belgium and Luxembourg, we offer
childcare (Teddy Care) for ill children between
three months and 12 years of age. In the
Netherlands, we provide a private place for
breast feeding mothers. We also have a
maternity policy and adoption leave policy,
which varies by country based on local
legislation and practice.
In June 2022, we conducted an engagement
survey. The results showed that we have made
the most progress in workplace safety and the
wellbeing of our people. We have
opportunities in removing barriers for our
people to do their work, how we communicate
effectively and provide learning opportunities.
In 2022, we grew our Mental Health First Aider
initiative and expanded an internal mental
health support network to over 800 trained
employees across our territories. Over
1,000 people have received support and
benefited from our Employee Assistance
Programme (EAP), a 24/7 independent service
offering free professional counselling, self-help
programmes, interactive tools and educational
resources for our people and their family.
Case study
Mental health and wellbeing campaigns
In 2022, to celebrate two world safety and
mental health days in April and October, we
organised wellbeing campaigns. The focus was
on raising awareness of our people and
leadership training programmes, our network
of wellbeing leads and First Aiders and our EAP.
We also organised various mental wellness
sessions to motivate our employees to take
care of their physical and mental health.
Read more at cocacolaep.com/annual-
report/case-study/people-safety
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Taking action on sustainability continued
Forward on society – people continued
Being recognised, developed, connected and inspired
Employee benefits
We pay fairly and in line with appropriate
market rates, and provide our people with
benefits according to their country and level in
the organisation, including packages to cover
sickness, post-natal childcare, bereavement or
a long-term illness in the family. We also offer
pension plans, life insurance and medical plans,
as well as many others benefits.
In 2022, we launched the new global Employee
Share Purchase Plan (ESPP), which gives our
employees the opportunity to buy Shares in
CCEP on a regular basis. For every share an
employee purchases, CCEP will provide a
matching share, up to an agreed limit. In Great
Britain, we offer a similar opportunity under an
employee share plan, which makes use of a
tax-efficient opportunity for employees to
become shareholders through salary sacrifice
arrangements. Around 38% and 76% of eligible
employees were participating in the global
ESPP and Great Britain share plan, respectively,
on 31 December 2022.
Around three-quarters of our employees
participate in annual variable remuneration
plans. We offer an annual bonus plan to around
13,000 people across the organisation (39% of
our total workforce). In addition, we offer sales
incentive plans to 25% of our people, and a
further 24% participate in local incentive plans.
We operate a Long-Term Incentive Plan (LTIP)
for around 300 people who occupy the most
senior roles in the business. Bonuses are linked
to the delivery of commercial and
sustainability goals with the LTIP being linked
to ROIC, EPS and CO2e targets.
Pay equity
We are committed to being an equal
opportunities employer. We make decisions
about recruitment, promotion, training and
other employment issues solely on the
grounds of individual ability, achievement,
expertise and conduct.
To ensure that line managers make
appropriate pay decisions, we provide training
and support. We monitor pay equity within our
territories.
Employee development
Our range of training programmes and
platforms develop core capabilities in
leadership, commercial, customer service and
supply chain at every level of our business.
We offer training opportunities using our
digital learning platforms Juice and Academy.
These platforms are available on any device, so
our people can access them easily. Using the
MyPerformance@CCEP app and Me@CCEP
platform, employees can create their own
talent profile and understand their objectives,
feedback and development.
We value and invest in our early career talent
and support initiatives that help young people
gain employability, skills and confidence. This
includes offering internships, apprenticeships
and graduate programmes. For the eighth
year, we have partnered with One Young
World, the global forum for young leaders. 28
CCEP delegates attended the 2022 summit in
Manchester and participated in an internal
post-development programme.
We have ID&E learning modules on practising
inclusive leadership, starting an ID&E
conversation and allyship. Underpinning this
formal learning is a series of resources, which
include conversation guides on LGBTQ+,
allyship, inclusive language, discussing disability
and addressing age stereotypes, as well as an
accessible communication toolkit.
We have training on anti-harassment and ID&E
in the workplace which is mandatory for
people managers and the People and Culture
team.
Engaging with employees
Good communication is an essential part of
building a motivated, engaged workforce. We
are committed to communicating clearly and
transparently with our people and their
representatives.
Employees have access to news and
information about CCEP in local languages
through digital platforms and printed
materials, and direct dialogue through
business talks and all hands meetings. CCEP
management gives updates about CCEP’s
overall, and local, performance through these
channels, as well as through our published
results. People also have opportunities to hear
from and ask questions to our Board.
We have extended our digital solutions for
employees to make it easier for them to
access policies, training and key data on pay
and performance.
We aim to uphold freedom of association and
collective bargaining as a human right
according to our Human Rights policy. Where
applicable, we consult with our people and
their representatives to discuss proposed
measures before making decisions.
CCEP has set up forums to ensure that the
voice of employees is heard and taken into
consideration.
Following our commitment, we meet regularly
with European Works Council, national and
local works councils, as well as trade unions that
represent our people, in all our territories
where we operate. Around 50 unions represent
our employees throughout our territories. .
Our policies are written in a way that is easy to
understand and are accessible in local
languages. We review our global policies
annually to ensure they are up to date with
legal requirements and relevant for business
and social strategies.
Employees supporting local
communities
We are determined to draw on our people’s
passion for what we do and empower them to
make a positive difference in our local
communities.
As part of our support for local communities,
our employees can spend up to two paid
working days each year volunteering for a
charity or cause of their choice.
Read about employee volunteering
on page 57
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62
Promoting cyber security culture
CCEP’s Information Security Governance
Committee and Chief Information Security
Officer (CISO) oversee CCEP’s cyber security
programme, illustrated below.
Our actions promote a cyber security culture
where everyone feels a responsibility to
prevent cyberattacks. During 2022, we
increased the training modules for our
employees and promoted awareness during a
cyber security week.
Our designated INED engaged in the cyber
security and strategy process, John Bryant,
ensures strong Audit Committee and Board
oversight. Results of phishing simulations and
training are regularly reported to the
Audit Committee.
Taking action on sustainability continued
Forward on society – people continued
Being responsible
We aim to live up to our responsibilities as a
business by being accountable, ethical and aware
of the risks in everything we do.
We also expect all third parties who work on our
behalf to act in an ethical manner consistent with
our CoC and to comply with our SGPs.
At CCEP, we hold ourselves accountable to the
highest standards of corporate governance and
aim to provide transparent and timely
information in respect of our activities to our
stakeholders. CCEP has a strong corporate
governance framework with a Board overseeing
the interests of all stakeholders.
Management has a Compliance and Risk
Committee (CRC) chaired by the Chief
Compliance Officer (CCO) which oversees the
ethics and compliance (E&C) function and
provides management input regarding the E&C
programme.
Read about our corporate governance
on pages 97-107
Ethics and compliance
Our E&C programme for all our employees and
Directors is designed to ensure we conduct our
operations in a lawful and ethical manner. It also
supports how we work with our customers,
suppliers and third parties.
Code of Conduct
Our Code of Conduct (CoC) seeks to ensure that
we act with integrity and accountability in all our
business dealings and relationships. Our policies
also drive compliance with relevant legislation.
We expect everyone working at CCEP to adhere
to the CoC, which was updated in 2022.
The CoC covers issues such as anti-bribery, data
protection, environmental regulation, human
rights, health, safety, wellbeing and respect for
others. It aligns with the UN Global Compact, the
US Foreign Corrupt Practices Act, the UK Bribery
Act, the UKCGC, the EU General Data Protection
Regulation, the Spanish and Portuguese Criminal
Codes and Sapin II.
All employees are required to undergo CoC
training, which is also a part of the induction
process for new employees. Training on specific
topics related to their roles is also provided where
needed. Our CoC specifically calls out manager
responsibilities and includes a matrix to help with
decision making and guidance on situations such
as bullying and harassment.
Read our CoC at www.ccepcoke.online/code-
of-conduct-policy
Preventing bribery and corruption
We aim to prevent all forms of bribery and
corruption in our business dealings. Our CoC sets
out our principles and standards to prevent
bribery and corruption, including conflicts of
interest and the exchange of gifts and
entertainment.
Our Gifts, Entertainment and Anti-Bribery policy
applies to all employees. There is a mandatory
training for a targeted audience.
Find our policy hub at cocacolaep.com/
about-us/governance
Raising concerns
Any employee who wishes to raise concerns
about wrongdoing at CCEP is encouraged to
seek advice from their line manager and/or raise
a report through our internal Speak Up
Resources and/or dedicated and confidential
external Speak Up channels. When any employee
raises a concern in relation to the CoC, CCEP will
act promptly and appropriately. We also
encourage our employees to raise concerns in
the moment and ask '”Is it Coke”?
Strategic Report
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
63
Taking action on sustainability continued
Forward on society – people continued
Respect for human rights
We are committed to ensuring everyone who
works at CCEP and in our supply chain is
treated with dignity and respect. We consider
human and workplace rights to be inviolable
and fundamental to our sustainability as a
business. We support the 10 principles of the
UN Global Compact.
Our principles regarding human rights are set
out in our Human Rights policy, which is
aligned with accepted international standards
and CCEP’s CoC.
Further information on our principles
regarding human rights is provided in our SGPs
and PSA. These set out the requirements of
our suppliers related to business ethics, human
and workplace rights, the environment, and
providing benefits to communities.
Modern slavery
We have a zero-tolerance approach to modern
slavery of any kind, including forced labour, and
any form of human trafficking within our
operations, and by any company that directly
supplies or provides services to our business. In
2017, we published our first Modern Slavery
Statement in accordance with the UK Modern
Slavery Act 2015, and continue to update this
annually. In API, we published our first Modern
Slavery Statement in 2020 following the
Australian Modern Slavery Act 2018 (Cth).
In 2022, we published our first joint Modern
Slavery Statement valid for both business
areas. It sets out the steps taken by CCEP and
its Group companies to prevent, identify, and
address modern slavery risks across our
business and supply chain.
See our modern slavery statements
at cocacolaep.com/about-us/governance
Human rights risk assessment
As a result of human rights risks assessments
that have been completed in Europe and API,
we have identified 12 areas as priority issues for
CCEP, as summarised in the human rights risk
assessment table to the right.
The effective tracking and management of
these risks also ensures compliance with
relevant legislation.
In 2022, we conducted three additional
country-specific or situation-based risk
assessments in Spain, Norway and Indonesia. In
follow up of these assessments, we established
a working group in Spain, responsible for
analysing the current measures in place to
prevent human rights breaches in the area of
temporary contracts and the short-time work
scheme. In Norway and Indonesia, we
anticipate publishing a report in 2023,
including measures to be taken.
Find out more about our approach
to human rights at cocacolaep.com/
sustainability/human-rights
Human rights risk assessment:
priority issues
Migrant and
temporary
workers
Data
protection
Right to
privacy
Wages
Equality and
non-
discrimination
Forced labour
Health,
safety and
security
Freedom of
association
Working hours
Freedom from
bribery and
corruption
Cultural rights
of minorities
Children and
young people’s
protection
from
exploitation
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
64
Principal risks
Our enterprise risk
management (ERM)
framework addresses the
principal risks we face as a
business and how we identify,
assess and manage them.
Our approach to risk
Our Board has overall responsibility for risk
management at CCEP. The Board and senior
management are involved in the identification
of principal and emerging risks, our strategic
response to them, and oversee management’s
actions to achieve our strategic objectives. To
support this, risk management is embedded
within our daily operations and culture.
We identify, assess and manage risks in a
systematic and structured way, using
appropriate risk management tools and
methodologies, implemented at various levels
of our business. CCEP’s ERM framework looks
at risks we face and the opportunities we have.
Since the creation of CCEP we have continually
enhanced our risk management capabilities
through consultation and collaboration across
the business and external benchmarking. The
focus in 2022 was on building strategic
scenario planning capabilities (for climate
change risk), applying advanced technologies
to support the identification of emerging risks
and quarterly internal risk reporting to support
management decision making. We review and
adapt our risk and internal control systems to
address the changing risk environment and to
adopt best practices.
Through our One Risk Office, a forum that
brings together second and third line of
defence representatives, we share risk
management knowledge across all functions
and countries in which we operate. We discuss
emerging risk themes or external factors that
could impact our business. We regularly invite
external risk experts and risk leaders from
other organisations to help us broaden our
horizons and review our understanding of risk.
Identifying and assessing risk
To gain an understanding of the risks CCEP
faces, we assess risks top down and bottom up.
Our annual enterprise risk assessment (ERA)
gives us a top down strategic view of risk at the
enterprise level. During the ERA, we carry out a
risk survey with our top business leaders,
followed by interviews with the Board and
Executive Leadership Team (ELT) to identify
current and emerging risks. We periodically
review and update our assessment processes.
In 2022, we received feedback from over
100 of our senior leaders, including all Board
members.
In 2022, we started conducting the interviews
in small groups to trigger insightful
conversations among participants for specific
risks. We have also started the analysis of
interdependencies between our defined risk
categories. A deeper understanding of such
interdependencies will help us define our risk
mitigations and controls more effectively.
To gain a bottom up view of risk, from an
operational perspective, we carry out risk
assessments at a business unit (BU), functional
and project level. Each BU has established local
compliance and risk review processes,
undertaken by its local leadership team. The
local leadership teams review and update risk
assessments, ensuring that risk management is
incorporated into business routines.
Day to day ERM work is overseen by the
Compliance and Risk Committee (CRC), a
management committee chaired by the CCO.
Every quarter, the CRC invites risk owners
to share updates on key risks and how they are
being managed. In 2022, these included
updates on: geopolitical risks and action plan
updates, business continuity and resilience
planning, CoC, safe culture and fair treatment,
human rights and policy management, GDPR
compliance, corporate security and corporate
integrity programme, health and safety and
wellbeing campaigns. We also share and
discuss results of targeted risk exercises such
as assessments, scenarios and simulations. The
CRC reports to the Board Committees, such as
the Audit Committee, at least five times
per year.
In 2022, API was integrated into our ERM
framework. We have leveraged risk
management best practice from API in
Europe, for instance integrating ERM into the
annual business planning cycle.
In 2022, we partnered with Risilience and the
Centre for Risk Studies within the Judge
Business School at the University of
Cambridge, to further develop our strategic
scenario planning capabilities. The initial focus
of our collaboration is on climate change risk
to support strategic decision making in line
with our sustainability commitments and to
facilitate from the Task Force on
Climate-related Financial Disclosures (TCFD)
reporting. In partnership with Risilience, we
have developed a digital twin platform,
enabling us to model physical and transition
risks across our value chain over a 20 to 30 year
timeline with various warming scenarios. In
2023, we are planning to apply the digital twin
platform to other enterprise risks like cyber,
packaging or talent.
Read more about TCFD on pages 28-37
Managing risk
Once risks are identified, we analyse them to
understand the likelihood, potential impact,
velocity and effectiveness of existing
mitigations. Actions are developed where
mitigations are not meeting expectations or
the risks are at unacceptable levels. The risk
criteria that we use for our risk assessments are
reviewed on an annual basis to ensure that
they adequately cover the different types of
consequences and remain fit for purpose.
Since the implementation of risk appetite
statements (RAS), we have used this tool
to support business decision making aligned
with our strategic objectives. We compare our
current risk profile (ERA outcome) with our
RAS (tolerated level of risk). RAS are reviewed
annually by the CRC and the Audit Committee,
with actions defined as necessary.
We are in the process of adapting the RAS for
operations by defining key risk indicators for
each statement with the risk owners.
Case study
Minimising supplier risk
With a network of more than 17,000
suppliers, increasing global supply chain
complexity and disruptions, it is
challenging to monitor all risk types and
block out noise without applying artificial
intelligence (AI) to big data.
Procurement has therefore implemented
Resilinc to use the power of AI in proactively
identifying potential risks impacting our
business through our supplier and
sub-supplier network. By using AI to monitor
a broader risk portfolio and identify
emerging risks, we have found ways to turn
them into benefits.
50m
Scanning over 50 million information
feeds annually across over 150 risk types
in 100 languages
~3,000 sites
Since implementation, procurement have
monitored in total over 3,000 suppliers,
sub-suppliers and CCEP sites using Resilinc
Read more about our supply chain
on pages 49-52
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
65
Principal risks continued
To strengthen our ability to identify emerging
risks early, we continue with CCEP’s
procurement team and external partner
Resilinc, a provider of a tool that uses AI for
cognitive risk sensing, to manage our supplier
risks (see case study on page 64). The tool
extracts relevant information and trends from
all available external and internal sources and
makes them available to the responsible
category manager in procurement. ERM is
pioneering this work with the toll provider as
the ultimate goal is to capture signals that
indicate the development of new types of risk
for which CCEP needs to prepare. Early
detection of such risks can help to convert
threats into opportunities and competitive
advantages for CCEP.
We manage risk through the ERM framework,
our processes and policies. Our annual policy
review ensures the policies and related policy
guidance remains valid. Changes within the
documents have been approved by the CRC.
Changes in policies, for example the CoC, the
Gifts, Entertainment and Anti-Bribery policy
and the Speak Up policy, have been approved
by the CRC and Board.
The following pages set out a summary of our
principal risks based on the findings of our
most recent ERA. The Board has carried out a
robust assessment of these principal risks. This
summary is not intended to include all risks
that could impact our business and the risks
are presented in no particular order. In this
report, we show how each principal risk links to,
and underpins the relevant aspect of, our
strategy.
Beyond principal risks, CCEP faces other
operational risks which are managed as part of
our daily routines, such as employee health,
safety and wellbeing, fraud and human rights.
Principal risk map(A)
External
Opportunities and risks, such
as macroeconomic, socio/political and
competition risks, that could fundamentally
impact business strategy. Typically
managed by teams that respond to
significant shifts in government relations,
consumer or supplier behaviour.
Strategic
Opportunities and risks that could impede
the achievement of strategic objectives and
targets, such as poor resource allocation or
decision making. Typically managed by
senior leaders responsible for delivering
strategic initiatives set by the Board.
Operational
Opportunities and risks that could impact
day to day operations in areas such as
production, logistics or sales. Managed
across all business areas through controls
embedded in processes and procedures.
Extreme events
Events that would have an extreme impact
on the business, such as war, pandemic, cyber
attack, global financial crisis, natural disaster.
These can materialise in any part of the
business and may coincide with other risks in
particular scenarios. Because extreme
events can occur in any principal risk, they will
not be assigned to a single specific category.
Velocity scale: (speed to impact)
Very rapid (less than one month)
Rapid (less than one year)
Moderate (one to three years)
Slow (greater than three years)
Principal risks
Packaging
Legal, regulatory and tax
Business disruption
Cyber and social
engineering attacks and
IT infrastructure
Economic and political
conditions
Market
Climate change and water
Perceived health impact of
our beverages (including
ingredients) and changing
customer buying trends
Business transformation,
integration and digital
capability
People and wellbeing
Relationships with TCCC
and other franchisors
Product quality
(A) Changes in risk are as against the principal risks section of CCEP’s Integrated Report/Annual Report on Form 20-F for the year ended 31 December 2021 as updated and supplemented
in CCEP’s Results for the six months ended 1 July 2022.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
66
Principal risks continued
The table below shows our principal risks
Principal risk
Packaging
Find out more
in Forward on
packaging
on pages 42-45
Legal,
regulatory
and tax
Strategic
objective
Description
(What is the risk?)
Causal factors themes
(What gives rise to the risk?)
Consequence themes
(Potential impact of the risk)
Key control mitigations
(How we manage it)
Change
The risks relating
to packaging
waste and plastic
pollution, and
single use plastic
• Stakeholder concern about
• Brand and reputation
• Development of the packaging pillar within our This is Forward
the environmental impacts of
single use plastic packaging,
litter and packaging waste
damage from not keeping up
with community/customer
expectations
• Financial impact from
increased taxes and on the
costs of doing business
• Regulatory and compliance
impacts
• Increased potential for
activism and litigation
sustainability action plan, including pack mix, recycled content and
improving packaging collection. More information on our
packaging strategy can be found in our Forward on packaging
section on pages 42-45
• Continued sustainability action plan focused on packaging,
including our commitments to:
– Ensure that 100% of our primary packaging is recyclable by 2025
– Drive higher collection rates, aiming to ensure that we collect
and recycle a bottle or a can for each one we sell by 2030
– 50% recycled plastic in our PET bottles by 2023 (Europe) and
2025 (API)
– Stop using oil-based virgin plastic in our bottles by 2030
– Invest in rPET infrastructure to help drive packaging circularity
and secure access to recycled material
The risks
associated with
new or changing
legal, regulatory or
tax, legislative
environment and
subsequent
obligations and
compliance
requirements
• Manufacturing activities
• Use of certain ingredients
• Packaging
• Restrictions on sugar and
sweeteners
• Labelling requirements
• Distribution and sale activities
• Employment costs
• Carbon taxes
• Financial impact from new or
• Continuous monitoring, assessment and appropriate
higher taxes
implementation of new or changing laws and regulations
• Dialogue with government representatives and input to public
consultations on new or changing regulations
• Development of compliance processes and training programmes
for employees
• Communication with public health stakeholders to tell our story
on drinks in anticipation of potential regulatory pressures
• Stricter sales and marketing
controls impacting margins
and market share
• Punitive action from
regulators or other legislative
bodies
• Increase to the cost of
compliance to meet stricter
or new regulatory
requirements
• Brand and reputation
damage
Link to strategy
Risk change
An indication of the current change of each principal risk relative to the prior year.
Great
people
Great
service
Great
beverages
Done
sustainably
Increased
Stable
Decreased
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
67
Principal risks continued
Principal risk
Business
disruption
Cyber and
social
engineering
attacks and IT
infrastructure
Strategic
objective
Description
(What is the risk?)
Causal factors themes
(What gives rise to the risk?)
Consequence themes
(Potential impact of the risk)
Key control mitigations
(How we manage it)
Change
The risk of
prolonged, large
scale natural and/
or man made
disruptive events
The risks related to
the protection of
information
systems and data
from unauthorised
access, misuse,
disruption,
modification, or
destruction
• Cyber attack or IT/operational
• Disruption to supply chains/
• Development, testing and continual improvement of Business
technology system failure
operations
• Safety and wellbeing of our
Continuity Planning (BCP) through implementation of the BCP
elements of TCCC’s Business Resilience Framework
• Pandemics
• Extreme weather events
(floods, fires)
• Natural disasters
• Civil unrest, war and terrorism
people
• Training and awareness to build Business Continuity and Resilience
• Brand and reputation
damage
• Financial impact
capabilities across our sites and processes and improve our
response to incidents
• Scenario planning exercises and Business Impact Assessments to
analyse and identify critical people (roles), property, technology,
equipment and suppliers (value chain)
• Coordination, continuous improvement and testing of our
Incident Management and Crisis Response process
• External attackers seeking to
• Financial impact from
• Established cyber strategy with engagement of the ELT and
ransom or disrupt systems and
data
disruption to operations or
fines
• Dependency on third parties
• Internal misuse (malicious or
accidental)
• Security and maintenance of IT
infrastructure and applications
• Safety and wellbeing of
employees, customers or
business partners who may
have their personal
information stolen
• Brand and reputation
damage
Board
• Conducting regular training and awareness on information
security and data privacy
• Development of BCP and Disaster Recovery programmes
including regular internal and external testing of security controls
to identify and resolve vulnerabilities
• Threat vulnerability management and threat intelligence
• Implementation of a hardware lifecycle
• Security event logging and management through a Global
Security Operations Centre operating 24/7 to proactively monitor
cyber threats and implement preventive measures
• Completion of third party risk assessments
• Established Data Privacy Office including data governance and
information classification and handling
• IT change management process
Link to strategy
Risk change
An indication of the current change of each principal risk relative to the prior year.
Great
people
Great
service
Great
beverages
Done
sustainably
Increased
Stable
Decreased
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
68
Principal risks continued
Principal risk
Economic
and political
conditions
Market
Strategic
objective
Description
(What is the risk?)
Causal factors themes
(What gives rise to the risk?)
Consequence themes
(Potential impact of the risk)
Key control mitigations
(How we manage it)
Change
The risks
associated with
operating in
volatile and
challenging
macroeconomic
and geopolitical
conditions
• Low economic growth or
• Financial impact from
• Diversified product portfolio and geographic diversity of
recession
• High currency and commodity
price volatility
• High inflation
• Political instability/conflict
• Civil unrest
reduced demand from
consumers and an increasing
cost base
• Disruption to supply chains
from sanctions or impact on
shipping/trade routes
operations assists in mitigating exposure to localised economic
risk
• Development of a flexible business model that allows us to adapt
our portfolio to suit our customers’ changing needs during
economic downturns
• Regular review of business results and cash flows to rebalance
capital investments where necessary
• Monitoring of macroeconomic, political and societal
developments to ensure that business is prepared to manage
emerging situations
• Established hedging policy for managing financial risks like FX,
commodity and interest rate risks
• Keeping a strong level of liquidity and back up credit lines at all
times for working capital purposes as well as unexpected cash
flow swings
The risks to
maintaining the
relationships with
our customers and
consumers
to meet their
changing
demands, needs
and expectations
• New distribution channels and
• Financial impact from
platforms
• Changing customer and
consumer habits
• Changes in the competitive
landscape
• Legislative and regulatory
changes
reduced demand from
consumers
• Decreasing margins and
market share
• Inability to meet strategic
objectives
• Brand and reputation
damage
• Conducting shopper insights and price elasticity assessments
• Investing in pack and product innovation
• Established promotional strategy
• Development of commercial policy
• Collaborative category planning with customers
• Development of growth centric customer investment policies
• Established business development plans aligned with our
customers
• Diversification of portfolio and customer base
• Development of realistic budgeting routines and targets
• Investment in key account development and category planning
• Open up new route to market opportunities, for example eB2B and
platforms/direct to consumer
Link to strategy
Risk change
An indication of the current change of each principal risk relative to the prior year.
Great
people
Great
service
Great
beverages
Done
sustainably
Increased
Stable
Decreased
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
69
Principal risks continued
Strategic
objective
Description
(What is the risk?)
Causal factors themes
(What gives rise to the risk?)
Consequence themes
(Potential impact of the risk)
Key control mitigations
(How we manage it)
Change
Principal risk
Climate
change and
water
The risks and
opportunities
associated with
managing the
impacts of climate
change and water
scarcity across our
value chain
Read about TCFD
on pages 28-37
Perceived
health impact
of our
beverages
(including
ingredients),
and changing
customer
buying trends
The risks relating
to our ability to
effectively adapt
and respond to
changes in
consumer
preferences and
behaviour towards
our products
• GHG emissions across our
• Brand and reputation
• Development of the climate pillar within our This is Forward
damage from not meeting
sustainability targets
• Financial impacts from future
carbon taxes and the
transition costs to low GHG
emissions
• Regulatory and compliance
impacts related to TCFD
disclosures
sustainability action plan including our short-term and long-term
GHG emissions reduction targets to reduce our absolute Scope 1,
2 and 3 GHG emissions by 30% by 2030 (vs 2019), and to achieve
Net Zero by 2040. Our strategy outlines the management actions
and key mitigations taken to manage this risk. More information
can be found in our Forward on climate section on pages 38-41
• Development of the water pillar within our This is Forward
sustainability action plan which sets out targets for water
efficiency, regenerative water use and water replenishment and
outlines management actions and key mitigations taken to
manage risk. More information can be found in our Forward on
water section on pages 46-48
• Transition to 100% renewable electricity aiming to achieve this
across all markets by 2030
• Supplier engagement programme to support suppliers to set
their own reduction targets and transition to use renewable
electricity
• Financial impacts from
• Development of the drinks pillar within our This is Forward
decline in sales volumes and
market share (delisting,
demand decrease)
• Increased regulatory scrutiny
• Increased taxes on our
products
• Damage to brand and
reputation
sustainability action plan to support the recommendation by
several leading health authorities, including WHO, that people
should limit their intake of added sugar to 10% of their total calorie
consumption. More information can be found in our Forward on
drinks section on pages 53-55
• Support TCCC, EU or National associations on strong advocacy
regarding no and low-calorie sweeteners and processed food
value chain, including
emissions from our production
facilities, cold drinks
equipment, the transportation
of our products, packaging
and the ingredients that we
use, and storage of our
products
• Scarcity of water and water
quality issues related to water
sources we and our suppliers
rely upon
• Regulatory and legislative
initiatives aimed at reducing
GHG emissions
• Changing consumer and
investor preferences
• Legislative changes driven by
government or lobby groups
• External marketing campaigns
towards alternative
ingredients/products
• Publication of guidelines or
recommendations related to
sugar consumption or
additives by WHO or other
health authorities
• Increased media scrutiny and
social media coverage
impacting consumer
perception
• Viability of alternatives to
sugar, sweeteners and other
ingredients within our product
portfolio
Link to strategy
Risk change
An indication of the current change of each principal risk relative to the prior year.
Great
people
Great
service
Great
beverages
Done
sustainably
Increased
Stable
Decreased
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
70
Principal risks continued
Principal risk
Business
transformation,
integration
and digital
capability
People and
wellbeing
Relationships
with TCCC
and other
franchisors
Strategic
objective
Description
(What is the risk?)
Causal factors themes
(What gives rise to the risk?)
Consequence themes
(Potential impact of the risk)
Key control mitigations
(How we manage it)
Change
The risks relating
to the execution
of our strategic
and continuous
improvement
initiatives
• Digital transformation
• Identification and execution of
supply chain improvements
• Relationships with our partners
and franchisors
• Ineffective coordination
between BUs and central
functions
• Change management failure
• Diversion of management's
focus away from our core
business
• Damage to brand and
• Solid governance model in place leveraging Competitiveness
reputation
Steering Committee for enterprise wide transformation
• Financial impacts from a
decline in our share price
arising from not realising the
value creation from these
initiatives
• Industrial action and
disruption to our operations
• Regular competitiveness reviews ensuring effective steering, high
visibility and quick decision making
• Dedicated programme management office and effective project
management methodology
• Continuation of strong governance routines
• Regular ELT and Board reviews and approvals of progress and issue
resolution
• Analysis and review of Acquisition-related activities such as integration
and business performance risk indicators and capital allocation risk
reviews
• Building a well functioning and resilient workforce with priority focus
on health and safety, and mental wellbeing initiatives, especially in
frontline roles
The risks relating to
the identification,
attraction,
development, and
retention of talent.
Also risks relating to
the wellbeing of our
people (including
human rights and
modern slavery)
The risk of
misaligned
incentives or
strategy with
TCCC and/or
other franchisors
• Job design and working
• Damage to brand and
• Development of our people strategy, Me@CCEP, which sets out the
conditions
reputation
• Reward and recognition
• Misconduct by third parties
relating to human rights
• Financial impacts from a
decline in employee
engagement and productivity
• Industrial action and disruption
to our operations
• Punitive action from regulators
or other legislative bodies and
potential for litigation
• Lack of effective engagement,
• Damage to brand and
communication and/or
discussion with franchisors
reputation
• Financial impacts, including
as a result of TCCC or other
franchisors acting adversely to
our interests with respect to
our business relationship
diversity, inclusion, wellbeing and human rights targets,
management actions and the key mitigations taken to manage this
risk. More information can be found in our Forward on society -
people section on pages 58-63
• Our Everyone’s Welcome philosophy sets out our commitment to
inclusion, diversity and equity. The Everyone’s Welcome playbook is
the blueprint for countries and functions to align campaigns,
training and tracking mechanisms
• We have set up a strong policy framework, regular training and
supplier management to strengthen our human rights
commitments, such as modern slavery
• Clear agreements govern the relationships
• Incidence pricing agreement with TCCC
• Aligned long range planning and annual business planning
processes
• Ongoing group and local routines between CCEP and franchisors
• Regular meetings and maintenance of positive relationships at all
levels
• Regular contact and best practice sharing across the Coca-Cola
system
Link to strategy
Risk change
An indication of the current change of each principal risk relative to the prior year.
Great
people
Great
service
Great
beverages
Done
sustainably
Increased
Stable
Decreased
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
71
Principal risks continued
Principal risk
Strategic
objective
Description
(What is the risk?)
Causal factors themes
(What gives rise to the risk?)
Consequence themes
(Potential impact of the risk)
Key control mitigations
(How we manage it)
Change
Product
quality
• A failure in food safety, food
quality, food defence or food
fraud processes
• Physical harm to consumers
• Damage to brand and
reputation
• Financial impacts from a
decline in sales volume and
market share
The risks relating
to ensuring the
wide range of
products we
produce are safe
for consumption
and adhere to
strict food safety
and quality
requirements
• TCCC standards and audits
• Hygiene regimes at production facilities
• Total quality management programme
• Robust management systems
• ISO Certification
• Internal governance audits
• Quality monitoring programme
• Customer and consumer monitoring and feedback
• Incident management and crisis resolution
• Every CCEP production facility has:
– a hazard analysis critical control points assessment and
mitigation plan in place
– a quality monitoring plan based on risk and requirements
– a food fraud vulnerability assessment and mitigation plan based
risk and requirements
– a food defence threat assessment and mitigation plan based on
risk and requirements
Internal control procedures
and risk management
CCEP’s internal controls are designed to
manage rather than eliminate risk, and aim to
mitigate risk of fraud and misstatements.
In addition to management responsibility, the
Board has overall responsibility for the
Company’s system of internal controls and for
reviewing its adequacy and effectiveness. To
discharge its responsibility in a manner that
complies with law and regulation and
promotes effective and efficient operation,
the Board has established clear operating
procedures, lines of responsibility and
delegated authority.
The Audit Committee has specific
responsibility for reviewing the internal control
policies and procedures associated with the
identification, assessment and reporting of
principal and emerging risks to check they are
adequate and effective.
Our internal control processes include:
• Board approval for significant projects,
transactions and corporate actions
• Either senior management or Board
approval for all major expenditure at the
appropriate stages of each transaction
• Regular reporting covering both technical
progress and our financial affairs
• Board review, identification, evaluation and
management of significant risks
Read more about our approach to internal
control and risk management in the Audit
Committee report on pages 112-116
Link to strategy
Risk change
An indication of the current change of each principal risk relative to the prior year.
Great
people
Great
service
Great
beverages
Done
sustainably
Increased
Stable
Decreased
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
72
Viability statement
In accordance with
provision 31 of the 2018 UK
Corporate Governance Code
(the UKCGC), the Directors
have assessed the prospects
for the Group. The Directors
have made this assessment
over a period of three years,
which corresponds to the
Group’s planning cycle.
The assessment considered the Group’s
prospects related to revenue, operating profit,
EBITDA and free cash flow. The Directors
considered the maturity dates of the Group’s
debt obligations and its access to public and
private debt markets, including its committed
multi currency credit facility. The Directors also
carried out a robust review and analysis of the
principal risks facing the Group, including
those risks that could materially and adversely
affect the Group’s business model, future
performance, solvency and liquidity.
Stress testing was performed on a number of
scenarios, including different estimates for
operating profit and free cash flow. Among
other considerations, these scenarios
incorporated the potential downside impact
of the Group’s principal risks, including those
related to:
• Business disruption events, including
pandemics
• Legal and regulatory intervention, including
in relation to plastic packaging
• Risk of cyber and social engineering attacks
• Economic and political uncertainty
• Climate change and water
Based on the Group’s current financial position,
stable cash generation and access to liquidity,
the Directors concluded that the Group is well
positioned to manage principal risks and
potential downside impacts of such risks
materialising, to ensure solvency and liquidity
over the assessment period.
From a qualitative perspective, the Directors
also took into consideration the Group’s past
experience of managing through adverse
conditions and the Group’s strong relationship
and position within the Coca-Cola system. The
Directors considered the extreme measures
the Group could take in the event of a crisis,
including decreasing or stopping non-essential
capital investment, decreasing or stopping
shareholder dividends, renegotiating
commercial terms with customers and
suppliers or selling non-essential assets.
Based upon the assessment performed, the
Directors confirm that they have a reasonable
expectation the Group will be able to continue
in operation and meet all liabilities as they fall
due over the three year period covered by this
assessment.
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Non-financial and sustainability information statement
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
73
This Integrated Report contains a combination of financial and
non-financial reporting throughout. As required by sections
414CA and 414CB of the Companies Act 2006 (the Companies
Act), the following non-financial and sustainability information
can be found as stated in the table below. These pages
contain, where appropriate, details of our policies and
approach to each matter.
Non-financial and sustainability information
Page(s)
Environmental matters
TCFD on pages 28-37
Forward on climate on pages 38-41
Forward on packaging on pages 42-45
Forward on water on pages 46-48
Forward on supply chain on pages 49-52
Employee matters
Our stakeholders on pages 14-17
Social matters
Human rights
Forward on society – people on pages 58-63
Forward on society – communities on pages 56-57
Forward on society – people on page 63
Anti-corruption and anti-bribery matters
Forward on society – people on page 62
Our business model
Risk and principal risks
Our business model on page 6
Principal risks on pages 64-71
Risk factors on pages 223-229
Non-financial performance indicators
Sustainability performance indicators on page 9
Climate-related financial information
Sustainability performance indicators on page 9
Taking action on sustainability and TCFD on pages 26-63
Principal risks on pages 64–71
Sustainability key performance data summary on pages
249-252
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
74
Business and financial review
Our business
CCEP is a leading consumer goods group in Western Europe and the Asia Pacific region, making,
selling and distributing an extensive range of primarily non-alcoholic ready to drink beverages.
We make, move and sell some of the world’s most loved brands – serving 600 million consumers
and helping 2 million customers across 29 countries grow. We combine the strength and scale of
a large, multi-national business with an expert, local knowledge of the customers we serve and
communities we support.
Note regarding the presentation of pro forma financial information and
alternative performance measures
Pro forma financial information
Pro forma financial information has been provided in order to illustrate the effects of the
acquisition of Coca-Cola Amatil Limited (the Acquisition; referred to as CCL pre-Acquisition, API
post-Acquisition) on the results of operations of CCEP in 2021 and allow for greater
comparability of the results of the combined Group between periods. The pro forma financial
information for 2021 has been prepared for illustrative purposes only and because of its nature,
addresses a hypothetical situation. It is based on information and assumptions that CCEP
believes are reasonable, including assumptions as at 1 January 2021 relating to Acquisition
accounting provisional fair values of API assets and liabilities which are assumed to be equivalent
to those that have been provisionally determined as of the Acquisition date and included in the
financial statements for the year ended 31 December 2021, on a constant currency basis. The pro
forma information for 2021 also assumes the interest impact of additional debt financing
reflecting the actual weighted average interest rate for acquisition financing of c.0.40% for 2021.
The pro forma financial information does not intend to represent what CCEP’s results of
operations actually would have been if the Acquisition had been completed on the dates
indicated, nor does it intend to represent, predict or estimate the results of operations for any
future period or financial position at any future date. In addition, it does not reflect ongoing cost
savings that CCEP expects to achieve as a result of the Acquisition or the costs necessary to
achieve these cost savings or synergies. As pro forma information is prepared to illustrate
retrospectively the effects of future transactions, there are limitations that are inherent to the
nature of pro forma information. As such, had the Acquisition taken place on the dates assumed,
the actual effects would not necessarily have been the same as those presented in the pro forma
financial information contained herein.
Alternative performance measures
We use certain alternative performance measures (non-GAAP performance measures) to make
financial, operating and planning decisions and to evaluate and report performance. We believe
these measures provide useful information to investors and as such, where clearly identified, we
have included certain alternative performance measures in this document to allow investors to
better analyse our business performance and allow for greater comparability. To do so, we have
excluded items affecting the comparability of period over period financial performance as
described below. The alternative performance measures included herein should be read in
conjunction with and do not replace the directly reconcilable GAAP measures.
For purposes of this document, the following terms are defined:
‘‘As reported’’ are results extracted from our consolidated financial statements.
‘‘Pro forma’’ includes the results of CCEP and API as if the Acquisition had occurred at the
beginning of 2021, including acquisition accounting adjustments relating to provisional fair values.
Pro forma also includes the impact of the additional debt financing costs incurred by CCEP in
connection with the Acquisition for all periods presented.
"Comparable’’ is defined as results excluding items impacting comparability, which include
restructuring charges, acquisition and integration-related costs, inventory fair value step up
related to acquisition accounting, the impact of the closure of the GB defined benefit pension
scheme, the net impact related to European flooding, income arising from the favourable court
ruling pertaining to the ownership of certain mineral rights in Australia, the impact of a defined
benefit plan amendment arising from legislative changes in respect of the minimum retirement
age and net tax items relating to rate and law changes. Comparable volume is also adjusted for
selling days.
‘‘Pro forma comparable" is defined as the pro forma results excluding items impacting
comparability, as described above.
‘‘FX neutral’’ is defined as period results excluding the impact of foreign exchange rate changes.
Foreign exchange impact is calculated by recasting current year results at prior year exchange
rates.
‘‘Capex’’ or “Capital expenditures’’ is defined as purchases of property, plant and equipment
and capitalised software, plus payments of principal on lease obligations, less proceeds from
disposals of property, plant and equipment. Capex is used as a measure to ensure that cash
spending on capital investments is in line with the Group’s overall strategy for the use of cash.
‘‘Free cash flow’’ is defined as net cash flows from operating activities less capital expenditures
(as defined above) and interest paid. Free cash flow is used as a measure of the Group’s cash
generation from operating activities, taking into account investments in property, plant and
equipment and non-discretionary lease and interest payments. Free cash flow is not intended to
represent residual cash flow available for discretionary expenditures.
‘‘Adjusted free cash flow’’ is defined as free cash flow (as defined above) adjusted for items that
are not reasonably likely to recur within two years, nor have occurred within the prior two years.
Adjusted free cash flow is not intended to represent residual cash flow available for discretionary
expenditures. We believe that reporting adjusted free cash flow is useful as it allows for better
period over period comparability, excluding the impact of items that are unusual in nature. Refer
to page 81 for additional information.
‘‘Adjusted EBITDA’’ is calculated as Earnings Before Interest, Tax, Depreciation and Amortisation
(EBITDA), after adding back items impacting the comparability of period over period financial
performance. Adjusted EBITDA does not reflect cash expenditures, or future requirements for
capital expenditures or contractual commitments. Further, adjusted EBITDA does not reflect
changes in, or cash requirements for, working capital needs, and although depreciation and
amortisation are non-cash charges, the assets being depreciated and amortised are likely to be
replaced in the future and adjusted EBITDA does not reflect cash requirements for such
replacements.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
75
Business and financial review continued
‘‘Net Debt’’ is defined as the net of cash and cash equivalents and short-term investments less
borrowings and adjusted for the fair value of hedging instruments related to borrowings and
other financial assets/liabilities related to borrowings. We believe that reporting net debt is useful
as it reflects a metric used by the Group to assess cash management and leverage. In addition,
the ratio of net debt to adjusted EBITDA is used by investors, analysts and credit rating agencies
to analyse our operating performance in the context of targeted financial leverage.
‘‘ROIC” or “Return on invested capital” is defined as comparable operating profit after tax
attributable to shareholders divided by the average of opening and closing invested capital for
the year. Invested capital is calculated as the addition of borrowings and equity attributable to
shareholders less cash and cash equivalents and short-term investments. ROIC is used as a
measure of capital efficiency and reflects how well the Group generates comparable operating
profit relative to the capital invested in the business.
‘‘Dividend payout ratio’’ is defined as dividends as a proportion of comparable profit after tax.
Forward-looking alternative performance measures
Within this report, we provide certain forward-looking non-GAAP financial information, which
management uses for planning and measuring performance. We are not able to reconcile
forward-looking non-GAAP measures to reported measures without unreasonable efforts
because it is not possible to predict with a reasonable degree of certainty the actual impact or
exact timing of items that may impact comparability throughout year.
Financial highlights
In 2022, the uncertain macroeconomic environment led us to navigate unprecedented
commodity inflation, higher energy and transportation prices and industry-wide supply chain
constraints. However, our focus on in-market execution, promotional optimisation and the
successful implementation of dynamic headline pricing strategies across our markets, resulted in
strong revenue growth and value share gains. We also benefited from the continued recovery of
the AFH channel and the return of travel and tourism with further growth in the home channel.
Despite inflationary pressures, higher concentrate costs and continued investment in our
capabilities, we delivered strong operating profit growth. This translated into strong free cash
flow generation and enabled us to continue to return cash to shareholders, as demonstrated by
the dividend paid in the year.
The net impact of 2022 performance on our key financial measures(A) can be summarised as
follows:
• Reported revenue totalled €17.3 billion, up 26.0% on a reported basis and 15.5% on a pro forma
comparable and FX neutral basis.
• Volume increased 17.5% on a reported basis and 9.5% on a pro forma comparable basis.
Revenue per unit case increased 6.0% on a pro forma comparable and FX neutral basis.
• Reported operating profit was €2.1 billion, up 37.5%, or up 12.5% on a pro forma comparable and
FX neutral basis.
Unless otherwise stated, percent amounts are rounded to the nearest 0.5%.
• Reported diluted earnings per share were €3.29 or €3.39 on a comparable basis, up 13.0%
All pro forma measures presented below relate only to the full year ended 31 December 2021.
on a pro forma comparable and FX neutral basis.
• Net cash flows from operating activities were €2.9 billion. Full year adjusted free cash flow(B) was
€1.8 billion.
(A) See Supplementary financial information - Income Statement on pages 83-85 for a reconciliation of reported to comparable
and reported to pro forma comparable results.
(B) See Liquidity and capital management on pages 80-82 for a reconciliation between net cash flows from operating activities
Key financial
measures(A) Reported
to Pro forma
comparable
Unaudited, FX impact
calculated by recasting
current year results at
prior year rates
Revenue
Cost of sales
Operating expenses
Other income
Operating profit
Profit after taxes
Diluted earnings
per share (€)
Year ended 31 December 2022
€ millions
% change vs prior year
As reported Comparable
FX impact
As reported
Pro forma
comparable
Pro forma
FX impact
Pro forma
comparable
FX neutral
and adjusted free cash flow.
17,320
11,096
4,234
96
2,086
1,521
17,320
11,088
4,094
—
2,138
1,564
172
107
45
—
20
15
26.0%
28.0%
18.5%
n/a
37.5%
54.0%
17.0%
20.0%
10.5%
n/a
13.5%
14.0%
1.5%
1.0%
1.5%
n/a
1.0%
1.0%
15.5%
19.0%
9.0%
n/a
12.5%
13.0%
3.29
3.39
0.03
53.0%
14.0%
1.0%
13.0%
(A) See Supplementary financial information - Income Statement on pages 83-85 for a reconciliation of reported to comparable
and reported to pro forma comparable results.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
76
Business and financial review continued
Operational review
Revenue
Revenue totalled €17.3 billion, up 26.0% versus prior year on a reported basis, and 24.5% on a
comparable and FX neutral basis, reflecting the full year impact of the API operations acquired in
2021. Revenue was up 15.5% on a pro forma comparable and FX neutral basis. Revenue per unit
case increased by 6.0% in 2022 on a pro forma comparable and FX neutral basis. Volume
increased 9.5% on a pro forma comparable basis.
Year ended 31 December 2022
Revenue(A)
in millions of €
As reported
Comparable
Reported %
change
FX neutral %
change
Pro forma
comparable %
change
Pro forma
FX neutral %
change
Europe
API
Total CCEP
13,529
3,791
17,320
13,529
3,791
17,320
17.0%
74.0%
26.0%
16.5%
66.5%
24.5%
17.0%
17.0%
17.0%
16.5%
12.0%
15.5%
(A) See Supplementary financial information - Income Statement on pages 83-85 for a reconciliation of reported to comparable
and reported to pro forma comparable results.
Comparable volume – selling day shift CCEP
In millions of unit cases, prior period volume
recast using current year selling days(A)
Volume
Impact of selling day shift
Comparable volume – Selling day shift adjusted
Pro forma impact API
Pro forma comparable volume
Year ended 31 December
2022
3,300
n/a
3,300
—
3,300
2021
% change
2,804
(7)
2,797
212
3,009
17.5%
n/a
18.0%
n/a
9.5%
(A) A unit case equals approximately 5.678 litres or 24 eight ounce servings, a typical volume measure used in our industry.
Volumes were up 17.5% on a reported and 18.0% on a comparable basis, reflecting the full year
impact of the API operations acquired in 2021. Pro forma comparable volume was up 9.5% versus
2021. This reflects the solid recovery of the AFH channel and continued growth in the home
channel across our markets. The most significant impact was in the AFH channel where volumes
increased by 18.5% for the year, on a pro forma comparable basis. We experienced improvement
in volumes reflecting fewer restrictions and increased mobility. The return of tourism and
favourable weather in Europe also supported the strong recovery of this channel. Trading in the
home channel increased throughout the year with full year volume growth of 4.0% on a pro
forma comparable basis, although disruption related to a customer negotiation impacted the
fourth quarter of 2022. From a package perspective, immediate consumption grew across both
channels as mobility increased with fewer restrictions. The volume of future consumption packs
such as large PET and multipack cans grew during the year, particularly in the home channel.
Comparable volume by category
Year ended 31 December
2022
2021
Change versus prior period on a pro forma comparable basis
% of total
% of total
% change
Sparkling
Coca-ColaTM
Flavours, mixers and energy
Stills
Hydration
RTD tea, RTD coffee, juices and other(A)
Total
(A) RTD refers to ready to drink; Other includes alcohol and coffee.
84.5%
58.5%
26.0%
15.5%
8.0%
7.5%
84.5%
59.0%
25.5%
15.5%
7.5%
8.0%
100.0%
100.0%
9.0%
8.0%
11.5%
11.5%
16.0%
7.0%
9.5%
On a brand category basis in 2022, Coca-Cola trademark volume increased by 8.0% versus 2021 on
a pro forma comparable basis. This increase reflected the growth in Coca-Cola Original Taste and
Lights driven by the continued rebound of the AFH channel and strong performance of
Coca-Cola Zero Sugar, with volumes ahead of 2021 (up 10.0%) supported by our new taste and
new look campaign last year.
Flavours, mixers and energy volume increased by 11.5% versus 2021 on a pro forma comparable
basis. Energy volumes were up 18.5% versus 2021, supported by increased distribution in both
channels and strong innovation. Fanta and Sprite grew volume driven by the continued rebound
of the AFH channel.
Hydration volume increased by 16.0% versus 2021 on a pro forma comparable basis. Water volume
increased by 13.5% reflecting its exposure to immediate consumption across both channels,
supported by the rebound of the AFH channel and increased mobility. Sports volume increased
by 23.0%, reflecting growth in both Europe and API.
RTD teas, RTD coffees, juices and other drinks volume increased by 7.0% versus 2021 on a pro
forma comparable basis. Juice drinks grew volume reflecting the continued rebound of the away
from home channel partially offset by SKU rationalisation in Indonesia. Fuze Tea volumes
increased as the brand continues to grow value share in Europe. Alcohol continues to deliver
strong growth in Australia driven by spirits and ready to drink beverages.
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2022 Integrated Report and Form 20-F
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Business and financial review continued
Revenue by segment: Europe
Revenue Europe
In millions of €, except per case data which is calculated
prior to rounding. FX impact calculated by recasting
current year results at prior year rates.
As reported
Adjust: Impact of FX changes
FX neutral
Revenue per unit case
Year ended 31 December
2022
13,529
(6)
13,523
5.14
2021
11,584
n/a
11,584
4.87
% change
17.0%
n/a
16.5%
5.5%
Revenue in Europe totalled €13.5 billion, up 17.0% versus prior year on a reported basis, and 16.5%
on an FX neutral basis. Revenue per unit case in Europe increased by 5.5% in 2022, on a
comparable and FX neutral basis, reflecting positive package and channel mix driven by the
improvement in AFH volume, and favourable headline price following the successful
implementation of dynamic headline pricing strategies across our markets.
Revenue by geography
In millions of €
Great Britain
Germany
Iberia(A)
France(B)
Belgium and Luxembourg
Netherlands
Norway
Sweden
Iceland
Total Europe
(A) Iberia refers to Spain, Portugal and Andorra.
(B) France refers to continental France and Monaco.
Year ended 31 December 2022
As reported
Reported
% change
FX neutral
% change
3,088
2,682
3,034
2,089
1,042
682
404
421
87
13,529
18.0%
15.0%
21.5%
15.0%
12.5%
22.5%
3.5%
12.5%
10.0%
17.0%
17.5%
15.0%
21.5%
15.0%
12.5%
22.5%
2.5%
17.5%
4.0%
16.5%
Reported revenue in Great Britain was up 18.0% versus 2021. Foreign exchange translation
positively impacted revenue growth by 0.5%.The additional increase in revenue was mainly driven
by the continued recovery of the AFH channel supported by favourable weather and domestic
tourism. Further growth in the home channel supported double digit volume growth versus 2019.
From a category perspective, Coca-Cola Zero Sugar, Fanta, Monster and Dr Pepper showed
strong volume growth. Additionally, revenue per unit case growth was driven by favourable
underlying price, alongside positive pack mix led by the recovery of the AFH channel, including
growth of 20.5% in small glass and 15.0% in small PET.
Reported revenue in Germany was up 15.0% versus 2021. Volume was positively impacted mainly
by favourable weather and improvement in the AFH channel. The home channel saw solid
performance versus prior year. From a category perspective, Coca-Cola Zero Sugar, Fuze Tea and
Monster showed strong volume growth. Additionally, revenue per unit case growth was driven by
positive brand mix from Monster, as well as favourable underlying price and positive pack and
channel mix.
Reported revenue in Iberia was up 21.5% versus 2021. This was mainly driven by the recovery of the
AFH channel, supported by the return of travel and tourism and favourable weather, reflecting
solid volume growth. Despite good trading in the home channel, volume growth versus 2019 was
impacted by the increased Spanish VAT rate. From a category perspective, Coca-Cola Zero Sugar
and Monster showed strong volume growth. Additionally, revenue per unit case growth was
positively impacted by package and channel mix given the ongoing recovery of the AFH channel
in addition to favourable underlying price.
Reported revenue in France was up 15.0% versus 2021. This was mainly driven by an increase in
volume due to the rebound of the AFH channel, supported by the return of tourism and
favourable weather and continued solid growth in the home channel. From a category
perspective, Coca-Cola Zero Sugar, Fuze Tea and Monster continued to grow volume.
Additionally, revenue per unit case growth was supported by positive channel and pack mix led
by the recovery of the AFH channel, including growth of 55.5% in small glass and 25.0% in small
PET, as well as favourable underlying price.
Reported revenue in the Northern European territories (Belgium, Luxembourg, the Netherlands,
Norway, Sweden and Iceland) was up 13.0% versus 2021. Foreign exchange translation negatively
impacted revenue growth by 0.5%. The increase in revenue was mainly driven by the rebound in
the AFH channel, despite the late removal of restrictions, and further growth in the home
channel. From a category perspective, Coca-Cola Zero Sugar, Monster and Fuze Tea showed
strong volume growth. Additionally, revenue per unit case growth increased as a result of
favourable underlying price as well as positive channel and pack mix, including growth of 57.5% in
small glass and 16.0% in small PET.
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Business and financial review continued
Revenue by segment: API
Pro forma revenue API(A)
In millions of €, except per case data which is calculated
prior to rounding. FX impact calculated by recasting current
year results at prior year rates.
As reported and comparable
Add: Pro forma adjustments API
Pro forma comparable
Adjust: Impact of FX changes
Pro forma comparable and FX neutral
Pro forma revenue per unit case
Year ended 31 December
2022
3,791
—
3,791
(166)
3,625
5.42
2021
2,179
1,056
3,235
n/a
3,235
5.05
17.0%
n/a
12.0%
7.5%
(A) See Supplementary financial information - Income Statement on pages 83-85 for a reconciliation of reported to comparable
and reported to pro forma comparable results.
Reported revenue in API totalled €3.8 billion, and was up 17.0% versus 2021 on a pro forma
comparable basis, or up 12.0% on a pro forma comparable and FX neutral basis. Revenue per unit
case increased by 7.5% in 2022, on a pro forma comparable and FX neutral basis. Volume
increased 5.0% on a pro forma comparable basis driven by increased consumer mobility and the
successful navigation of industry-wide supply constraints, as well as a record Ramadan period in
Indonesia.
Pro forma revenue by Geography(A)
In millions of €
Australia
New Zealand and Pacific Islands
Indonesia and Papua New Guinea
Total API
Year ended 31 December 2022
As reported
2,339
649
803
3,791
Pro forma
comparable
% change
Pro forma
FX neutral
% change
15.5%
17.0%
23.0%
17.0%
11.0%
15.0%
12.5%
12.0%
(A) See Supplementary financial information - Income Statement on pages 83-85 for a reconciliation of reported to comparable
and reported to pro forma comparable results.
Revenue in the Australia, Pacific and Indonesian territories (Australia, New Zealand and Pacific
Islands, Indonesia and Papua New Guinea) was up 17.0% versus 2021 on a pro forma comparable
basis. Foreign exchange translation positively impacted revenue growth by 5.0%. The additional
increase in revenue was mainly driven by increased mobility in the away from home channel in all
markets and solid performance in the home channel. Coca-Cola No Sugar and Monster grew
volume above 2019 levels. Additionally, revenue per unit case increased on a pro forma
comparable and FX neutral basis, as a result of positive package and channel mix, promotional
optimisation in Australia and underlying favourable price.
Cost of sales
Reported cost of sales totalled €11.1 billion, up 28.0% versus prior year on a reported basis, and
27.5% on a comparable FX neutral basis, reflecting the full year impact of the API operations
acquired in 2021. On a pro forma comparable basis cost of sales was up 20.0% vs prior year, or up
19.0% on a pro forma comparable and FX neutral basis, driven in part by volume growth. Cost of
sales per unit case increased by 9.0% on a pro forma comparable and FX neutral basis.
% change
74.0%
n/a
Pro forma cost of sales(A)
In millions of €, except per case data which is calculated
prior to rounding. FX impact calculated by recasting
current year results at prior year rates
As reported
Add: Pro forma adjustments API
Adjust: Total items impacting comparability
Pro forma comparable
Adjust: Impact of FX changes
Pro forma comparable and FX neutral
Cost of sales per unit case
Year ended 31 December
2022
11,096
—
(8)
11,088
(107)
10,981
3.33
2021
8,677
616
(71)
9,222
n/a
9,222
3.05
% change
28.0%
n/a
20.0%
n/a
19.0%
9.0%
(A) See Supplementary financial information – Income Statement on pages 83-85 for reconciliation of reported to comparable
and reported to pro forma comparable results.
Cost of sales in Europe increased in part due to higher volume, up 11.0% versus 2021 on a
comparable basis. Cost of sales per unit case increased as well, primarily driven by unprecedented
levels of commodity inflation. PET and aluminium were the main drivers of commodity inflation,
though hedging throughout the year provided some protection from market volatility. Higher
energy and transportation prices also resulted in increased conversion and manufacturing costs.
Dynamic headline pricing strategies were implemented across our markets in response to these
inflationary pressures, and increased revenue per unit case as a result of the recovery of the AFH
channel, as well as promotional optimisation and favourable underlying price, in turn, increased
concentrate costs. Mix was also adverse driven mainly by continued volume growth in Energy and
cans, partially offset by the favourable recovery of fixed manufacturing costs given the increased
volume.
Cost of sales in API also increased reflecting higher volumes, up 5.0% versus 2021 on a pro forma
comparable basis, similar inflationary pressures on commodities, transportation and freight, and
increased revenue per unit case. Global supply chain challenges continued this year, and
successful navigation of these industry-wide supply chain constraints supported strong volume
growth.
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2022 Integrated Report and Form 20-F
79
Business and financial review continued
Operating expenses
Reported operating expenses totalled €4.2 billion, up 18.5% versus prior year on a reported basis,
and 19.5% on a comparable and FX neutral basis, reflecting the full year impact of the API
operations acquired in 2021. On a pro forma comparable basis operating expenses were up 10.5%
vs prior year, or up 9.0% on a pro forma comparable and FX neutral basis.
Restructuring
Restructuring charges of €19 million and €144 million were recognised within reported cost of
sales and reported operating expenses, respectively, for the year ended 31 December 2022,
which are primarily attributable to €82 million of expense recognised in connection with the
transformation of the full service vending operations and related initiatives in Germany.
Pro forma operating expenses(A)
In millions of €. FX impact calculated by recasting current
year results at prior year rates.
As reported
Add: Pro forma adjustments API
Adjust: Transaction accounting adjustments
Adjust: Total items impacting comparability
Pro forma comparable
Adjust: Impact of FX changes
Pro forma comparable and FX neutral
Year ended 31 December
2022
4,234
—
—
(140)
4,094
(45)
4,049
2021
3,570
323
68
(250)
3,711
n/a
3,711
% change
18.5%
n/a
10.5%
n/a
9.0%
(A) See Supplementary financial information – Income Statement on pages 83-85 for reconciliation of reported to comparable
and reported to pro forma comparable results.
With a third of operating expenses being variable in nature, comparable operating expenses in
Europe grew as volume increased reflecting the reopening of the AFH channel, increased
consumer mobility and the return of travel and tourism. Continued inflationary pressures on
labour and haulage, and optimised investment in trade marketing expenses to support our top
line growth were also drivers of the increase.
Similar to Europe, comparable operating expenses in API also reflected higher volumes,
inflationary pressures on labour and haulage and increased investment in trade marketing
expenses contributed to the growth in operating expenses.
Discretionary spend optimisation and the ongoing delivery of our previously announced
multi-year efficiency programme supported a continued decline in operating expenses as a
percent of revenue.
Restructuring charges of €17 million and €136 million were recognised within reported cost of
sales and reported operating expenses, respectively, for the year ended 31 December 2021,
related principally to the continuation of the Accelerate Competitiveness programme
announced in October 2020. This programme relates to initiatives across Europe aimed at
improving productivity through the use of technology enabled solutions. Restructuring charges
in 2021 include €51 million of severance costs related to productivity initiatives within the
commercial organisation in Iberia.
Effective tax rate
The reported effective tax rate was 22% and 29% for the years ended 31 December 2022 and
31 December 2021, respectively.
The decrease in the reported effective tax rate to 22% in 2022 (2021: 29%) is largely due to the
remeasurement of deferred tax positions following the enactment of tax rate changes in the
United Kingdom, the Netherlands and Indonesia in the prior period.
The comparable effective tax rate was 22% and 21% for the years ended 31 December 2022 and
31 December 2021, respectively.
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2022 Integrated Report and Form 20-F
80
Business and financial review continued
Return on invested capital
ROIC is used as a measure of capital efficiency and reflects how well the Group generates
comparable operating profit relative to the capital invested in the business. For the year ended
31 December 2022, ROIC increased by 112 basis points on a pro forma basis, to 9.1%, versus 2021
reflecting the increase in comparable operating profit, and continued focus on capital allocation.
ROIC
In millions of €
Comparable operating profit(A)
Taxes(B)
Non-controlling interest
Comparable operating profit after tax
attributable to shareholders
Opening borrowings less cash and cash
equivalents and short-term investments(C)
Opening equity attributable to shareholders(C)
Opening invested capital
Closing borrowings less cash and cash
equivalents and short-term investments
Closing equity attributable to shareholders
Closing invested capital
Average invested capital
ROIC
Year ended 31 December
2022
2021 Pro forma(C)
2,138
(474)
(13)
1,651
11,675
7,033
18,708
10,264
7,447
17,711
18,210
9.1%
1,886
(399)
(12)
1,475
12,498
5,911
18,409
11,675
7,033
18,708
18,559
8.0%
2021
1,772
(367)
(8)
1,397
5,664
6,025
11,689
11,675
7,033
18,708
15,199
9.2%
(A) Reconciliation from reported operating profit to comparable operating profit and to pro forma comparable operating profit
is included in Supplementary Financial Information – Income Statement on pages 83-85.
(B) Tax rate used is the comparable effective tax rate for the year (2022: 22%; 2021 pro forma: 21%; 2021: 21%).
(C) In light of the CCL acquisition and in order to provide investors with a more meaningful measure of capital efficiency for 2021,
a pro forma ROIC measure has been presented. To derive this pro forma measure, opening borrowings, cash and cash
equivalents and short-term investments, and equity attributable to shareholders have been extracted from the unaudited
pro forma condensed combined statement of financial position as of 31 December 2020 prepared in connection with
proposed financing of the CCL acquisition and furnished on Form 6-K on 20 April 2021, and adjusted for any associated
acquisition accounting fair value adjustments in the period through to 31 December 2021. These adjustments include an
increase in borrowings of €38 million and a decrease in equity attributable to shareholders of €18 million.
Liquidity and capital management
Liquidity
Liquidity risk is actively managed to ensure we have sufficient funds to satisfy our commitments
as they fall due. Our sources of capital include, but are not limited to, cash flows from operating
activities, public and private issuances of debt securities and bank borrowings. We believe our
operating cash flow, cash on hand and available short-term and long-term capital resources are
sufficient to fund our working capital requirements, scheduled borrowing payments, interest
payments, capital expenditures, benefit plan contributions, income tax obligations and dividends
to shareholders. Counterparties and instruments used to hold cash and cash equivalents are
continuously assessed, with a focus on preservation of capital and liquidity.
The Group has amounts available for borrowing under a €1.95 billion multi currency credit facility
with a syndicate of 13 banks. This credit facility matures in 2025 and is for general corporate
purposes and supporting the Group’s working capital needs. Based on information currently
available, there is no indication that the financial institutions participating in this facility would be
unable to fulfil their commitments to the Group as at the date of this report. The Group’s current
credit facility contains no financial covenants that would impact its liquidity or access to capital.
As at 31 December 2022, the Group had no amounts drawn under this credit facility.
Net cash flows from operating activities were €2,932 million in 2022, an increase of 38.5%, or €815
million, from €2,117 million in 2021, reflecting the full year impact of the API operations acquired in
2021, the impact of increased revenue performance and working capital benefits. These cash
flows were primarily generated from our operations and included restructuring cash outflows of
€86 million.
In 2022, we continued to monitor our investment in capital expenditure programmes, given
continued uncertainty. Our 2022 capital spend on property, plant and equipment and capitalised
software as part of our business capability programme was €603 million, compared to €446
million in 2021.
Free cash flow generation for the year was strong totalling €2,057 million, or €1,805 million after
adjusting for €252 million in cash proceeds received in December 2022 from the regional tax
authorities in Bizkaia (Basque Region) in connection with an ongoing dispute regarding historical
VAT amounts related to the period 2013-2016. A significant increase relative to our 2021 total of
€1,460 million reflecting strong operating performance, the benefit of continued working capital
initiatives and the full year impact of API operations.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
81
Business and financial review continued
Free cash flow
In millions of €
Net cash flows from operating activities
Less: Purchases of property, plant and equipment
Less: Purchases of capitalised software
Add: Proceeds from sales of property, plant and equipment
Less: Payments of principal on lease obligations
Less: Interest paid, net
Free cash flow
Less: Proceeds received from Spanish VAT dispute
Adjusted free cash flow(A)
Year ended 31 December
2022
2,932
(500)
(103)
11
(153)
(130)
2,057
(252)
1,805
2021
2,117
(349)
(97)
25
(139)
(97)
1,460
—
1,460
(A) In connection with the ongoing dispute in Spain regarding the refund of historical VAT amounts related to the period
2013-2016, during the year ended 31 December 2022, €252 million of cash proceeds were received from the regional tax
authorities of Bizkaia (Basque Region). These proceeds are included within Group’s net cash flows from operating activities
for the year. Given the unusual nature of this item, and to allow for better period over period comparability of our free cash
flow measure, adjusted free cash flow excludes the cash proceeds received from the Bizkaia tax authorities during this year.
In 2022, total borrowings decreased by €1,233 million. This was driven by repayments on third
party borrowings of €938 million, repayment of euro commercial paper of €285 million and
payments on the principal and interest from lease obligations of €167 million. Movement as a
result of fair value hedges resulted in a decrease of borrowings by €161 million. All this was
partially offset by additions and other movements on leases of €205 million and currency
translation of €113 million. No new debt was issued during the year.
Repayments of bonds include repayments prior to maturity in January 2022 of €700 million 0.75%
Notes due in February 2022. The following bonds were also repaid on maturity during the year:
A$200 million 3.375% Notes 2022, repaid in March 2022; A$30 million 5.06% Notes 2022 and A$125
million 3.125% Notes 2022, both repaid in July 2022.
Capital management
The primary objective of our capital management strategy is to ensure strong ratings and to
maintain appropriate capital ratios to support our business and maximise shareholder value. Our
credit ratings are periodically reviewed by rating agencies. We regularly assess debt and equity
capital levels against our stated policy for capital structure. Our capital structure is managed and,
as appropriate, adjusted in light of changes in economic conditions and our financial policy.
Liquidity risk is actively managed to ensure we have sufficient funds to satisfy our commitments
as they fall due. Our sources of capital include, but are not limited to, cash flows from operations,
public and private issuances of debt securities and bank borrowings. We believe our operating
cash flow, cash on hand and available short-term and long-term capital resources are sufficient
to fund our working capital requirements, scheduled borrowing payments, interest payments,
capital expenditures, benefit plan contributions, income tax obligations and dividends to
shareholders. Counterparties and instruments used to hold cash and cash equivalents are
continuously assessed, with a focus on preservation of capital and liquidity.
We also have amounts available for borrowing under a €1.95 billion multi currency credit facility
(2021: €1.95 billion) with a syndicate of 13 banks. This credit facility matures in 2025 and is for
general corporate purposes and supporting the Group’s working capital needs. The current
credit facility contains no financial covenants that would impact the Group’s liquidity or access to
capital. As at 31 December 2022, the Group had no amounts drawn under this credit facility.
Net debt
In millions of €
Year ended 31 December
Credit ratings
2022
2021 As of 16 March 2023
Moody’s Fitch Ratings
Total borrowings
11,907
13,140 Long-term rating
Fair value of hedges
related to borrowings(A)
Other financial assets/
liabilities(A)
Adjusted total
borrowings(A)
Less: cash and cash
equivalents(B)
Less: short-term
investments(C)
Net debt
Baa1
Stable
BBB+
Stable
(83)
(110)
Outlook
Note: Our credit ratings can be materially influenced
by a number of factors including, but not limited to,
acquisitions, investment decisions and working
capital management activities of TCCC and/or
changes in the credit rating of TCCC. A credit rating is
not a recommendation to buy, sell or hold securities
and may be subject to revision or withdrawal at any
time.
25
42
11,849
13,072
(1,387)
(1,407)
(256)
(58)
10,206
11,607
(A) Net debt includes adjustments for the fair value of derivative instruments used to hedge both currency and interest rate risk
on the Group’s borrowings. In addition, net debt also includes other financial assets/liabilities relating to cash collateral
pledged by/to external parties on hedging instruments related to borrowings.
(B) Cash and cash equivalents as at 31 December 2022 and 31 December 2021, includes €102 million and €45 million, respectively, of
cash in Papua New Guinea Kina. Presently, there are government-imposed currency controls which impact the extent to which
the cash held in Papua New Guinea can be converted into foreign currency and remitted for use elsewhere in the Group.
(C) Short-term investments are term cash deposits with maturity dates when acquired of greater than three months and less than
one year. These short-term investments are held with counterparties that are continually assessed with a focus on preservation
of capital and liquidity. Short-term investments as at 31 December 2022 and 31 December 2021 includes €49 million and €44
million, respectively, of assets in Papua New Guinea Kina, subject to the same currency controls outlined above.
The ratio of net debt to adjusted EBITDA is used by investors, analysts and credit rating agencies
to analyse our operating performance in the context of targeted financial leverage, and so we
provide a reconciliation of this measure. Net debt enables investors to see the economic effect
of total borrowings, fair value impact of related hedges and other financial assets/liabilities, cash
and cash equivalents and short-term investments in total. Adjusted EBITDA is calculated as
EBITDA after adding back items impacting the comparability of year over year financial
performance.
Adjusted EBITDA does not reflect our cash expenditures, or future requirements for capital
expenditures or contractual commitments. Further, adjusted EBITDA does not reflect changes in,
or cash requirements for, our working capital needs and, although depreciation and amortisation
are non-cash charges, the assets being depreciated and amortised are likely to be replaced in
the future and adjusted EBITDA does not reflect cash requirements for such replacements.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
82
Business and financial review continued
Net debt to adjusted EBITDA
Adjusted EBITDA in 2022 totalled €2.9 billion and increased relative to 2021, on a pro forma basis,
by €222 million. For 2021, we have provided a pro forma calculation for our net debt to adjusted
EBITDA ratio as if the Acquisition had occurred at the beginning of 2021. We believe this
calculation allows for a better understanding of our capital position in the context of CCEP.
The increase versus 2021 pro forma adjusted EBITDA was primarily driven by the increase in
comparable operating profit reflecting increased revenue. The ratio of net debt to adjusted
EBITDA is 3.5 versus 4.3 in 2021, on a pro forma basis, reflecting the decrease in net debt due to
the repayment of borrowings and the increase in adjusted EBITDA.
Adjusted EBITDA
In millions of €
Reported profit after tax
Taxes
Finance costs, net
Non-operating items
Reported operating profit
Pro forma adjustments CCL(B)
Transaction accounting adjustments(C)
Pro forma operating profit
Depreciation and amortisation(D)
Reported EBITDA
Items impacting comparability
Restructuring charges(E)
Defined benefit plan closure(F)
Acquisition and integration related costs(G)
Inventory step up costs(H)
European flooding(I)
Defined benefit plan amendment(J)
Coal royalties(K)
Other(L)
Adjusted EBITDA
Net debt to EBITDA
Net debt to adjusted EBITDA
Year ended 31 December
2022
1,521
436
114
15
2,086
—
—
816
2,902
119
—
3
—
(11)
(7)
(96)
—
2,910
3.5
3.5
2021 Pro forma(A)
988
394
129
5
1,516
117
(68)
1,565
858
2,423
97
(9)
110
48
15
—
—
4
2,688
4.8
4.3
2021
988
394
129
5
1,516
—
—
782
2,298
97
(9)
49
48
15
—
—
—
2,498
5.1
4.7
(A) Reconciliation from reported operating profit to comparable operating profit and to pro forma comparable operating profit
is included in Supplementary financial information – Income Statement on pages 83-85.
(B) Amounts represent adjustments to include CCL financial results prepared on a basis consistent with CCEP accounting
policies, as if the Acquisition had occurred on 1 January 2021 and excludes CCL acquisition and integration-related costs.
(C) Amounts represent transaction accounting adjustments for the period 1 January to 10 May as if the Acquisition had occurred
on 1 January 2021.
(D) Includes the depreciation and amortisation impact relating to provisional fair values for intangibles and property plant and
equipment as at 31 December 2021. On a pro forma basis, it includes the depreciation and amortisation as if the Acquisition
had occurred on 1 January 2021.
(E) Amounts represent restructuring charges related to business transformation activities, excluding accelerated depreciation
included in the depreciation and amortisation line.
(F) Amounts represent the impact of the closure of the GB defined benefit pension scheme to future benefits accrual on
31 March 2021.
(G) Amounts represent costs associated with the acquisition and integration of CCL.
(H) Amounts represent the non-recurring impact of the fair value step-up of API finished goods.
(I) Amounts represent the incremental expense incurred offset/partially offset by the insurance recoveries collected as a result
of the July 2021 flooding events, which impacted the operations of our production facilities in Chaudfontaine and Bad
Neuenahr.
(J) Amounts represent the impact of a plan amendment arising from legislative changes in respect of the minimum retirement age.
(K) Amounts represent other income arising from the favourable court ruling pertaining to the ownership of certain mineral
rights in Australia.
(L) Amounts represent charges incurred prior to Acquisition classified as non-trading items by CCL which are not expected to recur.
Dividends
In line with our commitments to deliver long-term value to shareholders, we paid a first half
interim dividend of €0.56 per share in May 2022 and a second half interim dividend of €1.12 per
share in December 2022, based on comparable diluted earnings per share, maintaining a payout
ratio of approximately 50% in line with our dividend policy. For the year ended 31 December 2022,
dividend payments totalled €763 million (2021: €638 million).
Share buyback
No Shares were repurchased in 2022 and 2021.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
83
Business and financial review continued
Supplementary financial information – Income Statement – Reported to comparable
The following provides a summary reconciliation of CCEP’s reported and comparable results for the full year ended 31 December 2022 and 31 December 2021:
Full year 2022
Unaudited,
in millions of €
except per share data
which is calculated
prior to rounding
Revenue
Cost of sales
Gross profit
Operating expenses
Other income
As
reported
CCEP
17,320
11,096
6,224
4,234
96
Operating profit
2,086
Total finance costs, net
Non-operating items
Profit before taxes
Taxes
Profit after taxes
Attributable to:
Shareholders
Non-controlling
interest
Profit after taxes
Diluted earnings
per share (€)
114
15
1,957
436
1,521
1,508
13
1,521
Acquisition
and
integration
related
costs(B)
Restructuring
charges(A)
—
(19)
19
—
—
—
(144)
(3)
—
163
—
—
163
42
121
121
—
121
—
3
—
—
3
—
3
3
—
3
Items impacting comparability
Comparable
Full year 2021
Items impacting comparability
Comparable
European
flooding(C)
Defined
benefit plan
amendment(D)
Coal
royalties(E)
CCEP
Unaudited,
in millions of €
except per share data
which is calculated
prior to rounding
Restructuring
charges(A)
Defined
benefit
plan
closure(F)
Total
Acquisition
related
costs(B)
Inventory
step up
costs(G)
European
flooding(C)
Net
tax(H)
—
11
(11)
—
—
—
—
—
7
—
—
—
—
—
17,320
Revenue
11,088
Cost of sales
6,232
Gross profit
5,086
4,094
Operating expenses
(11)
(7)
(96)
2,138
Operating profit
(96)
—
Other income
—
—
114
15
Total finance costs, net
Non-operating items
(96)
2,009
Profit before taxes
1,382
—
—
(7)
(1)
(6)
—
—
(11)
(3)
(8)
(8)
—
(8)
(29)
445
Taxes
(67)
1,564
Profit after taxes
Attributable to:
(6)
(67)
1,551
Shareholders
—
—
13
Non-controlling
interest
(6)
(67)
1,564
Profit after taxes
—
(17)
17
(136)
—
153
—
—
153
43
110
—
3
(3)
6
—
(9)
—
—
(9)
4
(13)
109
(13)
1
110
—
(13)
—
—
—
(49)
—
49
(4)
—
53
10
43
43
—
43
48
—
—
48
—
—
48
13
35
34
1
35
—
—
—
(48)
(9) —
9
—
(6) —
—
—
CCEP
13,763
8,606
5,157
3,385
—
15
—
1,772
—
—
—
—
15
—
3
(127)
12
127
125
5
1,642
340
1,302
12
127
1,294
—
—
8
12
127
1,302
As
reported
CCEP
13,763
8,677
3,570
—
1,516
129
5
394
988
982
6
988
3.29
0.27
0.01
(0.02)
(0.01)
(0.15)
3.39
Diluted earnings
per share (€)
2.15
0.24
(0.03)
0.09
0.07
0.03
0.28
2.83
(A) Amounts represent restructuring charges related to business transformation activities.
(B) Amounts represent cost associated with the acquisition and integration of CCL.
(C) Amounts represent the incremental expense incurred offset/partially offset by the insurance recoveries collected as a result of the July 2021 flooding events, which impacted the operations of our production facilities in Chaudfontaine and Bad Neuenahr.
(D) Amounts represent the impact of a plan amendment arising from legislative changes in respect of the minimum retirement age.
(E) Amounts represent other income arising from the favourable court ruling pertaining to the ownership of certain mineral rights in Australia.
(F) Amounts represent the impact of the closure of the GB defined benefit pension scheme to future benefits accrual on 31 March 2021.
(G) Amounts represent the non-recurring impact of the fair value step-up of API finished goods.
(H) Amounts include the deferred tax impact related to income tax rate and law changes.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
84
Business and financial review continued
Supplementary financial information – Income Statement – Reported to pro forma comparable
The following provides a summary reconciliation of CCEP’s reported and pro forma comparable results for the full year ended 31 December 2021:
Full year 2021
Unaudited, in millions of € except per share data
which is calculated prior to rounding
Revenue
Cost of sales
Gross profit
Operating expenses
Operating profit
Total finance costs, net
Non-operating items
Profit before taxes
Taxes
Profit after taxes
Attributable to:
Shareholders
Non-controlling interest
Profit after taxes
Diluted earnings per share (€)
As reported
Pro forma
adjustments CCL(A)
Transaction accounting
adjustments(B)
Pro forma combined
Items impacting
comparability(C)
Pro forma comparable
CCEP
13,763
8,677
5,086
3,570
1,516
129
5
1,382
394
988
982
6
988
2.15
1,056
616
440
323
117
12
(1)
106
29
77
74
3
77
0.16
—
—
—
68
(68)
9
—
(77)
(20)
(57)
(58)
1
(57)
(0.13)
CCEP
14,819
9,293
5,526
3,961
1,565
150
4
1,411
403
1,008
998
10
1,008
2.18
—
(71)
71
(250)
321
(4)
—
325
(36)
361
359
2
361
0.79
CCEP
14,819
9,222
5,597
3,711
1,886
146
4
1,736
367
1,369
1,357
12
1,369
2.97
(A) Amounts represent adjustments to include CCL financial results prepared on a basis consistent with CCEP accounting policies, as if the Acquisition had occurred on 1 January 2021 and excludes CCL acquisition and integration-related costs.
(B) Amounts represent transaction accounting adjustments for the period 1 January to 10 May as if the Acquisition had occurred on 1 January 2021. These include the depreciation and amortisation impact relating to provisional fair values for intangibles and
property plant and equipment, the interest impact of additional debt financing reflecting the actual weighted average interest rate for Acquisition financing of c.0.40% and the inclusion of acquisition and integration-related costs incurred by CCL prior to the
Acquisition.
(C) Items impacting comparability represents amounts included within pro forma Combined CCEP affecting the comparability of CCEP’s year over year financial performance and are set out in the following table:
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
85
Business and financial review continued
Full year 2021
Unaudited, in millions of € except per share data
which is calculated prior to rounding
Restructuring
charges(A)
Defined benefit
plan closure(B)
Acquisition
and integration
related costs(C)
Inventory
step up costs(D) European flooding(E)
Net tax(F)
Other(G)
Total items
impacting
comparability
Items impacting comparability
Revenue
Cost of sales
Gross profit
Operating expenses
Operating profit
Total finance costs, net
Non-operating items
Profit before taxes
Taxes
Profit after taxes
Attributable to:
Shareholders
Non-controlling interest
Profit after taxes
Diluted earnings per share (€)
—
(17)
17
(136)
153
—
—
153
43
110
109
1
110
0.24
—
3
(3)
6
(9)
—
—
(9)
4
(13)
(13)
—
(13)
(0.03)
—
—
—
(110)
110
(4)
—
114
27
87
87
—
87
0.19
—
(48)
48
—
48
—
—
48
13
35
34
1
35
—
(9)
9
(6)
15
—
—
15
3
12
12
—
12
0.07
0.03
—
—
—
—
—
—
—
—
(127)
127
127
—
127
0.28
—
—
—
(4)
4
—
—
4
1
3
3
—
3
0.01
—
(71)
71
(250)
321
(4)
—
325
(36)
361
359
2
361
0.79
(A) Amounts represent restructuring charges related to business transformation activities.
(B) Amounts represent the impact of the closure of the GB defined benefit pension scheme to future benefits accrual on 31 March 2021.
(C) Amounts represent cost associated with the acquisition and integration of CCL.
(D) Amounts represent the non-recurring impact of the provisional fair value step-up of API finished goods. For 2021, these charges are included within the As Reported results.
(E) Amounts represent the incremental net costs incurred as a result of the July 2021 flooding events, which impacted the operations of our production facilities in Chaudfontaine and Bad Neuenahr.
(F) Amounts include the deferred tax impact related to income tax rate and law changes.
(G) Amounts represent charges incurred prior to Acquisition classified as non-trading items by CCL which are not expected to recur.
Operating profit by segment
Operating profit Europe
In millions of €. FX impact calculated
by recasting current year results at prior year rates.
As reported
Adjust: Total items impacting comparability
Comparable
Adjust: Impact of FX changes
Comparable and FX neutral
Year ended 31 December
2022
1,529
141
1,670
—
1,670
2021
1,298
202
1,500
n/a
1,500
Pro forma operating profit API
% Change
In millions of €. FX impact calculated
by recasting current year results at prior year rates.
18.0%
As reported
n/a
Add: Pro forma adjustments
11.5%
Adjust: Transaction accounting adjustments
n/a
Adjust: Total items impacting comparability
11.5%
Pro forma comparable
Adjust: Impact of FX changes
Pro forma comparable and FX neutral
Year ended 31 December
2022
557
—
—
(89)
468
(20)
448
2021
218
117
(68)
119
386
n/a
386
% Change
155.5%
n/a
21.0%
n/a
16.0%
The Company’s Strategic Report is set out on pages 1–85. The Strategic Report was approved by the Board on 17 March 2023 and signed on its behalf by
Damian Gammell, Chief Executive Officer
Governance and
Directors’ Report
In this section
Chairman’s introduction
Board of Directors
Directors’ biographies
Senior management
Corporate governance report
Nomination Committee Chairman’s letter
Nomination Committee report
Audit Committee Chairman’s letter
Audit Committee report
ESG Committee Chairman’s letter
ESG Committee report
Directors’ remuneration report
Statement from the Remuneration
Committee Chairman
Remuneration at a glance
Remuneration policy
Annual report on remuneration
Directors’ report
Directors’ responsibilities statement
87
88
89
94
97
108
109
111
112
117
118
119
119
121
122
130
141
144
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
87
Chairman’s introduction
Board evaluation
We again conducted a review of the
effectiveness of the Board and Board
Committees, which helps to support their
continuous improvement. The process was led
by our Senior Independent Director and
Company Secretary and involved the
completion of online surveys provided by
Lintstock and tailored for the Board and each
of its Committees.
Key outcomes from the Board evaluation
conducted in 2022 can be found on page 107
Digital
Digital is one of our key strategic pillars and
reflects the increasing role that technology
plays in delivery to our customers. It is critical
that our governance enables the Board to
effectively shape and oversee progress against
our technology strategy. In order to do this,
CCEP has an established Digital Advisory
Committee steered by management and with
external experts as members.
The Board has access to the Committee
papers and in addition receives first hand
outputs of matters discussed through the CEO
Report. This is in addition to deep dives such as
those received in 2022 in respect of the use of
data and analytics and the implementation of
CCEP’s next generation technology
architecture. This enables the Board to have a
clear understanding of the progress and
challenges in implementation of strategy and
the impact on key stakeholders.
Sol Daurella,
Chairman
17 March 2023
Health, safety and wellbeing
The Board’s key priority remained the safety of
our people, customers and communities. A
number of measures continued to be put in
place to support the physical and mental
wellbeing and health of our people. This
included enhancing the number of wellbeing
first aiders, our new ‘Get home to what you
love’ campaign and ‘Is it Coke’ campaign.
Read more in Forward on society - people
on page 60
Environmental, social and governance
The Board continues to recognise the growing
importance of ESG to its stakeholders,
including the focus on clear and quantifiable
commitments. CCEP’s updated sustainability
action plan, This is Forward, which incorporated
API and sets out 20 ambitious, quantifiable and
time-bound headline commitments is a
significant milestone for us.
In addition, we reviewed the Committees’
terms of reference with an ESG lens. Changes
included the Audit Committee extending its
role to include ESG reporting responsibilities
and the renaming of the Corporate Social
Responsibility Committee to Environmental,
Social and Governance Committee,
recognising the widening of its remit.
Board changes
A key aspect of my role as Chairman is
ensuring that collectively the Board has the
skills, knowledge, diversity and experience it
requires. As announced on 15 February 2023,
subject to their election, we are delighted to
welcome Mary Harris, Nicolas Mirzayantz and
Nancy Quan to the Board with effect from the
conclusion of the AGM in May 2023. They offer
a wealth of relevant skills and experience and
will succeed Jan Bennink, Christine Cross and
Brian Smith. Jan, Christine and Brian have been
strong and engaged Board members and we
thank them for their invaluable contributions
throughout their tenures.
Further details are disclosed on pages 106,
108 and 109.
Dear Shareholder
On behalf of the Board, I am pleased to
present the Corporate governance report for
the year ended 31 December 2022. The
report describes CCEP’s corporate
governance framework and procedures, and
summarises the work of the Board and its
Committees to illustrate how we have
discharged our duties during the year.
Though we still felt the impact of COVID-19
during 2022 in some of our markets, we were
fortunate that the Board was able to resume a
normal meeting schedule and to meet in
person and engage in rich debate. We had the
opportunity to visit Indonesia to meet our API
colleagues and witness first hand the positive
integration and successful collaboration of our
teams.
Some key areas of focus and decisions of the
Board during 2022 are outlined below.
Managing and mitigating the effects
of the war in Ukraine and other
geopolitical factors
2022 was another challenging year as a result
of the effects of the war in Ukraine and other
geopolitical factors. The Board provided
strategic oversight and guidance to
management with regard to supply chain
challenges arising from commodity prices and
inflationary pressures. Adaptability and agility
during 2022 were key and will continue to be
important into 2023.
Culture
The Board plays a critical role in shaping the
culture of the company by promoting growth
focused and values-based conduct and aims to
create a culture where everyone feels welcome
to be themselves and that they are valued and
belong. To monitor this during the year, the
Board received outputs from engagement
surveys, Code of Conduct reporting, diversity
statistics and health and safety indicators.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
88
Board of Directors
Ethnicity/nationality
Directors’ skills and experience
Our Board of
Directors(A)
is diverse,
experienced and
knowledgeable,
bringing together
the skills needed
for our long-term
success in line with
our skills matrix.
Total number of Directors
on the Board
Women on the Board
Independent Directors on the Board(B)
(A) Based on Directors as at
31 December 2022
(B) Excluding the Chairman.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
89
Directors’ biographies
Our Board consisted of our Chairman,
CEO and 15 Non-executive Directors
as at 31 December 2022.
Biographies of our Board members and
details of Board and Committee changes
made during the reporting period are set
out on pages 89-93.
Find out more at cocacolaep.com/board-of-directors
Sol Daurella
Chairman
Damian Gammell
Chief Executive Officer (CEO)
Committees
Committees
Date appointed to the Board
May 2016
Date appointed to the Board
Dec 2016
Key strengths/experience
Key strengths/experience
• Experienced director of public companies operating in an
• Strategy, risk management, development and execution
international environment
experience
• A deep understanding of fast moving consumer goods (FMCG)
• Vision, customer focus and transformational leadership
and our markets
• Extensive experience at Coca-Cola bottling companies
• Strong international strategic and commercial skills
Key external commitments
Co-Chairman and member of the Executive Committee of Cobega,
S.A., Executive Chairman of Olive Partners, S.A., director of Equatorial
Coca-Cola Bottling Company, S.L., independent
non-executive director and a member of the Appointments,
Remuneration and Responsible Banking, Sustainability and Culture
Committees of Banco Santander
Previous roles
Various roles at the Daurella family’s Coca-Cola bottling business,
director of Banco de Sabadell, Ebro Foods, Acciona and Co-Chairman
of Grupo Cacaolat
• Developing people and teams and promoting sustainability
• Over 25 years of leadership experience and in depth
understanding of the non-alcoholic ready to drink (NARTD)
industry and within the Coca-Cola system
Key external commitments
N/A
Previous roles
Beverage Group President of Anadolu Group and CEO of Anadolu
Efes, CEO and Managing Director of Coca-Cola İçecek A.Ş. and a
number of other senior executive roles in the Coca-Cola system
including in Russia, Australia and Germany
Key to
committees
.
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
90
Directors’ biographies continued
Manolo Arroyo
Non-executive Director
Jan Bennink
Independent Non-executive Director
John Bryant
Independent Non-executive Director
José Ignacio Comenge
Non-executive Director
Committees
Committees
Committees
Committees
Date appointed to the Board
May 2021
Date appointed to the Board
May 2016
Date appointed to the Board
Jan 2021
Date appointed to the Board
May 2016
Key strengths/experience
Key strengths/experience
Key strengths/experience
Key strengths/experience
• Extensive experience working in the Coca-Cola
• Chairman/CEO of multinational public
• Chairman/CEO of a multinational public
• Extensive experience of the Coca-Cola system
system
companies
company
• Strong operational leadership experience in
international consumer goods groups, lived
and worked in four continents, both developed
and emerging markets
• Strategic marketing, commercial and bottling
expertise
• Served as CEO of publicly listed FMCG company
• In depth understanding of brands in Coca-Cola
system
Key external commitments
Chief Marketing Officer at The Coca-Cola
Company (TCCC) and non-executive director
of Effie Worldwide
Previous roles
President of the Asia Pacific Group, Bottling
Investments Group, and Mexico business unit of
TCCC, CEO of Deoleo, S.A., Senior Vice President
and President, Asia Pacific of S.C. Johnson & Son,
Inc., President of the ASEAN and SEWA business
units of TCCC, General Manager of the Spain
business unit of TCCC, Vice-Chairman of
Coca-Cola COFCO Bottling China and
non-executive Director of ThaiNamThip
Limited and Coca-Cola Andina
• Extensive experience in FMCG, including the
food and beverage industry
• Expert in strategy, mergers and acquisitions,
restructuring and portfolio transformation
• Broad board experience across industries
and sectors
• Knowledgeable about the industry in our key
• Thorough understanding of global and
• 30 years’ experience in consumer goods
market of Iberia
Western European markets
• Strong track record of finance and operational
• Insights in formulating strategy drawn from
• Strong strategic, marketing and sales
experience relevant to the beverage industry
leadership, experience in overseeing
information technology
leadership roles in varied sectors
Key external commitments
Chairman of the Bennink Foundation and
Executive Partner at XN
Previous roles
Advisor to Artisan Partners (Asset Management),
Board member of Wonderflow B.V., Executive
Chairman of Sara Lee Corporation, Chairman and
interim CEO of DE Masterblenders 1753 N.V., CEO
of Royal Numico N.V., director of Kraft Foods Inc.,
Boots Company plc, Dalli-Werke GmbH & Co KG
and EFIC1, and a member of the Advisory Board
of ABN Amro Bank
• Engaged in the cyber security strategy process
Key external commitments
Key external commitments
Senior Independent Director (SID) of Compass
Group plc and non-executive director of Ball
Corporation and Macy’s Inc.
Previous roles
Executive Chairman and CEO of Kellogg
Company and other senior roles in the Kellogg
Company including Chief Financial Officer (CFO),
Chief Operating Officer (COO), President, North
America and President, International, and
strategy advisor at A.T. Kearney and Marakon
Associates
Director of Olive Partners, S.A., ENCE Energía y
Celulosa, S.A., Companía Vinícola del Norte de
Espana, S.A., Ebro Foods S.A., Barbosa & Almeida
SGPS, S.A. and Chairman of Ball Beverage Can
Iberica, S.L.
Previous roles
Senior roles in the Coca-Cola system, AXA, S.A.,
Aguila and Heineken Spain and Vice-Chairman
and CEO of MMA Insurance
Key to
committees
.
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
91
Directors’ biographies continued
Christine Cross
Independent Non-executive Director
Nathalie Gaveau
Independent Non-executive Director
Álvaro Gómez-Trénor Aguilar
Non-executive Director
Thomas H. Johnson
Independent Non-executive Director and
Senior Independent Director
Committees
Committees
Committees
Committees
Date appointed to the Board
May 2016
Date appointed to the Board
Jan 2019
Date appointed to the Board
Mar 2018
Date appointed to the Board
May 2016
Key strengths/experience
Key strengths/experience
Key strengths/experience
Key strengths/experience
• In depth experience working in the food and
• Successful tech entrepreneur and investor
• Broad knowledge of working in the food and
• Chairman/CEO of international public
beverage industry
• Consults on international business strategy,
marketing and sustainable business
development
• Global perspective on CCEP’s activities
• Experience of chairing remuneration
committees
Key external commitments
Director of Christine Cross Ltd, non-executive
director of Hilton Food Group plc and
Pollen Estate, Chairman of Farmison Ltd and
Special Adviser to Interpath and Inverleith LLP
Previous roles
Executive director of Tesco plc, non-executive
director of Brambles Limited, Clipper Logistics
plc, Fenwick Limited, Kathmandu Holdings
Limited, Next plc, Oddbox Delivery Ltd,
Woolworths (Au) plc, Sobeys (Ca) plc, Plantasgen,
Fairmont Hotels Group plc, Sonae – SGPS, S.A.,
Premier Foods plc, Taylor Wimpey plc, and
member of the Supervisory Board of Zooplus AG
• Expert in e-commerce and digital
transformation, innovation, mobile, data and
social marketing
beverage industry
companies
• Extensive understanding of the Coca-Cola
• Manufacturing and distribution expertise
system, particularly in Iberia
• International consumer goods experience
• Expertise in finance and investment banking
• Extensive international management
experience in Europe
Key external commitments
Non-executive director of Lightspeed
Commerce Inc., Senior Advisor to BCG Digital
Ventures, and President of Tailwind International
Corp, a Special Purpose Acquisition Company
Previous roles
Founder and CEO of Shopcade, Interactive
Business director of the TBWA Tequila Group,
Asia Pacific E-business and CRM Manager for
Club Med, co-founder and Managing Director of
Priceminister, Financial Analyst for Lazard, and
non-executive director of HEC Paris and Calida
Group
• Strategic and investment advisor to businesses
• Investment and finance experience
in varied sectors
Key external commitments
Director of Olive Partners, S.A. and Sinensis Seed
Capital SCR de RC, S.A.
Previous roles
Various board appointments in the Coca-Cola
system, including as President of Begano, S.A.,
director and Chairman of the Audit Committee
of Coca-Cola Iberian Partners, S.A., as well as key
executive roles in Grupo Pas and Garcon Vallvé &
Contreras and director of Global Omnium
(Aguas de Valencia, S.A.)
Key external commitments
CEO of The Taffrail Group, LLC and non-executive
director of Universal Corporation
Previous roles
Chairman and CEO of Chesapeake Corporation,
President and CEO of Riverwood International
Corporation, and director of Coca-Cola
Enterprises, Inc., GenOn Corporation, Mirant
Corporation, ModusLink Global Solutions, Inc.,
Superior Essex Inc. and Tumi, Inc.
Key to
committees
.
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
92
Directors’ biographies continued
Dagmar Kollmann
Independent Non-executive Director
Alfonso Líbano Daurella
Non-executive Director
Mark Price
Independent Non-executive Director
Mario Rotllant Solá
Non-executive Director
Committees
Committees
Committees
Committees
Date appointed to the Board
May 2019
Date appointed to the Board
May 2016
Date appointed to the Board
May 2019
Date appointed to the Board
May 2016
Key strengths/experience
Key strengths/experience
Key strengths/experience
Key strengths/experience
• Expert in finance and international listed groups
• Developed the Daurella family’s association
• Extensive experience in the retail industry
• Extensive international experience in the food
• Thorough understanding of capital markets and
mergers and acquisitions
• Extensive commercial and investor relations
experience
• Strong executive and senior leadership
experience in global businesses
• Risk oversight and corporate governance
expertise
Key external commitments
Chairman of the Supervisory Board of Citigroup
Global Markets Europe AG, non-executive
director of Unibail-Rodamco-Westfield SE,
Deutsche Telekom AG and Paysafe Group
Limited, and Commissioner in the German
Monopolies Commission
Previous roles
CEO and Country Head in Germany and Austria
for Morgan Stanley, member of the board of
Morgan Stanley International Ltd in London,
Associate Director of UBS in London,
non-executive director of KfW IPEX-Bank
and Deputy Chairman of the Supervisory Board
of Deutsche Pfandbriefbank AG
with the Coca-Cola system
• Detailed knowledge of the Coca-Cola system
• Insight to CCEP’s impact on communities from
experience as trustee or director of charitable
and public organisations
• Experienced corporate social responsibility
committee chair
Key external commitments
Vice Chairman and Member of the Executive
Committee of Cobega, S.A., director of Olive
Partners, S.A., Chairman of Equatorial Coca-Cola
Bottling Company, S.L., Vice-Chairman of MECC
Soft Drinks JLT, Co-chair of the Polaris Committee
at United Nations and FBN, and Ambassador of the
Family Business Network and member of the board
of the American Chamber of Commerce in Spain
Previous roles
Various roles at the Daurella family’s Coca-Cola
bottling business, director and Chairman of the
Quality & CRS Committee of Coca-Cola Iberian
Partners, S.A, director of Grupo Cacaolat, S.L. and
director of The Coca-Cola Bottling Company of
Egypt, S.A.E, member of the board of Banco
Espanol de Credito Banesto, and Chair of Family
Business Europe
• A deep understanding of international trade
• Strong strategic and sustainable development
skills
Key external commitments
Member of the House of Lords, Founder of
WorkL, Chair of Trustees of the Fairtrade
Foundation UK and President and Chairman of
the Chartered Management Institute
Previous roles
Managing Director of Waitrose and Deputy
Chairman of John Lewis Partnership, non-
executive director and Deputy Chairman of
Channel 4 TV and Minister of State for Trade and
Investment and Trade Policy, Chair of Business in
the Community, The Prince’s Countryside Fund
and Member of Council at Lancaster University
and beverage industry
• Experience of chairing a remuneration
committee
• In-depth technical knowledge of the Coca-Cola
system and the bottling industry
• Development of non-profit organisations
Key external commitments
Vice-Chairman of Olive Partners, S.A.,
Co-Chairman and member of the Executive
Committee of Cobega, S.A., Chairman of the
North Africa Bottling Company, Chairman of the
Advisory Board of Banco Santander, S.A. in
Catalonia and a director of Equatorial Coca-Cola
Bottling Company, S.L.
Previous roles
Second Vice-Chairman and member of the
Executive Committee and Chairman of the
Appointment and Remuneration Committee
of Coca-Cola Iberian Partners, S.A.
Key to
committees
.
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
93
Directors’ biographies continued
Brian Smith
Non-executive Director
Dessi Temperley
Independent Non-executive Director
Garry Watts
Independent Non-executive Director
2022 Board and Committee changes
Committees
Committees
Committees
Date appointed to the Board
Jul 2020
Date appointed to the Board
May 2020
Date appointed to the Board
Apr 2016
Key strengths/experience
Key strengths/experience
Key strengths/experience
• Extensive experience working in the Coca-Cola
• Financial and technical accounting expertise
• Extensive business experience in Australasia,
system
• Strong commercial insights and knowledge
• Deep understanding of in-market executional
of European markets
leadership
• Strong talent development and deployment
skills
• Broad knowledge of global field operations
at TCCC
Key external commitments
Non-executive director, Chairman of the
Nominating and Corporate Governance
Committee and member of the Compensation
Committee of Evertec, Inc.
Previous roles
President and COO at TCCC, President of TCCC’s
Europe, Middle East and Africa group, President
of TCCC’s Latin America group, Executive
Assistant to TCCC’s CEO and Vice Chairman,
President of Brazil division, President of the
Mexico division and also Latin America group
manager for mergers and acquisitions at TCCC
• International consumer brands experience
• Skilled in technology
Key external commitments
Non-executive director and Chairman of the
Audit Committee of Cimpress plc, non-executive
director and member of the Audit, Finance and
Consumer Relationships and Regulation
Committees of Philip Morris International Inc.
and member of the Supervisory Board of
Corbion N.V.
Previous roles
Group CFO of Beiersdorf AG, member of the
Supervisory Board of Tesa SE, Head of Investor
Relations at Nestlé, CFO of Nestlé Purina EMENA
and CFO of Nestlé South East Europe, and
finance roles at Cable & Wireless and Shell
Western Europe and the UK, including as CEO
of a global consumer goods business
• Served as executive and non-executive
director in a broad variety of sectors and
previously chaired the Audit Committee of
a sizeable company
• Financial expertise, experience and skills
• Formerly an auditor
Key external commitments
Senior Independent Director of NIOX Group plc
Previous roles
Audit partner at KPMG LLP, CFO of Medeva plc,
CEO of SSL International, director of Coca-Cola
Enterprises, Inc., Deputy Chairman and Audit
Committee Chairman of Stagecoach Group plc
and Protherics plc, and Chairman of BTG plc,
Foxtons Group plc and Spire Healthcare
Group plc
In March 2022, Dagmar succeeded Jan as
Chairman of the Affiliated Transaction
Committee.
In May 2022:
• Alfonso succeeded José Ignacio as a member
of the Affiliated Transaction Committee
• Dessi succeeded Garry as Chairman of the Audit
Committee
• José Ignacio succeeded Mario as a member
of the Remuneration Committee
• Mario succeeded Alfonso as Chairman and
a member of the ESG Committee
In December 2022, John succeeded Christine
as Chairman of the Remuneration Committee.
2023 Board and Committee changes
As announced on 15 February 2023, subject to
their election, Mary Harris and Nicolas Mirzayantz
will succeed Jan and Christine as Independent
Non-executive Directors and Nancy Quan will
succeed Brian as a Non-executive Director at the
conclusion of the AGM in 2023.
Once appointed, the following Board Committee
membership changes will also take effect at the
conclusion of the May 2023 AGM:
• Mary will become a member of the
Remuneration and Nomination Committees
• Nancy and Nicolas will become members of
the ESG Committee
• Nathalie will become a member of
the Affiliated Transaction Committee
Read more about the new Directors’ experience
and existing commitments on page 106.
Key to
committees
.
Affiliated Transaction Committee
Audit Committee
Environmental, Social and Governance Committee
Nomination Committee
Remuneration Committee
Committee chairman
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
94
Senior management
Nik Jhangiani
Chief Financial Officer
Appointed May 2016
Nik has more than 30 years of finance experience, including 20 years
within the Coca-Cola system, previously as Senior Vice President and
CFO for Coca-Cola Enterprises, Inc.. Nik started his career in New York
at accountancy firm Deloitte & Touche before spending two years at
Bristol-Myers Squibb as International Senior Internal Auditor. He then
joined the Colgate-Palmolive Company in New York where he
was appointed Group Financial Director for the Nigerian operations,
before moving to TCCC in Atlanta. He is a Certified Public Accountant.
Nik is also the culture and heritage executive sponsor at CCEP.
Clare Wardle
General Counsel and Company Secretary
Appointed July 2016
Clare leads legal, risk, compliance, security and company secretariat.
Prior to joining CCEP, she was Group General Counsel and Company
Secretary at Kingfisher plc, Commercial Director, General Counsel and
Company Secretary at Tube Lines and held senior roles at the Royal Mail
Group. She began her career as a barrister before moving to Hogan
Lovells. Clare is the Senior Independent Director of The City of London
Investment Trust plc and Modern Pentathlon GB. Clare is also the
LGBT+ inclusion executive sponsor at CCEP.
José Antonio Echeverría
Chief Customer Service
and Supply Chain Officer
Appointed September 2019
Peter Brickley
Chief Information Officer (CIO)
Appointed November 2016
Stephen Lusk
Chief Commercial Officer
Appointed March 2021
José Antonio leads CCEP’s end to end supply chain and customer
service. He is focused on creating a superior experience for our
customers, while delivering an expanded and sustainable portfolio of
drinks and packaging. He has been a part of the Coca-Cola system since
2005, serving in multiple roles including Vice President of Strategy and
Transformational Projects for the Iberia business unit, and Vice
President, Strategy and Coordination for Supply Chain across CCEP.
José is also the disability inclusion executive sponsor at CCEP.
Peter leads the business process and technology function at CCEP,
including steering CCEP’s investments in technology solutions. Peter
has over 25 years’ experience leading technology for global businesses
including Heineken, Centrica and BAT. Before CCEP, he was Global CIO
and Managing Director of Global Business Services at SABMiller. Peter is
a trustee of the Brain and Spine Foundation and a Non-executive
Director at the Chorley Building Society. Previously Peter was the chair
at the Newbury Building Society.
Stephen is responsible for advancing and shaping our commercial
strategy, capabilities and driving our performance in the market and with
customers. He works closely with business unit general managers to build
future commercial capability and with our franchise partners to bring
their brands and products to life. Stephen has spent the last 30 years in
the Coca-Cola system, holding senior leadership positions in supply chain,
sales and marketing and general management in Europe. Before joining
CCEP, he led the Coca-Cola bottler in Singapore, Malaysia and Brunei.
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Senior management continued
“I believe that CCEP threads the needle
of getting that combination of local
market accountability and scale
perfectly right.”
Peter West
General Manager, API Business Unit
François Gay-Bellile
General Manager, France Business Unit
Appointed July 2020
François is responsible for CCEP’s business unit in France. His career
began at Pernod-Ricard as a brand manager. He joined TCCC in France
in 1996. Over his 24 years at TCCC, he held roles of increasing
responsibility in marketing, commercial and general management in
the US, Asia and Europe. Before joining CCEP, François was General
Manager for TCCC in France. He is a director of the French Soft Drinks
Association (Boissons Rafraîchissantes de France), the French Food &
Beverage Association (Association Nationale de l’Industrie Alimentaire)
and ILEC (Institut de Liaisons des Enterprises de Consommation).
Peter West
General Manager, Australia, Pacific
and Indonesia Business Unit
Appointed May 2021
Peter was appointed Vice President and General Manager of the API
business unit in May 2021, following the Acquisition. Peter originally
joined CCL as Managing Director, Australian Beverages in April 2018.
Prior to this role, Peter was Managing Director of Lion’s Dairy and Drinks
business in Australia and has held several senior roles at Arnott’s Biscuits
Ltd and Mars Confectionery, including Regional President for
Continental Europe for Mars Chocolate.
Ana Callol
Chief Public Affairs, Communications
and Sustainability (PACS) Officer
Appointed January 2022
Stephen Moorhouse
General Manager, Great Britain Business Unit
Appointed September 2020
John Galvin
General Manager, Germany Business Unit
Appointed June 2022
Stephen is responsible for CCEP’s business unit in Great Britain. He has
over 25 years’ experience in the Coca-Cola system, leading business
operations and supply chain. Stephen has held a number of other senior
executive roles throughout Europe, most recently as General Manager
of Northern Europe. Prior to joining, he worked overseas for the Swire
Group in the US and Asian Pacific region. Stephen is a member of the
British Soft Drinks Association. Stephen is also the multi generational
inclusion executive sponsor at CCEP.
John leads Coca-Cola Europacific Partners’ business unit in Germany.
John joined the business in 2019 and prior to his appointment as
General Manager of Germany, held the role of Vice President Sales
and Marketing for Germany. Previously, John led Coca-Cola İçecek’s
business in Pakistan, and he began his career with Diageo. He has
held sales, marketing and general management roles across Europe
and Asia, and brings significant international experience and
leadership in the beverage sector to CCEP.
Ana leads CCEP’s sustainability strategy, effective communication with
stakeholders and employees, and engagement with media,
policymakers and communities. Ana has worked within the Coca-Cola
System for over 20 years in roles across the spectrum of marketing,
sustainability, communications and public affairs. Her consumer and
customer orientation and leadership experience helps CCEP accelerate
its sustainability action plan, This is Forward, and strengthen the
development and growth of PACS capabilities.
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Senior management continued
“We truly believe what makes CCEP so special is the culture
of the Company and its people. And as many people say
internally, we joined for the brand, but we stay for the people.”
Véronique Vuillod
Chief People and Culture Officer
Leendert den Hollander
General Manager,
Northern Europe Business Unit
Appointed September 2020
Leendert is responsible for CCEP’s business unit in Northern Europe,
including Belgium, Luxembourg, the Netherlands, Sweden, Norway and
Iceland. Previously, he was General Manager of Great Britain. Prior to
CCEP, Leendert was CEO of Young’s Seafood and Managing Director at
Findus Group Ltd. Earlier in his career, Leendert spent 15 years at
Procter & Gamble in senior marketing positions. Leendert is also the
gender balance and equality executive sponsor at CCEP.
Victor Rufart
Chief Integration Officer
Appointed October 2016
Victor leads business strategy and business transformation. Prior to
joining CCEP, he was CEO of Coca-Cola Iberian Partners, S.A. and spent
25 years at Cobega, S.A. While with Cobega, S.A., he held a number of
senior roles including Director of New Business, Head of Finance, advisor
in the formation of the Equatorial Coca-Cola Bottling Company and
Head of Tax Planning.
Francesc Cosano
General Manager,
Iberia Business Unit
Appointed May 2016
Francesc leads CCEP’s business unit in Spain, Portugal and Andorra. He was
previously the Operations Director then Managing Director of Coca-Cola
Iberian Partners, S.A. Francesc has been part of the Coca-Cola system
for over 30 years, and involved in a number of sales management
positions, ultimately as Sales Director then Deputy General Manager. He
has also worked as Regional Director for the Leche Pascual, S.A. Group,
in Anglo Española de Distribución, S.A.
Véronique Vuillod
Chief People and Culture Officer
Appointed November 2020
Véronique heads CCEP’s People and Culture function. Having joined the
Coca-Cola bottling system more than 20 years ago, she has worked in
many human resources (HR) positions across business units,
commercial and supply chain functions overseeing HR strategy and
partnering with business leaders. Most recently, Veronique was Vice
President, People and Culture in France. She began her career as a
management consultant with PricewaterhouseCoopers. She supports
the promotion of inclusion and diversity, HR best practices in leadership
and workplace, and innovations networks.
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Corporate governance report
Governance framework
Our corporate governance framework is summarised below with further detail provided on the following pages
Stakeholders
Including our
people,
customers,
suppliers,
franchisors,
investors,
consumers and
communities
Board of
Directors
Provides overall
leadership,
independent
oversight of
performance and
is accountable to
shareholders for
the Group’s
long-term success
Audit Committee
Environmental,
Social and
Governance (ESG)
Committee
Nomination
Committee
Remuneration
Committee
Delegation
Monitors the integrity of the Group’s financial
statements and results announcements, the
effectiveness of internal controls and risk management,
as well as managing the external auditor relationship
Oversees performance against CCEP’s strategy and
goals for ESG, reviews ESG risks facing CCEP, including
health and safety and climate change risks, and the
practices by which these risks are managed and
mitigated, approves sustainability commitments and
targets, and monitors and reviews public policy issues
that could affect CCEP
Full sustainability performance data for 2022 will be
published on our website in May 2023
Sets selection criteria and recommends candidates
for appointment as Independent Non-executive
Directors (INEDs), reviews Directors’ suitability for
election/re-election by shareholders, considers
Directors’ potential conflicts of interest, oversees
development of a diverse senior management
pipeline and Director succession, and oversees wider
people matters for the Group, including culture,
diversity, succession, talent and leadership
Recommends remuneration policy and framework to
the Board and shareholders, recommends
remuneration packages for members of the Board to
the Board, approves remuneration packages for senior
management, reviews workforce remuneration and
related policies and principles, and governs employee
share schemes
Affiliated
Transaction
Committee (ATC)
Has oversight of transactions with affiliates and makes
recommendations to the Board (affiliates are holders
of 5% or more of the securities or other ownership
interests of CCEP)
Ad hoc
Committees
• Disclosure Committee
• Results and Dividend sub committee
Accountability
Read more about our Audit
Committee on pages 111-116
Read more about our ESG
Committee on pages 117-118
Read more about sustainability
including TCFD reporting
on pages 26-63
Read more about our
Nomination Committee
on pages 108-110
Read more about our
Remuneration Committee
on pages 119-140
Culture
Embodied by our Code
of Conduct and ways of
working
Strategy
Built on three pillars: great
people, great service,
great beverages. Done
sustainably.
CEO
Empowered by authority
of the Board to put
agreed strategy
into effect and run CCEP
on a day to day basis
ELT
Team members with
defined areas of
responsibility support
and report to the CEO
People
33,000 employees making,
selling and distributing
great beverages
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Corporate governance report continued
Statement of compliance
The governance framework of the Company is
set out in its Articles of Association (the
Articles) and the Shareholders’ Agreement.
These provide a high level framework for the
Company’s affairs, governance and
relationship with its stakeholders and its
shareholders. The Articles, Shareholders’
Agreement and frequently asked questions
about the governance framework are available
on the Company’s website at cocacolaep.com/
about-us/governance.
Statement of compliance with the
UK Corporate Governance Code
We follow the UKCGC on a comply or explain
basis. CCEP is not subject to the UKCGC as it
has a standard listing of ordinary shares on the
Official List. However, we have chosen to
comply with the UKCGC where possible and
explain areas of non-compliance to
demonstrate our commitment to good
governance as an integral part of our culture.
Save as set out below, CCEP complied with the
UKCGC during the year ended 31 December
2022.
A copy of the UKCGC is available on the
Financial Reporting Council’s (FRC) website:
www.frc.org.uk/directors/corporate-
governance/uk-corporate-governance-code.
Chairman
UKCGC provision 9
The Chairman, Sol Daurella, was not considered
independent on either her appointment or
election. However, we benefit from her vast
knowledge of, and long-term commitment to,
the Coca-Cola system and her extensive
experience and leadership skills, gained from
her roles as director and CEO of large public
and private institutions across many different
sectors.
Annual re-election
UKCGC provision 18
Sol Daurella, the Chairman, will not be subject
to re-election during her nine year tenure
following the completion of the Merger. This
recognises the importance of her extensive
experience and knowledge of the beverage
industry, and the significant shareholding of
Olive Partners, S.A. (Olive Partners) in the
Company.
CCEP follows governance best practice with all
other Directors standing for re-election
annually at the Annual General Meeting
(AGM).
Remuneration
UKCGC provision 32
The Remuneration Committee is not
comprised solely of INEDs, although it is
comprised of a majority of INEDs. The
Shareholders’ Agreement requires that the
Remuneration Committee includes at least
one Director nominated by:
• Olive Partners, for as long as it owns at least
15% of the Company
• European Refreshments Unlimited
Company (ER), a subsidiary of TCCC, for as
long as it owns at least 10% of the Company
The Remuneration Committee, and its
independent Chairman, benefit from the
nominated Directors’ extensive understanding
of the Group’s market.
Remuneration
UKCGC provision 33
The Remuneration Committee is not solely
responsible for setting the remuneration of
the Chairman and CEO. Instead, the Board
(excluding any Director whose remuneration is
linked to the decision) determines their
remuneration, including the Non-executive
Directors (NEDs), on the recommendation of
the Remuneration Committee and following
rigorous analysis and debate. To date, the
Board has followed all of the Remuneration
Committee’s recommendations.
Differences between the UKCGC
and the Nasdaq corporate
governance rules (the Nasdaq
Rules)
The Company is classed as a Foreign Private
Issuer (FPI). It is therefore exempt from most
of the Nasdaq Rules that apply to domestic
US listed companies, because of its voluntary
compliance with the UKCGC. Under the
Nasdaq Rules, the Company is required to
disclose differences between its corporate
governance practices and those followed
by domestic US companies listed on Nasdaq.
The differences are summarised below.
Director independence
The Nasdaq Rules require a majority of the
Board to be independent. The UKCGC requires
at least half of the Board (excluding the
Chairman) to be independent. The Nasdaq
Rules contain different tests from the UKCGC
for determining whether a director is
independent. The independence of CCEP’s
NEDs is reviewed by the Board on an annual
basis, taking into account the guidance
contained in the UKCGC and criteria
established by the Board. It has determined
that a majority of the Board is independent
under the UKCGC and INED criteria, without
explicitly taking into consideration the
independence requirements outlined in the
Nasdaq Rules.
Board Committees
CCEP has a number of committees whose
purpose and composition are broadly
comparable to the requirements of the
Nasdaq Rules for domestic US companies.
However, other than the Audit Committee,
committee members are not all INEDs,
although in all cases the majority are. Each
committee has its own terms of reference
(broadly equivalent to a charter document)
which are reviewed annually and can be found
on our website at cocacolaep.com/about-us/
governance/committees.
Audit Committee
More information about the Audit Committee
is set out in its report, including compliance
with the requirements of Rule 10A-3 under the
US Securities Exchange Act of 1934, as
amended, and Rule 5605(c)(2)(A) of the
Nasdaq Rules. The Audit Committee is
comprised only of INEDs (who are also
deemed independent under the Nasdaq
Rules). However, the responsibilities of the
Audit Committee (except for applicable
mandatory responsibilities under the
Sarbanes-Oxley Act) follow the UKCGC’s
recommendations rather than the Nasdaq
Rules, although they are broadly comparable.
One of the Nasdaq’s similar requirements for
the Audit Committee states that at least one
member of the Audit Committee should be a
financial expert. The Board has determined
that Dessi Temperley, John Bryant, Dagmar
Kollmann and Garry Watts possess such
expertise and are therefore deemed financial
experts as defined in Item 16A of Form 20-F. It
was further determined that none of the Audit
Committee members had participated in the
preparation of the financial statements of the
Company or any of its subsidiaries.
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Code of Conduct
The Nasdaq Rules require relevant domestic
US companies to adopt and disclose a code of
conduct applicable to all Directors, officers
and employees. CCEP has a Code of Conduct
(CoC) that applies to all Directors and the
senior financial officers of the Group. If the
Board amends or waives the provisions of the
CoC, details of the amendment or waiver will
appear on the website. No such waiver or
amendment has been made or given to date.
View our CoC at www.ccepcoke.online/
code-of-conduct-policy
CCEP considers that the CoC and related
policies address the Nasdaq Rules on the
codes of conduct for relevant domestic US
companies.
Read more about our CoC on page 62
Shareholder approval of equity
compensation plans
The Nasdaq Rules for domestic US companies
require that shareholders must be given the
opportunity to vote on all equity
compensation plans and material revisions
to those plans. CCEP complies with UK
requirements that are similar to those of the
Nasdaq Rules.
NED meetings
The Nasdaq Rules require INEDs to meet
without the rest of the Board at least twice a
year. The UKCGC requires NEDs to meet
without the Chairman present at least once
annually to appraise the Chairman’s
performance. The NEDs have regular meetings
without management present and, in 2022,
there were two separate meetings of INEDs.
Board leadership and company
purpose
Role of the Board
The Board is primarily responsible for the
Group’s strategic plan, risk appetite and
oversight, systems of internal control and
corporate governance policies, to ensure the
long-term success of the Group, underpinned
by sustainability.
Read more about the Board’s role in risk
oversight in Principal risks on pages 64-71,
TCFD on pages 28-37 and the Audit
Committee report on pages 111-116
To retain control of key decisions and ensure
there is a clear division of responsibilities, there
is a formal schedule of matters reserved to the
Board, which sets out the structure under
which the Board manages its responsibilities,
and provides guidance on how it discharges its
authority and manages its activities. Reserved
matters include strategic decisions, approval
of annual and long-term business plans,
suspension, cessation or abandonment of any
material activity of the Group and material
acquisitions and disposals.
The Board, through the Nomination
Committee, assesses and monitors the Group’s
culture to ensure it aligns with the Group’s
purpose, values and strategy set by the Board.
Read more about our strategy on page 21
See our Nomination Committee’s report
on pages 108 - 110
Table 1
Roles on the Board
Role
Responsibilities
Chairman
• Operating, leading and governing
the Board
• Setting meeting agendas, managing
meeting timetables
• Promoting a culture of open debate
between Directors and encouraging
effective communication during
meetings
• Creating the conditions for overall
Board and individual Director
effectiveness
CEO
• Leading the business
• Implementing strategy approved by
the Board
• Overseeing the operation of the
internal control framework
SID
• Advising and supporting the
Chairman by acting as an alternative
contact for shareholders and
as an intermediary to NEDs
NEDs
• Providing constructive challenge,
strategic guidance, external insight
and specialist advice to the Board
and its Committees
• Holding management to account
• Offering their extensive experience
and business knowledge from other
sectors and industries
Company
Secretary
• Assisting the Chairman by ensuring
that all Directors have full and timely
access to relevant information
• Advising the Board on legal,
compliance and corporate
governance matters
• Organising the induction and
ongoing training of Directors
Board activities during the year
The Chairman sets the Board agenda, which
consists of the following discussion matters:
• Updates from the CEO, the CFO and other
key senior executives on the business
performance and key business initiatives
• Corporate governance
• Diversity
• Sustainability
• Material expenditure and other Group
matters
Strategy was also a key focus of discussions
and the Board considered and debated
consumer trends focusing on investment in
sustainability, digital, supply chain
innovation and growth.
Key topics discussed by the Board during
the year are set out on page 100
Training and development
To ensure constructive challenge to
management by the Board, training and
development opportunities are provided to
the Board in a wide range of topical areas in
multiple formats including:
• Briefings – to focus on matters of interest to
CCEP such as the bottling industry as well as
on relevant commercial, legal and regulatory
developments
• Deep dive sessions – to address requests
from Directors to better understand CCEP
or the environment in which it operates such
as its markets
• Site visits – to Group businesses, production
facilities and commercial outlets to enhance
knowledge of CCEP operations and meet
employees, suppliers and customers
• External speakers – to receive insights from
experts and engage with stakeholders.
Some highlights from the programme
for 2022 are set out on page 101
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Board activities
Key topics
discussed by the
Board during
2022.
The table adjacent aims to
provide insight into the
range of topics discussed
that align with its strategic
objectives towards its aim
of promoting the long-
term success of CCEP.
In addition, at Board
meetings the Directors
receive reports back from
Committee Chairs,
business and commercial
updates from the CEO,
finance reports from the
CFO and reports covering
governance and
regulatory updates from
the Company Secretary.
Area of focus
Discussion topics
Strategic objectives
Risk
• Assessment of market uncertainty, sanctions, risks and increased costs as a result of the war in
Ukraine
• Changes to retail environments and customer challenges
• Review of competitors and market analysis
• Safety and oversight of management’s response to fatalities
People
• People strategy including performance acceleration, employee engagement, talent, learning
and development and future ready leadership
• Promoting employee inclusion, diversity and equity
• Review of wider workforce remuneration
• Piloting new technologies to keep our people safe
Sustainability
• Continual monitoring of our sustainability performance and climate strategy
• Defining our sustainable packaging strategy
• Investment in sustainability innovation
Commercial
• Progress towards improving route to market development
• Approval of the updated CCEP-wide This is Forward sustainability action plan
• Driving API integration into the business, including reorienting the API portfolio
• Increasing consumer choice by innovating on flavours and growing our portfolio of products
and monitoring performance of innovations
Strategic objectives key
• Development of relationship with TCCC and other franchisors
Great
people
Great
service
Great
beverages
Done
sustainably
Finance
• Approval of capital expenditure and dividend payments
• Continued support for our innovation investment fund, CCEP Ventures
• Progress made on the digital transformation programme
• Monitoring pricing challenges and opportunities
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Board training and development
This timeline highlights some of the training and development opportunities received by the Board in 2022.
2 March 2022
10 March 2022
5 April 2022
27 May 2022
Northern Europe Business Unit
A deep dive of the Northern Europe
business unit was presented.
GB Business Unit
A deep dive of the GB business was
presented.
“
Partnering with our customers
to make meaningful progress
on sustainability together.”
Leendert den Hollander, General Manager,
Northern Europe
“
Continuing to grow sparkling
soft drinks share.”
Stephen Moorhouse, General Manager, GB
Climate change
A deep dive on climate change including
causes and impacts, strategy and actions
and future challenges was presented by our
VP, Sustainability, Joe Franses.
Iberia Business Unit
A deep dive on the unit’s current position
and strategy was presented.
“
Iberia’s contribution to CCEP
leverages on a profitable business
with efficient operations.”
Francesc Cosano, General Manager, Iberia
7 June 2022
20 July 2022
6 September 2022
14 September 2022
Franchisor agreements
A briefing on franchisor agreements and
relationship was provided by management.
Site visit to Bekasi production
facility and Amandina recycling
plant, Indonesia
Rewards philosophy and policy
A training session on CCEP’s global rewards
philosophy, wider workforce remuneration
and market trends.
Economic outlook
A briefing on economic outlook in CCEP
markets and globally, as well as the long-
term trends in relation to energy, supply
chain, labour and consumer markets was
provided by an expert economist.
4–6 October 2022
18 October 2022
8 November 2022
16 December 2022
Site visit to new shared service
centre in Varna, Bulgaria
Site visit to Mannheim
production facility, Germany
Data and analytics for growth
A training session on CCEP data
foundations and commercial analytics,
change investment and data trends was
provided by our Chief Data and Analytics
Officer, Laia Collazos.
Next generation technology
architecture
An insight into CCEP’s business
transformation plans to standardise
and optimise business processes was
provided by our Chief Information Officer,
Peter Brickley.
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Stakeholders
How the Board engages
The Board understands the importance of
stakeholder engagement and strives to
understand the views of CCEP’s key
stakeholders. Stakeholders are reviewed by
the Board annually to ensure Directors have
the right engagement and information to
understand stakeholders’ input to our business
and our impact on them. This enables the
Board to better consider stakeholders’
interests in Board discussions and decision
making.
Our Section 172(1) statement can be found
on page 18
CCEP’s key stakeholders and how CCEP
engages with them more generally
is explained on pages 14-17
Our people
The terms of reference and remit of the
Remuneration Committee include
remuneration policy at all levels across the
Group, aligned with the Company’s long-term
strategic goals. The Nomination Committee’s
terms of reference and remit include key
people matters relating to culture, succession
planning and diversity. The Chairmen of those
committees are responsible for championing,
and reporting back to the Board on these
matters. The Board also takes the opportunity
to engage with our people directly. During the
year, our Board met with Inclusion, Diversity
and Equity (ID&E) ambassadors to hear about
their experiences in person.
Read more in the Nomination Committee
report on pages 108-110
The ESG Committee updates the Board on
whistleblowing arrangements, reports and
investigations. During the year, as part of its
terms of reference review, these matters and
others such as health and safety became the
remit of the ESG Committee with relevant
matters still brought to the Audit Committee.
Read more in the Audit Committee report
on page 116
Our shareholders
Engagement with both existing and potential
shareholders is important to the Board. On
behalf of the Board, our CEO, CFO and the
Investor Relations team engage with investors
and analysts throughout the year. The
Chairman also attended the capital markets
event in November and met with investors.
The CFO provides regular updates to the
Board on the views of shareholders, including
the share register, share price performance
and investor sentiment. The Board is routinely
kept up to date on the wider Investor Relations
programme.
Our franchisors
Our Board engages both directly and indirectly
with our franchisors. The Board receives
regular updates on franchisors through reports
from the CEO and the Chief Commercial
Officer, as well as ATC updates including on
performance, relationships and key issues.
Some Directors, including the CEO and
Chairman, engage regularly with TCCC, and
the CEO and CFO regularly meet other
franchisors. The Board also received updates
from TCCC in Indonesia at the July Board
meeting on growth opportunities and strategy
in the region, particularly the role of Indonesia.
Our suppliers
The CEO and CFO inform the Board on key
supplier relationships and payments. Supplier
risk management is also a topic of discussion
at the Board generally and as part of the
annual Enterprise Risk Management
discussions. We have Supplier Guiding
Principles considered at Board level setting
out requirements of our suppliers, for example,
in relation to human rights, health and safety,
the environment and other matters.
Read more in Forward on supply chain on
pages 49-52
Our customers
The Board receives periodic presentations
from select customer leaders and in 2022
visited a wholesaler in Great Britain (GB). The
Board remains committed to understanding
our markets and customers. Market visits in GB,
Indonesia and Germany were arranged in 2022
where the Board experienced first hand field
sales activation, marketing and adding value
for retailers.
The CEO also provides regular updates to the
Board on customers, including pricing and
negotiations, joint value creation and customer
satisfaction metrics. The Board is updated
regularly on both category and channel
growth, together with changes in coverage
and execution performance which support
growth for our customers. Customers were
also discussed at the Board strategy session in
September 2022.
Our consumers
CCEP has limited direct engagement with
consumers, therefore, the Board’s
engagement is also limited though Directors
have the opportunity to engage directly with
consumers through market visits.
The Board attends presentations on trends
and behavioural patterns that could affect
consumers and our interaction with them. In
addition, the Board is kept informed about
portfolio developments by the CEO and via
updates from the Chairman of the ATC,
responsible for overseeing CCEP’s
relationships with franchise partners.
During 2022, the ESG Committee received an
update from TCCC on consumer-focused
sustainability, marketing and communications.
The Audit Committee receives updates on any
material incidents affecting consumers.
Our communities
The ESG Committee is responsible for
overseeing CCEP’s relationship with
communities under the Social pillar of its remit.
Information and updates on CCEP’s
community partnerships are provided to the
ESG Committee, including reports on local
water stress and the health of watersheds.
The Chairman of the ESG Committee provides
the Board with detailed updates at most
Board meetings. During 2022, the ESG
Committee and Board considered and
approved a new This is Forward society target
to support the skills development of 500,000
people facing barriers in the labour market by
2030 to benefit the communities in which we
operate.
Read more in Forward on society -
communities on pages 56-57
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
103
Corporate governance report continued
Principal decisions
The Board considers “Principal decisions” to be
those decisions of strategic importance which
may have a significant long-term impact on
CCEP’s business, including financial and
non-financial performance, and consequences
for its stakeholders. Specific examples of key
areas of focus and considerations affecting
the Board’s decision making process during
2022 are set out below.
Advancing sustainability commitments
The Board approved the updated CCEP wide
sustainability action plan, This is Forward.
Read about our sustainability action plan
in detail on pages 26-63
To help the Board make the decision, the
Board received reports from the
ESG Committee, which oversaw the process to
update the commitments following escalation
by the Sustainability Steering Committee. A
joint meeting of the Audit and ESG
Committees was also held to review the
assurance of the This is Forward metrics.
The Board considered the long-term
implications of the decision and the proposed
metrics to track the outcomes of the decision
with management, along with disclosure and
assurance.
The Board received information as part of the
Company Secretary’s Governance updates to
better understand the regulations around
sustainability, including disclosure rules and
reporting requirements.
Along with the need to measure CCEP’s
progress against the proposed sustainability
commitments, the Board was also mindful of
the importance of assurance and explaining
the metrics and targets transparently to
ensure CCEP was accountable to its
stakeholders.
The views of stakeholders consulted in
developing the plan, including TCCC, suppliers,
customers and communities, were fed back by
management to the ESG Committee, and in
Committee reports to the Board. The impacts
on each stakeholder group were considered.
For example, our new commitment to support
the skills development of those facing barriers
in the labour market aims to have a positive
impact on this important stakeholder group.
The Board also considered among other things
how the updated sustainability plan supports
value creation for customers and how best to
align CCEP’s commitments with TCCC’s global
sustainability commitments and World
Without Waste plan.
In addition, related to our sustainability action
plan, the Board reflected on the risks and
opportunities, such as the ability to deliver the
updated sustainability commitments and the
potential reputational impact of not meeting
the commitments versus value creation for
shareholders, and protecting CCEP’s licence to
operate by aligning with societal expectations.
Having taken such factors into account and
the Section 172 duty to have regard to its wider
stakeholders and also the impact of the
Company’s operations on the community and
the environment, the Board approved the
updated sustainability commitments and
considered the decision would be in the best
interest of CCEP’s shareholders as a whole and
promote the success of the Company.
Dividend payments
The Board made decisions on returning cash
to shareholders towards its objective to ensure
sustainable shareholder returns within a
consistent and disciplined capital allocation
framework.
The Board decided that dividend payments
would be the most effective way to return
cash to shareholders. Fundamental to the
decision was our dividend policy in which CCEP
is committed to a 50% dividend payout ratio
(comparable profit after tax basis).
To ensure the Board had the information
required to make the dividend decisions, the
CFO presented papers to the Board outlining
the financial position of the Company and
confirming that the Company had sufficient
distributable reserves to pay the proposed
dividends. The Board was also presented with
other relevant factors such as liquidity and
earnings forecasts. The Board considered the
financial performance of CCEP and reflected
on the views and interests of shareholders fed
back from external brokers, analysts and
investors in Investor Relations’ meetings.
In deciding on the dividend payments, the
Board considered the various stakeholders
who had a long-term interest in the Company,
including employees, customers and suppliers.
The Board opined on the need to balance
shareholder interests with maintaining an
optimal capital structure, including the need
to pay down debt, to support CCEP’s strategic
objectives for the benefit of CCEP’s wider
stakeholders, such as its customers and
communities.
Having considered these factors and also
taken into account its Section 172 duty to
other stakeholders, the Board was pleased to
approve two dividend payments in 2022
totalling €1.68 per share. The dividend
payments maintained a dividend payout ratio
of approximately 50%, demonstrating the
strength and resilience of CCEP’s business, as
well as its ability to deliver continued
shareholder value and promote the long-term
sustainable success of the Company.
Read more in our Business and financial
review on pages 74-85
Acquisition of TCCC’s stake in CCBI
Following a recommendation from the ATC,
the Board approved the purchase of TCCC’s
29.4% minority share in our Indonesia business,
PT Coca-Cola Bottling Indonesia (CCBI),
increasing CCEP's ownership to 100%.
To aid decision making, the ATC received a
number of materials presented by members
of the ELT which included information on the
strategic objective notably the desire to
simplify ownership of CCBI and operations in
Indonesia, and with regard to the longer-term
implications, the financial rationale for the
transactions and scenarios to help the ATC
understand the potential impact of the
transaction on the financial performance of
the Company. This included the positive
financial performance of CCBI and future
growth prospects, taking into account
potential headwinds including from plastic and
sugar taxes, with sugar tax implementation
expected in 2024.
The ATC also considered CCEP’s latest
forecasts for the business. The Board were
kept regularly updated by management as the
transaction progressed.
In taking its decision, the ATC sought the views
of stakeholders via management, including
Peter West, GM API, and considered there to
be a number of benefits. This included
demonstrating to our franchise partner, TCCC,
customers and shareholders our commitment
to the future of Indonesia as a market.
The Board subsequently received reports
back from the Chair of the ATC following each
of its discussions on the matter in addition to
having the ability to access the materials that
were provided to the ATC. TCCC
nominated-Directors recused themselves
from the discussions that involved TCCC.
Following due consideration, the Board agreed
to proceed with the transaction on the basis
that it was considered in the best interests of
the Company’s shareholders as a whole and
would promote the long-term success of
CCEP.
Succession planning
In addition to the above key decisions, the
Board, taking into account the views of
stakeholders, made decisions through new
appointments, to ensure the Board, its
Committees and senior management had the
right combination of skills, experience and
knowledge to lead CCEP in meeting the
Company’s strategic objectives towards
long-term success.
Read more in our Nomination Committee
report on pages 108-110
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
104
Corporate governance report continued
Division of responsibilities
Governance structure
The Board, led by the Chairman, is responsible
for the leadership of the Group. While both the
Executive Director and NEDs have the same
duties and constraints, they have different
roles on the Board (see Table 1 on page 99).
There is a clear, written division of
responsibilities between the Chairman and the
CEO. The Board has approved a framework of
delegated authority to ensure an appropriate
level of Board contribution to, and oversight of,
key decisions and the management of daily
business that support its long-term sustainable
success. This framework has been designed to
enable the delivery of the Company’s strategy
and is outlined in our governance framework
on page 97.
The Board delegates certain matters to its
Committees. Each Committee has its own
written terms of reference, which are reviewed
annually. These are available at
cocacolaep.com/about-us/governance/
committees.
The CEO with the ELT manages the day to day
business. All decisions are made in accordance
with our chart of authority, which defines our
decision approval requirements and ensures
that all relevant parties are notified of
decisions impacting their area of responsibility.
Board and Committee meetings
The Board held six formal meetings during
2022, with additional ad hoc meetings with
Board and Committee members held in line
with business needs. Directors are expected to
attend every meeting. If a Director is unable to
attend, the relevant papers are provided to
that Director in advance so that comments
can be given to the Chairman or Committee
Chairman, as applicable, who relays them at
the meeting. Afterwards, the Chairman or
Committee Chairman, as applicable, also briefs
the Director on the matters discussed.
Attendance during 2022 is set out in Table 2 on
page 105. The Chairman attends most
Committee meetings. There is cross
membership between the Audit Committee
and Remuneration Committee. This helps
ensure remuneration outcomes align with the
underlying performance of CCEP. This reflects
CCEP’s joined up approach to investing in and
rewarding our people. Cross membership
between Committees enables active
collaboration and liaison across Committees.
At the end of most Board meetings, two
sessions are held: one that all Directors attend,
without management present, and the other
that all NEDs attend, without management or
the CEO present. In 2022, there were also two
separate meetings of INEDs. Directors may
raise any matter they wish for discussion at
these sessions.
Board support
Board meetings are generally scheduled at
least one year in advance, with ad hoc
meetings arranged to suit business needs.
Meetings are held in a variety of locations,
reflecting our engagement with all aspects of
our international business.
The agenda of Board meetings follow our
annual Board programme. This sets out the
standing items at each meeting, such as
periodic activities (including results and AGM
documentation), business plan and the
assessment of Board evaluation results.
Before the Board meeting, the Chairman, CEO
and Company Secretary agree the final
agenda. This covers discussion items such as
the status of ongoing projects and stakeholder
considerations. Comprehensive briefing
papers are circulated electronically to all
Directors, to allow time to review the matters
which are to be discussed.
Throughout the year Directors have access to
the advice and services of the Company
Secretary and independent professional
advice, at the Company’s expense.
Board paper review
In 2022, actions were taken to implement the
improvements from the externally facilitated
Board paper review undertaken by
Independent Audit (IA). IA does not have any
connection with the Board or any individual
Director.
Following the review:
• The format and content of Board papers
have become clearer and more concise with
greater use of appendices for detail.
• The Board paper preparation process is
more streamlined with greater collaboration
between teams drafting the papers for each
Committee and the Board.
• Authors of papers receive direct feedback
from the meetings, including actions and
improvements, directly from the Company
Secretariat team.
Independence of Non-executive
Directors
The Board reviewed the independence of all
the NEDs against the UKCGC and also
considered the requirements of SEC Rule
10A-3 in relation to the Audit Committee.
It determined that Jan Bennink, John Bryant,
Christine Cross, Nathalie Gaveau, Thomas H.
Johnson, Dagmar Kollmann, Mark Price, Dessi
Temperley and Garry Watts are independent
and continue to make effective contributions.
At its meeting in February 2023, the Board
determined that Mary Harris and Nicolas
Mirzayantz joining the board, subject to their
election at the May 2023 AGM are also
independent.
The Board recognises that Nancy Quan
(joining the Board subject to her election at
the May 2023 AGM) cannot be considered
independent as the appointment was
nominated by ER, a wholly owned subsidiary of
TCCC, which owns at least 10% of the
Company.
The Board recognises that the remainder of
CCEP’s NEDs, including the Chairman, cannot
be considered independent. However, they
continue to demonstrate effective judgement
when carrying out their roles and are clear on
their obligations as Directors, including under
section 172 of the Companies Act.
Our CEO, Damian Gammell, is not considered
independent because of his executive
responsibilities to the Group.
Consequently, the majority of the Board are
independent.
Conflicts of interest
The UK Companies Act 2006 (the Companies
Act), the Articles and the Shareholders’
Agreement allow the Directors to manage
situational conflicts (situations where a
Director has an interest that conflicts, or may
conflict, with our interests). The ATC exists to
oversee transactions with affiliates. The
Nomination Committee considers issues
involving potential situational conflicts of
interest of Directors. Each Director is required
to declare any interests that may give rise to a
situational conflict of interest with CCEP on
appointment and subsequently as they arise.
Directors are required to review and confirm
their interests annually. The Board is satisfied
that the systems for the reporting of
situational conflicts are operating effectively.
Strategic Report
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
105
Corporate governance report continued
Table 2
Meeting attendance by Board and Committee members(A)
Independent or nominated
by Olive Partners or ER(B)
Board of Directors
Affiliated Transaction
Committee
Audit
Committee(J)
ESG Committee(J)
Nomination
Committee
Remuneration
Committee
Chairman
Sol Daurella
Executive Director
Damian Gammell
Non-executive Directors
Manolo Arroyo
Jan Bennink
John Bryant
Nominated by Olive Partners
CEO
Nominated by ER
Independent
Independent
José Ignacio Comenge(C)
Nominated by Olive Partners
Christine Cross
Nathalie Gaveau
Independent
Independent
Álvaro Gómez-Trénor Aguilar
Nominated by Olive Partners
Thomas H. Johnson
Dagmar Kollmann
SID
Independent
Alfonso Líbano Daurella(D)
Nominated by Olive Partners
Mark Price(E)
Mario Rotllant Solà(F)
Brian Smith(G)
Dessi Temperley(H)
Garry Watts
Independent
Nominated by Olive Partners
Nominated by ER
Independent
Independent
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
6 (6)
5 (6)
6 (6)
5 (6)
5 (6)
6 (6)
4 (4)
4 (4)
1 (1)
4 (4)(I)
3 (3)
4 (4)
5 (5)
5 (5)
1 (1)
5 (5)
4 (4)(I)
4 (5)
9 (9)
9 (9)
8 (9)(I)
9 (9)
5 (5)
5 (5)
5 (5)
6 (6)
6 (6)(I)
4 (4)
6 (6)
5 (5)(I)
6 (6)
5 (5)
2 (2)
(A) The maximum number of scheduled meetings in the period during which the individual was a Board or Committee member
(F) Effective May 2022, Mario Rotllant Solà resigned as a member of the Remuneration Committee and was appointed as
is shown in brackets.
(B) Nominated pursuant to the Articles of Association and terms of the Shareholders’ Agreement.
(C) Effective May 2022, José Ignacio Comenge resigned as a member of the Affiliated Transaction Committee and was
Chairman and member of the ESG Committee.
(G) Brian Smith was unable to attend the December 2022 Board and ESG Committee meetings due to other pre-agreed
commitments.
appointed as a member of the Remuneration Committee.
(H) Dessi Temperley was unable to attend the March 2022 Board and Audit Committee meetings and Garry Watts consented
(D) Effective May 2022, Alfonso Líbano Daurella resigned as Chairman and member of the ESG Committee and was appointed as
to act as her alternate.
a member of the Affiliated Transaction Committee.
(E) Mark Price was unable to attend the September 2022 Strategy meeting due to other pre-agreed commitments.
(I) Chairman of the Committee.
(J) One meeting was a joint meeting of the Audit Committee and ESG Committee held in October 2022.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
106
Corporate governance report continued
Composition, succession
and evaluation
Board diversity and composition
The composition of the Board and its
Committees is set out on page 105. As their
biographies on pages 89–93 show, our Board
members have a range of backgrounds, skills,
experience and nationalities, demonstrating a
rich cognitive diversity.
See an overview of our Directors’ skills and
experience on page 88
Read more about the Group’s approach
to ID&E on pages 58-63
Our commitment to diversity begins at the
top, with clear leadership from our Board, and
is embedded at every level of our business
through our Inclusion and Diversity policy, This
is Forward and the CoC.
We are pleased to announce that subject to
the election of the Directors proposed at our
May 2023 AGM, we will have achieved our 33%
female Board membership target and met our
ambition to appoint at least one Director from
an ethnic minority background. Female
representation on our Board will increase to
35.3% from 29.4% in 2022.
The Board considers that it would be
appropriate to have 40% female
representation overall and will, with its
stakeholders, work towards that as a longer-
term aim.
The Nomination Committee is committed to
overseeing a diverse pipeline for senior
management and Director positions.
Read more about Board succession
and diversity on pages 106 and 108 - 110
Election and re-election
of Directors
The Board has determined that the Directors,
subject to continued satisfactory
performance, shall stand for re-election at the
May 2023 AGM with the exception of the
Chairman as explained on page 98.
Jan Bennink, Christine Cross and Brian Smith
will retire from the Board at the conclusion of
the 2023 AGM. The Board is confident that
each Director will carry on performing their
duties effectively and remain committed
to CCEP.
The Board has also determined that
Mary Harris, Nicolas Mirzayantz and
Nancy Quan should stand for election at the
2023 AGM.
Mary Harris
Mary Harris brings to the Board a top level
strategic outlook with international and
consumer focus from her time as partner at
McKinsey and Co and as a Non-executive
Director. Mary is currently a Non-executive
Director and a member of the Nomination and
Audit and Risk Committees at ITV plc. She is
also the Designated Non-executive Director
for workforce engagement and a member of
the Remuneration Committee at Reckitt plc
and a Supervisory Board member at HAL
Holding N.V. Mary has previously held
non-executive Director positions at
Unibail-Rodamco-Westfield, Sainsbury’s and
TNT Express and TNT N.V.
Nicolas Mirzayantz
Nicolas Mirzayantz brings to the Board over
30 years of strategic, operational and business
transformation experience at IFF, a
multinational industry-leading supplier to
FMCG customers that creates ingredients and
essential solutions for food, beverage, health,
scent, biosciences and sensorial experiences.
Most recently serving as President, Nourish
Division, he was previously the Divisional CEO
for the Scent Division during a period of
historic and transformational mergers. During
his tenure, he was a champion of sustainability,
setting the foundation for IFF’s
industry-leading ESG+ initiatives. Nicolas
previously served on the Board of the
International Fragrance Association (IFRA), the
official representative body of the fragrance
industry worldwide and was a Cultural Leader
at the World Economic Forum.
Nancy Quan
Nancy Quan has extensive knowledge of the
Coca-Cola system having worked with the
company since 2007 in leadership roles
spanning innovation and consumer trends,
research and development, and supply chain.
As Senior Vice President and Chief Technical
and Innovation Officer for TCCC, she oversees
a networked team that creates innovation
pipelines to enable short-term and long-term
growth, and drives transformational and
scalable supply chain solutions to maximise
customer and consumer value. Nancy serves
on the Board of Directors for the Liberty
Mutual Group and the Industry Affiliates
Advisory Board for the University of California
Davis MBA Program, and is an active member
of the FIRST (For Inspiration and Recognition
of Science and Technology) Executive
Advisory Board.
The NED terms of appointment are available
for inspection at the Company’s registered
office and at each AGM. Among other matters,
these set out the time commitment expected
of NEDs. The Board is satisfied that the other
commitments of all Directors do not interfere
with their ability to perform their duties
effectively.
See the significant commitments
of our Directors in their biographies
on pages 89-93
Board evaluation
In line with best practice, we conduct an
external Board evaluation at least once every
three years. We did this last in 2021.
Given the depth and breadth of the 2021
external effectiveness review, it was
determined that an internal Board evaluation
process was appropriate for 2022. The Board
appointed Lintstock to support a
questionnaire based exercise, alongside
interviews with all Directors by the SID.
Lintstock has no other connection with CCEP
or any individual Director.
The questionnaire and interview responses
were collated and reports produced on the
performance and effectiveness of the Board,
each Committee as well as the Directors. The
Board discussed the results openly and
constructively.
Overall, the Board confirmed that it continued
to perform effectively. Board culture, its
relationship with senior management and
Board support were highly rated but some
areas for further improvement were identified.
These are set out in Table 3 on page 107.
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Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
107
Corporate governance report continued
Table 3
2022 Board evaluation findings and actions
Culture and engagement Strategic topics
Board composition
Review Board focus
on strategic topics
including in relation
to sustainability,
brand portfolio and
technology
Board meetings
throughout the year,
as well as the Board
strategy session held
in September 2022,
provided the Board
with greater visibility
of competitor
analysis, product
innovation,
technology and
automation and
sustainable
packaging.
Review diversity of
the Board in terms of
gender, ethnicity and
other skills aligned
with the Group’s
geographical
footprint
Characteristics
above were
considered as part of
the Nomination
Committee’s search
for new INEDs.
Further details on
Board succession
and diversity can be
found in the
Nomination
Committee report
on page 109.
2022
findings
Foster and enhance
relationships with
the ELT and API
stakeholders
Actions
undertaken
in 2022
March 2022 saw the
return of physical
meetings with the
Board and ELT.
The May 2022
meeting held in
London, included an
Employee Townhall,
lunch with ID&E
Ambassadors and
dinner with the
Iberian leadership
team.
Engaged with API
leadership, employees
and joint venture
partner during site
visits to Indonesia in
July 2022.
Reviewed CCEP’s key
stakeholder groups
in October 2022.
Information flow
and quality
Enhance the quality
and flow of
information to the
Board
Sessions were held
with relevant people
within the business
with input from
external consultants
(Independent Audit)
on refining the
content of papers
and presentations to
be more succinct.
The approach to
delivery of papers
was revised to
provide timely
insight to Board
members.
Improvements were
evident from May
2022 onwards.
Table 4
Disclosure of compliance with provisions of the Audit, risk and internal
control and Remuneration sections of the UKCGC
Items located elsewhere in the 2022 Integrated Report
Directors’ responsibilities statement
Directors’ statement that they consider the Integrated Report and financial statements,
taken as a whole, to be fair, balanced and understandable
Going concern statement
Assessment of the Group’s principal risks
Viability statement
Risk management and internal control systems and the Board’s review of their effectiveness
Page(s)
144
144
143
64–71
72
71
111–116
119–140
Audit Committee report
Directors’ remuneration report
Audit, risk and internal control
and Remuneration
Disclosures of compliance with provisions of
the Audit, risk and internal control and
Remuneration sections of the UKCGC are
located elsewhere in this Integrated Report.
These disclosures include descriptions of the
main features of CCEP’s internal control and
risk management systems as required by
Rule 7 of the Disclosure Guidance and
Transparency Rules (DTRs). Table 4 sets out
where each respective disclosure can be
found.
Annual General Meeting
The AGM continues to be a key date in our
annual shareholder calendar.
At our 2022 AGM, we were pleased that all
resolutions were passed by more than 80% of
those voting.
The 2023 AGM of the Company will be held on
24 May. The Notice of AGM will set out further
details and a full description of the business to
be conducted at the meeting. This will be
available on our website from the time of its
posting to shareholders in April 2023.
The Chairman, SID and Committee Chairmen
are available to shareholders for discussion
throughout the year to discuss any matters
under their areas of responsibility, by
contacting the Company Secretary.
Read more about our engagement
with investors on pages 15 and 102
Sol Daurella, Chairman
17 March 2023
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2022 Integrated Report and Form 20-F
108
Nomination Committee
Chairman’s letter
“Strengthening the
capabilities of our people
and our leaders is key.”
Thomas H. Johnson,
Chairman of the Nomination Committee
Looking forward to 2023
• Continue to focus on securing diverse
INED candidates to further enhance the
Board’s diversity of skills, with relevant
experience and covering our expanded
geographical footprint
• Monitor and drive This is Forward goals,
particularly the key actions regarding our
people
• Assess and monitor the strategy for talent
management to grow our capabilities
• Continue to support management to
foster a culture that supports the physical
and mental safety of all our people
Dear Shareholder
I am pleased to report on the work of the
Nomination Committee during 2022.
Succession planning
An important part of the Committee’s role is
succession planning as well as ensuring that
the Board, its Committees and senior
management have the right combination of
skills, experience, knowledge and cognitive and
other diversity.
The Committee made great progress in this
regard with three excellent candidates, Mary
Harris, Nicolas Mirzayantz and Nancy Quan,
being put forward for election at the AGM in
May 2023. The Committee had in mind the
desirability of greater strength in API markets,
innovation, and ESG as well as increasing
cognitive, gender and ethnic diversity when
carrying out the search. I would also like to
thank Brian, Christine and Jan who will be
retiring at the AGM for their invaluable
contributions.
The Committee also oversaw Board
Committee membership changes during the
year with the aim of ensuring fresh
perspectives and challenge at meetings as well
as ELT membership changes ensuring we have
the right leaders in the right critical roles for
now and the future.
Read more about succession planning
on page 109 and Committee changes
on page 93
People and culture
The Committee continued to play an
important role in overseeing CCEP’s approach
to culture for its people. This was facilitated
through updates from management on ID&E
and wellbeing initiatives, people development
plans both for senior and early careers, and also
updates on API people integration. In addition,
the Committee received data and actionable
insights about our people and monitored the
results and actions of the Group’s employee
engagement survey and progress through a
regular scorecard.
Read more about our people on pages 58-63
Board and Committee effectiveness
The Committee implemented the actions
from the 2021 evaluation. The 2022 review
determined that the Committee continued to
operate effectively.
The Committee recommended to the Board
that an internal Board evaluation process be
undertaken in early 2023 similar to that
undertaken in 2022. The Board agreed and
appointed Lintstock to support a
questionnaire based exercise, alongside
interviews of all Directors by the SID.
Availability to shareholders
I am available to shareholders throughout
the year to answer any questions on the work
of the Committee.
Thomas H. Johnson,
Chairman of the Nomination Committee
17 March 2023
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
109
Nomination Committee report
Nomination Committee role
The key duties and responsibilities of the
Committee are set out in its terms of
reference. These are available at
cocacolaep.com/about-us/governance/
committees and include:
• Reviewing and making recommendations to
the Board on Board appointments,
re-elections and Board and Committee
composition
• Overseeing the evaluation of the Board
• Ensuring and overseeing succession planning
of the Board and senior management talent
pipeline
• Assessing and monitoring culture and
ensuring effective engagement with our
people
Membership
Thomas H. Johnson (Chairman)
May 2019
Member since
Manolo Arroyo
Christine Cross
Sol Daurella
Mark Price
May 2021
May 2019
May 2016
May 2019
Activities of the Nomination
Committee during the year
The Committee has a process for planning
its future meeting agendas and topics to be
considered. Table 1 on page 110 sets out the
matters considered by the Committee during
2022. Further detail is provided in this report.
The Committee met five times during
the year.
See details of attendance at meetings
on page 105
Board composition and diversity
As delegated by the Board, the Committee
continuously keeps the composition of the
Board under review, with the aim of
maintaining a well balanced Board with the
right mix of individuals who bring a wide range
of expertise, experience and diversity to align
with the Group’s long-term strategy.
See our diversity policy including INED
selection criteria at cocacolaep.com/about-
us/governance
We are pleased to announce that subject to
the election of the Directors proposed at our
AGM in May 2023, we will have achieved our
33% female Board membership target and
met our ambition to appoint at least one
Director from an ethnic minority background.
Female representation on our Board will
increase to 35.3% from 29.4% in 2022.
The Board considers that it would be
appropriate to have 40% female
representation overall and will, with its
stakeholders, work towards that as a
longer-term aim.
The Board and the Nomination Committee
recognise the benefits that diverse
characteristics have to offer. In 2022, the
Committee updated the Board’s diversity
policy and INED selection criteria to include
aspects such as age, sexual orientation,
disability, socioeconomic background as well as
educational and professional background.
Across Board membership, the policy drives
balance and alignment with CCEP's purpose,
strategy and values, through agreed principles
and targets which reflect the measures the
Board will take when considering its own
membership and approach.
Our Board-level diversity statistics are
disclosed in accordance with the Nasdaq Rules
in Table 2 on page 110. Gender of senior
management and their direct reports can be
found on page 59.
Non-executive Director succession
During the year, the Committee considered
the Board roles that would need to be
recruited for as current INED appointments
approached the maximum terms envisaged
by the UK Corporate Governance Code, taking
into account the review of Directors’ skills as
well as actions identified in the Board
Evaluation.
External recruitment consultant firms,
MWM Consulting and Russell Reynolds
Associates, were appointed to help identify
potential INED candidates. The Chairman and
other Committee and Board members
interviewed the potential candidates in 2022.
This process resulted in the Committee’s
recommendation to the Board and
subsequent approval by the Board that
Mary Harris and Nicolas Mirzayantz be
appointed to the Board in May 2023 subject to
their election given their diverse skillsets and
relevant experience applicable to CCEP’s
expanded geographical footprint. This was
announced to the market on 15 February 2023.
MWM Consulting has no connection with the
Board or any individual Director. Russell
Reynolds Associates supported some of
CCEP’s other recruitment activities in the UK
and Germany in 2021 in addition to the 2022
INED search. It has no other connection to
CCEP and has no connection to any individual
Director.
Also announced on 15 February 2023, and in
accordance with CCEP’s Articles and
Shareholders’ Agreement, ER nominated NED,
Nancy Quan will replace Brian Smith on the
Board. You can find the list of Non-executive
Directors determined to be independent on
page 104.
See an overview of our Directors’ diversity,
skills and experience on page 88
Director inductions
The Nomination Committee reviews the
induction programme for new Directors. All
new Directors will receive a suite of induction
materials as well as mentorship from
established Directors. Meetings with members
of the Board and the ELT and site visits in a
number of our markets are also arranged.
Senior management succession
The Committee is committed to supporting
the development and progression of diverse
talent at senior management level. The
Committee considers and recommends
succession plans for the Group’s ELT to the
Board.
The Committee oversaw the appointment of
Ana Callol, Chief Public Affairs,
Communications and Sustainability Officer on
1 January 2022 succeeding Lauren Sayeski. It
also oversaw the appointment of John Galvin,
General Manager, Germany, who succeeded
Frank Molthan on 1 June 2022.
The Committee also discussed and monitored
progress towards ID&E objectives including
CCEP’s ambition to have 45% women in roles
at senior management level and above by
2030, as well as a new target of 10% of our
workforce represented by people with
disabilities by 2030.
Strategic Report
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Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
110
Nomination Committee report continued
Table 1
Matters considered by the Nomination Committee during 2022
Meeting date
March 2022
Key agenda items
• People strategy and priorities
• Commercial capabilities
• Social and society impact
• Nomination Committee Report in the 2021 Integrated Report
• NED Independence and re-elections at the AGM
• Director succession, particularly INEDs
• Committee evaluation
May 2022
• Social and society impact
• Our people: Inclusion, Diversity and Equity plan
• Succession planning for ELT and senior management
• Director succession, particularly INEDs
• Terms of Reference annual review
July 2022
• Director succession, particularly INEDs
October 2022
• People strategy achievements and future focus
• INED Selection Criteria and Board of Directors’ Guidelines review
• Succession planning for ELT and senior management
• Board skills matrix and director succession, particularly INEDs
December 2022
• Building leadership capabilities, talent management and succession
planning
• Early careers strategy, including apprenticeships and youth programmes
• Director succession, particularly INEDs
• Board and Committee evaluation process
Table 2
Nasdaq Board diversity disclosure(A)
Board Diversity Matrix (as of 31 December 2022)
Country of principal executive offices:
United Kingdom
Foreign private issuer
Disclosure prohibited under home country law
Total number of Directors
Yes
No
17
Female
Male
Non-Binary
Did not
Disclose
Gender
5
12
-
N/A
-
-
7
Part I: Gender identity
Directors
Part II: Demographic background
Underrepresented individual in home country jurisdiction
LGBTQ+
Did not disclose demographic background
(A) Disclosure permitted with Director consent.
Thomas H. Johnson,
Chairman of the Nomination Committee
17 March 2023
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
111
Audit Committee
Chairman’s letter
“The Committee dedicated
significant time to overseeing
the successful close of PPA
and implementation of SOX in
Australia.”
Dessi Temperley,
Chairman of the Audit Committee
Looking forward to 2023
• Continue to monitor governance
developments such as progress and
creation of the new regulator, Audit,
Reporting and Governance Authority
(ARGA)
• Retain a key focus on ESG reporting
matters, particularly in light of the
evolving ESG reporting landscape
• Further heighten attention on
commodities and FX hedging given
expected volatility in the economic
environment
• Continue to support the Board in its
enhanced oversight of CCEP’s cyber
security programme and associated risks
Dear Shareholder
I was appointed as Audit Committee
Chairman during the year and I am very
pleased to present the Audit Committee
report for 2022.
CCL integration
The Committee continued to spend
significant time overseeing the smooth
integration of API, including the successful
close of Purchase Price Accounting (PPA)
during the year and the implementation of
Sarbanes Oxley Act (SOX) section 404 in
Australia. These were key milestones given the
focus of the Committee during the year.
ESG
During 2022, the Committee considered ESG
reporting with even greater focus as a result of
CCEP’s first year of mandatory TCFD reporting
and disclosures in respect of the year ending
2022. The Committee received regular
updates on CCEP’s reporting landscape,
including assurance considerations.
In addition, there was enhanced focus by the
Committee in reviewing sustainability metrics
for capital expenditure proposals.
Risk management
During 2022, on behalf of the Board, risk
management was a priority and high up on the
Audit Committee agenda with ongoing
discussions on:
• The risk management framework, including
identification and assessment of principal
and emerging risks, risk factors, associated
mitigations and processes and their
appropriateness
• The cyber security programme and
associated risks
• Commodities and FX hedging
• A number of tax topics and related impact
The above was driven by the direct and
indirect impact from the war in Ukraine
including inflation, volatility in commodity
prices and currency fluctuations, increased
recession risk and the enhanced cyber threat.
Other
The Committee also spent time reviewing the
new corporate integrity framework, the CoC
reporting including whistleblowing, latest
governance developments such as the BEIS
Consultation on Restoring Trust in Audit and
Corporate Governance, GDPR compliance and
latest tax developments, including on sugar
and plastic.
In addition, the Committee reviewed its remit
during the year and clarified its role in respect
of ESG reporting matters. The Committee’s
terms of reference were updated to reflect
this.
Committee effectiveness
The Committee completed a questionnaire
based exercise to assess its effectiveness in
2022. The review determined that the
Committee continued to operate effectively
with some minor action areas identified and
subsequently closed during the year.
Read more on pages 106-107
Availability to shareholders
I am available to shareholders throughout the
year to answer any questions on the work of
the Committee.
Dessi Temperley,
Chairman of the Audit Committee
17 March 2023
Strategic Report
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Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
112
Audit Committee report
Membership
Dessi Temperley (Chairman)
May 2020
Member since
John Bryant
Dagmar Kollman
Garry Watts
January 2021
May 2019
April 2016
See details of meeting attendance in 2022
on page 105
Read more about the Audit Committee
members on pages 89 - 93
Key responsibilities
The roles and responsibilities of the Audit
Committee are set out in the terms of
reference, which are available at
cocacolaep.com/about-us/governance/
committees, and are reviewed annually by the
Committee. Key responsibilities are detailed
below.
Accounting and financial reporting
• Monitoring the integrity of the Group’s
annual audited financial statements and
other periodic financial statements
• Reviewing any key judgements contained in
them relating to financial performance
Systems of internal control and risk
management
• Reviewing the adequacy and effectiveness
of the Group’s internal control processes
• Overseeing the Group’s compliance,
operational and financial risk assessments as
part of the broader ERM programme
• Overseeing the Group’s business capability
and cyber security programmes
• Overseeing climate risks as part of the ERM
programme
• Reviewing and assessing the scope,
operation and effectiveness of the internal
audit function
Relationship with external auditor
• Reviewing and assessing the relationship
• Reviewing their independence
• Agreeing terms of engagement and
remuneration
• Assessing the effectiveness of the external
audit process
• Reviewing reports from the external auditor
and management relating to the financial
statements and internal control systems
• Making recommendations to the Board in
respect of the external auditor’s
appointment, reappointment or removal
Other
• Supporting the Board in relation to specific
matters, including oversight of dividends,
capital structure, and capital expenditures
The Committee Chairman reports back at
most Board meetings on matters of particular
relevance and the Board receives copies of the
Committee papers and minutes of meetings.
Committee governance
The Committee keeps the Board informed
and advised on matters concerning the
Group’s financial reporting requirements to
ensure that the Board has exercised oversight
of the work carried out by management,
internal audit and the external auditor.
The Group follows UK corporate governance
practices, as allowed by the Nasdaq Rules for
FPIs. In accordance with the UKCGC, the
Committee is comprised of four NEDs in 2022,
each of whom the Board has deemed to be
independent. The Board is satisfied that the
Committee as a whole has competence
relevant to the fast moving consumer goods
sector, in which the Group operates.
In accordance with SEC Rules, as applicable to
FPIs, the Group’s Audit Committee must fulfil
the independence requirements set out in
SEC Rule 10-3A. The Board has determined
that the Audit Committee satisfies these
requirements and that all members may each
be regarded as an Audit Committee financial
expert, as defined in Item 16A of Form 20-F. It
was further determined that no Audit
Committee member had participated in the
preparation of the financial statements of the
Company or any of its subsidiaries.
Matters considered by the Audit
Committee during 2022
The Committee met nine times during the
year, including a joint meeting with the ESG
Committee. Reports from the internal and
external auditor were presented as standing
agenda items, along with reports from senior
management on the following topics in the
Committee’s remit:
• Accounting and reporting matters
• SOX compliance
• Legal matters
• Ethics and compliance matters, including
whistleblowing and CoC breaches
• Business continuity management and cyber
security
• ERM
• Capital projects, including review of
sustainability metrics
• Tax and Treasury matters
• Climate risk disclosures
The Committee’s interactions with the internal
audit function and the external auditor during
the year are discussed in more detail later in
this report. A summary of key matters
considered by the Audit Committee in 2022, in
addition to standing items, is set out in Table 1
on page 113.
Financial reporting, significant
financial issues and material
judgements
The Committee met regularly with
management in the first half of 2022 to review
the key accounting considerations in the
finalisation of the PPA work in relation to the
CCL acquisition.
The Committee also met with management
prior to each market announcement to
consider the significant accounting
judgements and estimates made, and their
appropriateness. Details regarding the
significant reporting matters identified and
the related Committee considerations are set
out in Table 2 on page 114.
For the remaining matters, the Committee
agreed with management that the
appropriate accounting considerations had
been given and the impact of each item was
not material to the Group’s financial
statements.
See our Viability statement on page 72
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2022 Integrated Report and Form 20-F
113
Audit Committee report continued
Table 1
Matters considered by the Audit Committee during 2022
Meeting date
Key matters considered in addition to standing agenda items(A)(B)(C)
Meeting date
Key matters considered in addition to standing agenda items(A)(B)(C)
February 2022
• 2021 preliminary Q4 and full year results, including significant estimates and
judgements
• COVID-19 accounting considerations
• Pay for performance
• IAS 36 impairments
• Tax matters
March 2022
• 2021 Integrated Report, including viability and going concern statements,
accounting policies and related significant judgements and estimates, segmental
reporting, hedging activities, post-employment benefits
• Reappointment of the external auditor
• SOX compliance and impact of COVID-19 on the internal control environment
• 2022 internal audit plan
• Internal Audit Charter and the Independence and Objectivity policy
• Treasury matters
April 2022
• 2022 Q1 trading update
• First half interim dividend
May 2022
• Accounting considerations in advance of year-end audit
August 2022
(Two meetings)
• Business continuity
• Capital allocation and expenditure
• IT/Cyber security update
• Terms of reference update
• Tax matters including tax strategy paper
• External audit process and procedures
• 2022 half year report
• SOX implementation in Australia
• External audit process and procedures
• Enterprise risks
• Corporate integrity programme
• 2022 audit fees
October 2022
(Two meetings)
• 2022 Q3 trading update
• Second half interim dividend
• Capital allocation and expenditure
• Corporate integrity programme
• Tax matters
• Group risk appetite framework
• Approach to TCFD statement and ESG assurance(C)
December 2022
• SOX compliance
• Corporate Integrity programme
• Capital allocation and expenditure
• Preliminary 2023 internal audit plan and budget
• Cyber security update
• Treasury matters
(A) During February and March 2023, the Committee discussed matters regarding the year ended 31 December 2022,
which included:
– Reviewing the 2022 preliminary Q4 and full year results and the 2022 Integrated Report, including its significant estimates
and judgements, accounting policies, viability and going concern statements
– Advising the Board on whether, in the Committee’s opinion, the 2022 Integrated Report is fair, balanced and
understandable
– Independent auditor’s report on the 2022 full year results
– Approval of this Audit Committee report
(B) During February 2023 a joint meeting of the Audit Committee and ESG Committee was held to undertake a review of the
TCFD statement and climate risk assessment
(C) During joint meeting of the Audit Committee and ESG Committee held in October 2022
Audit Committee assessment
of the 2022 Integrated Report
The Committee undertook a review of a
developed draft of the 2022 Integrated
Report and provided its feedback, which was
applied.
The Committee considered whether the
Group’s position, strategic approach and
performance during the year were accurately
and consistently portrayed throughout the
2022 Integrated Report. As part of its review,
the Committee referred to the management
reports it had received and considered during
the year, together with the findings and
judgements of the internal and external
auditor.
The estimates and judgements made on the
significant financial reporting matters
regarding the financial statements are
summarised in Table 2 on page 114. The
Committee reviewed these in depth, along with
management’s assessment of the Group as a
going concern and the statement of long-term
viability contained in the Strategic Report. The
Committee concluded that they are
appropriate and acceptable in light of the risks
facing the business and all significant matters
brought to the Committee’s attention during
the year. The 2022 Integrated Report is, in the
opinion of the Committee, fair, balanced and
understandable and provides the information
necessary for shareholders to assess CCEP’s
performance, business model and strategy.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
114
Audit Committee report continued
Table 2
Significant reporting matters in relation to financial statements
considered by the Audit Committee during 2022
Accounting area
Key financial impacts
Audit Committee considerations
Accounting area
Key financial impacts
Audit Committee considerations
Business
combination
Total consideration:
€5.8 billion
Deductions from
revenue and
sales incentives
Intangible assets:
€4.3 billion
Goodwill:
€2.1 billion
Total cost of
customer marketing
programmes in 2022:
€5.2 billion
Accrual at
31 December 2022:
€1.3 billion
Tax accounting
and reporting
2022 book tax
expense:
€436 million
2022 cash taxes:
€415 million
2022 effective tax rate:
22.3%
The Group completed the acquisition of Coca-Cola Amatil
Limited (CCL) on 10 May 2021. During 2021, the Group engaged a
third party specialist firm to support the required valuation work.
During the first half of 2022, the Committee regularly reviewed
progress as the valuation exercise was completed and the
remeasurement period had closed in May 2022. The Committee
noted that changes to the provisional amounts disclosed in the
Group’s consolidated financial statements for the year ended 31
December 2022 were immaterial.
The Group participates in various programmes and
arrangements with customers designed to increase the sale of
products. Among the programmes are arrangements under
which allowances can be earned by customers for attaining
agreed upon sales levels or for participating in specific marketing
programmes. For customer incentives that must be earned,
management must make estimates related to the contractual
terms, customer performance and sales volume to determine the
total amounts earned. Under IFRS 15, these types of variable
consideration are deducted from revenue. There are significant
estimates used at each reporting date to ensure an accurate
deduction from revenue has been recorded. Actual amounts
ultimately paid may be different from these estimates. At each
reporting date, the Committee received information regarding
the amount of customer marketing spend of the Group along
with period end accruals. The Committee also discussed and
challenged management on key judgements and estimates
applied during the period with a specific focus on the impact of
COVID-19 on customer activities and performance.
The Group evaluated a number of tax matters during the year,
including legislative developments across tax jurisdictions, risks
related to direct and indirect tax provisions in all jurisdictions, the
deferred tax inventory and potential transfer pricing exposure.
Throughout the year, the Committee received information from
management on the critical aspects of tax matters affecting the
Group, considered the information received, and gained an
understanding of the level of risk involved with each significant
conclusion.
The Committee also considered and provided input on the
Group’s disclosures regarding tax matters.
Asset
impairment
analysis
Indefinite lived
intangible assets:
€11.9 billion
Goodwill:
€4.6 billion
The Group performs an annual impairment test of goodwill and
intangible assets with indefinite lives, or more frequently if
impairment indicators are present. The testing is performed at
cash generating units (CGUs) level, which for the Group are
based on geography and generally represent the individual
territories in which the Group operates.
The Committee received information from management on the
impairment tests performed, focusing on the most critical
assumptions such as the terminal growth rate, the discount rate
and operating margin, as well as changes from the prior year.
The Committee reviewed and challenged sensitivity analyses,
including the impact of climate change provided by
management to understand the impact of changes in these
critical assumptions.
The Committee was satisfied with the assumptions used by the
Group and also considered and reviewed the Group’s disclosures
about its impairment testing.
During 2022, the Group commenced restructuring initiatives as
part of the ongoing Accelerate Competitiveness programme
aimed at improving productivity, network optimisation, and site
rationalisation. The Committee was regularly updated by
management on the nature of such initiatives and key
assumptions underpinning the related provision in the financial
statements.
The Committee reviewed the Group's restructuring expense
of €163 million as well as the restructuring provision balance of
€137 million as at 31 December 2022, and continued to agree
that it does not contain significant uncertainty.
The Committee was satisfied with the appropriateness of the
restructuring accounting during the year and the disclosures
included in the financial statements.
The Committee reviewed the remaining items impacting
operating profit comparability for the year, primarily related to
other income arising from the favourable court ruling pertaining
to the ownership of certain mineral rights in Australia and the
collection of the insurance proceeds associated with the July 2021
European flooding events.
The Committee was satisfied with the classification of the items
impacting comparability as well as the related disclosures in the
financial statements.
Restructuring
accounting
Restructuring cost
recorded in 2022:
€163 million
Other items
impacting
operating profit
comparability
Remaining items
impacting operating
profit comparability
recorded in 2022:
€111 million (credit)
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Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
115
Audit Committee report continued
External audit
Effectiveness of the external
audit process
The Committee has responsibility and
oversight of the Group’s relationship with its
external auditor, Ernst & Young LLP (EY), and
for assessing the effectiveness of the external
audit process. EY was appointed as the
external auditor in 2016 and the lead audit
partner is Sarah Kokot, who was appointed
following completion of the 2020 Audit. The
Committee acknowledges the provisions
contained in the UKCGC and the Statutory
Audit Services for Large Companies Market
Investigation (Mandatory Use of Competitive
Tender Processes and Audit Committee
Responsibilities) Order 2014 in respect of audit
tendering. In light of the factors, the
Committee considers when making
recommendations to the Board and based on
their performance and knowledge of the
business, the Committee believes that it is in
the best interests of shareholders to continue
to recommend EY as the external auditor and
that a competitive tender process will be
conducted no later than 2025.
In 2022, the Committee agreed the approach
and scope of the audit work to be undertaken
by EY for the financial year. It also reviewed
EY’s terms of engagement and agreed the
appropriate level of fees payable in respect
of audit and non-audit services.
See details of the amounts paid to the external
auditor in Note 18 to the consolidated financial
statements on page 193.
EY provided the Committee with regular
reports on the status of the audit, its
assessment of the agreed areas of audit focus
and findings, and conclusions to date.
In response to the Acquisition and COVID-19,
EY had regular discussions with management
to identify the potential business and financial
risks for CCEP and ensure that correct
accounting treatment was adopted
in response.
The Committee reviewed the experience and
expertise of the audit team, the fulfilment of
the agreed audit plan and any variations to it,
feedback from the Group’s businesses and the
contents of the external audit report. The
Committee confirmed its satisfaction with the
effectiveness of the external auditor.
External auditor independence
The continued independence of the external
auditor is important for an effective audit. The
Committee has developed and implemented
policies that govern the use of the external
audit firm for non-audit services and limit the
nature of the non-audit work that may be
undertaken. The external auditor may, only
with pre-approval from the Committee,
undertake specific work for which its expertise
and knowledge of CCEP are important. It is
precluded from undertaking any work that
may compromise its independence or is
otherwise prohibited by any law or regulation.
The Committee received a statement of
independence from EY in March 2023
confirming that, in its professional judgement,
it is independent and has complied with the
relevant ethical requirements regarding
independence in the provision of its services.
The report described EY’s arrangements to
identify, manage and safeguard against
conflicts of interest.
The Committee reviewed the scope of the
non-audit services proposed by EY during the
year, to ensure there was no impairment of
judgement or objectivity, and subsequently
monitored the non-audit work performed to
ensure it remained within the agreed policy
guidelines. It also considered the extent of
non-audit services provided to the Group. The
Committee determined, based on its
evaluation, that the external auditor was
independent.
Reappointment of the
external auditor
The Committee has responsibility for making a
recommendation to the Board regarding the
reappointment of the external auditor. Based
on its continued satisfaction with the audit
work performed to date and EY’s continued
independence, the Committee has
recommended to the Board, and the Board
has approved, that EY be proposed for
reappointment by shareholders as the Group’s
external auditor at CCEP’s 2023 AGM.
Internal audit
The internal audit function provides an
independent and objective assessment of the
adequacy and effectiveness of the Group’s
integrated internal control framework, which
combines risk management, governance and
compliance systems. The internal audit
function reports directly to the Audit
Committee and comprises approximately
30 full time, professional audit staff based in
London, Berlin, Madrid, Sofia and Sydney, with
a range of business expertise working across
multiple disciplines.
Effectiveness of the internal
audit function
At the start of the year, the Committee
reviewed the internal audit plan for 2022 and
agreed its scope, budget and resource
requirements for the year.
Through regular management reports
containing key internal audit observations,
proposed improvement measures and related
timeframes agreed with management, the
Committee monitored the effectiveness of
the internal audit function against the
approved internal audit plan. The Chief Audit
Executive attended the scheduled meetings
of the Committee during 2022 to raise any key
matters with the Directors.
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Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
116
Audit Committee report continued
Raising concerns
In each of our territories, we have established
ways for our people to raise concerns in
relation to possible wrongdoing in financial
reporting, suspected misconduct, or other
potential breaches of our CoC. These include
options to seek advice from the line manager
and/or raise a report through our internal
Speak Up resources and/or our dedicated and
confidential external Speak Up channels. The
Committee is responsible for reviewing the
adequacy and security of these arrangements
and ensuring they allow appropriate follow up
action. In accordance with our CoC, retaliation
against anyone for making a genuine report, or
for cooperating in an investigation, is
prohibited.
The Committee receives and considers reports
from management regarding concerns raised
by our people and provides the Board with key
information for its consideration as
appropriate.
View our CoC at www.ccepcoke.online/code-
of-conduct-policy
Investigations into potential breaches of our
CoC are overseen in each BU by the BUs CoC
Committee, chaired by the BUs Vice President,
Legal. All potential CoC breaches and
corrective actions are overseen by the Group
CoC committee, which is a sub committee of
the Compliance and Risk Committee, a
management committee chaired by the Chief
Compliance Officer (CCO). The Group CoC
Committee also:
• Ensures that all reported breaches have
been recorded, investigated in a timely
manner and a conclusion reached
• Evaluates trends
• Ensures consistent application of the CoC
across CCEP
As required under the Spanish Criminal Code,
the Iberia BU has an Ethics Committee formed
of members of the Iberia BU leadership team.
It is responsible for any ethics and compliance
activities, including overseeing the local crime
prevention model. It reports to the board of
the Iberia BU and the CCO.
There were no whistleblowing matters that
required Audit Committee or Board attention
in 2022.
Dessi Temperley,
Chairman of the Audit Committee
17 March 2023
Internal control and risk
management
The Group depends on robust internal controls
and an effective risk management framework
to successfully deliver its strategy. The Audit
Committee is responsible for monitoring the
adequacy and effectiveness of the Group’s
internal control systems, which includes its
compliance with relevant sections of the
UKCGC and the requirements of SOX,
specifically sections 302 and 404, as it applies
to US FPIs.
Effectiveness of the internal control
and risk management systems
Regular reports were presented to the
Committee on the Group’s internal audit
assessments of the adequacy and
effectiveness of CCEP’s integrated internal
control framework, risk management,
governance and compliance functions. The
Committee was asked to consider the internal
control framework and the remediation of any
identified control deficiencies during the year.
In 2022, management undertook a top down
enterprise risk assessment including business
units and functions. This included an
assessment of the Group’s risk appetite across
identified enterprise risks, to gauge and
promote alignment of risk appetite with
CCEP’s long range plan. The Committee
reviewed the findings, approved changes to
the enterprise risk management assessments
and concluded that management’s approach
to risk and to risk appetite was satisfactory.
The Group’s material controls were deemed to
be designed and operating effectively during
the year.
Read more about the Board’s role in risk
oversight of Principal risks on pages 64-71
and TCFD on pages 28-37
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
117
ESG Committee
Chairman’s letter
“The Committee dedicated
significant time to discussing
the development of the
updated This is Forward
sustainability action plan to
include API markets.”
Mario Rotllant Solà,
Chairman of the ESG Committee
Looking forward to 2023
• Focus on our new society goals to drive
diversity and support 500,000 people
facing barriers in the labour market by
2030
• Conduct a biodiversity and deforestation
risk assessment
• Continue to develop our carbon
reduction roadmaps
Dear Shareholder
I was appointed as ESG Committee Chairman
during 2022 and I am delighted to present
the ESG Committee report for 2022,
especially as this is the first CCEP Integrated
Report to include an ESG Committee report.
The Committee agreed on two new targets
which following Board approval, were
subsequently submitted to the SBTi for their
approval. The SBTi’s decision is awaited and
expected by the end of 2023.
This is Forward 2022
The Committee’s main focus during 2022 was
the development of CCEP’s sustainability
action plan, This is Forward, to incorporate API
markets and to meet evolving stakeholder
expectations.
The objective was to set ambitious and easy-
to-understand targets which were quantifiable
and time bound, in alignment with TCCC. In
addition to the inclusion of API markets,
updates were also made to ID&E targets to
broaden their focus beyond gender. We also
updated our water targets to align with TCCC’s
new global water strategy. In addition, a new
society target was introduced to support
TCCC’s focus on empowerment and skills.
Further areas of This is Forward expansion
have also been identified for the longer term.
Sustainability priorities
To support This is Forward, during the year, the
Committee endorsed key priorities which will
help to accelerate our actions, ensure delivery
against our ambitious sustainability
commitments and deliver the significant
business transformation which will be required.
Updating our Science Based Targets
initiative (SBTi)
During 2022, the Committee spent time
considering CCEP’s science based emissions
reduction targets for 2030 and 2040 to include
API. The Committee also reviewed CCEP’s
updated carbon inventory, including GHG
emissions related to our business in API.
Read more on our updated SBTi targets
on page 29
Regulation
The Committee also focused on reviewing the
latest developments in sustainability reporting
such as the European Commission’s proposal
for regulation on human rights and
environmental due diligence obligations, as
well as packaging and packaging waste.
Other
The Committee also discussed and assessed
how our future pack mix should evolve over
the next decade and reviewed progress made
on targets relating to renewable electricity,
solar photovoltaic (PV) and our use of recycled
PET (rPET).
Terms of reference review
In 2022, changes were made to the
Committee’s terms of reference to better
reflect current guidance and best practice and
to clarify the remit of the activities by
renaming the Committee the ESG Committee
and approving a Remit Document.
Committee effectiveness
The Committee completed a questionnaire
based exercise to assess its effectiveness
during the year. The review determined that
the Committee continued to operate
effectively. Progress has been made to action
outputs from the review.
Mario Rotllant Solà,
Chairman of the ESG Committee
17 March 2023
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
118
ESG Committee report
Membership
• Updates included on:
Mario Rotllant Solá (Chairman) May 2022
Member since
Jan Bennink
Nathalie Gaveau
Mark Price
Brian Smith
May 2019
January 2019
May 2019
July 2020
ESG Committee role
The key duties and responsibilities of the
Committee are set out in its terms of reference.
These are available at cocacolaep.com/about-us/
governance/committees.
ESG activities in 2022
The Committee met five times in 2022
including a joint meeting with the Audit
Committee. The main focus of the Committee
was overseeing the work to update CCEP’s
sustainability action plan, This is Forward, but it
did consider other matters which are detailed
below.
Reporting and regulatory updates
• Review of FY21 reporting and performance
• Assurance of FY21 sustainability
performance data and look ahead for FY22
assurance
• During the joint meeting with the Audit
Committee in October 2022, our approach
to TCFD compliance and ESG assurance was
discussed. There was a further joint meeting
held in February 2023 to undertake a review
of the TCFD statement and climate risk
assessment.
Read more on TCFD reporting
on pages 28 - 37
– EU proposed Directive on Corporate
Sustainability Due Diligence
– International Sustainability Standards
Board (ISSB)
– UK mandatory reporting requirements
such as TCFD
– EU packaging regulation
Climate
• Reviewing GHG emissions and reduction
pathways for API
• Discussion on science based emissions
reduction targets to incorporate API
including discussions on submission to SBTi
• Update on renewable electricity and solar PV
Packaging
• Update on reusable packaging, future pack
mix, plastic packaging and recycled PET
• Sourcing strategy for packaging materials
(e.g. rPET, aluminium)
• Reusable packaging, packageless and TCCC’s
global reusable packaging target
Social
• Approval of Modern Slavery Statement
• CoC reporting compliance
• Review and extension of societal goals as
part of This is Forward
Governance
• Overview of the Committee's sustainability
priorities including:
– Decarbonisation and carbon reduction
roadmap
– Carbon offset and removal strategy
– Accelerated focus on 100% collection
• Committee Terms of reference and remit
review, including the addition of compliance
matters to the scope of the Committee
• Review of Committee effectiveness
Other
• Update on the role of CCEP Ventures in
supporting This is Forward sustainability
action plan and CCEP’s long-term Net Zero
2040 target
• TCCC’s approach to consumer-focused
sustainability marketing and
communications
Mario Rotllant Solà,
Chairman of the ESG Committee
17 March 2023
Above: CCEP New Zealand adopted
Meridian Energy’s 100% Certified
Renewable Energy product in 2022 which
verifies that the electricity it consumes
from the national grid will be matched on
an annual basis with electricity produced
from Meridian Energy’s certified hydro
stations and wind farms.
Strategic Report
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Financial Statements
Other Information
Statement from the Remuneration Committee Chairman
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
119
Dear Shareholder
On behalf of the Board, I am pleased to
present the Directors’ remuneration report for
CCEP for the year ended 31 December 2022.
This includes our broadly unchanged
remuneration policy (pages 122-129), which
shareholders are asked to approve at our 2023
AGM. We have also set out our Annual report
on remuneration (ARR) (pages 130-140), which
outlines how we implemented the policy
during 2022 and how we intend to do so in
2023. This will be subject to an advisory vote at
our 2023 AGM.
I am also pleased to introduce myself as the
new chairman of CCEP’s Remuneration
Committee, having taken over from
Christine Cross with effect from December
2022. As part of our handover, we have worked
closely together and with the rest of the
Remuneration Committee in reviewing our
current remuneration policy. I would like to
thank Christine for her valuable contribution in
chairing the Remuneration Committee and
remaining as a member of the Committee
until she steps down from the Board at the
2023 AGM.
Revised remuneration policy
During the year we undertook a full review of
our remuneration policy, including considering
how any revised policy would be implemented
for 2023, to ensure that it remains aligned with
our key objectives of being:
On this basis we are not intending to make any
significant changes to the remuneration policy
or how the policy will be implemented for
2023. However, minor wording changes have
been made to ensure the remuneration policy
accurately reflects current practice.
• Focused on delivering our business strategy
• Simple, transparent and aligning the
interests of management and shareholders
• Based on variable remuneration which is
performance-related against stretching
targets
• Able to be cascaded through the
organisation and applicable to the wider
workforce
• Able to support the recruitment,
development and retention of top talent
As part of this process, we engaged with our
largest 15 shareholders and representative
bodies who did not raise any major concerns
with our current policy.
After due consideration, the Committee
determined that the current remuneration
policy continues to deliver on our key
objectives and remains aligned with our
shareholders’ interests and best practice.
Alongside seeking approval for the
remuneration policy, we will also be seeking
approval for the revised Long-Term Incentive
Pan (LTIP) Rules at the AGM in May 2023. No
material changes to the operation of the LTIP
are proposed, however, the current rules are
due to expire shortly and we are taking this
opportunity to ensure the rules reflect latest
market and best practice, and will support
operation of the Plan for the 10 year life of the
Rules.
We are confident that the revised policy will
continue to provide a remuneration
framework for the next three years that
supports the business to meet its objectives in
a manner which is aligned with good
governance.
“Our remuneration policy
continues to deliver on our key
objectives and no fundamental
changes to the remuneration
policy are proposed.”
John Bryant,
Chairman of the Remuneration Committee
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Other Information
Statement from the Remuneration Committee Chairman continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
120
Remuneration outcomes for 2022
Annual bonus
The strong overall business performance
outlined in the Strategic Report has been
reflected through the annual bonus with
performance against all three financial metrics
being above target. Revenue and comparable
operating profit increased year on year by
26.0% and 20.5% respectively. This, alongside
strong free cash flow generation, has resulted
in an overall Business Performance Factor
(BPF) of 172% of target being achieved. The
strong business performance is also a
reflection of the exceptional leadership of the
CEO throughout 2022, which resulted in a
maximum Individual Performance Factor (IPF)
of 1.2x being awarded to him. The final bonus
payment to the CEO was 86% of maximum.
Further details are provided on pages 130-131
of the ARR.
2020 Long-Term Incentive Plan
The 2020 LTIP award, granted in March 2020,
was subject to earnings per share (EPS), return
on invested capital (ROIC) and CO2e reduction
performance targets over the three year
period to 31 December 2022. Around 260
senior executives and management
participated in the scheme, including the CEO.
Following the Acquisition in 2021, revised
targets for the combined business were set in
September 2021 and were fully disclosed in last
year’s remuneration report.
Performance over the last three years has
been strong, resulting in an overall formulaic
vesting level of 2.0x target.
In assessing the formulaic vesting outcome,
the Committee also undertook a holistic
assessment of overall performance over the
three year period to determine whether the
formulaic outcome was an appropriate vesting
level for all participants and reflected
underlying Company performance. The
Committee took into account a wide range of
performance reference points including
financial performance, returns to shareholders,
the wider stakeholder experience, and our
sustainability achievements (as disclosed in
detail on page 132 of the ARR).
As a result of the assessment, the Committee
determined the overall performance of the
business to be strong, but considered it
appropriate to apply downwards discretion in
respect of the final vesting level for the CO2e
reduction measure and cap this at target. This
reduced the overall vesting level to 1.85x
target, and the Committee believes this to be
a fair reflection of overall performance.
This is estimated to have a final vesting value
for the CEO of £6.7 million. Over a third
(£2.1 million) of the value of this award is a
result of strong share price growth over the
period, which has delivered more than
£8 billion of value to shareholders.
Implementation of remuneration
policy in 2023
The Committee considers that our overall
remuneration framework remains fit for
purpose and, subject to shareholder approval
at the 2023 AGM, will implement our broadly
unchanged remuneration policy for 2023 on
the same basis as for 2022 (see pages 122-129
for further details).
The Committee has approved a 2.0% salary
increase for the CEO, effective 1 April 2023,
which is significantly lower than the 6% merit
increase for the wider GB workforce.
The structure of the 2023 annual bonus will be
unchanged from last year, with the business
performance element being based on
stretching performance targets for operating
profit, revenue and operating free cash flow.
For the CEO, his individual element will be
assessed against objectives aligned to the key
strategic areas of focus of the business, which
include: market share, competitiveness, and
inclusion, diversity & equity. See page 138 of
the ARR for further detail.
The 2023 LTIP award will continue to be based
on a mix of EPS, ROIC, and CO2e reduction. The
financial targets have been set at stretching
levels taking into account both our long-term
plan and external forecasts.
Following the end of the performance period,
LTIP awards will be subject to an additional two
year holding period.
Looking ahead
We intend for our new remuneration policy to
remain in place for the next three years.
However, we will continue to engage with
shareholders to ensure we are implementing
the policy in a way which is aligned with both
good governance and commercial best
practice.
Our remuneration policy and outcomes reflect
a strong emphasis on performance-related
pay, aligned to shareholder interests and our
strategic aims. I hope we continue to receive
your support in respect of our revised policy
and ARR at our forthcoming AGM in May 2023.
John Bryant,
Chairman of the Remuneration Committee
17 March 2023
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
121
Remuneration at a glance
Overview of 2022 remuneration performance
Overview of 2023 CEO remuneration framework
CCEP share price(A) (US$)
Annual bonus outcomes
Reported long-term KPIs
Fixed pay
Annual bonus
LTIP
65
60
55
50
45
40
Operating profit
Comparable EPS(B)
1.45x target
Operating free cash flow
X
.
X
.
Revenue
1.97x target
2.00x target
1.80
2020
2021
2022
ROIC(B)
2020
2021
2022
2.83
3.39
7.6%
9.2%
9.1%
CO2e reduction per litre
2022
15.3%
(Europe reduction 2019-2022)
31 Dec 2021
31 Dec 2022
(A) NASDAQ listing
Bonus pay out = 86%
of maximum
(Including IPF of 1.2x)
2022 CEO single figure
CEO shareholding
£1.4m
(12%)
£3.7m
(31%)
£6.7m
(57%)
As at 31 Dec 2022
1,500% of salary
Target
300% of salary
Fixed pay
2022 Total value
Current shareholding
Annual bonus £11.8m Shareholding requirement
LTIP
Base salary
2.0% increase for 2023
£1.24m
Benefits
• Car allowance
• Private medical
• School fees
• Financial planning
Pension
Cash in lieu aligned
to wider workforce
£26k
1 Revenue
2 Operating profit
3 Operating free
cash flow
30%
50%
20%
1 ROIC
2 EPS
3 Reduction in CO2e
42.5%
42.5%
15%
0x–1.2x
Individual multiplier
150%
360%
250%
500%
Target
Maximum
Target
Maximum
All references to revenue, operating profit, operating free cash flow, EPS and
ROIC targets for 2023 refer to those measures that are defined within the ARR
(B) Comparable EPS and ROIC are non-GAAP performance measures. Refer to ‘Note regarding the presentation of pro forma
financial information and alternative performance measures’ on pages 74-75 for the definition of our non-GAAP
performance measures and to pages 75-85 for a reconciliation of reported to comparable results.
Read more in the Annual report on remuneration from page 130
123123
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
122
Remuneration policy
Our current remuneration policy was approved by shareholders at the AGM on 27 May 2020.
As required under Schedule 8 of the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 (as amended), shareholders will be asked to
approve a new remuneration policy at our AGM in May 2023.
It is intended that the new remuneration policy will apply for the next three years with effect
from the date of the AGM.
During 2022, the Remuneration Committee reviewed the remuneration policy to ensure that it
continues to be:
• Focused on delivering our business strategy
• Simple, transparent and aligning the interests of management and shareholders
• Based on variable remuneration which is performance-related against stretching targets
• Able to be cascaded through the organisation and applicable to the wider workforce
• Able to support the recruitment, development and retention of top talent
The Remuneration Committee consulted with our largest shareholders and their representative
bodies on the remuneration policy and took any feedback into account when finalising the new
remuneration policy.
Based on this review, the Remuneration Committee determined that the current remuneration
framework continues to meet the objectives set out above and so no significant changes to the
remuneration policy have been made. However, minor wording changes have been made to
ensure the remuneration policy accurately reflects current practice.
As part of its review, the Remuneration Committee addressed the following principles, as
recommended in the revised 2018 UKCGC.
Clarity
Our remuneration policy is designed to allow our remuneration arrangements to be structured
such that they clearly support, in a sustainable way, our financial objectives and strategic
priorities.
The Remuneration Committee remains committed to reporting on our remuneration practices
in a transparent, balanced and understandable way.
Simplicity
The Remuneration Committee recognises the importance of simplicity. This is embedded in the
new remuneration policy through its three main elements:
• Fixed: comprising base salary, benefits (e.g. private medical insurance) and a pension which is
aligned to that offered to the local workforce
• Short-term: an annual performance-related bonus that incentivises and rewards the delivery of
a balanced selection of financial and non-financial targets over the financial year
• LTIP: incentivises performance over a three year period, promoting long-term sustainable value
creation. It is delivered in Shares, which are subject to a two year post-vesting holding period.
Risk
The Remuneration Committee ensures that our remuneration arrangements remain aligned
with the business’ risk appetite, policies and systems, as well as its strategy.
Awards under the variable incentive plans are subject to a wide range of malus and clawback
provisions, while the two year post-vesting holding period for LTIP awards strengthens the
alignment of Executive Director pay with shareholders’ interests. The CEO is required to build up
a shareholding of 300% of salary in Shares which must be retained for one year
post-employment. This provides further alignment with long-term shareholder interests.
The Remuneration Committee has discretion to adjust the formulaic outcome of incentive
arrangements, taking into account all relevant factors, to further mitigate the risk of incentives
vesting in inappropriate circumstances.
Predictability
The scenario charts on page 125 show the possible reward outcomes in a variety of performance
scenarios. These charts include a scenario whereby the Company’s share price increases by 50%
over the three year LTIP performance period.
Proportionality
Over 75% of an Executive Director’s package is performance based, with measures and targets
designed to be appropriately stretching, providing a clear link to the delivery of short-term and
long-term shareholder value. The measures are intended to be balanced to ensure that the
relevant aspects of an Executive Director’s performance is covered.
The use of discretion ensures that performance outcomes can be considered in the context of
underlying performance.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
123
Remuneration policy continued
Alignment to culture
CCEP has an entrepreneurial culture that drives it to move quickly, has a passion for growth and a
commitment to our customers. Acting with integrity and accountability underpins this.
The remuneration policy is designed to be aligned with this culture, with balanced and stretching
short-term and long-term performance measures and targets, complemented by malus and
clawback and discretionary overrides. In combination, these will enable the Remuneration
Committee to ensure that executive remuneration is appropriate from a cultural perspective.
The Remuneration Committee considers a number of wider workforce themes as part of its
annual cycle, including workforce demographics, engagement levels and diversity. We encourage
our employees to participate in all employee share schemes. In 2022, we introduced the new
ESPP across the whole of CCEP, strengthening our commitment to create an ownership mindset
among the workforce.
The following sections set out our new remuneration policy.
Policy table for Executive Directors
The table below summarises each element of the remuneration policy for Executive Directors
and any other individual who is required to be treated as an Executive Director under the
applicable regulations, with further details set out after the table. Currently, the CEO is the only
Executive Director.
Opportunity
Base salary
No material change to previous policy
Purpose and link
to strategy
• Core element of remuneration used to provide competitive level of fixed salary for
Executive Directors of the calibre required for the long-term success of the business.
Operation
• Paid in cash and pensionable.
• Typically reviewed annually.
• In reviewing salaries, consideration is given to a number of internal and external
factors including business and individual performance, role, responsibilities, scope,
market positioning, rate relative to other internal pay bands to ensure succession pay
headroom, inflation and colleague pay increases.
Opportunity
• While there is no prescribed formulaic maximum, annual increases will normally take
into account the overall business performance and the level of increase awarded to
the general relevant workforce.
• Where the Remuneration Committee considers it necessary and appropriate, larger
increases may be awarded in individual circumstances, such as a change in scope or
responsibility or where a new Executive Director is appointed at a lower than market
rate and the salary is realigned over time as the individual gains experience in the role.
Salary adjustments may also reflect wider market conditions, for example in the
geography in which the individual operates.
Performance
conditions
• None, although individual performance will be taken into account when determining
the appropriateness of base salary increases, if any.
Benefits
No material change to previous policy
Purpose and link
to strategy
Operation
• Competitive and market aligned benefits for Executive Directors of the calibre
required.
• A range of benefits may be provided, including, but not limited to, the provision of a
company car or car allowance, the use of a driver, financial planning and tax advice,
private medical insurance, medical check ups, personal life and accident assurance
and long-term disability insurance. Other benefits may be provided if considered
appropriate to remain in line with market practice.
• Expenses incurred in the performance of executive duties (including occasional
expenses associated with spouse accompanying the Executive Director on business
travel or functions as required) for CCEP may be reimbursed or paid for directly by
CCEP, as appropriate, including any tax due on the benefits.
• CCEP may also meet certain mobility costs, such as relocation support, housing and
education allowances and tax equalisation payments.
• Executive Directors are eligible to participate in all employee share plans on the same
basis and with the same vesting period as other employees.
• The value of benefits provided will be reasonable in the context of relevant market
practice for comparable roles and taking into account any individual circumstances
(e.g. relocation). It is not possible to state a maximum for all benefits as some will
depend on individual circumstances (e.g. private medical insurance) and some may
depend on family circumstances (e.g. relocation/housing/schooling allowances).
• The Remuneration Committee keeps the level of benefit provision under review.
• Participation in all employee share plans on the same basis as other employees up to
the statutory limits .
Performance
conditions
• None
Pension
No material change to previous policy
Purpose and link
to strategy
• Provides an income for Executive Directors following their retirement in
arrangements consistent with those offered to other employees in the relevant
location.
Operation
• Executive Directors can participate in the same plan as other local employees and on
the same basis. CCEP reserves the right to amend a pension arrangement for
Executive Directors over the life of this remuneration policy to reflect changes to the
broader employee arrangements.
Opportunity
• The current CEO can participate in the UK Defined Contribution pension plan or can
opt out and receive a partial cash alternative on the same basis as other employees in
GB.
• The current maximum annual employer contribution, inclusive of employer social
security costs, is £30,000.
Performance
conditions
• None
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
124
Remuneration policy continued
Annual bonus
No material change to previous policy
LTIP
No material change to previous policy
Purpose and link
to strategy
• To incentivise the delivery of the business plan on an annual basis, and reward
performance against key indicators which are critical to the delivery of the strategy.
Purpose and link
to strategy
• Recognises and rewards delivery of Group performance over the longer term and
delivered in Shares to provide alignment with shareholder interests.
Operation
• Performance is measured over one year, with the bonus normally payable fully in cash
Operation
• Awards of conditional Shares (or equivalent) with vesting dependent on performance
after year end, with no deferral.
measured over at least three financial years.
• The bonus is based on a combination of a Business Performance Factor (BPF) and an
• Shares acquired on vesting of an award (post-tax) are subject to an additional two
Individual Performance Factor (IPF).
year holding period following the vesting date.
• The Remuneration Committee may exercise its discretion to adjust the formulaic
outcome of the bonus up or down (subject to the maximum bonus opportunity set
out below) taking into account all relevant factors, including but not limited to:
underlying business performance, individual performance and wider business
circumstances.
• The Remuneration Committee has the ability to apply both malus and clawback
Opportunity
• Target bonus is 150% of base salary.
provisions to bonuses.
• Dividends (or equivalents) may accrue during the vesting period on Shares that vest
and be paid in cash or Shares at vesting. The Group’s current practice is to pay in cash.
• The Remuneration Committee has the ability to apply both malus and clawback
provisions to awards.
• The Remuneration Committee may exercise its discretion to adjust the formulaic
vesting outcome up or down (subject to the maximum LTIP opportunity set out
below) taking into account all relevant factors, including but not limited to: underlying
business performance, individual performance and wider business circumstances.
• The bonus is calculated by multiplying the target bonus by a BPF (with a range of
Opportunity
• The maximum annual award is 500% of salary.
0–200%) and an IPF (with a range of 0–120%).
• The maximum bonus opportunity is 360% of salary.
• 25% of the target BPF (37.5% of salary) is payable for threshold business performance.
The threshold for the IPF is 0% of maximum.
Performance
conditions
• Business and individual performance measures, weightings and targets are set
annually to align with the strategic plan, with the majority of the annual bonus being
based on financial performance measures.
• The Remuneration Committee ensures that targets are appropriately stretching in
the context of the strategic plan and that there is an appropriate balance between
incentivising Executive Directors (i) to meet financial targets for the year and (ii) to
deliver specific non-financial goals. This balance allows the Remuneration Committee
to reward performance effectively against the key elements of the strategy.
• Each year, the annual performance targets set in the prior year are published in the
ARR (unless considered commercially sensitive).
• The Remuneration Committee will retain the discretion to amend subsisting
performance measures and/or targets in exceptional circumstances (e.g. significant
transactions), where it considers that they no longer remain appropriate.
.
• For threshold levels of performance, 12.5% of the maximum award vests.
Performance
conditions
• The Remuneration Committee will align the performance measures under the LTIP
with the long-term strategy of the Group with measures focused on delivering
sustainable value creation.
• Prior to each grant, the Remuneration Committee will select performance measures
and weightings and determine targets. Performance measures may be financial,
non-financial, share price based, strategic, or determined on any other basis that the
Remuneration Committee considers appropriate reflecting strategic priorities.
• Currently, the performance measures used are EPS,, ROIC, and CO2e reduction.
Targets are intended to be set at appropriately stretching levels of performance
in the context of the strategic plan.
• The Remuneration Committee will retain the discretion to amend subsisting
performance measures and/or targets in exceptional circumstances (e.g. significant
transactions), where it considers that they no longer remain appropriate, although it
would only do so following consultation with major shareholders.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
125
Remuneration policy continued
Illustration of the application of the remuneration policy
The Remuneration Committee considers the level of remuneration that may be received under
different performance outcomes to ensure that this is appropriate in the context of the
performance delivered and the value added for shareholders.
Assumed performance
Assumptions
Fixed pay
All scenarios
• Base salary of £1,241,440 effective from 1 April 2023
• Pension allowance of £26,000
• Benefits – assumed £135,000, which is the value
received in 2022
Fixed pay
Bonus
LTIP
Variable pay
Below threshold
• No pay out under the annual bonus plan
Below
threshold
100% £1.40m
Target
22%
29%
49% £6.37m
Maximum
12%
37%
51% £12.08m
9%
29%
62% £15.18m
Maximum
(including 50%
share price
appreciation)
£0m
£3m
£6m
£9m
£12m
£15m
The chart above provides illustrative values of the remuneration package for the CEO in 2023
under four assumed performance scenarios.
Target performance
• Target annual bonus, representing 150% of base
• No vesting under the LTIP
• No share price growth assumed
salary
• Target LTIP(A) award, representing 250% of base
salary
• No share price growth assumed
Maximum performance
• Maximum annual bonus, representing 360% of base
salary
• Maximum LTIP(A) award, representing 500% of base
salary
• No share price growth assumed
Maximum performance including
50% share price growth
• As above for maximum performance but includes
share price appreciation in respect of the LTIP(A) of
50% during the performance period
(A) LTIP awards may accrue dividend equivalents but the potential value of these has not been included in the analysis above.
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2022 Integrated Report and Form 20-F
126
Remuneration policy continued
Share ownership guidelines
The CEO is required to hold 300% of their base salary in Company Shares. The guideline is
expected to be met within five years of appointment. Until the guideline is met, 50% of any
vested Shares from incentive awards (post-tax) must be retained. The guideline continues to
apply for one year following termination of employment.
External appointments
Executive Directors are permitted to hold one external appointment with the prior consent of
the Board. Any fees may be retained by the individual. At the time that this policy will come into
operation the current CEO is not expected to have such external appointments.
Malus and clawback
The Remuneration Committee has the ability to operate malus and clawback under the annual
bonus and LTIP.
This provides the Remuneration Committee with the ability to restrict or reclaim payments to
Executive Directors in circumstances where it would be appropriate to do so.
The circumstances in which the malus and clawback provisions may be invoked are:
Actions/conduct
of individual
• Dismissal for cause
• Misbehaviour
• Conduct resulting in significant loss
• Failure to meet appropriate standards of fitness and propriety
• Behaviour which significantly contributes to reputational damage for CCEP
Risk
• Material failure of risk management
Financial accounts
• Material misstatement in the audited consolidated accounts
Regulatory
requirement
• Error in the determination of the vesting of an award (subject to clawback only)
• Any recovery requirement in line with applicable regulations
In such circumstances, where the Remuneration Committee considers it appropriate, it may
apply the provisions set out below:
Annual bonus
• Malus may be applied during the performance period to reduce (including to nil) the
annual bonus pay out.
• Clawback may be applied for up to two years post-payment of the bonus, to recover
some (or all) of any amount paid out.
LTIP
• Malus may be applied before the vesting of an award to reduce (including to nil) the
level of vesting of the award.
• Clawback may be applied for up to two years post-vesting of the award, to recover an
amount in cash or Shares relating to the value of any award already delivered.
Alternatively, an existing award may be reduced by the same amount.
Consideration of wider employee pay and conditions
The Remuneration Committee receives an annual report in respect of wider workforce
remuneration, covering topics such as workforce demographics, engagement, pay and reward
policies, culture and behaviours initiatives, and diversity initiatives. This information was
considered when the remuneration policy was reviewed. It is also considered when the
Remuneration Committee decides how it should implement the policy each year.
The Remuneration Committee considers, in particular, the budgeted salary increases for the
broader relevant employee population when determining how to implement the remuneration
policy for Executive Directors in any year. It is expected that future salary increases for Executive
Directors will be no more than the general all-employee increase in the country where they are
based, except in exceptional circumstances, such as where a recently appointed Executive
Director’s salary is increased to reflect his or her growth in the role over time or where significant
additional responsibilities are added to the role.
The annual bonus metrics and related targets for Executive Directors are aligned with those of
senior management and are cascaded through the organisation, adjusted in some cases for local
market context. The performance metrics for LTIP awards are normally the same for all
participants. Executive Directors may participate in all employee share plans on the same basis as
other employees.
The Remuneration Committee does not consult directly with employees as part of the process
of setting the policy.
Scope of remuneration policy
The Remuneration Committee reserves the right to make any remuneration payments and/or
payments for loss of office (including exercising any discretion available to it in connection with
such payments) notwithstanding that they are not in line with the remuneration policy set out
above when the terms of the payments were agreed:
(1) before the AGM on 22 June 2017 (the date our first shareholder approved Directors’
remuneration policy came into effect);
(2) before the remuneration policy set out above comes into effect, provided that the terms of
the payment were consistent with the shareholder approved remuneration policy in force at
the time they were agreed; or
(3) at a time when the relevant individual was not a Director of CCEP (or other person to whom
this remuneration policy applies) and, in the opinion of the Remuneration Committee, the
payment was not in consideration for the individual becoming a Director (or other such
person) of the Company. For these purposes "payments” includes the Remuneration
Committee satisfying awards of variable remuneration.
Awards under the LTIP are subject to the plan rules under which the awards were granted. The
Remuneration Committee may adjust or amend awards in accordance with the provisions of the
plan rules and as outlined elsewhere in this report.
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2022 Integrated Report and Form 20-F
127
Remuneration policy continued
Element
Policy and operation
Annual bonus
• The individual will be eligible to participate in the annual bonus plan, in accordance
with the rules and terms of the plan in operation at the time.
• The maximum level of opportunity will be no greater than that set out in the Policy
table above (i.e. 360% of base salary).
Long-term
incentives
• The individual will be eligible to participate in the LTIP, in accordance with the rules
and terms of the plan in operation at the time. The maximum level of opportunity will
be no greater than that set out in the Policy table above (i.e. 500% of base salary).
Buy out awards
• The Remuneration Committee will consider what buy out awards (if any) are
necessary to facilitate the recruitment of a new Executive Director. This includes an
assessment of the awards forfeited on leaving their current employer. In determining
the quantum and structure of these commitments, the Remuneration Committee will
seek to provide no more than the equivalent value and replicate, as far as practicable,
the form, timing and performance requirements of the awards forfeited. Buy out
share awards, if used, will be granted using the Company’s existing LTIP to the extent
possible, although awards may also be granted outside this plan if necessary and as
permitted under the Listing Rules. In the case of an internal hire, any outstanding
awards made in relation to the previous role will be allowed to be paid out according
to their original terms. If promotion is part way through the year, an additional top-up
award may be made to bring the Executive Director’s opportunity to a level that is
appropriate in the circumstances.
In the event of any variation of the Company’s share capital, demerger, delisting, or other event
which may affect the value of awards, the Remuneration Committee may adjust or amend the
terms of awards in accordance with the rules of the plan.
The Remuneration Committee may also make minor amendments to the remuneration policy
set out in this report, without obtaining shareholder approval if they are required for regulatory,
exchange control, tax or administrative purposes or to take account of a change in legislation.
Recruitment policy
The following table sets out the various components which would be considered for inclusion in
the remuneration package for the appointment of an Executive Director and the approach to
be adopted by the Remuneration Committee in respect of each component.
Element
Policy and operation
Policy application
• The Remuneration Committee’s approach when considering the overall remuneration
arrangements on the recruitment of an Executive Director from an external party is to
take account of the Executive Director’s remuneration package in their prior role, the
market positioning of the remuneration package, and not to pay more than necessary
to facilitate the recruitment of the individual.
• Where an Executive Director is appointed from within the business, in addition to
considering the matters detailed above for external candidates, our normal policy is
that any legacy arrangements would be honoured in line with the original terms and
conditions.
• With the potential for internal succession planning in mind, CCEP will strive for
alignment, where appropriate, between the approach taken at the Executive Director
level and at other senior levels, ensuring that an appropriate pay progression is in
place, thus facilitating talent development and succession planning.
Fixed elements
• Salary levels drive other elements of the package and would therefore be set at a level
which is competitive, but no more than necessary.
• The Executive Director would be eligible to participate in any benefit and/or pension
arrangements which were operated for Executive Directors at the time, in accordance
with the terms and conditions of such arrangements. These will align with the
arrangements provided for the wider workforce.
• The Company may meet certain mobility costs as required, including, for example,
relocation support, expatriate allowances, temporary living and transportation
expenses in line with the prevailing mobility policy and practice for senior executives.
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2022 Integrated Report and Form 20-F
128
Remuneration policy continued
Service contracts and loss of office arrangements
The Remuneration Committee’s policy on service contracts and termination arrangements for
Executive Directors is set out below. On principle, it is the Remuneration Committee’s policy that
there should be no element of reward for failure. The Remuneration Committee’s approach
when considering payments in the event of a loss of office is to take account of the individual
circumstances including the reason for the loss of office, Group and individual performance,
contractual obligations of both parties as well as statutory requirements, share and pension plan
rules.
The key employment terms and conditions of the current Executive Directors, as stipulated in
their service contracts, are set out below:
Overall
Policy and operation
Notice period
• Executive Directors are employed on a rolling service contract which provides for a
notice period of 12 months from the Company and 12 months from the individual.
• New Executive Directors will be appointed on rolling service contracts with a notice
period of not more than 12 months for both the Group and the individual.
• The Remuneration Committee considers this policy provides an appropriate balance
between the need to retain the services of key individuals for the benefit of the
business and the need to limit the potential liabilities of the Group in the event of
termination.
• The standard Executive Director service contract does not confer any right to
additional payments in the event of termination though it does reserve the right for
the Group to impose garden leave on the Executive Director during any notice period.
In the event of redundancy, benefits would be paid according to the Company’s GB
redundancy policy prevailing at that time.
Contractual
payments
Overall
Policy and operation
Annual bonus
• Executive Directors may be eligible for a pro rata bonus for the period served, subject
to performance.
• No bonus will be paid in the event of gross misconduct.
Long-term
incentives
• The treatment of unvested long-term incentive awards is governed by the rules of the
plan.
• Guidelines for normal treatment under the LTIP:
– Resignation or termination for cause: the award is forfeited.
– Death, ill-health, injury or disability: the award will normally vest in full.
– Redundancy or other involuntary termination: the award will normally vest on the
original vesting date, pro-rated for time served, and subject to performance
conditions.
– Good leaver: the Remuneration Committee may determine that a participant who
ceases employment for any other reason (e.g. retirement, departure by mutual
agreement) be treated as a ‘good leaver’ in which case the award will normally vest
on the original vesting date, pro-rated for time served and subject to performance
conditions.
– Change of control: the award normally vests pro-rated for time served and subject
to performance conditions. Alternatively, the award may be exchanged for awards
in the acquiring company.
– Vested LTIP awards still subject to a holding period will normally be released from
the holding period in line with the usual timescales.
• The Committee has discretion under the rules of the plan to disapply time pro-ration,
or accelerate the vest date of awards for certain leaver scenarios, e.g. in the event of a
good leaver or certain change of control events.
• LTIP awards for participants who leave the Group to join TCCC or a franchise company
of TCCC may continue to vest under the original terms. Alternatively should the
awards lapse they may receive a cash payment in lieu. The cash payment will normally
be equal to the value of the Shares they would have received, paid at the time they
would have received them.
The cost of legal fees spent on reviewing a settlement agreement on departure, or other
professional fees and settlement of any legal obligations or claims by a director, may be provided
where appropriate. The Company also reserves the right to pay for outplacement services as
appropriate.
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2022 Integrated Report and Form 20-F
129
Remuneration policy continued
Consideration of shareholder views
The Remuneration Committee recognises the importance of building and maintaining a good
relationship with shareholders.
The Remuneration Committee engaged with the Company’s largest shareholders and their
representative bodies in early 2023 in respect of the renewal of our remuneration policy, however
no major concerns were raised with the policy proposed.
In future, the Remuneration Committee will continue to monitor shareholder views when
evaluating and setting ongoing remuneration strategy, and will consult with shareholders prior to
any significant changes to our remuneration policy.
Policy table for NEDs
The table below summarises the remuneration policy for NEDs.
Purpose and link
to strategy
• To attract and retain high calibre individuals by offering market competitive fee
arrangements.
Operation
• NEDs and the Chairman receive a basic fee in respect of their Board duties.
• Further fees may be paid for specific committees or other Board duties.
• Fees are set at a level which is considered appropriate to attract and retain the calibre
of individual required by the Company. Fees will be reviewed and may be increased
periodically.
• Annual fees are set in UK sterling and may be received in alternative currencies at the
election of the NED, using the applicable spot rate.
• The Chairman and NEDs are not eligible for incentive awards or pensions.
• Expenses incurred in the performance of non-executive duties (including occasional
expenses associated with spouse accompanying the Chairman or NED on business
travel or functions as required) for the Company may be reimbursed or paid for
directly by CCEP, as appropriate, including any tax due on the benefits.
• Additional small benefits may be provided.
Opportunity
• The Articles provide that the total aggregate remuneration paid to the Non-executive
Chairman and the NEDs will be within the limits set by shareholders.
The NEDs, including the Chairman of the Board, do not have service contracts, but have letters of
appointment. NEDs and the Chairman of the Board are not entitled to compensation on leaving
the Board.
The election and re-election of Directors in accordance with the Shareholders’ Agreement
and Articles of Association is described on page 106 of the Corporate governance report
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2022 Integrated Report and Form 20-F
130
Annual report on remuneration
Remuneration outcomes for 2022
The following pages set out details of the remuneration received by Directors for the financial
year ending 31 December 2022. Prior year figures have also been shown. Audited sections of the
report have been identified.
The Directors’ remuneration in 2022 was awarded in line with the remuneration policy which was
approved by shareholders at the AGM in May 2020.
Individual Performance Factor (IPF) – individual objectives were also set for Damian Gammell
focused on a number of areas which are aligned to key longer-term strategic objectives of the
business.
In line with the remuneration policy, Damian Gammell had a target bonus opportunity of 150% of
salary. Actual payments range from zero to a maximum of 360% of salary depending on the
extent to which business and individual performance measures were achieved.
Single figure table for Executive Directors (audited)
Target bonus
BPF
IPF
(150% of base
salary)
(0x to 2.0x)
(0x to 1.2x)
Final bonus
outcome
(0% to 360% of base
salary)
Individual
Damian
Gammell
Year
2022
2021
Salary
(£000)
1,208
1,179
Taxable
benefits
(£000)
Pension
(£000)
Fixed
pay
(£000)
Annual
bonus
(£000)
Long-term
incentives
(£000)
Variable
remuneration
(£000)
Total
remuneration
(£000)
135
134
26
26
1,369
1,339
3,730
3,567
6,720(A)
2,766
10,450
6,333
11,819
7,672
(A) Estimated value based on three-month average share price and exchange rate to 31 December 2022 of US$50.19 (£42.81) and
includes £533,000 cash payment in respect of dividend equivalents to be paid on the vested Shares. Number will be restated
in next year’s single figure table to show the final value on the vesting date of 17 March 2023. Around £2,124,000 of the vest
value is attributable to share price appreciation.
Notes to the single figure table for Executive Directors (audited)
Base salary
Damian Gammell received a salary increase of 3.25% from £1,178,787 to £1,217,098 effective from
1 April 2022. This increase was in line with the merit increase provided to the wider GB workforce
of 3.25%.
Taxable benefits
During the year, Damian Gammell received the following main benefits: car allowance (£14,000),
financial planning allowance (£10,000), schooling allowance (£75,000 net) and family private
medical coverage (£8,000).
Pension
The pension provisions that apply to Damian Gammell are aligned to all other GB employees.
Damian Gammell elected to receive a cash allowance in lieu of participation in the pension
scheme. This equates to a payment of £30,000 from CCEP inclusive of employer National
Insurance contributions (i.e. the actual benefit received by Damian Gammell is less than £30,000
per year).
Annual bonus
Overview of CCEP’s annual bonus design
The 2022 CCEP annual bonus plan was designed to incentivise the delivery of the business
strategy and comprised the following elements:
Business Performance Factor (BPF) – provides alignment with our core objectives to deliver
strong financial performance against our main financial performance indicators of operating
profit (50%), revenue (30%) and operating free cash flow (20%).
2022 annual bonus outcome – BPF
Financial performance in 2022 has been strong, with performance for all three financial measures
being above target.
Measure
Weighting
Operating
profit(A)
Revenue(B)
Operating free
cash flow(C)
50%
30%
20%
Total
100%
Performance targets
Performance outcomes
Threshold
(0.25x
multiplier)
€1,868m
Target
(1x multiplier)
Maximum
(2x multiplier)
Actual outcome
€2,075m
€2,241m
€2,149m
Multiplier
achieved
1.45x
€15,312m
€16,052m
€16,499m
€1,958m
€2,175m
€2,349m
€17,271m
€2,344m
2.00x
1.97x
1.72x
(A) Comparable operating profit on a FX neutral basis at budget rates
(B) Revenue on a FX neutral basis at budget rates
(C) Comparable operating profit before depreciation and amortisation and adjusting for capital expenditures, restructuring cash
expenditures and changes in operating working capital, on a FX neutral basis at budget rates
2022 annual bonus outcome – IPF
To determine an appropriate IPF, the Chairman of the Board assesses Damian Gammell’s
performance against the individual performance objectives that were set at the start of the year.
The outcome is then discussed with and recommended by the Committee for final approval by
the Board.
Damian Gammell once again provided exceptional leadership of the business during 2022 within
a very challenging external environment. He delivered strongly against his individual objectives
outlined below, and the Board determined that his IPF should be set at 1.2x for the year.
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2022 Integrated Report and Form 20-F
131
Annual report on remuneration continued
Further details of some of the specific objectives, which link to our strategy pillars (Great people,
Great service, Great beverages, Done sustainably) achieved are included in the table below:
2022 objectives
Performance delivered
Strategic
objective
Operating model review
• Full review undertaken with initial roll out in API
Long-term incentives
Awards vesting for performance in respect of 2022
The 2020 LTIP award was subject to EPS, ROIC and CO2e reduction performance targets
measured over the three year performance period from 1 January 2020 to 31 December 2022.
Following the Acquisition in 2021, revised targets for the combined business were set in
September 2021 and were fully disclosed in last year’s remuneration report. The performance
outcome is shown in the table below.
Volume and value share growth
in sparkling
• Non-alcoholic ready to drink and sparkling soft drinks
volume and value share growth versus 2021
Senior management gender ratio
• Senior management gender ratio in line with target to
reach 2025 goal
• Group TIR of 0.87
Safety and wellbeing culture
• Delivery of safety and wellbeing programmes across
CCEP, including integration of API
Plan for plastics
• Delivered ahead of plan for rPET. Group rPET usage of
48.5% (Europe 56.3%; API 26.9%).
API integration
• Delivery of long-term plan for API markets
2022 annual bonus outcome – calculation
Based on the level of performance achieved, as set out above, this resulted in a cash bonus paid
following the year end to Damian Gammell as follows:
Target bonus
BPF
(150% of base
salary)
(1.72x)
IPF
(1.20x)
Final bonus
outcome
(309% of salary)
Link to strategy
Great
people
Great
service
Great
beverages
Done
sustainably
Measure
EPS(A)
ROIC(B)
CO2e reduction(C)
Total formulaic vesting level
Total vesting after discretion
Performance targets(D)
Threshold
(25%
vesting)
Target
(100%
vesting)
Maximum
(200%
vesting)
Actual
performance
outcome
€2.96
8.2%
€3.15
8.6%
€3.34
9.1%
6.0%
per litre
8.0%
per litre
10.0%
per litre
€3.39
9.3%
15.3%
per litre
Weighting
42.5%
42.5%
15%
Final
vesting
level
2.00x
2.00x
2.00x(E)
2.00x
1.85x
(A) Comparable and on a tax and currency neutral basis, adjusted for brand sales.
(B) ROIC calculated as comparable operating profit after tax attributable to shareholders, on a tax and currency neutral basis,
divided by the average of opening and closing invested capital for the year, adjusted for brand sales and material non-cash
equity accounting adjustments. Invested capital is calculated as the addition of borrowings and equity attributable to
shareholders less cash and cash equivalents and short-term investments.
(C) Target based on entire value chain in Europe.
(D) Straight-line vesting between each vesting level shown.
(E) Discretion applied to cap vesting level at 1.00x for the CO2e reduction measure.
In assessing the formulaic vesting outcome of the 2020 LTIP, the Committee additionally
undertook a holistic assessment of overall performance over the three year period to determine
whether the formulaic outcome was an appropriate vesting level for all participants and
reflected underlying Company performance. The Committee took into account a wide range of
performance reference points, including financial performance, returns to shareholders, the
stakeholder experience and our sustainability achievements, as described below. As a result of
the assessment the Committee determined the overall performance of the business to be
strong. However, the Committee considered it appropriate to apply downwards discretion in
respect of the final vesting level for the CO2e reduction measure and cap this at target. This
reduced the overall vesting level to 1.85x target, and the Committee believes this to be a fair
reflection of overall performance.
As the award does not vest until 17 March 2023 (the signing date of this report), the final value of
the award has been estimated based on the average share price over the three-month period
from 1 October 2022 to 31 December 2022 of US$50.19 (£42.81). This would result in a final pay out
of around £6.7 million including the value of the cash payment to be received in respect of
dividend equivalents accrued during the performance period (£533,000). As outlined in the
Chairman’s letter, over £2.1 million of this value is as a result of the significant increase in share
price over the three year vesting period, which has delivered over £8 billion of value to
shareholders over the same period. The actual value on the vesting date will be reported in next
year’s ARR.
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2022 Integrated Report and Form 20-F
132
Annual report on remuneration continued
Overall business performance
• NARTD value share growth over the performance period (2020 = +40 bps, 2021 = +40bps, and
2022 = +10bps).
• Largest FMCG value creator in Europe, and largest NARTD value creator in Australia and
New Zealand – created over €1.3 billion of value in 2022 for our customers in Europe, Australia
and New Zealand. Across the three year performance period we created €2.4 billion for
customers across our markets, by focusing on core brands, in-market execution and revenue
growth management initiatives.
• We committed to rebasing our cost base versus pre-pandemic levels. As a percent of revenue,
our comparable operating expenses are lower now (FY22; 24%), not only compared to last year
(FY21; 25%), but more importantly compared to 2019 (FY19; 26%).
• Strong adjusted free cash flow generation of €1.8 billion in 2022, ahead of our recently raised
annual medium-term objective of at least €1.7 billion.
Shareholder experience
• Share price performance – highest share price in history of Company of US$62.30 achieved
during the performance period. Share price at vesting was around two thirds above the
grant price.
• Significant value delivered to shareholders through continued payment of dividends - FY22
dividend per share of €1.68, (+20.0% versus 2021), and cumulative dividends of €1.8 billion over
the period, maintaining an annualised dividend pay-out ratio of approximately 50%.
• Strong TSR growth – 16% growth over the three year period, which was between median and
upper quartile performance versus FMCG peers and outperformed both the FTSE 100 (4%)
and Euronext 100 (13%).
• Total of over US$1.9 billion of value being delivered to shareholders over the three year
performance period (€1.8 billion in dividends and €129 million in share buybacks).
Successful acquisition and integration of CCL
• Completed the Acquisition in May 2021 to become a truly global bottler, and solidify our
position as the largest Coca-Cola bottler by revenue in the world.
• First full year as Coca-Cola Europacific Partners, integration now well advanced with portfolio
reorientation initiatives nearing completion and strong financial performance in 2022
(achieving both revenue and operating profit ahead of pre-pandemic levels).
Continued delivery of our sustainability agenda
• CCEP’s focus on long-term value creation and innovation positions sustainability at the heart of
everything we do. Over the 2020 LTIP performance period we delivered the following in
Europe:
– Reduction in European total incident rate 2019–2022 from 1.45 to 1.04
– Approximately 30% GHG emissions reduction across our value chain since 2010 and
11.4% since 2019
– Reduction in water use ratio 2019–2022 from 1.60 to 1.57
– Achieved >50% rPET target four years early in Europe, ending 2022 with an average of 56.3%
PET used which is rPET
Wider workforce and other stakeholder experiences
• Our primary focus throughout the performance period, in the context of the global pandemic
and macro geopolitical environment, was on the safety and wellbeing of our colleagues. This
included emotional and mental wellbeing support through a COVID-19 support hub, an
expanded Employee Assistance Programme, and a significant Mental Health First Aider
programme to provide ongoing support to all employees.
• In recognition of the rising cost of living, one-off payments were delivered in 2022 to our lowest
paid colleagues in selected markets.
• As disclosed in last year’s remuneration report, there was limited financial impact on all
employees during the pandemic with continued frontline and group incentive payouts, limited
use of government support schemes with a total value received of less than 0.2% of total
employee expenditure, and continued salary increases for all employees in 2020 and for over
75% of employees in 2021. In 2022, we launched our Employee Share Purchase Plan for all our
colleagues.
• Focus on our communities – our staff in Europe volunteered 28,562 hours with a total of
€12.2 million in community investment in Europe and API. Our Support my Cause initiative
enables our people to nominate and support grassroots charitable and community causes. In
2022, we donated €270,000 to 38 local charities and community groups across our territories. In
addition, we donated over €480,000 to support 135 grassroots charitable and community
partnerships located close to our sites and offices. Following its success in Europe, we launched
the programme in Indonesia and New Zealand in 2022.
• Focus on our customers – we have an unrivalled customer coverage with whom we jointly
create value, with more than €2 billion added to the FMCG industry since 2020.
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2022 Integrated Report and Form 20-F
133
Annual report on remuneration continued
Awards granted in 2022 (audited)
A conditional award of performance share units (PSUs) was granted under the CCEP LTIP to
Damian Gammell on 10 March 2022, with a target value of 250% of salary in line with the
remuneration policy. The performance measures were unchanged from the prior year and
continued to align with the long-term strategy – EPS, ROIC and CO2e reduction. Given the
significant market uncertainty caused by the geopolitical situation in March 2022, the targets
were not set until September 2022. Targets were set at stretching levels and on the same basis as
in prior years, taking into account both our long-term plan and external forecasts.
Further details are set out below:
Maximum
number of
Shares
under award
Target
number of
Shares under
award(A)
Closing
Share price
at date
of award
Date of
award
Face value
10 Mar 2022
163,776
81,888
US$45.42 US$7,438,706
Performance
period
1 Jan 2022 –
31 Dec 2024
Normal
vesting
date
10 Mar 2025
Individual
Damian
Gammell
(A) Number of Shares awarded calculated using 10 day average share price to the normal grant date (10 March 2022) of US$48.63.
The vesting of awards is subject to the achievement of the following performance targets:
Measure
EPS(A)
ROIC(B)
Definition
EPS achieved in the final year of the
performance period (FY 2024)
ROIC achieved in the final year of the
performance period (FY 2024)
Vesting level(D) (% of target)
Weighting
42.5%
25%
€3.19
100%
€3.58
200%
€3.85
42.5%
8.8%
9.7%
10.4%
CO2e reduction(C) Relative reduction in total value chain
GHG emissions since 2021 (gCO2e/litre)
15%
6.0%
per litre
8.0%
per litre
10.0%
per litre
(A) Comparable and on a tax and currency neutral basis, adjusted for brand sales and material non-cash equity accounting
adjustments. Should there be share repurchases during the performance period, an adjustment will be made to neutralise for
the impact of share repurchases and will be fully disclosed at the time of vesting.
(B) ROIC calculated as comparable operating profit after tax attributable to shareholders, on a tax and currency neutral basis,
divided by the average of opening and closing invested capital for the year, adjusted for brand sales and material non-cash
equity accounting adjustments. Invested capital is calculated as the addition of borrowings and equity attributable to
shareholders less cash and cash equivalents and short-term investments.
(C) Target based on entire value chain in Europe. The target will be adjusted to include our API markets once work is completed
to amalgamate our calculations of GHG emissions across the entire business.
(D) Straight-line vesting between each vesting level (shown).
Any award vesting for the CEO will be subject to a two year post-vesting holding period.
Historical TSR performance and CEO remuneration outcomes
The chart below compares the TSR performance of CCEP from admission up until 31 December
2022 with the TSR of the Euronext 100, the FTSE 100 and the S&P 500. These indices have been
chosen as recognised equity market indices of companies of a similar size, complexity and global
reach as CCEP.
30 trading day average data: against S&P 500, Euronext 100 and FTSE 100
The following table summarises the historical CEO’s single figure of total remuneration and
annual bonus pay out as a percentage of the maximum opportunity over this period:
2016(A)
2016(A)
2017
2018
2019
2020
2021
2022
John
Brock
Damian
Gammell
Damian
Gammell
Damian
Gammell
Damian
Gammell
Damian
Gammell
Damian
Gammell
Damian
Gammell
US$3,890
£27
£3,716
£3,821
£7,839
£5,513
£7,672
£11,819
31.23%
40.6%
60.7%
63.1%
43.7%
35.3%
84.1%
85.8%
N/A
N/A
N/A
N/A
59.0%
36.5%
45.0%
92.5%
CEO single figure of
remuneration (‘000)
Annual bonus pay out
(as a % of maximum
opportunity)
LTI vesting
(as a % of maximum
opportunity)
(A) The figures for 2016 are in respect of the period for which each individual served as CEO during the year. John Brock served as
CEO from 29 May to 28 December 2016. Damian Gammell served as CEO from 29 December to 31 December 2016.
Total shareholder return dataCCEPS&P 500Euronext 100FTSE 100May 2016Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022050100150200250300
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2022 Integrated Report and Form 20-F
134
Annual report on remuneration continued
Percentage change in CEO and Director remuneration
The table below shows the percentage change in CEO and Director remuneration from 2021 to
2022 compared to the average percentage change in remuneration for all employees of the
Parent Company, in line with the revised reporting regulations.
Comparator
CEO
All employees
Other Directors
Sol Daurella
Manolo Arroyo(A)
Jan Bennink
John Bryant(B)
José Ignacio Comenge Sánchez-Real
Christine Cross
Nathalie Gaveau
Álvaro Gómez-Trénor Aguilar
Thomas H. Johnson
Dagmar Kollmann
Alfonso Líbano Daurella
Mark Price
Mario Rotllant Solá
Brian Smith(C)
Dessi Temperley(D)
Garry Watts
Base
salary/fee
2022
Taxable
benefits(E)
2.5%
3.4%
2.4%
71.9%
(7.8)%
3.5%
2.0%
1.6%
6.5%
2.4%
2.7%
16.8%
1.0%
5.8%
14.3%
6.5%
15.3%
(7.5)%
0.7%
0.6%
200.0%
n/a
200.0%
125.0%
125.0%
80.0%
200.0%
100.0%
550.0%
150.0%
n/a
200.0%
125.0%
500.0%
150.0%
50.0%
Annual
bonus
4.6%
11.7%
Base
salary/fee
0.4%(F)
1.7%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
0.0%
n/a
0.0%
n/a
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
109.1%
69.0%
0.0%
2021
Taxable
benefits(E)
0.0%
1.1%
0.0%
n/a
100.0%
n/a
300.0%
400.0%
0.0%
100.0%
n/a
300.0%
n/a
0.0%
300.0%
n/a
n/a
n/a
Annual
bonus
139.4%
139.9%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Base
salary/fee
2020
Taxable
benefits(E)
2.0%
2.7%
0.5%
n/a
0.0%
n/a
1.0%
(1.5)%
0.0%
0.0%
3.5%
71.2%
1.0%
71.7%
1.0%
n/a
n/a
0.8%
5.5%
0.2%
0.0%
n/a
(66.7)%
n/a
(80.0)%
(75.0)%
(66.7)%
(71.4)%
(100.0)%
(83.3)%
(100.0)%
(50.0)%
(80.0)%
n/a
n/a
(100.0)%
Annual
bonus
(17.5)%
(21.9)%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
(A) Appointed to the Board on 26 May 2021.
(B) Appointed to the Board on 1 January 2021.
(C) Appointed to the Board on 9 July 2020.
(D) Appointed to the Board on 27 May 2020.
(E) Reduction and increases in taxable benefits reflect the impact of travel restrictions across 2020, 2021 and 2022.
(F) No increase was applied for 2021, but small increase reflects the 2020 salary increase applying only from 1 April 2020.
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2022 Integrated Report and Form 20-F
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Annual report on remuneration continued
Relative importance of spend on pay
The table below shows a summary of distributions to shareholders by way of dividends and share
buyback as well as total employee expenditure for 2021 and 2022, along with the percentage
change of each.
The Committee has chosen Option B (hourly gender pay gap information as at 5 April 2022) to
determine the ratios, as that data was already available and provides a clear methodology to
calculate full time equivalent earnings. No component of pay and benefits has been omitted for
the purposes of the calculations.
Total employee expenditure
Dividends(A)
(A) There were no share buybacks in 2021 or 2022.
2022
€2,318m
€763m
2021
% change
€2,016m
€638m
15.0%
19.6%
CEO pay ratio
The table below shows the ratio of the CEO’s single figure of remuneration for 2022 to the 25th
percentile, median and 75th percentile total remuneration of full time equivalent GB employees.
The ratio is heavily influenced by the fact that the CEO participates in the LTIP. If the LTIP is
excluded from the calculation then the median ratio would be 74:1. The main reason for the
increase in the ratio from 2020 to 2021, and 2021 to 2022 is the CEO’s increasing bonus and LTIP
values in each year.
Year
2022
2021
2020
2019
Method
25th percentile
ratio
Option B
281:1(A)
221:1
175:1
250:1
Median
ratio
171:1(B)
162:1
105:1
169:1
75th percentile
ratio
130:1(C)
92:1
83:1
111:1
(A) The individual used in this calculation received total pay and benefits of £42,000 (of which £26,000 was salary).
(B) The individual used in this calculation received total pay and benefits of £69,000 (of which £46,000 was salary).
(C) The individual used in this calculation received total pay and benefits of £91,000 (of which £61,000 was salary).
The Committee is satisfied that the individuals whose remuneration is used in the above
calculations are reasonably representative of employees at the three percentile points, having
also reviewed the remuneration for individuals immediately above and below each of these
points and noted that the spread of ratios was acceptable. No adjustments were made to the
three reference points selected.
The Committee believes the median ratio is consistent with the pay and reward policies for
CCEP’s GB employees. CCEP is committed to offering an attractive package for all employees.
Salaries are set with reference to factors such as skills, experience and performance of the
individual, as well as market competitiveness. All employees receive a wide range of employee
benefits and a large number are eligible for an annual bonus. Our LTIP is designed to link
remuneration to the delivery of long-term strategic objectives and therefore participation is
typically offered to senior employees who have the ability to influence these outcomes. The 25th
percentile, median and 75th percentile employees identified in the above calculation do not
participate in the LTIP. As the CEO participates in the LTIP, the ratio will be influenced by vesting
outcomes and will likely vary year on year. In consideration of these points, the Committee
considers that the levels of remuneration are appropriate.
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Annual report on remuneration continued
Payments to past Directors (audited)
There were no payments to past Directors during the year, other than those disclosed elsewhere
in this report.
Payments for loss of office (audited)
There were no payments for loss of office during the year.
Statement of Directors’ share ownership and share interests (audited)
Interests of the CEO
The CEO is required to hold 300% of their base salary in Shares. The guideline is expected to be
met within five years of appointment. Until the guideline is met, 50% of any vested Shares from
incentive awards (after tax) must be retained. The guideline continues to apply for one year
following termination of employment.
Share ownership requirements and the number of Shares held by Damian Gammell are set out in
the table below.
Interests in
share incentive
schemes
subject to
performance
conditions at
31 December
2022(A)(B)(C)
Interests in
Shares at 31
December 2022
Share
ownership
requirement
as a %
of salary
Share
ownership
as a % of salary
achieved at
31 December
2022(D)
Shareholding
guideline
met
Interests in
share option
schemes(A)(B)
Damian
Gammell(E)
399,323
469,446
324,643
300%
1,500%
ü
(A) For further details of these interests, please refer to footnote (C) of the outstanding awards table below.
(B) Do not count towards achievement of the share ownership guideline.
(C) The CEO has no interests in share incentive schemes not subject to performance conditions at 31 December 2022.
(D) The Remuneration Committee has simplified our share ownership policy to calculate shareholdings based on the prevailing
share price and salary at 31 December 2022.
(E) A further 144,544 shares will vest under the 2020 LTIP on 17 March 2023.
Details of the CEO’s share awards are set out in the table below.
Director
and grant date
Damian Gammell(A)
1 Mar 2019
17 Mar 2020
29 Sep 2021
10 Mar 2022
Form of award
Exercise price
Number of Shares
subject to awards at
31 December 2021
Granted
during the year
Vested
during the year
Exercised
during the year
Lapsed
during the year
Number of Shares
subject to awards at
31 December 2022
End of
performance
period
Vesting date
PSU(B)
PSU(C)(D)
PSU(C)
PSU(C)
N/A
N/A
N/A
N/A
156,008
156,264
149,406
–
–
–
–
163,776
70,204
–
–
–
N/A
N/A
N/A
N/A
85,804
–
31 Dec 2021
1 Mar 2022
–
–
–
156,264
149,406
163,776
31 Dec 2022
17 Mar 2023
31 Dec 2023
15 Mar 2024
31 Dec 2024
10 Mar 2025
(A) In addition, the CEO has 324,643 vested but unexercised options with an expiry date of 5 November 2025 and an exercise price of US$39.00. No options were exercised by the CEO during the year.
(B) The performance condition was satisfied at 45% of maximum on 31 December 2021. Award vested on 1 March 2022.
(C) The number of Shares shown is the maximum number of Shares that may vest if the performance targets are met in full.
(D) The 2020 PSU awards vested at 185% of target (144,544 shares) on 17 March 2023.
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2022 Integrated Report and Form 20-F
137
Annual report on remuneration continued
Interests of other Directors (audited)
The table below gives details of the Share interests of each NED either through direct ownership
or connected persons.
Single figure table for NEDs (audited)
The following table sets out the total fees and taxable benefits received by the Chairman and
NEDs for the year ended 31 December 2022. Prior year figures are also shown.
Sol Daurella(A)(B)
Manolo Arroyo
Jan Bennink
John Bryant
José Ignacio Comenge Sánchez-Real(A)
Christine Cross
Nathalie Gaveau
Álvaro Gómez-Trénor Aguilar(A)
Thomas H. Johnson
Dagmar Kollmann
Alfonso Líbano Daurella(A)
Mark Price
Mario Rotllant Solá
Brian Smith
Dessi Temperley
Garry Watts
(A) Shares held indirectly through Olive Partners. The number of Shares increased slightly during the year as a result of a
reduction in Olive Partners’ share capital.
(B) For the purposes of Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations
2008 (as amended), Sol Daurella (and her connected persons within the meaning of section 252 of the Companies Act) are
deemed to be interested in the shares held by Olive by virtue of their indirect minority interest in Cobega S.A, which indirectly
owns 57.4% of Olive.
Dilution levels
The terms of the Company’s share plans set limits on the number of newly issued Shares that
may be issued to satisfy awards. In accordance with guidance from the Investment Association,
these limits restrict overall dilution under all plans to under 10% of the Company’s issued share
capital over a 10 year period in relation to the Company’s issued share capital, with a further
limitation of 5% in any 10 year period on discretionary plans.
Interests in Shares at
31 December 2022
33,358,143
–
49,790
3,340
7,836,065
Individual
Sol Daurella
Manolo Arroyo(B)
Jan Bennink
John Bryant
–
–
José Ignacio
Comenge Sánchez-
Real
3,141,311
14,000
–
6,696,072
–
–
–
–
10,000
Christine Cross
Nathalie Gaveau
Álvaro Gómez-
Trénor Aguilar
Thomas H. Johnson
Dagmar Kollmann
Alfonso Líbano
Daurella
Mark Price
Mario Rotllant Solá
Brian Smith
Dessi Temperley
Garry Watts
2022 (£’000)
Chairman/
Committee
fees
Taxable
benefits(A)
Total fees
Base fee
2021 (£’000)
Chairman/
Committee
fees
Taxable
benefits(A)
Total fees
26
26
34
33
16
46
14
–
37
48
20
25
28
14
29
40
3
8
12
9
9
9
3
8
13
10
3
6
9
12
10
6
607
118
130
126
109
139
101
92
166
142
107
115
121
110
123
130
564
49
82
82
82
82
82
82
113
82
82
82
82
82
82
82
26
15
46
31
16
46
10
–
36
31
21
21
16
10
16
52
1
0
4
4
4
5
1
4
2
4
0
2
4
2
4
4
591
64
132
117
102
133
93
86
151
117
103
105
102
94
102
138
Base
fee
578
84
84
84
84
84
84
84
116
84
84
84
84
84
84
84
(A) Taxable benefits mainly relate to travel and accommodation costs in respect of attendance at Board meetings with FX rates
used as at the date of the relevant meeting. Former director Irial Finnan received a taxable benefit in 2022 with a value of
£5,000 in respect of attendance at a Board event delayed from 2021.
(B) Appointed to the Board on 26 May 2021.
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Annual report on remuneration continued
Implementation of remuneration policy for 2023
Base salary
Damian Gammell will receive a 2.0% salary increase effective 1 April 2023. This is lower than the
average merit increase provided to the wider GB workforce of 6.0%.
Individual
Damian Gammell
2022 salary
£1,217,098
2023 salary
(effective from 1 April)
% increase
£1,241,440
2.0%
Taxable benefits
No significant changes to the provision of benefits are proposed for 2023. The main benefits for
Damian Gammell will continue to include allowances in respect of: a car, financial planning,
schooling and private healthcare.
Pension
No changes are proposed in respect of the pension provision for Damian Gammell. He will
continue to receive a cash allowance of £30,000 (inclusive of employer National Insurance
contributions) in lieu of participation in the pension scheme.
Annual bonus
No changes have been made to the structure of the annual bonus plan for 2023, and the
opportunity for Damian Gammell will remain unchanged at 150% of salary for target
performance and 360% for maximum performance.
Performance will continue to be assessed against financial and individual performance measures
on a multiplicative basis as set out on page 130. The financial measures and relative weightings
will also remain unchanged.
In determining the IPF for Damian Gammell for 2023, he will be assessed against a number of
objectives which are aligned to the key longer-term strategic objectives of the business, which include:
Objectives include:
• Growth in market share aligned with the business plan
• Competitiveness targets as agreed with the Board
• ID&E targets linked to % of female leaders and our ID&E strategy
The actual financial targets are not disclosed prospectively as they are deemed commercially
sensitive. We intend to disclose them in next year’s ARR. A fuller description of individual performance
objectives including specific quantitative measures (where appropriate) and their outcomes will also
be disclosed in next year’s ARR.
Long-term incentive
Damian Gammell’s long-term incentive opportunity for 2023 will be aligned with the limits set
out in the remuneration policy. He was granted a target award of 250% of salary on 13 March 2023
and may receive up to two times this target award (130,738 shares) if the maximum performance
targets are achieved.
The 2023 LTIP award will continue to be based on a mix of EPS, ROIC, and CO2e reduction,
unchanged from last year.
The financial targets have been set at stretching levels taking into account both our long-term
plan and external forecasts.
Following the end of the performance period, awards will be subject to an additional two year
holding period.
Measure
Definition
Operating profit
Comparable operating profit on a FX neutral basis at budget rates
Revenue
Revenue on a FX neutral basis at budget rates
Operating free cash flow Comparable operating profit before depreciation and
amortisation and adjusting for capital expenditures, restructuring
cash expenditures and changes in operating working capital, on a
FX neutral basis at budget rates
Weighting
50%
30%
20%
Measure
EPS(A)
ROIC(B)
Definition
EPS achieved in the final year of the
performance period (FY 2025)
ROIC achieved in the final year of the
performance period (FY 2025)
Vesting level(D) (% of target)
Weighting
42.5%
25%
€3.63
100%
€4.07
200%
€4.37
42.5%
10.8%
12.0%
13.1%
CO2e reduction
Relative reduction in total value chain
GHG emissions since 2022 (gCO2e/litre)
15%
12.0%
per litre
14.5%
per litre
17.0%
per litre
(A) Comparable and on a tax and currency neutral basis, adjusted for brand sales and material non-cash equity accounting
adjustments. Should there be share repurchases during the performance period, an adjustment will be made to neutralise for
the impact of share repurchases and will be fully disclosed at the time of vesting.
(B) ROIC calculated as comparable operating profit after tax attributable to shareholders, on a tax and currency neutral basis,
divided by the average of opening and closing invested capital for the year, adjusted for material non-cash equity accounting
adjustments. Invested capital is calculated as the addition of borrowings and equity attributable to shareholders less cash and
cash equivalents and short-term investments.
(C) Target based on entire CCEP value chain.
(D) Straight-line vesting between each vesting level shown.
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Annual report on remuneration continued
Chairman and NED fees
The NED base fee, Chairman fee and additional fees were last increased with effect from 1 April
2022. The additional fees for the Nomination Committee Chairman and membership of the
Nomination Committee were increased with effect from 1 April 2023.
Role
Chairman
NED basic fee
Additional fee for Senior
Independent Director
Additional fee for
Committee Chairman
Additional fee for
Committee membership
Audit and Remuneration Committees
Affiliated Transaction and ESG
Committees
Nomination Committee
Audit and Remuneration Committees
Affiliated Transaction and ESG
Committees
Current fees
Fees effective
1 April 2023
£582,000
£582,000
£85,000
£31,750
£37,250
£36,000
£21,250
£16,000
£15,500
£85,000
£31,750
£37,250
£36,000
£36,000
£16,000
£15,500
Nomination Committee
£10,500
£15,500
The Remuneration Committee
The entire Board determines the terms of the compensation of the CEO and fees for the NEDs
and Chairman and approves the remuneration policy, all on the Committee’s recommendation.
The Committee is also responsible for setting the remuneration for each member of the ELT
reporting to the CEO.
The Terms of Reference can be found on our website at cocacolaep.com/about-us/governance/
committees
Remuneration Committee members and attendance
In line with the Shareholders’ Agreement, the Committee has five members, as set out on pages
89-93. There are three independent NEDs, one Director nominated by Olive Partners and one
Director nominated by ER. The Committee formally met six times during the year, with one
additional ad hoc meeting in line with business needs. Attendance is set out in Table 2 on page
105 of the Corporate governance report.
As described in the remuneration policy, the Committee receives an annual report in respect of
wider workforce remuneration including pay and reward policies, which informs its decisions on
executive pay. The Committee does not engage directly with employees on the issue of
executive pay, however, within CCEP, employee groups are regularly consulted about matters
affecting employees including our strategy, Company performance, culture and approach to
reward, and this feedback informs decisions on people matters and other activities.
Support for the Remuneration Committee
Deloitte was appointed by the Remuneration Committee in 2016 following a selection process.
During the year, Deloitte provided the Committee with external advice on executive
remuneration. Deloitte is a member of the Remuneration Consultants Group and has voluntarily
signed up to the Remuneration Consultants’ Code of Conduct relating to executive
remuneration consulting in the UK. The Committee is satisfied that the engagement partner and
team that provide advice to the Committee do not have connections with CCEP or individual
Directors that may impair their independence. During 2022, the wider Deloitte firm also provided
CCEP with other tax, digital transformation, access security and consultancy services.
Total fees received by Deloitte in relation to the remuneration advice provided to the
Committee during the year amounted to £69,200 based on the required time commitment.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
140
Annual report on remuneration continued
Remuneration Committee key activities
The table below gives an overview of the key agenda items discussed at each scheduled meeting
of the Remuneration Committee during 2022:
Summary of voting outcomes
The table below shows how shareholders voted in respect of the ARR at the AGM held on 27 May
2022 and the remuneration policy at the AGM held on 27 May 2020:
Meeting date
Key agenda items
February 2022
• Approval of financial performance outcome
• Approval of 2021 annual bonus outcome
for 2021 annual bonus
for the ELT
Resolution
Approval of the ARR
• Approval of final vesting outcome for 2019
• Review of ELT individual objectives in
Approval of the remuneration policy
LTIP
respect of the 2022 annual bonus
Votes
for (%)
86.18%
99.48%
Votes
against (%)
Number of votes
withheld
13.82%
0.52%
11,992,026
56,633
March 2022
• Approval of 2022 annual bonus financial
• Approval of 2022 ELT Remuneration
This Directors’ remuneration report is approved by the Board and signed on its behalf by
performance measures and targets
packages
• Approval of 2022 LTIP opportunities
• Review of 2021 Remuneration Report
• Review of Committee effectiveness
• Review of Chairman and NED fees
John Bryant, Chairman of the Remuneration Committee
17 March 2023
May 2022
• Review of remuneration policy
• AGM voting update
• Review of Committee Terms of Reference
• Deloitte Market Update
• Advisor review
• Update on Employee Share Purchase
Plan (ESPP)
September 2022 • Approval of 2022 LTIP targets
• Review of executive shareholding
• Review of remuneration policy
guidelines
October 2022
• Review of 2022 annual bonus and 2020 LTIP
• Update on Remuneration Committee
performance
advisors
• Approach to shareholder consultation
December 2022 • Review of first draft of the 2022
• Base pay design for 2023
Remuneration Report
• Performance update for 2022 annual bonus
• Incentive design for 2023
The Chairman, CEO, CFO, and the Chief People and Culture Officer attended meetings by
invitation of the Committee to provide it with additional context or information, except where
their own remuneration was discussed.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
141
Directors’ report
The Directors present their report, together with the audited
consolidated financial statements of the Group, and of the
Company, for the year ended 31 December 2022.
This Directors’ report has been prepared in accordance with the applicable disclosure
requirements of the following:
• Companies Act
• Listing Rules (LRs) and DTRs
• Statutory Audit Services for Large Companies Market Investigation (Mandatory Use of
Competitive Tender Processes and Audit Committee Responsibilities) Order 2014, as published
by the UK Competition and Markets Authority (with which the Company complies voluntarily)
• Rules promulgated by the US Securities and Exchange Commission
Additional information and disclosures, as required by the Companies Act, LRs and DTRs, are
included elsewhere in this Integrated Report and are incorporated into this Directors’ report by
reference in Table 1.
This Directors’ report, together with the Strategic Report on pages 1-85, represents the
management report for the purpose of compliance with DTR 4.1.5R(2) and 4.1.8R.
Directors
Appointment and replacement of Directors
The Articles set out certain rules that govern the appointment and replacement of the
Company’s Directors. These are summarised as follows:
• A Director may be appointed by either an ordinary resolution of shareholders or by the Board.
• Olive Partners and ER may each appoint a specified number of Directors, up to a set maximum,
in accordance with their respective equity holding proportions in the Company.
• Replacement INEDs must be recommended to the Board by the Nomination Committee.
• The Board shall consist of a majority of INEDs.
• Directors (other than the initial Chairman, CEO and INEDs) must retire at each AGM, and may,
if eligible, offer themselves for re-election.
• The minimum number of Directors (disregarding alternate Directors) is two.
Read more about the re-election and election of Directors in the Corporate governance report
on page 106
Table 1
Information and disclosures included elsewhere in this report
Disclosure
Section of report
Names of Directors during the year
Board of Directors
Review of performance, financial
position and likely future
developments
Dividends
Strategic Report
Business and financial review and Note 17 to the
consolidated financial statements
Principal risks
Principal risks section of the Strategic Report
Information on share capital
relating to share classes, rights and
obligations
Note 17 to the consolidated financial statements,
and the Share capital section in Other Group
information
Financial instruments and financial
risk management
Notes 13 and 26 to the consolidated financial
statements
Cash balances and borrowings
Significant events after the reporting
period
Information on employment of
disabled persons
Notes 11 and 14 to the consolidated financial
statement
Note 27 to the consolidated financial statements
Forward on society – people
Workforce engagement
Our stakeholders and Forward on society – people
Business relationships with suppliers,
customers and others
Our stakeholders, Forward on supply chain and
Forward on society – people
Page(s)
89-93
1-85
74-85 and
190-191
64-71
190-191 and
231-233
179-182 and
203-205
178 and
182-185
206
58-63
14-17 and
58-63
14-17, 49-52
and 58-63
Greenhouse gas emissions and
energy consumption
TCFD metrics and targets, Forward on climate
and greenhouse gas methodology
37, 38-41 and 252
Responsibility statement
Directors’ responsibilities statement
144
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
142
Directors’ report continued
Powers of Directors
The Directors may exercise all powers of the Company, in accordance with, and subject to, the
Company’s Articles and any applicable legislation.
Read more about the roles and responsibilities of the Board and the main Committees of the Board
in the Governance and Directors’ Report on pages 87-144
Directors’ indemnity arrangements
Qualifying third party indemnities were in place throughout 2022, and remain in place as at the
date of this Integrated Report. Under these indemnities, the Company has agreed to indemnify
the Directors of the Company, to the extent permitted by law, against losses and liabilities that
may be incurred in executing the powers and duties of their office.
Amendment of Articles
The Articles may only be amended by a special resolution of the Company’s shareholders in
accordance with the Companies Act. Certain provisions of the Articles are entrenched and may
only be amended or repealed with the prior consent of Olive Partners, ER or a majority of the
INEDs (as applicable). In particular, the requirement under the Articles that the Board shall, at all
times, contain a majority of INEDs may only be amended or repealed with the prior consent of a
majority of the INEDs. The Articles are available at cocacolaep.com/about-us/governance.
Political donations
The Group made no political donations or contributions during 2022 (2021: nil). It is our policy not
to make political donations or incur political expenditure. However, there may be uncertainty as
to whether some normal business activities fall under the wide definitions of political donations,
organisations and expenditure used in the Companies Act. We will therefore continue to seek
shareholder approval to make political donations or incur expenditure as a precaution to avoid
any inadvertent breach of the Companies Act.
Shares
Rights and obligations
The rights and obligations relating to the Company’s Shares (in addition to those set out by law)
are contained in the Articles.
Restrictions on transfer of securities
Olive Partners and TCCC are both subject to certain restrictions relating to the acquisition or
disposal of Shares under the terms of the Shareholders’ Agreement. Other than those set out in
the Shareholders’ Agreement, we are not aware of any agreements between shareholders that
may result in a restriction of the transfer of securities or voting rights in the Company.
Employee share schemes
Shares issued under the Company’s employee share schemes rank pari passu with the existing
Shares of the Company. Voting rights attached to Shares held on trust on behalf of participants
in the GB Employee Share Plan are exercised by the trustee as directed by the participants.
Significant shareholdings
In accordance with DTR 5.8, Table 2 below shows the significant interests in Shares of which the
Company has been notified as at 31 December 2022, and the date of this report. The
shareholders identified have the same voting rights as all other shareholders.
Share buyback programme
The Company announced a share buyback programme on 13 February 2020, under which it
proposed to reduce share capital by up to €1 billion through the purchase and cancellation of its
own Shares (the Buyback Programme). Share purchases for the Buyback Programme were
undertaken pursuant to shareholder authority granted at the 2019 AGM.
In light of the significant and unprecedented macroeconomic uncertainty brought about by the
outbreak of COVID-19, on 23 March 2020, the Company announced a suspension of the Buyback
Programme. To maintain flexibility, the shareholder authority to purchase Shares was renewed at
the 2022 AGM, under which the Company may purchase up to 45,677,101 Shares, representing
10% of the Company’s issued share capital at 11 April 2022, reduced by the number of Shares
purchased or agreed to be purchased between 11 April and 27 May 2022. No Shares were
purchased under this authority in 2022.
We intend to seek to renew the authority to purchase Shares at the 2023 AGM.
For more details, see the Share buyback programme section in Other Group information on page 232
Table 2
Interests in Shares of which the Company has been notified
Percentage of
total voting rights
notified to the
Company as at
the year end(C)
Number of
voting rights notified
to the Company as at
the year end
36.1%
19.01%
166,128,987
87,950,640
Percentage of
total voting rights
notified to the
Company as
at the date of
this report(C)
36.1%
19.01%
Number of
voting rights
notified to the
Company as
at the date of
this report
166,128,987
87,950,640
Shareholder
Cobega, S.A.(A)
TCCC(B)
(A) Held indirectly through its 56.03% owned subsidiary, Olive Partners.
(B) Held indirectly through European Refreshments Unlimited Company.
(C) Percentage interests disclosed calculated as at the date on which the relevant disclosure was made. These have not been
updated to reflect changes in the total voting rights since notification and so may not represent the percentage interest as
at 31 December 2022 or the date of this report.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
143
Directors’ report continued
Change of control
There are no agreements in place which provide compensation for loss of office or employment
to any Director in the event of a takeover, except for certain provisions under the employee
share plans, which may provide that certain outstanding awards may vest early in such an event.
The Board considers that a change of control might have an impact on the following significant
agreements:
• Bottling agreements between the Group and TCCC
• A bank credit facility agreement, under which the maximum amount available at 31 December
2022 was €1.95 billion
• Note and guarantee agreement in relation to the A$250 million 4.20% Notes 2031
• Note and guarantee agreement in relation to the US$50 million 4.34% Notes 2023
Research and development
The Company invests in and undertakes certain activities for the development of innovative
solutions, digital capabilities and advanced analytics to drive the simplification of applications
and platforms, and to support and grow its business in both its manufacturing and non-
manufacturing operations.
Independent auditor
Disclosure of information to auditors
Each of the Directors in office as at the date of this Integrated Report, confirms that:
• so far as he or she is aware, there is no relevant audit information (as defined by section 418 of
the Companies Act) of which the Company’s auditor is unaware; and
• he or she has taken all the reasonable steps that he or she ought to have taken as a Director to
make himself or herself aware of any relevant audit information and to establish that the
Company’s auditor is aware of that information.
Auditor reappointment
EY has expressed willingness to continue in its capacity as independent auditor of the Company.
The Directors plan to recommend a resolution to reappoint EY at the 2023 AGM.
Going concern
As part of the Directors’ consideration of the appropriateness of adopting the going concern
basis in preparing the Parent Company and consolidated financial statements, the Directors have
taken into account the Group’s overall financial position, exposure to the principal risks and
future business forecasts. For the Parent Company, the Directors also considered the ability of its
subsidiaries to remit earnings. At 31 December 2022, the Group had cash and cash equivalents of
€1.4 billion and had access to a €1.95 billion undrawn committed credit facility, which is free of
financial covenants and in place until at least January 2028. The Directors have also considered
the stress testing performed as part of the assessment of viability set out on page 72.
On this basis, the Directors have a reasonable expectation that the Group and Parent Company
has adequate resources to continue in operational existence for a period of 12 months from the
date of signing these accounts.
This Directors’ Report has been approved by the Board and signed on its behalf by
Clare Wardle, Company Secretary
17 March 2023
Coca-Cola Europacific Partners plc
09717350
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
144
Directors’ responsibilities statement
Responsibility for preparing
financial statements
The Directors are responsible for preparing the
Integrated Report and the financial
statements in accordance with applicable
United Kingdom (UK) law and regulations.
UK company law requires the Directors to
prepare financial statements for each financial
year. Under that law, the Directors have
prepared Group and Parent Company
financial statements in accordance with
UK-adopted International Accounting
Standards. In preparing the consolidated
Group financial statements the Directors have
also elected to comply with International
Financial Reporting Standards (IFRS) as
adopted by the European Union, and
International Financial Reporting Standards as
issued by the International Accounting
Standards Board (IASB).
Under section 393 of the Companies Act, the
Directors must not approve the financial
statements unless they are satisfied that they
give a true and fair view of the state of affairs
of the Company and of the Group and of the
profit or loss of the Company and of the
Group for that period.
In preparing the Company financial
statements, the Directors are required to:
• Select suitable accounting policies and apply
them consistently
• Make judgements and accounting estimates
that are reasonable and prudent
• Follow UK-adopted International Accounting
Standards, International Financial Reporting
Standards as adopted by the European
Union, and International Financial Reporting
Standards as issued by the IASB
• Prepare the financial statements on a going
concern basis unless it is inappropriate to
presume that the Company will continue in
business
In preparing the Group financial statements
the Directors are required to:
• Select suitable accounting policies and apply
them consistently
• State whether UK-adopted International
Accounting Standards, International
Financial Reporting Standards as adopted by
the European Union, and International
Financial Reporting Standards as issued by
the IASB have been followed, subject to any
material departures disclosed and explained
in the financial statements
• Present information, including accounting
policies, in a manner that provides relevant,
reliable, comparable and understandable
information
• Provide additional disclosures when
compliance with the specific requirements in
IFRS are insufficient to enable users to
understand the impact of particular
transactions, other events and conditions on
the entity’s financial performance
• Make an assessment of the Group’s ability to
continue as a going concern
The Directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the Group’s and
Company’s transactions and disclose with
reasonable accuracy at any time the financial
position of the Group and the Company and
enable them to ensure that the financial
statements comply with the Companies Act.
They are responsible for safeguarding the
assets of the Group and Company and hence
for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Under applicable law and regulations, the
Directors are also responsible for preparing a
Strategic Report, Directors’ report, Annual
report on remuneration, and Corporate
governance report that comply with that law
and those regulations. The Directors are
responsible for the maintenance and integrity
of the corporate and financial information
included on the company’s website.
Legislation, regulation and practice in the UK
governing the preparation and dissemination
of financial statements may differ from
legislation, regulation and practice in other
jurisdictions.
Responsibility statement
The Directors, whose names and functions are
set out on pages 89-93, confirm that to the
best of their knowledge:
• The consolidated financial statements,
prepared in accordance with UK-adopted
International Accounting Standards,
International Financial Reporting Standards
as adopted by the European Union and
International Financial Reporting Standards
as issued by the IASB, give a true and fair view
of the assets, liabilities, financial position and
profit or loss of the Company and the
undertakings included in the consolidation
taken as a whole.
• The Strategic Report includes a fair review of
the development and performance of the
business and the position of the Company
and the undertakings included in the
consolidation taken as a whole, together with
a description of the principal risks and
uncertainties they face.
• The Integrated Report and financial
statements, taken as a whole, are fair,
balanced and understandable and provide
the information necessary for shareholders
to assess the Company’s position and
performance, business model and strategy.
By order of the Board
Clare Wardle, Company Secretary
17 March 2023
Financial Statements
In this section
Independent auditor’s reports
Consolidated financial statements
Notes to the consolidated financial statements
Company financial statements
Notes to the Company financial statements
146
160
165
213
217
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
146
Independent auditor’s report to the members of Coca-Cola Europacific Partners plc
Opinion
In our opinion:
• Coca-Cola Europacific Partners plc’s Group financial statements and Parent company financial
statements (the “financial statements”) give a true and fair view of the state of the Group’s and
of the Parent Company’s affairs as at 31 December 2022, and of the Group’s and the Parent
Company’s profit for the year then ended;
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the financial statements section of our report. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
• the Group and Parent Company financial statements have been properly prepared in
accordance with U.K. adopted International Accounting Standards; International Financial
Reporting Standards (‘IFRS’) as adopted by the European Union and International Financial
Reporting Standards as issued by the International Accounting Standards Board (‘IASB’); and
• the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006.
Independence
We are independent of the Group and Parent in accordance with the ethical requirements that
are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We have audited the financial statements of Coca-Cola Europacific Partners plc (the ‘Parent
Company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2022 which
comprise:
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group
or the Parent Company and we remain independent of the Group and the Parent Company in
conducting the audit.
Group
Parent Company
Consolidated statement of financial position as at
31 December 2022
Statement of financial position as at 31 December
2022
Consolidated income statement for the year then
ended
Consolidated statement of comprehensive income
for the year then ended
Statement of comprehensive income for the year
then ended
Statement of cash flows for the year then ended
Consolidated statement of changes in equity for the
year then ended
Statement of changes in equity for the year then
ended
Consolidated statement of cash flows for the year
then ended
Related notes 1 to 12 to the financial statements
including a summary of significant accounting policies
Related notes 1 to 28 to the financial statements,
including a summary of significant accounting policies
The financial reporting framework that has been applied in their preparation is applicable law,
U.K. adopted International Accounting Standards, International Financial Reporting Standards
(‘IFRS’) as adopted by the European Union and International Financial Reporting Standards as
issued by the IASB.
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
147
Independent auditor’s report to the members of Coca-Cola Europacific Partners plc continued
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going
concern basis of accounting in the preparation of the financial statements is appropriate. Our
evaluation of the Directors’ assessment of the Group and Parent Company’s ability to continue to
adopt the going concern basis of accounting included:
• In conjunction with our walkthrough of the Group’s financial close process, we confirmed our
understanding of management’s going concern assessment process.
• We obtained management’s going concern assessment, including the liquidity forecast for the
going concern period which covers a year from the date of signing this audit opinion. The
Group has modelled downside scenarios in their liquidity forecasts in order to incorporate
unexpected changes to the forecasted liquidity of the Group. We understood the factors and
assumptions included in each modelled downside scenario and assessed the plausibility of
these in the context of our understanding of the Group and its principal risks, including
climate-related risks.
• We tested the clerical accuracy of the model used to prepare the Group’s going concern
assessment.
• We considered the appropriateness of the methods used to calculate the cash forecasts and
determined through inspection and testing of the methodology and calculations, that the
methods utilised were appropriate.
• We confirmed the cash and cash equivalents balance of €1.4 billion as at 31 December 2022 and
verified the cash flows from operating activities of €2.9 billion in the year. We obtained
evidence of the Group’s €1.95 billion revolving credit facility which is available through to
January 2028, noting no associated financial covenants. The facility is undrawn as at 16 March
2023.
• We reviewed the debt maturity ladder and concluded that all debt repayments were included
in the forecasts. We also checked that the Group is forecast to have sufficient liquidity to repay
debt which matures in the 12 months after the going concern period.
• We considered whether the Group’s forecasts used in the going concern assessment were
consistent with other forecasts used by the Group in its accounting estimates, including those
used in the annual impairment test.
• We assessed the ability of the subsidiaries of the Group to remit earnings to the Parent
Company.
• We reviewed the Group and Parent Company going concern disclosures included in the
Directors’ Report on page 143 and Note 1 to the consolidated and Parent Company financial
statements on pages 165 and 217 respectively, in order to assess that the disclosures were
appropriate and in conformity with the reporting standards.
Based on the work we have performed, we have not identified any material uncertainties relating
to events or conditions that, individually or collectively, may cast significant doubt on the Group
and Parent Company’s ability to continue as a going concern for a period of 12 months from
when the financial statements are authorised for issue.
In relation to the Group and Parent Company’s reporting on how they have applied the UK
Corporate Governance Code, we have nothing material to add or draw attention to in relation to
the Directors’ statement in the financial statements about whether the Directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are
described in the relevant sections of this report. However, because not all future events or
conditions can be predicted, this statement is not a guarantee as to the Group’s ability to
continue as a going concern.
Overview of our audit approach
Audit scope
• We performed an audit of the complete financial information of 7 components and audit
procedures on specific balances for a further 5 components.
• The components where we performed full or specific audit procedures accounted for
101% of adjusted profit before tax (measure used to calculate materiality), 85% of revenue
and 90% of total assets.
Key audit
matters
• Accrued customer marketing costs.
• Accounting for uncertain tax positions.
• Carrying value of goodwill and indefinite lived intangibles.
Materiality
• Overall Group materiality of €87 million which represents 4.7% of the adjusted profit before
tax.
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
148
Independent auditor’s report to the members of Coca-Cola Europacific Partners plc continued
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance
materiality determine our audit scope for each reporting component within the Group. Taken
together, this enables us to form an opinion on the consolidated financial statements. We take
into account size, risk profile, the organisation of the Group and effectiveness of Group wide
controls, changes in the business environment, the potential impact of climate change and other
factors such as recent Internal audit results when assessing the level of work to be performed at
each company.
In assessing the risk of material misstatement to the Group financial statements, and to ensure
we had adequate quantitative coverage of significant accounts in the financial statements, of
the 67 reporting components of the Group (17 of which are trading components), we selected 34
components covering 25 corporate components and 10 trading components, which represent
the principal business units within the Group.
Of the 34 components selected, we performed an audit of the complete financial information of
seven components (“full scope components”) which were selected based on their size or risk
characteristics. For five components (“specific scope components”), we performed audit
procedures on specific accounts within that component that we considered had the potential
for the greatest impact on the significant accounts in the financial statements either because of
the size of these accounts or their risk profile. We have also performed specified procedures over
22 locations, primarily in relation to the testing of cash and cash equivalents.
The table below illustrates the coverage obtained from the work performed by our audit teams.
Full scope
Specific scope
Coverage
Specified procedures
Remaining components
Total reporting components
Number
2022
2021
7
5
12
22
33
67
7
5
12
10
41
63
% Group adjusted
profit before tax
% Group revenue
% Total assets
2022
97%
4 %
101%
—%
(1) %
2021
101%
(4) %
97%
8%
(5) %
2022
75%
10%
85%
3%
12%
2021
76%
11%
87%
6%
7%
2022
84%
6%
90%
3%
7%
2021
See Notes
89%
A, B
4%
A, B, C, D
93%
3%
4%
B
E
100%
100%
100%
100%
100%
100%
Notes
(A) The Group audit risk in relation to tax was subject to audit procedures performed by both the component teams and the Group team.
(B) The Group audit risk in relation to accrued customer marketing costs was subject to audit procedures performed by the Group team and at six full scope components, three specific scope components and specified procedures at one component.
(C) The specific scope components relate to four trading components.
(D) The audit scope of these components may not have included testing of all significant accounts of the component but will have contributed to the coverage of significant accounts tested for the Group. Significant accounts that were not subject to the specific
scope audit procedures were subjected to testing of Group wide controls and analytical review.
(E) Of the remaining 33 components that together represent (1)% of the Group’s adjusted profit before tax, none are individually greater than 3% of the Group’s adjusted profit before tax. These components primarily record administrative expenses across the
Group. For the remaining components in this category, we performed other procedures, including testing of Group wide controls, analytical review procedures and testing of consolidation journals including intercompany eliminations to respond to any
potential risks of material misstatement to the Group financial statements.
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Changes from the prior year
We have not changed the full scope or specific scope components from the prior year as these
components remain the most significant to the Group, by size and risk, and the coverage remains
consistent with the prior year. We performed specified procedures for a larger number of
components, primarily relating to cash and cash equivalents across the Group.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that
needed to be undertaken at each of the components by us, as the primary audit engagement
team, or by component auditors from other EY global network firms operating under our
instruction. Of the seven full scope components, audit procedures were performed on six of
these directly by the component audit teams. For the 27 specific scope and specified procedures
components, five represented work performed directly by component auditors. Where the work
was performed by component auditors, we determined the appropriate level of involvement to
enable us to determine that sufficient audit evidence had been obtained as a basis for our
opinion on the Group as a whole.
During the current audit cycle, we completed a combination of physical visits to component
teams and alternative oversight procedures, including meeting our European full and specific
scope components at our global planning event held in Bulgaria, which is the shared service
centre in the Group. We also attended video meetings and live reviewed our local audit teams’
working papers. Our physical visits included the Senior Statutory Auditor visiting Australia, Spain,
France and Great Britain.
Our site visits (both physical and virtual) involved: meeting with our component teams to discuss
and direct their audit approach; reviewing relevant working papers and understanding the
significant audit findings in response to the risk areas including accrued customer marketing
costs and taxation; holding meetings with local management; and obtaining updates on local
regulatory matters including tax, pensions, restructuring and legal. The Group audit team
interacted regularly with the component teams where appropriate during various stages of the
audit, reviewed relevant working papers and were responsible for the scope and direction of the
audit process. This, together with the additional procedures performed at Group level, gave us
appropriate evidence for our opinion on the Group financial statements.
Climate change
Stakeholders are increasingly interested in how climate change will impact companies. The
Group has determined that the most significant future impacts from climate change on its
operations will be from the increased severity of extreme weather events which could cause
disruption to facilities and logistics routes, increasing water stress or water scarcity, changes to
weather and precipitation patterns which could cause disruption to the supply of ingredients as
well future regulations (e.g. carbon tax related to greenhouse gas emissions). These are
explained on pages 28-37 in the Task Force for Climate-related Financial Disclosures and on
pages 64-71 in the principal risks. They have also explained their climate commitments on page
38. All of these disclosures form part of the “Other information,” rather than the audited financial
statements. Our procedures on these unaudited disclosures therefore consisted solely of
considering whether they are materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in
line with our responsibilities on “Other information”.
In planning and performing our audit, we assessed the potential impacts of climate change on
the Group’s business and any consequential material impact on its financial statements.
The Group has explained in Note 1 (Impact of climate change) its articulation of how climate
change has been reflected in the financial statements including how this aligns with their
commitment to achieve Net Zero emissions by 2040. In Note 7 (Intangible assets and goodwill)
and Note 8 (Property, plant and equipment) to the financial statements, narrative explanation
including further details over the Group’s considerations has been provided.
Our audit effort in considering the impact of climate change on the financial statements was
focused on evaluating management’s assessment of the impact of climate risk, physical and
transition, their climate commitments, the effects of material climate risks disclosed on pages
33-36, and the significant judgements and estimates disclosed in Note 3 and whether these have
been appropriately reflected in asset values and useful economic lives and cash flow projections
used in assessing the recoverable amount of the Group’s CGUs and also in the going concern and
viability assessment. As part of this evaluation, we performed our own risk assessment, supported
by our climate change internal specialists, to determine the risks of material misstatement in the
financial statements from climate change which needed to be considered in our audit.
Based on our work we have not identified the impact of climate change on the financial
statements to be a key audit matter or to impact a key audit matter.
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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of
resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion
thereon, and we do not provide a separate opinion on these matters.
Key observations communicated to the Audit Committee
We concluded that accrued customer marketing costs in
the consolidated statement of financial position represent
a reasonable estimate of the associated liability and the
related disclosures included in the financial statements are
appropriate.
Risk
Accrued customer marketing costs
Refer to the Audit Committee Report (page 114); Accounting policies (pages
166 and 167).
The Group participates in various programmes and arrangements with
customers referred to as promotional programmes, which are recorded as
deductions from revenue. The off-invoice discounts activity totalled €5.2 billion
for the year ended 31 December 2022 (2021: €4.1 billion), with €1.3 billion of
accrued customer marketing costs as of 31 December 2022 (2021: €1.2 billion).
Auditing the completeness and measurement of the accrued customer
marketing costs is complex and judgemental, particularly in relation to
promotional programmes where there is estimation uncertainty related to
forecasted sales volumes, expected customer performance or amounts
ultimately claimed by customers.
The types of promotional programmes are more fully described in Note 3 to the
consolidated financial statements with details about accrued customer
marketing costs disclosed in Note 15 to the consolidated financial statements.
Our response to the risk
We performed audit procedures over this matter at eight reporting
components which covered 91% of the Group balance.
We obtained an understanding of the Group’s revenue recognition policies and
processes and how they are applied, and for full and specific scope reporting
components evaluated the design and tested the operating effectiveness of
controls, including IT controls, that address the risks of material misstatement
relating to the completeness and measurement of the promotional
programmes. For example, we tested controls over management’s
determination of the total estimated sales volumes used in the assessment of
the accrued customer marketing costs.
To evaluate the specific estimations that are inherent in the calculation of the
accrued customer marketing costs and assess the completeness of the accrual:
• We evaluated management’s methodology to estimate the year end accrued
customer marketing costs, in particular the use of historical trends.
• We tested the completeness and accuracy of the underlying data by agreeing
key terms of the promotional programmes to the executed sales agreements
on a sample basis. We also compared accrued customer marketing costs to
subsequent cash settlements on a sample basis.
• We performed analytical procedures on the ratio of accrued customer
marketing costs to relevant data such as gross revenue to identify any
potential outliers and tested material unusual or unexpected journal entries.
• We analysed the historical reversals and ageing of the accrued customer
marketing costs, to identify potential management bias in the estimate of the
year end accrual and considered any changes in the business environment that
would warrant changes in the methodology.
• We also evaluated the disclosures provided in the consolidated financial
statements related to these promotional programmes.
The audit procedures performed to address this risk were performed by both
the component teams and the Primary team.
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Risk
Accounting for uncertain tax positions
Refer to the Audit Committee Report (page 114); Accounting policies (pages
168 and 199).
At 31 December 2022, the Group recorded provisions for uncertain tax positions
of which €122 million (31 December 2021: €138 million) are included in current tax
liabilities and the remainder in non-current tax liabilities.
The Group is subject to income tax in numerous jurisdictions and is routinely
under audit by taxing authorities in the ordinary course of business as described
in Note 21 and Note 23 of the consolidated financial statements.
Management applies judgement in assessing tax exposures in each jurisdiction,
which requires interpretation of local tax laws and specific facts and
circumstances.
Our response to the risk
We performed audit procedures over this matter at four full scope
components and one specific scope component.
We obtained an understanding, evaluated the design and tested the operating
effectiveness of controls, including IT controls, in place over the Group’s process
to evaluate and account for uncertain tax positions. For example, we tested the
Group’s controls around evaluation of the facts and circumstances supporting
the conclusions on the Group’s tax positions.
We evaluated the tax positions taken by management in each significant
jurisdiction in the context of local tax laws, considering correspondence with tax
authorities, the status of any tax audits and third party advice obtained by the
Group. Our work involved tax professionals with local knowledge to assess the tax
positions taken in each significant jurisdiction in the context of local tax law and
significant tax assessments.
Auditing the uncertain tax positions is judgemental, because of the inherent
uncertainty related to the tax exposures, which may result in materially different
outcomes. Specifically, each tax position involves the evaluation of unique and
evolving facts and circumstances.
In evaluating management’s tax provisions, we developed our independent
range of tax exposures by jurisdiction, which we compared to the Group’s
provisions. We also considered outcomes for similar fact patterns in different
jurisdictions with equivalent tax rules and regulations.
We also obtained management’s calculation and agreed inputs to source
documentation where applicable.
We evaluated the adequacy of the related disclosures provided in the Group
financial statements.
The audit procedures performed to address this risk were performed by both
the component teams and the Group team.
Key observations communicated to the Audit Committee
We have evaluated the Group’s tax provisions and
challenged the judgements applied. We concluded that
the amounts provided for uncertain tax positions are within
an acceptable range considering the latest developments
in each jurisdiction and the Group’s overall tax exposures
and that the related disclosures are appropriate.
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In addition to the key audit matters identified as part of our audit planning, the following area affected the allocation of resources and the direction of our audit efforts and for which our audit
response was as follows:
Key observations communicated to the Audit Committee
We consider management’s estimate of the recoverable
value of the Group’s CGUs to be within an acceptable
range and agree with management’s conclusion that there
is no impairment at 31 December 2022. We reviewed the
related disclosures, including the additional sensitivity
disclosure included in relation to Pacific, and concluded
these to be appropriate.
Risk
Our response to the risk
Carrying value of goodwill and indefinite lived intangibles
Refer to the Audit Committee report (page 114); Accounting policies (pages
167 and 173).
At 31 December 2022, the carrying value of the goodwill and indefinite lived
intangibles was €16,506 million (2021: €16,653 million).
As discussed in Note 7 of the consolidated financial statements, goodwill and
indefinite lived intangibles are tested for impairment at the CGU level at least
annually, in the fourth quarter, or whenever there is an indication of impairment.
Although we did not identify a risk of material misstatement during our planning
phase due to the improved financial performance of all CGUs when compared
to the prior year, we took into consideration the materiality of the goodwill and
indefinite lived intangibles to the total Group assets and the recent acquisition
of the API business to determine our audit response.
Auditing management’s impairment assessment required significant allocation
of resources and direction due to the estimation of the key assumptions used to
determine the recoverable amount, in particular discount rate, revenue growth
rates and operating profit margin.
We identified that the Pacific CGU was most sensitive to a change in
assumptions. The Iberia CGU is less sensitive to changes in assumptions
compared to the prior year due to the strong recovery of the away from home
channel.
We obtained an understanding, evaluated the design and tested the
operating effectiveness of controls, including IT controls, in place within the
impairment review process. This included evaluating controls over the Group’s
budgetary and forecasting process used to develop the estimated future
earnings and cash flows used in estimating the value in use. We also tested
controls over management’s data included in the value in use model and their
determination of the significant assumptions such as estimation of discount
rate, revenue growth rates and operating profit margin.
We performed additional procedures to assess and corroborate the key inputs
to the valuation, including:
• We reviewed the methodology applied by management in performing the
impairment test, tested the completeness and accuracy of the data included
in the impairment model, reconciled the carrying value to the financial records
and agreed the prospective financial information to Board approved business
plans. We also involved our internal valuation specialists to assist with the
evaluation of the discount rate and long-term growth rates used in the value in
use model, by developing an independent range.
• We compared the overall revenue growth included in the five year cash flow
period to external sources of information and to prior year growth rates
achieved to search for contradictory evidence to management’s growth
assumptions.
• We assessed the historical accuracy of management’s estimates and forecasts
against actual results for indications of management bias and compared the
performance since the testing date with the forecasts used in the value in use
model.
• We reperformed management’s sensitivity analysis, determining the
breakeven point by evaluating changes to key assumptions. We evaluated the
likelihood of occurrence of those scenarios, based on historical performance
and external sources of information.
We assessed the adequacy of the related disclosures provided in the
consolidated financial statements on the impact of reasonably possible changes
in assumptions.
The audit procedures to address this risk were mainly performed by the Primary
audit team.
In the prior year, our auditor’s report included a key audit matter in relation to the valuation of the distribution rights and property, plant and equipment acquired from Coca-Cola Amatil Limited. As
the Acquisition was completed in 2021 with no material adjustments within the measurement period, we concluded this is no longer applicable in 2022.
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Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the
effect of identified misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the
aggregate, could reasonably be expected to influence the economic decisions of
the users of the financial statements. Materiality provides a basis for determining
the nature and extent of our audit procedures.
We determined materiality for the Group to be €87 million (2021: €67 million), which is 4.7% (2021:
4.7%) of adjusted profit before tax. We believe that adjusted profit before tax provides us with
the most relevant profit basis as the non-recurring items were not related to the ongoing trading
of the Group. The increase in Group materiality since 2021 reflects the increase in profit before
taxation, driven by the inclusion of the full year results of Coca-Cola Amatil Limited and
continued recovery from COVID-19 in 2022, particularly in the away from home channel.
We determined materiality for the Parent Company to be €142.0 million (2021: €144.9 million),
which is 1% (2021: 1%) of shareholder’s equity.
During the course of our audit, we reassessed initial materiality and the actual adjusted profit
before tax and hence the recalculated materiality was higher than the Group’s initial estimates
used at planning. However, due to the status of our procedures we did not change our materiality
assessment to reflect this.
Adjusted profit before tax measure
Starting basis
• Profit before tax - €1,957 million
Adjustments
• Coal Royalty Income - €96 million
Adjusted basis
• €1,861 million (adjusted profit before tax)
Materiality
• Materiality maintained at planning level of €87 million versus €93 million on
adjusted final reported profit before tax
Performance materiality
The application of materiality at the individual account or balance level. It is set at
an amount to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control
environment, our judgement was that performance materiality was 75% (2021: 75%) of our
planning materiality, namely €65 million (2021: €50 million). We reviewed any misstatements
identified in our 2021 Group audit to assess their potential recurrence in 2022 (which would affect
the percentage of Group performance materiality we utilised to determine the extent of our
audit procedures). Based on the nature of the adjustments identified last year, we concluded the
likelihood of material misstatements would remain low in the current year and, hence, we set
performance materiality at 75%.
Audit work at component locations for the purpose of obtaining audit coverage over significant
financial statement accounts is undertaken based on a percentage of total performance
materiality. The performance materiality set for each component is based on the relative scale
and risk of the component to the Group as a whole and our assessment of the risk of
misstatement at that component. In the current year, the range of performance materiality
allocated to components was €13.1 million to €32.7 million (2021: €10.1 million to €25.2 million).
Reporting threshold
An amount below which identified misstatements are considered as being clearly
trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit
differences in excess of €4.3 million (2021: €3.3 million), which is set at 5% of planning materiality,
as well as differences below that threshold that, in our view, warranted reporting on qualitative
grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of
materiality discussed above and in light of other relevant qualitative considerations in forming
our opinion.
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Other information
The other information comprises the information included in the annual report including the
Strategic Report set out on pages 1 to 85, Governance and Directors’ report set out on pages 86
to 144 and Other Group Information set out on pages 222 to 258, other than the financial
statements and our auditor’s report thereon. The Directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the
extent otherwise explicitly stated in this report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in
the course of the audit or otherwise appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the financial statements themselves. If,
based on the work we have performed, we conclude that there is a material misstatement of the
other information, we are required to report that fact.
We have nothing to report in this regard.
Corporate governance statement
We have reviewed the Directors’ statement in relation to going concern, longer-term viability and
that part of the Corporate Governance Statement relating to the Group and Parent Company’s
compliance with the provisions of the UK Corporate Governance Code specified for our review
by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following
elements of the Corporate Governance Statement is materially consistent with the financial
statements or our knowledge obtained during the audit:
• Directors’ statement with regards to the appropriateness of adopting the going concern basis
of accounting and any material uncertainties identified set out on page 143;
• Directors’ explanation as to its assessment of the company’s prospects, the period this
assessment covers and why the period is appropriate set out on page 72;
• Directors’ statement on whether it has a reasonable expectation that the Group will be able to
continue in operation and meets its liabilities set out on page 143;
• Directors’ statement on fair, balanced and understandable set out on page 144;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal
risks set out on pages 64-71;
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the Directors’ remuneration report to be audited has been properly
prepared in accordance with the Companies Act 2006.
• The section of the annual report that describes the review of effectiveness of risk
management and internal control systems set out on pages 71 and 116; and;
• The section describing the work of the Audit Committee set out on pages 111-116.
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Directors’ Report for the financial year
for which the financial statements are prepared is consistent with the financial statements; and
• the Strategic Report and the Directors’ Report have been prepared in accordance with
applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its
environment obtained in the course of the audit, we have not identified material misstatements
in the Strategic Report or the Directors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies
Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate
for our audit have not been received from branches not visited by us; or
• the Parent Company financial statements and the part of the Directors’ Remuneration Report
to be audited are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement set out on page 144, the
Directors are responsible for the preparation of the financial statements and for being satisfied
that they give a true and fair view, and for such internal control as the Directors determine is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and
Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Directors
either intend to liquidate the Group or the Parent Company or to cease operations, or have no
realistic alternative but to do so.
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Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable
of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We
design procedures in line with our responsibilities, outlined above, to detect irregularities,
including fraud. The risk of not detecting a material misstatement due to fraud is higher than the
risk of not detecting one resulting from error, as fraud may involve deliberate concealment by,
for example, forgery or intentional misrepresentations, or through collusion. The extent to which
our procedures are capable of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both
those charged with governance of the company and management.
• We obtained an understanding of the legal and regulatory frameworks that are applicable to
the Group and determined that the most significant are:
– those that relate to the reporting framework: U.K. adopted International Accounting
Standards, International Financial Reporting Standards (IFRS) as adopted by the European
Union, International Financial Reporting Standards as issued by the IASB, the UK Companies
Act 2006 and the UK Corporate Governance Code.
– those that relate to the accrual or recognition of expenses for taxation such as various
country specific tax regulations in which the Group has operations.
– those that relate to the accrual or recognition of expenses for pension costs, as well as the
treatment of its employees, such as labour agreements in countries where the Group
operates.
– In addition, we concluded that there are certain significant laws and regulations which may
have an effect on the determination of the amounts and disclosures in the financial
statements, primarily being The US Securities Act and Exchange Act of 1934 and the Listing
Rules of the UK Listing Authority.
We understood how Coca-Cola Europacific Partners plc is complying with those frameworks by
making enquiries of management, internal audit, those responsible for legal and compliance
procedures and the company secretary. We corroborated our enquiries through our review of
board minutes and papers provided to the Audit Committee and attendance at all meetings
of the Audit Committee, as well as consideration of the results of our audit procedures across
the Group.
• We assessed the susceptibility of the Group’s financial statements to material misstatement,
including how fraud might occur. We did this by:
– Meeting with management from various parts of the business to understand where they
considered there to be susceptibility to fraud;
– Assessing whistleblowing incidences for those with a potential financial reporting impact;
– Evaluating the historical performance of CCEP against similar companies;
– Understanding the Group’s annual bonus scheme and long-term incentive plan performance
targets and their propensity to influence on efforts made by management to manage
revenue and earnings;
– Understanding the related party transactions and significant transactions occurring with
related parties in the year;
– Assessing the key judgements and estimates and significant transactions occurring in year;
and
– Considering the controls framework, including IT General controls, that the Group has
established to prevent, deter and detect fraud; and how senior management monitors those
programmes and control.
Where the risk was considered to be higher, we performed audit procedures to address
identified risks of material misstatement. These procedures included those referred to in the
“Accrued customer marketing costs” key audit matters section above. In addition, we used data
analytics at our full and specific scope components to correlate revenue with trade receivables
and cash received, as well as promotional programmes expense with promotional programmes
accruals and settlements. We also performed journal entry testing, focusing on manual and
consolidation journals, and inspected documentation for any material unusual or unexpected
journals.
Based on this understanding we designed our audit procedures to identify non-compliance
with such laws and regulations, including specific instructions to full and specific scope
component audit teams. At a Group level, our procedures involved: enquiries of Group
management and those charged with governance, legal counsel and internal audit and also
testing over manual consolidation journals and journals indicating large or unusual transactions
based on our understanding of the business. At a component level, our full and specific scope
component audit team’s procedures included enquiries of component management; journal
entry testing; and focused testing over areas we considered more susceptible to management
override, including as referred to in the “Accrued customer marketing costs” key audit matters
section above. Any instances of non-compliance with laws and regulations, including in relation
to fraud, were communicated by/to components and considered in our audit approach, if
applicable. In addition, we completed procedures to conclude on the compliance of the
disclosures in the annual report and accounts with all applicable requirements.
A further description of our responsibilities for the audit of the financial statements is located
on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
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Other matters we are required to address
• Following the recommendation from the Audit Committee we were appointed by the
Company on 22 June 2016 to audit the financial statements for the year ending 31 December
2016 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and
reappointments is seven years, covering the years ending 31 December 2016 to 31 December
2022.
• The audit opinion is consistent with the additional report to the Audit Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state
to the Company’s members those matters we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Sarah Kokot (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
17 March 2023
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Report of independent registered public accounting firm
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
157
To the Shareholders and the Board of Directors
of Coca-Cola Europacific Partners plc
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of Coca-Cola
Europacific Partners plc (the “Group”) as of 31 December 2022 and 2021, the related consolidated
statements of income, comprehensive income, statement of changes in equity and cash flows
for each of the three years in the period ended 31 December 2022 and the related notes
(collectively referred to as the “consolidated financial statements”). In our opinion, the
consolidated financial statements present fairly, in all material respects, the financial position of
the Group at 31 December 2022 and 2021, and the results of its operations and its cash flows for
each of the three years in the period ended 31 December 2022, in conformity with International
Financial Reporting Standards as issued by the International Accounting Standards Board.
We conducted our audits in accordance with the standards of the PCAOB. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement, whether due to error or fraud. Our audits
included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis
for our opinion.
We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States) (PCAOB), the Group’s internal control over financial reporting as
of 31 December 2022, based on criteria established in Internal Control-Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) and our report dated 17 March 2023 expressed an unqualified opinion thereon.
Basis for opinion
These financial statements are the responsibility of the Group’s management. Our responsibility
is to express an opinion on the Group’s financial statements based on our audits. We are a public
accounting firm registered with the PCAOB and are required to be independent with respect to
the Group in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
Critical audit matters
The critical audit matters communicated below are matters arising from the current period audit
of the financial statements that were communicated or required to be communicated to the
Audit Committee and that: (1) relate to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective or complex judgements. The
communication of critical audit matters does not alter in any way our opinion on the
consolidated financial statements, taken as a whole, and we are not, by communicating the
critical audit matters below, providing separate opinions on the critical audit matters or on the
accounts or disclosures to which they relate.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
158
Description of the matter
How we addressed the matter in our audit
Accrued customer
marketing costs
The Group participates in various programmes and arrangements with customers
referred to as promotional programmes, which are recorded as deductions from revenue.
The off-invoice discounts activity totalled €5.2 billion for the year ended 31 December
2022, with €1.3 billion of accrued customer marketing costs as of 31 December 2022.
Auditing the completeness and measurement of the accrued customer marketing costs
is complex and judgemental, particularly in relation to promotional programmes where
there is estimation uncertainty related to the forecasted sales volumes, expected
customer performance or amounts ultimately claimed by customers.
The types of promotional programmes are more fully described in Note 3 to the
consolidated financial statements with details about accrued customer marketing costs
disclosed in Note 15 to the consolidated financial statements.
Accounting for uncertain
tax positions
At 31 December 2022, the Group recorded provisions for uncertain tax positions of which
€122 million are included in current tax liabilities and the remainder in non-current tax
liabilities.
The Group is subject to income tax in numerous jurisdictions and is routinely under audit by
taxing authorities in the ordinary course of business as described in Note 21 and Note 23
of the consolidated financial statements.
Management applies judgement in assessing tax exposures in each jurisdiction, which
requires interpretation of local tax laws and specific facts and circumstances.
Auditing the uncertain tax positions is judgemental, because of the inherent uncertainty
related to the tax exposures, which may result in materially different outcomes. Specifically,
each tax position involves the evaluation of unique and evolving facts and circumstances.
/s/ Ernst & Young LLP
We have served as the Group’s auditor since 2016.
London, United Kingdom
17 March 2023
We obtained an understanding of the Group’s revenue recognition policies and processes
and how they are applied, evaluated the design and tested the operating effectiveness of
controls that address the risks of material misstatement relating to the completeness and
measurement of the promotional programmes. For example, we tested controls over
management’s determination of the total estimated sales volumes used in the assessment
of the accrued customer marketing costs.
To evaluate the specific estimations that are inherent in the calculation of the accrued
customer marketing costs and the completeness of the accrual, our audit procedures
included, among others, testing management’s methodology to estimate the year end
accrued customer marketing costs, in particular the use of historical trends. We tested the
completeness and accuracy of the underlying data by agreeing key terms of the promotional
programmes to the executed sales agreements on a sample basis. We compared accrued
customer marketing costs to subsequent cash settlements on a sample basis.
We performed analytical procedures on the ratio of accrued customer marketing costs to
relevant data such as gross revenue to identify any potential outliers and tested material
unusual or unexpected journal entries. We also analysed the historical reversals and ageing of
the accrued customer marketing costs, to identify potential management bias in the
estimate of the year end accrual and considered any changes in the business environment
that would warrant changes in the methodology.
We obtained an understanding, evaluated the design and tested the operating effectiveness
of controls in place over the Group’s process to evaluate and account for uncertain tax
positions. For example, we tested the Group’s controls around evaluation of the facts and
circumstances supporting the conclusions on the Group’s tax positions.
We evaluated the tax positions taken by management in each significant jurisdiction in the
context of local tax laws, considering correspondence with tax authorities, the status of any
tax audits and third party advice obtained by the Group. Our work involved tax professionals
with local knowledge to assess the tax positions taken in each significant jurisdiction in the
context of local tax law and significant tax assessments.
In evaluating management’s tax provisions, we developed our independent range of tax
exposures by jurisdiction, which we compared to the Group’s provisions. We also considered
outcomes for similar fact patterns in different jurisdictions with equivalent tax rules and
regulations.
We also obtained management’s calculation and agreed inputs to source documentation
where applicable.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
159
To the Shareholders and the Board of Directors
of Coca-Cola Europacific Partners plc
Opinion on Internal Control Over Financial Reporting
We have audited Coca-Cola Europacific Partners plc’s internal control over financial reporting as
of 31 December 2022, based on criteria established in Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework), (the COSO criteria). In our opinion, Coca-Cola Europacific Partners plc (the “Group”)
maintained, in all material respects, effective internal control over financial reporting as of 31
December 2022, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting
Oversight Board (United States) (PCAOB), the consolidated statement of financial position of
the Group as of 31 December 2022 and 2021, the related consolidated statements of income,
comprehensive income, statement of changes in equity and cash flows for each of the three
years in the period ended 31 December 2022 and the related notes and our report dated 17
March 2023 expressed an unqualified opinion thereon.
Basis for opinion
The Group’s management is responsible for maintaining effective internal control over financial
reporting and for its assessment of the effectiveness of internal control over financial reporting
included in the accompanying Management’s report on internal control over financial reporting.
Our responsibility is to express an opinion on the Group’s internal control over financial reporting
based on our audit. We are a public accounting firm registered with the PCAOB and are required
to be independent with respect to the Group in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether
effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk, and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides
a reasonable basis for our opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A
company’s internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures
of the company are being made only in accordance with authorisations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorised acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
London, United Kingdom
17 March 2023
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
160
Consolidated income statement
Revenue
Cost of sales
Gross profit
Selling and distribution expenses
Administrative expenses
Other income
Operating profit
Finance income
Finance costs
Total finance costs, net
Non-operating items
Profit before taxes
Taxes
Profit after taxes
Profit attributable to shareholders
Profit attributable to non-controlling interests
Profit after taxes
Basic earnings per share (€)
Diluted earnings per share (€)
The accompanying notes are an integral part of these consolidated financial statements.
Year ended 31 December
2022
€ million
17,320
(11,096)
6,224
(2,984)
(1,250)
96
2,086
67
(181)
(114)
(15)
1,957
(436)
1,521
1,508
13
1,521
3.30
3.29
2021
€ million
13,763
(8,677)
5,086
(2,496)
(1,074)
—
1,516
43
(172)
(129)
(5)
1,382
(394)
988
982
6
988
2.15
2.15
2020
€ million
10,606
(6,871)
3,735
(1,939)
(983)
—
813
33
(144)
(111)
(7)
695
(197)
498
498
—
498
1.09
1.09
Note
5
18
18
23
19
19
21
6
6
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Other Information
Consolidated statement of comprehensive income
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
161
Profit after taxes
Components of other comprehensive income/(loss):
Items that may be subsequently reclassified to the income statement:
Foreign currency translations:
Pretax activity, net
Tax effect
Foreign currency translation, net of tax
Cash flow hedges:
Pretax activity, net
Tax effect
Cash flow hedges, net of tax
Other reserves:
Pretax activity, net
Tax effect
Other reserves, net of tax
Items that may be subsequently reclassified to the income statement
Items that will not be subsequently reclassified to the income statement:
Pension plan remeasurements:
Pretax activity, net
Tax effect
Pension plan remeasurements, net of tax
Items that will not be subsequently reclassified to the income statement
Other comprehensive income/(loss) for the period, net of tax
Comprehensive income for the period
Comprehensive income attributable to shareholders
Comprehensive income attributable to non-controlling interests
Comprehensive income for the period
The accompanying notes are an integral part of these consolidated financial statements.
Note
Year ended 31 December
2022
€ million
1,521
2021
€ million
988
2020
€ million
498
21
13
21
16
21
(205)
—
(205)
(64)
17
(47)
(9)
3
(6)
260
—
260
277
(63)
214
7
(1)
6
(125)
—
(125)
33
4
37
—
—
—
(258)
480
(88)
(45)
11
(34)
(34)
(292)
1,229
1,202
27
1,229
301
(63)
238
238
718
1,706
1,684
22
1,706
(71)
16
(55)
(55)
(143)
355
355
—
355
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
162
Consolidated statement of financial position
Year ended 31 December
2022
€ million
2021
€ million
Note
Year ended 31 December
2022
€ million
2021
€ million
Note
ASSETS
Non-current:
Intangible assets
Goodwill
Property, plant and equipment
Non-current derivative assets
Deferred tax assets
Other non-current assets
Total non-current assets
Current:
Current derivative assets
Current tax assets
Inventories
Amounts receivable from related parties
Trade accounts receivable
Other current assets
Assets held for sale
Short-term investments
Cash and cash equivalents
Total current assets
Total assets
LIABILITIES
Non-current:
Borrowings, less current portion
Employee benefit liabilities
Non-current provisions
Non-current derivative liabilities
Deferred tax liabilities
Non-current tax liabilities
Other non-current liabilities
Total non-current liabilities
7
7
8
13
21
25
13
9
20
10
24
24
11
11
14
16
23
13
21
Current:
Current portion of borrowings
12,639
Current portion of employee benefit liabilities
4,623
Current provisions
5,248
Current derivative liabilities
226
60
534
Current tax liabilities
Amounts payable to related parties
Trade and other payables
12,505
4,600
5,201
191
21
252
22,770
23,330
Total current liabilities
Total liabilities
150
46
EQUITY
Share capital
1,157
Share premium
143
Merger reserves
2,305
Other reserves
271
223
Retained earnings
Equity attributable to shareholders
58
Non-controlling interest
1,407
Total equity
5,760
Total equity and liabilities
257
85
1,380
139
2,466
479
94
256
1,387
6,543
29,313
Damian Gammell,
Chief Executive Officer
17 March 2023
10,571
11,790
108
55
187
3,513
82
37
138
48
47
3,617
110
37
14,553
15,787
14
16
23
13
20
15
17
17
17
17
17
1,336
8
115
76
241
485
5,052
7,313
21,866
5
234
287
(507)
7,428
7,447
—
7,447
29,313
1,350
10
86
19
181
210
4,237
6,093
21,880
5
220
287
(156)
6,677
7,033
177
7,210
29,090
29,090
The accompanying notes are an integral part of these consolidated financial statements.
The financial statements were approved by the Board of Directors and authorised for issue on
17 March 2023. They were signed on its behalf by:
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
163
Consolidated statement of cash flows
Year ended 31 December
2022
2021
2020
Year ended 31 December
2022
2021
2020
Note
€ million
€ million
€ million
Note
€ million
€ million
€ million
1,957
1,382
695
Proceeds from borrowings, net
Cash flows from financing activities:
Cash flows from operating activities:
Profit before taxes
Adjustments to reconcile profit before tax to net cash flows
from operating activities:
Depreciation
Amortisation of intangible assets
Share-based payment expense
Finance costs, net
Income taxes paid
Changes in assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
Increase in trade and other payables
(Decrease)/increase in net payable receivable from related
parties
Increase/(decrease) in provisions
Change in other operating assets and liabilities(A)
Net cash flows from operating activities
Cash flows from investing activities:
8
7
22
19
715
101
33
114
693
89
16
129
665
62
14
111
(415)
(306)
(273)
(282)
(244)
885
(15)
37
46
(242)
(1)
507
8
(116)
(42)
208
34
53
(112)
43
(10)
2,932
2,117
1,490
Acquisition of bottling operations, net of cash acquired
4
—
(5,401)
Purchases of property, plant and equipment
Purchases of capitalised software
Proceeds from sales of property, plant and equipment
Proceeds from sales of intangible assets
20
Net proceeds/(payments) of short-term investments
Investments in equity instruments
Proceeds from sale of equity instruments
Other investing activity, net
(500)
(103)
11
143
(207)
(2)
13
—
(349)
(97)
25
—
198
(4)
25
(2)
—
(348)
(60)
49
—
—
(11)
—
—
Net cash flows used in investing activities
(645)
(5,605)
(370)
Changes in short-term borrowings
Repayments on third party borrowings
Payments of principal on lease obligations
Interest paid, net
Dividends paid
Purchase of own shares under share buyback programme
Exercise of employee share options
Transactions with non-controlling interests
Other financing activities, net
14
14
14
14
17
17
—
(285)
(938)
(153)
(130)
(763)
—
13
—
(20)
4,877
276
(950)
(139)
(97)
(638)
—
28
(73)
5
Net cash flows (used in)/from financing activities
Net change in cash and cash equivalents
Net effect of currency exchange rate changes on cash and
cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
(2,276)
3,289
11
(199)
(31)
1,407
1,387
11
11
83
1,523
1,407
(A) Amounts include €252 million in cash proceeds received in December 2022 from the regional tax authorities in Bizkaia
(Basque region) in connection with an ongoing dispute regarding historical VAT amounts related to the period 2013-2016.
Refer to Note 25 for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
1,598
(221)
(569)
(116)
(91)
(386)
(129)
14
—
—
100
1,220
(13)
316
1,523
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
164
Consolidated statement of changes in equity
Share capital
Share
premium
Merger
reserves
Other
reserves
Retained
earnings
Total
Non-
controlling
interest
Total equity
Note
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
178
287
(449)
6,135
As at 1 January 2020
Profit after taxes
Other comprehensive loss
Total comprehensive income/(loss)
Issue of shares during the year
Equity-settled share-based payment expense
Share-based payment tax effects
Dividends
Own shares purchased under share buyback programme
As at 31 December 2020
Profit after taxes
Other comprehensive income
Total comprehensive income
Non-controlling interests recognised relating to business combination
Transactions with non-controlling interests
Cash flow hedge gains transferred to goodwill relating to business combination
Issue of shares during the year
Equity-settled share-based payment expense
Share-based payment tax effects
Dividends
As at 31 December 2021
Profit after taxes
Other comprehensive income/(loss)
Total comprehensive income/(loss)
Acquisition of non-controlling interests
Issue of shares during the year
Equity-settled share-based payment expense
Share-based payment tax effects
Dividends
As at 31 December 2022
The accompanying notes are an integral part of these consolidated financial statements.
5
—
—
—
—
—
—
—
—
5
—
—
—
—
—
—
—
—
—
—
5
—
—
—
—
—
—
—
—
5
17
22
21
17
17
17
13
17
22
21
17
17
17
22
21
17
192
287
(537)
6,078
6,025
—
—
—
14
—
—
—
—
—
—
—
—
—
—
—
—
—
(88)
(88)
—
—
—
—
—
—
—
—
—
—
—
28
—
—
—
—
—
—
—
—
—
—
—
—
—
—
465
465
—
—
(84)
—
—
—
—
220
287
(156)
—
—
—
—
14
—
—
—
—
—
—
—
—
—
—
—
—
(272)
(272)
(79)
—
—
—
—
498
(55)
443
—
14
2
6,156
498
(143)
355
14
14
2
(387)
(129)
(387)
(129)
982
237
1,219
—
—
—
—
16
3
982
702
1,684
—
—
(84)
28
16
3
(639)
(639)
6,677
1,508
7,033
1,508
(34)
(306)
1,474
1,202
—
—
33
10
14
33
10
(766)
(766)
234
287
(507)
7,428
7,447
—
—
—
—
—
—
—
—
—
—
6
16
22
228
(73)
—
—
—
—
—
177
13
14
27
—
—
—
—
—
6,156
498
(143)
355
14
14
2
(387)
(129)
6,025
988
718
1,706
228
(73)
(84)
28
16
3
(639)
7,210
1,521
(292)
1,229
(283)
14
33
10
(766)
7,447
(79)
(204)
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2022 Integrated Report and Form 20-F
165
Notes to the consolidated financial statements
Note 1
General information and basis of preparation
Coca-Cola Europacific Partners plc (the Company) and its subsidiaries (together CCEP, or the
Group) are a leading consumer goods group in Western Europe and the Asia Pacific region,
making, selling and distributing an extensive range of primarily non-alcoholic ready to drink
beverages.
The Company has ordinary shares with a nominal value of €0.01 per share (Shares). CCEP is a
public company limited by shares, incorporated under the laws of England and Wales with the
registered number in England of 9717350. The Group’s Shares are listed and traded on Euronext
Amsterdam, the NASDAQ Global Select Market, London Stock Exchange and on the Spanish
Stock Exchanges. The address of the Company’s registered office is Pemberton House, Bakers
Road, Uxbridge, UB8 1EZ, United Kingdom.
The consolidated financial statements of the Group for the year ended 31 December 2022 were
approved and signed by Damian Gammell, Chief Executive Officer on 17 March 2023 having
been duly authorised to do so by the Board of Directors.
Impact of climate change
As part of the preparation of these consolidated financial statements, we have considered the
impact of climate change risks on the current valuation of the Group’s assets and liabilities,
particularly in the context of the risks and scenarios identified in the Task Force on
Climate-related Financial Disclosures (TCFD) on pages 28-37 of the Strategic Report. There has
been no material impact on the financial reporting judgements and estimates arising from our
considerations and as a result, the valuation of the Group’s assets and liabilities as of
31 December 2022 have not been affected. Our considerations were specifically focused on the
impact of climate change risks on the projected cash flows used in the impairment assessment
of our indefinite lived intangible assets and goodwill (refer to Note 7) as well as the carrying value
and useful economic lives of property, plant and equipment (refer to Note 8). As the pace and
effectiveness of a global transition to a low-carbon economy evolve, including the development
of government policies aiming to address the risks arising from climate change, we will continue
to monitor and assess the relevant implications on the valuation of the Group’s assets and
liabilities that could arise in future years.
Basis of preparation
These consolidated financial statements of the Group reflect the following:
• They have been prepared in accordance with UK adopted International Accounting Standards,
International Financial Reporting Standards (IFRS) as adopted by the European Union and
International Financial Reporting Standards as issued by the International Accounting
Standards Board (IASB).
• They have been prepared under the historical cost convention, except for certain items
measured at fair value. Those accounting policies have been applied consistently in all periods,
except for the adoption of new standards and amendments as of 1 January 2022, as described
below under accounting policies.
• They are presented in euros, which is also the Parent Company’s functional currency, and all
values are rounded to the nearest euro million except where otherwise indicated.
• They have been prepared on a going concern basis (refer to the “Going concern” paragraph on
page 143).
Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group and its
subsidiaries. All subsidiaries have accounting years ended 31 December and apply consistent
accounting policies for the purpose of the consolidated financial statements.
Subsidiary undertakings are consolidated from the date on which control is transferred to the
Group and cease to be consolidated from the date on which control is transferred out of the
Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those returns through the Group’s
power to direct the activities of the entity. All intercompany accounts and transactions are
eliminated on consolidation.
Associates are all entities over which the Group has significant influence but not control,
generally accompanying a shareholding of between 20% to 50% of voting rights. Investments in
associates are accounted for using the equity method of accounting, after initially being
recognised at cost.
The Group treats transactions with non-controlling interests that do not result in a loss of control
as equity transactions.
When the Group loses control over a subsidiary, it derecognises the related assets (including
goodwill), liabilities, non-controlling interest and any other components of equity, while any
resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is
measured at fair value when control is lost.
The financial results presented herein for the period from 1 January 2021 through to the
acquisition of CCL (the Acquisition) effective 10 May 2021 refer to Coca-Cola European Partners
plc (Legacy CCEP) and its consolidated subsidiaries. The periods from the Acquisition to
31 December 2021 and for the year ended 31 December 2022 refer to the combined financial
results of CCEP.
Foreign currency
The individual financial statements of each subsidiary are presented in the currency of the
primary economic environment in which the subsidiary operates (its functional currency). For the
purpose of the consolidated financial statements, the results and financial position of each
subsidiary are expressed in euros.
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in
foreign currencies are remeasured to the functional currency of the entity at the rate of
exchange in effect at the statement of financial position date with the resulting gain or loss
recorded in the consolidated income statement.
The consolidated income statement includes non-operating items which are primarily made up
of remeasurement gains and losses related to currency exchange rate fluctuations on financing
transactions denominated in a currency other than the subsidiary’s functional currency.
Non-operating items are shown on a net basis and reflect the impact of any derivative
instruments utilised to hedge the foreign currency movements of the underlying financing
transactions.
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Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
166
The assets and liabilities of the Group's foreign operations are translated from local currencies to
the euro reporting currency at currency exchange rates in effect at the end of each reporting
period. Revenues and expenses are translated at average monthly currency exchange rates, with
average rates being a reasonable approximation of the rates prevailing on the transaction dates.
Gains and losses from translation are included in other comprehensive income. On disposal of a
foreign operation, accumulated exchange differences are recognised as a component of the
gain or loss on disposal.
Comparability
The COVID-19 pandemic and related response measures have had and may continue to have an
adverse effect on global economic conditions, as well as our business, results of operations, cash
flows and financial condition. At this time, we cannot predict the degree to which, or the time
period over which, our business will continue to be affected by COVID-19 and the related
response measures. These impacts limit the comparability of these consolidated financial
statements with prior periods.
The principal exchange rates used for translation purposes in respect of one euro were:
Average for the year ended 31 December(A)
Closing as at 31 December
British pound
US dollar
Norwegian krone
Swedish krone
Icelandic krone
Australian dollar
Indonesian rupiah(B)
New Zealand dollar
Papua New
Guinean kina
2022
1.17
0.95
0.10
0.09
0.01
0.66
0.06
0.60
0.27
2021
1.16
0.85
0.10
0.10
0.01
0.63
0.06
0.60
0.24
2020
1.13
0.88
0.09
0.10
0.01
n/a
n/a
n/a
n/a
2022
1.13
0.94
0.10
0.09
0.01
0.64
0.06
0.60
0.27
2021
1.19
0.88
0.10
0.10
0.01
0.64
0.06
0.60
0.25
(A) For the year ended 31 December 2021, the rates for the Asia Pacific region are calculated as average for the period from 10
May 2021 to 31 December 2021.
(B) Indonesian rupiah is shown as 1000 IDR versus 1 EUR.
Reporting periods
In these consolidated financial statements, the Group is reporting the financial results for the
years ended 31 December 2022, 31 December 2021 and 31 December 2020.
There was one less selling day in the six months ended 1 July 2022 versus the six months ended
2 July 2021, and there were equal selling days in the second six months of 2022 versus the second
six months of 2021 (based upon a standard five day selling week).
The following table summarises the number of selling days for the years ended
31 December 2022, 31 December 2021 and 31 December 2020 (based on a standard five day
selling week):
2022
2021
2020
First Half
Second Half
Full Year
130
131
128
130
130
134
260
261
262
In addition, sales of the Group’s products are seasonal. In Europe, the second and third quarters
typically account for higher unit sales of the Group’s products than the first and fourth quarters.
In the Group’s Asia Pacific territories, the fourth quarter would typically reflect higher sales
volumes in the year. The seasonality of the Group’s sales volume, combined with the accounting
for fixed costs such as depreciation, amortisation, rent and interest expense, impacts the Group’s
reported results for the first and second halves of the year. Additionally, year over year shifts in
holidays, selling days and weather patterns can impact the Group’s results on an annual or
half yearly basis.
Note 2
Accounting policies
IFRS 15 “Revenue recognition and deductions from revenue”
The Group derives its revenues by making, selling and distributing ready to drink beverages. The
revenue from the sale of products is recognised at the point in time at which control passes to a
customer, typically when products are delivered to a customer. A receivable is recognised by the
Group at the point in time at which the right to consideration becomes unconditional.
The Group uses various promotional programmes under which rebates, refunds, price
concessions or similar items can be earned by customers for attaining agreed upon sales levels or
for participating in specific marketing programmes. Those promotional programmes do not give
rise to a separate performance obligation. Where the consideration the Group is entitled to
varies because of such programmes, it is deemed to be variable consideration. The related
accruals are recognised as a deduction from revenue and are not considered distinct from the
sale of products to the customer. Variable consideration is only included to the extent that it is
highly probable that the inclusion will not result in a significant revenue reversal in the future
normal commercial terms.
Financing elements are not deemed present in our contracts with customers as the sales are
made with credit terms not exceeding normal commercial terms. Taxes on sugared soft drinks,
excise taxes and taxes on packaging are recorded on a gross basis (i.e. included in revenue)
where the Group is the principal in the arrangement. Value added taxes are recorded on a net
basis (i.e. excluded from revenue). The Group assesses these taxes and duties on a jurisdiction by
jurisdiction basis to conclude on the appropriate accounting treatment.
The rest of the accounting policies applied by the Group are included in the relevant notes
herein.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
167
New and amended standards and interpretation
The Group has applied the following amendments for the first time in the year ended
31 December 2022.
Onerous contracts – Costs of fulfilling a contract – Amendments to IAS 37
The amendments clarify that when assessing whether a contract is onerous, an entity needs to
include costs that relate directly to a contract capturing both the incremental costs of fulfilling a
contract as well as an allocation of other costs directly related to contract activities. These
amendments had no impact on the consolidated financial statements of the Group.
Note 3
Significant judgements and estimates
In preparing these consolidated financial statements, management has made judgements and
estimates that affect the application of the Group’s accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
estimates are recognised prospectively. The significant judgements made in applying the
Group’s accounting policies were applied consistently across the annual periods.
Property, plant and equipment: proceeds before intended use – Amendments to
IAS 16
The amendments prohibit an entity from deducting from the cost of an item of property, plant
and equipment (PP&E) any proceeds received from selling items produced while the entity is
preparing the asset for its intended use. Instead, an entity recognises the proceeds from selling
such items, and the costs of producing those items, in profit or loss. These amendments had no
impact on the consolidated financial statements of the Group as there were no sales of such
items.
IFRS 9 Financial instruments – Fees in the ‘10 per cent’ test for derecognition of
financial liabilities
The pronouncement clarifies which fees should be included in the 10% test for derecognition of
financial liabilities. These fees include only those paid or received between the borrower and the
lender, including fees paid or received by either the borrower or lender on the other’s behalf. The
pronouncement had no impact on the consolidated financial statements of the Group as there
were no modifications to the Group’s financial instruments during the period.
Reference to the Conceptual Framework – Amendments to IFRS 3
Minor amendments were made to IFRS 3 Business Combinations to update the reference to the
Conceptual Framework for Financial Reporting and to add an exception for the recognition of
liabilities and contingent liabilities within the scope of IAS 37 Provisions, Contingent Liabilities and
Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to
apply the criteria under IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to
determine whether a present obligation exists at the acquisition date. The amendments also
confirms that contingent assets should not be recognised at the acquisition date. These
amendments had no impact on the consolidated financial statements of the Group as there
were no acquisitions taking place during the period.
The Group has not early adopted any other standards, interpretations or amendments that have
been issued but are not yet effective. These standards, interpretations or amendments are not
expected to have a material impact to the Group in the current or future periods and on
foreseeable future transactions.
The significant judgements and key sources of estimation uncertainty that have a significant
effect on the amounts recognised in these financial statements are outlined below.
Significant judgements
Intangible assets and goodwill
The Group has assigned indefinite lives to its bottling agreements with TCCC. This judgement
has been made after evaluating the contractual provisions of the bottling agreements, the
Group’s mutually beneficial relationship with TCCC and the history of renewals for bottling
agreements.
Refer to Note 7 for further details on the judgement regarding the lives of bottling agreements.
Significant estimates
Impairment of indefinite lived intangible assets and goodwill
Determining whether goodwill and intangible assets with indefinite lives are impaired requires an
estimation of the value in use or the fair value less costs to sell of the cash generating unit (CGU)
to which the goodwill or intangible asset has been allocated. The value in use calculation requires
management’s estimation of the future cash flows expected to arise from the CGU, including
the impact of COVID-19 and climate-related risks. Refer to Note 7 for the sensitivity analysis of
the assumptions used in the impairment analysis of goodwill and intangible assets with indefinite
lives.
Deductions from revenue and sales incentives
The Group participates in various promotional programmes with customers designed to increase
the sale of products. Among the programmes are arrangements under which rebates, refunds,
price concessions or similar items can be earned by customers for attaining agreed upon sales
levels, or for participating in specific marketing programmes. Those promotional programmes do
not give rise to a separate performance obligation. Where the consideration the Group is
entitled to varies because of such programmes, the amount payable is deemed to be variable
consideration. Management makes estimates on an ongoing basis for each individual promotion
to assess the value of the variable consideration based upon historical customer experience,
expected customer performance and/or estimated sales volumes. The related accruals are
recognised as a deduction from revenue and are not considered distinct from the sale of
products to the customer. Refer to Note 15 for further details.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
168
Income tax
The Group is subject to income taxes in numerous jurisdictions and there are many transactions
for which the ultimate tax determination cannot be assessed with certainty in the ordinary
course of business. The Group recognises a provision for situations that might arise in the
foreseeable future based on an assessment of the probabilities as to whether additional taxes
will be due. In addition, the Group is involved in various legal proceedings and tax matters. Where
an outflow of funds is believed to be probable and a reliable estimate of the outcome of the
dispute can be made, management provides for its best estimate of the liability. Where the final
outcome on these matters is different from the amounts that were initially recorded, such
differences impact the tax provision in the period in which such determination is made. These
estimates are subject to potential change over time as new facts emerge and each circumstance
progresses. The evaluation of deferred tax asset recoverability requires estimates to be made
regarding the availability of future taxable income in the jurisdiction giving rise to the deferred
tax asset. Refer to Note 21 for further details regarding income taxes.
Defined benefit plans
The determination of pension benefit costs and obligations are estimated based on assumptions
determined with the assistance of external actuarial advice. The key assumptions impacting the
valuations are the discount rate, salary rate of inflation and mortality rates. Refer to Note 16 for
further details about the Group’s defined benefit pension plan costs and obligations.
Note 4
Business combinations
On 10 May 2021, the Company acquired 100% of the issued and outstanding Shares of API. API
was one of the largest bottlers and distributors of ready to drink non-alcoholic and alcoholic
beverages and coffee in the Asia Pacific region and was the authorised bottler and distributor of
The Coca-Cola Company’s (TCCC) beverage brands in Australia, New Zealand and Pacific Islands,
Indonesia and Papua New Guinea. Details surrounding this business combination transaction,
including the provisional fair values of assets and liabilities acquired, were disclosed in Note 4 of
the Group’s annual consolidated financial statements for the year ended 31 December 2021. The
valuation exercise was completed during the first half of 2022. Subsequent changes to the
provisional amounts previously disclosed are immaterial.
Note 5
Segment information
Description of segment and principal activities
The Group derives its revenues through a single business activity, which is making, selling and
distributing an extensive range of primarily non-alcoholic ready to drink beverages. The Group’s
Board continues to be its Chief Operating Decision Maker (CODM), which allocates resources and
evaluates performance of its operating segments based on volume, revenue and comparable
operating profit. Comparable operating profit excludes items impacting the comparability of
period over period financial performance.
The following table provides a reconciliation between reportable segment operating profit and
consolidated profit before tax:
Year ended 31 December
2022
2021
2020
Europe
API
Total
Europe
API
Total
Europe
API
Total
€ million € million € million
€ million € million € million
€ million € million € million
Revenue
13,529
3,791
17,320
11,584
2,179
13,763
10,606
—
10,606
Comparable
operating profit(A)
Items impacting
comparability(B)
Reported operating
profit
Total finance costs, net
Non-operating items
Reported profit
before tax
1,670
468
2,138
1,500
272
1,772
1,194
—
1,194
(52)
2,086
(114)
(15)
1,957
(256)
1,516
(129)
(5)
1,382
(381)
813
(111)
(7)
695
(A) Comparable operating profit includes comparable depreciation and amortisation of €549 million and €223 million for Europe
and API respectively, for the year ended 31 December 2022. Comparable depreciation and amortisation charges for the year
ended 31 December 2021 totalled €564 million and €162 million for Europe and API respectively. Comparable depreciation
and amortisation charges for the year ended 31 December 2020 totalled €606 million for Europe.
(B) Items impacting the comparability of period over period financial performance for 2022 primarily include restructuring
charges of €163 million (refer to Note 18), partially offset by €96 million of other income arising from the favourable court
ruling pertaining to the ownership of certain mineral rights in Australia (refer to Note 23) and net insurance recoveries
received of €11 million arising from the July 2021 flooding events. Items impacting the comparability for 2021 included
restructuring charges of €153 million (refer to Note 18), acquisition and integration-related costs of €49 million, and the
inventory fair value step up related to acquisition accounting of €48 million (refer to Note 4). Items affecting the
comparability for 2020 include restructuring charges of €368 million (refer to Note 18).
No single customer accounted for more than 10% of the Group’s revenue during the years ended
31 December 2022, 31 December 2021 and 31 December 2020.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
169
Revenue by geography
The following table summarises revenue from external customers by geography, which is based
on the origin of the sale:
Assets by geography
Assets are allocated based on operations and physical location. The following table summarises
non-current assets, other than financial instruments and deferred tax assets, by geography:
Year ended 31 December
Year ended 31 December
Revenue:
Iberia(A)
Germany
Great Britain
France(B)
Belgium/Luxembourg
Netherlands
Norway
Sweden
Iceland
Total Europe
Australia
New Zealand and Pacific Islands
Indonesia and Papua New Guinea
Total API
Total CCEP
(A) Iberia refers to Spain, Portugal and Andorra.
(B) France refers to continental France and Monaco.
2022
€ million
3,034
2,682
3,088
2,089
1,042
682
404
421
87
13,529
2,339
649
803
3,791
17,320
2021
€ million
2,495
2,335
2,613
1,813
926
557
391
375
79
11,584
1,359
377
443
2,179
13,763
2020
€ million
Assets:
2,173
Iberia(A)
2,270
Germany
2,203
Great Britain
1,709
France(B)
892
529
423
Belgium/Luxembourg
Netherlands
Sweden
337
Norway
70
Iceland
10,606
Other unallocated
—
—
—
—
Total Europe
Australia
New Zealand and Pacific Islands
Indonesia and Papua New Guinea
10,606
Total API
Total CCEP
(A) Iberia refers to Spain, Portugal and Andorra.
(B) France refers to continental France and Monaco.
2022
€ million
6,401
3,091
2,469
896
613
428
349
242
36
271
2021
€ million
6,644
3,077
2,680
887
600
432
379
247
34
245
14,796
15,225
5,281
1,755
726
7,762
5,356
1,751
712
7,819
22,558
23,044
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
170
Note 6
Earnings per share
Basic earnings per share is calculated by dividing profit after taxes by the weighted average
number of Shares in issue and outstanding during the period. Diluted earnings per share is
calculated in a similar manner, but includes the effect of dilutive securities, principally share
options, restricted stock units and performance share units. Share-based payment awards that
are contingently issuable upon the achievement of specified market and/or performance
conditions are included in the diluted earnings per share calculation based on the number of
Shares that would be issuable if the end of the period was the end of the contingency period.
The following table summarises basic and diluted earnings per share calculations for the years
presented:
Profit after taxes attributable to equity shareholders
(€ million)
Basic weighted average number of Shares in issue(A)
(million)
Effect of dilutive potential Shares(B) (million)
Diluted weighted average number of Shares in
issue(A) (million)
Basic earnings per share (€)
Diluted earnings per share (€)
Year ended 31 December
2022
1,508
457
1
458
3.30
3.29
2021
982
456
1
457
2.15
2.15
2020
498
455
1
456
1.09
1.09
(A) As at 31 December 2022, 31 December 2021 and 31 December 2020 the Group had 457,106,453, 456,235,032 and
454,645,510 Shares, respectively, in issue and outstanding.
(B) For the years ended 31 December 2022, 31 December 2021 and 31 December 2020, no options to purchase Shares were
excluded from the diluted earnings per share calculation. The dilutive impact of all outstanding options, unvested restricted
stock units and unvested performance share units was included in the effect of dilutive securities.
Note 7
Intangible assets and goodwill
Intangible assets with indefinite lives
Intangible assets with indefinite lives acquired through business combination transactions are
measured at fair value at the date of acquisition. These assets are not subject to amortisation but
are tested for impairment annually at the CGU level or more frequently if facts and
circumstances indicate an impairment may exist. In addition to the annual impairment test, the
assessment of indefinite lives is also reviewed annually.
TCCC franchise intangible assets
The Group’s bottling agreements contain performance requirements and convey the rights to
distribute and sell products within specified territories. The Group’s agreements with TCCC in
each territory are for terms of 10 year and each contain the right for the Group to request a 10
year renewal. The existing bottling agreements expire no earlier than 1 September 2025. While
these agreements contain no automatic right of renewal beyond that date, the Group believes
that its interdependent relationship with TCCC and the substantial cost and disruption to
TCCC that would be caused by non-renewal ensure that these agreements will continue to be
renewed and, therefore, are essentially perpetual. The Group has never had a bottling
agreement with TCCC terminated due to non-performance of the terms of the agreement or
due to a decision by TCCC to terminate an agreement at the expiration of a term. After
evaluating the contractual provisions of bottling agreements, the Group’s mutually beneficial
relationship with TCCC and history of renewals, indefinite lives have been assigned to all of the
Group’s TCCC bottling agreements.
Brands
In connection with the Acquisition, the Group acquired a portfolio of brands, predominantly
comprised of certain non-alcoholic ready to drink beverages distributed and sold in Australia and
New Zealand. These are considered to have an indefinite life, given the strength and durability of
the brands. Refer to Note 20 and Note 24 for details surrounding the sale of certain non-alcoholic
ready to drink brands, which was partially completed during the current period.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
171
Goodwill
Goodwill is initially measured as the excess of the total consideration transferred over the
amount recognised for net identifiable assets acquired and liabilities assumed in a business
combination. If the fair value of the net assets acquired is in excess of the aggregate
consideration transferred, the gain is recognised in the consolidated income statement as a
bargain purchase. Goodwill is not subject to amortisation. It is tested annually for impairment at
the CGU level or more frequently if events or changes in circumstances indicate that it might be
impaired. Goodwill acquired in a business combination is allocated to the CGU that is expected
to benefit from the synergies of the combination irrespective of whether a CGU is part of the
business combination.
Intangible assets with finite lives
Intangible assets with finite lives are measured at cost of acquisition or production and are
amortised using the straight-line method over their respective estimated useful lives. Finite lived
intangible assets are assessed for impairment whenever there is an indication that they may be
impaired. The amortisation period and method are reviewed annually.
Internally generated software
The Group capitalises certain development costs associated with internally developed software,
including external direct costs of materials and services, and payroll costs for employees
devoting time to a software project and any such software acquired as part of a business
combination. Development expenditure is recognised as an intangible asset only after its
technical feasibility and commercial viability can be demonstrated. When capitalised software is
not integral to related hardware it is treated as an intangible asset; otherwise it is included within
property, plant and equipment. The estimated useful life of capitalised software is
predominantly between five and seven years. Amortisation expense for capitalised software is
included within administrative expenses and was €83 million, €75 million and €54 million for the
years ended 31 December 2022, 31 December 2021 and 31 December 2020, respectively.
Customer relationships
The Group has acquired certain customer relationships in connection with business
combinations. These customer relationships are recorded at fair value on the date of acquisition,
and amortised over an estimated economic useful life of 20 years. Amortisation expense for
these assets is included within administrative expenses and was €10 million, €9 million and
€8 million for the years ended 31 December 2022, 31 December 2021 and 31 December 2020,
respectively.
Non-TCCC franchise intangible
In connection with the Acquisition, the Group acquired certain bottling agreements with
non-TCCC distribution partners which contain performance requirements and convey the rights
to distribute and sell products within specified API territories. The non-TCCC bottling
arrangements are recorded at fair value at the acquisition date and amortised over an expected
economic useful life of 20 years. Amortisation expense for these assets is recognised within
administrative expenses and totalled €8 million and €5 million for the years ended
31 December 2022 and 31 December 2021, respectively.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
172
Balances and movements in intangible assets and goodwill
The following table summarises the movements in the carrying amounts of intangible assets and goodwill for the periods presented:
TCCC franchise
intangible
€ million
Brands
€ million
Software
€ million
Customer
relationships
Non-TCCC
franchise
intangible
Assets under
construction
Total intangibles
€ million
€ million
€ million
€ million
Cost:
As at 31 December 2020
Acquisition of CCL
Additions
Disposals
Transfers and reclassifications
Assets held for sale
Currency translation adjustments
As at 31 December 2021
Additions
Disposals
Transfers and reclassifications
Currency translation adjustments
As at 31 December 2022
Accumulated amortisation:
As at 31 December 2020
Amortisation expense
Disposals
Currency translation adjustments
As at 31 December 2021
Amortisation expense
Disposals
Currency translation adjustments
As at 31 December 2022
Net book value:
As at 31 December 2020
As at 31 December 2021
As at 31 December 2022
8,078
3,822
—
—
—
—
108
12,008
—
—
—
(134)
11,874
—
—
—
—
—
—
—
—
—
8,078
12,008
11,874
—
211
—
—
—
(189)
—
22
—
—
11
6
39
—
—
—
—
—
—
—
(7)
(7)
—
22
32
382
55
65
(23)
74
—
18
571
40
(27)
39
(2)
621
(233)
(75)
20
(9)
(297)
(83)
22
(2)
(360)
149
274
261
161
37
—
—
—
—
(1)
197
1
—
—
(3)
195
(43)
(9)
—
(1)
(53)
(10)
—
2
—
149
—
—
—
—
—
149
—
—
—
(1)
148
—
(5)
—
—
(5)
(8)
—
—
(61)
(13)
118
144
134
—
144
135
69
11
40
—
(74)
—
1
47
63
(1)
(38)
(2)
69
—
—
—
—
—
—
—
—
—
69
47
69
Goodwill
€ million
2,517
2,097
—
—
—
—
9
8,690
4,285
105
(23)
—
(189)
126
12,994
4,623
104
(28)
12
(136)
12,946
(276)
(89)
20
(10)
(355)
(101)
22
(7)
(441)
—
—
—
(23)
4,600
—
—
—
—
—
—
—
—
—
8,414
12,639
12,505
2,517
4,623
4,600
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
173
Impairment of indefinite lived intangible assets and goodwill
Each CGU is tested for impairment annually in the fourth quarter or whenever there is an
indication of impairment. The recoverable amount of each CGU is normally determined through
a value in use calculation. To determine value in use for a CGU, estimated future cash flows are
discounted to their present values using a pre-tax discount rate reflective of the current market
conditions and risks specific to each CGU. If the carrying value of a CGU exceeds its recoverable
amount, the carrying value of the CGU is reduced to its recoverable amount and impairment
charges are recognised immediately within the consolidated income statement. Impairment
charges other than those related to goodwill may be reversed in future periods if a subsequent
test indicates that the recoverable amount has increased. Such recoveries may not exceed a
CGU’s original carrying value less any depreciation that would have been recognised if no
impairment charges were previously recorded.
The Group’s CGUs are based on geography and generally represent the individual territories in
which the Group operates. For the purposes of allocating intangibles, each indefinite lived
intangible asset is allocated to the geographic region to which the agreement relates and
goodwill is allocated to each of the CGUs expected to benefit from a business combination,
irrespective of whether other assets and liabilities of the acquired businesses are assigned to the
CGUs.
The following table identifies the carrying value of goodwill and indefinite lived intangible assets
attributable to each significant CGU of the Group. In addition to the significant CGUs of the
Group, as at 31 December 2022 the Group had other CGUs with total indefinite-lived intangible
assets of €1,369 million and goodwill of €380 million.
Cash generating unit
Iberia
Australia
Great Britain
Germany
Pacific(A)
Year ended 31 December
2022
2021
Indefinite lived
intangible assets
€ million
Goodwill
€ million
Indefinite lived
intangible assets
€ million
4,289
2,690
1,646
1,060
849
1,275
1,450
200
748
547
4,289
2,698
1,740
1,060
863
(A) Pacific refers to New Zealand and Pacific Islands.
The recoverable amount of each CGU was determined through a value in use calculation, which
uses cash flow projections for a five year period. These projections reflect the impact of climate
change on our business as well as the mitigating actions and strategies we are undertaking to
support our commitment to reach Net Zero emissions by 2040. The key assumptions used in
projecting these cash flows were as follows:
• Growth rate and operating margins: Cash flows were projected over four years based on the
Group’s strategic business plan. Cash flows for the fifth year and beyond were projected using
an inflation-based long-term terminal growth rate between 2.0% and 4.5%.
• Discount rate: A weighted average cost of capital was applied specific to each CGU as a hurdle
rate to discount cash flows. The discount rates represent the current market assessment of the
risks specific to each CGU, taking into consideration the time value of money and individual
risks of the underlying assets that have not been incorporated in the cash flow estimates. The
following table summarises the pre-tax discount rate attributable to each significant CGU.
Cash generating unit
Iberia
Australia
Great Britain
Germany
Pacific
2022
2021
Pre-tax
discount rate
Pre-tax
discount rate
%
8.7
9.1
9.3
7.9
9.7
%
9.3
—
9.9
9.3
—
Goodwill
€ million
1,275
1,459
200
748
556
The Group did not record any impairment charges as a result of the tests conducted in 2022 and
2021.
The Group’s Great Britain, Germany, Iberia and Australia CGUs have substantial headroom when
comparing the value in use calculation of the CGU versus the CGU’s carrying value.
For the Group’s Pacific CGU, the headroom in the 2022 impairment analysis was approximately
15% of carrying value.
The Group estimates that a 1.0% reduction in the terminal growth rate or a 0.8% increase in the
discount rate, each in isolation, would eliminate existing headroom in Pacific.
Strategic Report
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
174
Note 8
Property, plant and equipment
Property, plant and equipment is recorded at cost, net of accumulated depreciation and
accumulated impairment losses, where cost is the amount of cash or cash equivalents paid to
acquire an asset at the time of its acquisition or construction. Major property additions,
replacements and improvements are capitalised, while maintenance and repairs that do not
extend the useful life of an asset or add new functionality are expensed as incurred. Land is not
depreciated, as it is considered to have an indefinite life. For all property, plant and equipment,
other than land, depreciation is recorded using the straight-line method over the respective
estimated useful lives as follows:
Category
Buildings and improvements
Machinery, equipment and containers
Cold drink equipment
Vehicle fleet
Furniture and office equipment
Useful life (years)
Low
10
3
2
3
3
High
40
20
12
12
10
Gains or losses arising on the disposal or retirement of an asset are determined as the difference
between the carrying amount of the asset and any proceeds from its sale. Leasehold
improvements are amortised using the straight-line method over the shorter of the remaining
lease term or the estimated useful life of the improvement.
The Group assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, an impairment test is performed to estimate the potential loss
of value that may reduce the recoverable amount of the asset to below its carrying amount. Any
impairment loss is recognised within the consolidated income statement by the amount which
the carrying amount exceeds the recoverable amount. Useful lives and residual amounts are
reviewed annually and adjustments are made prospectively as required.
For property, plant and equipment, the Group assesses annually whether there is an indication
that previously recognised impairment losses no longer exist or have decreased. If such
indication exists, a previously recognised impairment loss is reversed only if there has been a
change in the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognised and only up to the recoverable amount or the original carrying
amount net of depreciation that would have been incurred had no impairment losses been
recognised.
The transition to a low-carbon economy may impact the carrying value and remaining useful
economic lives of the Group’s property, plant and equipment. The Group continues to invest in
more efficient, cleaner and technologically advanced assets, however, the significant majority of
the Group’s current assets are likely to be substantially depreciated ahead of our 2040 Net Zero
emission commitments, as set out in our Strategic Report on pages 38-41. In addition, the Group
continuously monitors the latest developments in the government legislation in relation to
climate-related risks. Currently, no legislation has been passed that will materially impact the
carrying value and remaining useful economic lives of the Group.
The Group leases land, office and warehouse property, computer hardware, machinery and
equipment and vehicles under non-cancellable lease agreements, most of which expire at
various dates through to 2030. Since the adoption of IFRS 16, “Leases”, effective 1 January 2019,
the Group includes right of use assets within property, plant and equipment. Right of use assets
are initially measured at cost, comprising the initial measurement of the lease liability, plus any
direct costs and an estimate of asset retirement obligations, less lease incentives. Subsequently,
right of use assets are measured at cost, less accumulated depreciation and any accumulated
impairment losses. Depreciation is calculated on a straight-line basis over the term of the lease.
The Group does not separate lease from non-lease components for each of its lease categories,
except for property leases. All low value leases with total minimum lease payments under €5,000
and leases with a term less than 12 months are expensed on a straight-line basis.
Extension and termination options are included in a number of property and equipment leases
across the Group and are used to maximise operational flexibility in terms of managing
contracts. Extension options (or periods after termination options) are only included in the lease
term if the Group has an enforceable right to extend or terminate the lease and is reasonably
certain to do so.
Strategic Report
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
175
The following table summarises the movement in net book value for property, plant and equipment for the periods presented:
Buildings and
improvements
Machinery,
equipment and
containers
Cold drink
equipment
Vehicle fleet
Furniture
and office
equipment
Assets under
construction
€ million
€ million
€ million
€ million
€ million
€ million
Cost:
As at 31 December 2020
Acquisition of CCL
Additions
Disposals
Transfers and reclassifications(A)
Currency translation adjustments
As at 31 December 2021
Additions
Disposals
Assets held for sale
Transfers and reclassifications
Currency translation adjustments
As at 31 December 2022
Accumulated depreciation:
As at 31 December 2020
Depreciation expense
Disposals
Currency translation adjustments
As at 31 December 2021
Depreciation expense
Disposals
Assets held for sale
Transfers and reclassifications
Currency translation adjustments
As at 31 December 2022
Net book value:
As at 31 December 2020
As at 31 December 2021
As at 31 December 2022
(A) Includes €4 million related to assets held for sale for the year ended 31 December 2021.
Land
€ million
317
339
2
1,846
492
41
2,975
529
119
1,155
108
50
(3)
(28)
(218)
(319)
—
8
663
1
(3)
(29)
27
(11)
648
—
—
—
—
—
—
—
—
—
—
—
317
663
648
47
31
2,429
131
(28)
(26)
37
(42)
129
44
3,578
221
(103)
(8)
75
(40)
11
21
1,026
65
(49)
—
36
32
2,501
3,723
1,110
(651)
(123)
17
(9)
(766)
(128)
19
10
—
22
(1,337)
(326)
208
(18)
(1,473)
(380)
105
9
3
(2)
(843)
(1,738)
1,195
1,663
1,658
1,638
2,105
1,985
(772)
(163)
319
(15)
(631)
(127)
49
—
(2)
(14)
(725)
383
395
385
283
7
62
(54)
1
(1)
298
59
(58)
—
2
(4)
297
(141)
(61)
51
—
(151)
(58)
53
—
—
3
144
15
10
(16)
5
2
160
21
(8)
—
8
(2)
179
(84)
(20)
15
(2)
(91)
(22)
8
—
—
2
(153)
(103)
142
147
144
60
69
76
125
78
195
1
(197)
4
206
287
—
—
(184)
(4)
305
—
—
—
—
—
—
—
—
—
—
—
125
206
305
Total
€ million
6,845
1,568
479
(637)
(4)
109
8,360
785
(249)
(63)
1
(71)
8,763
(2,985)
(693)
610
(44)
(3,112)
(715)
234
19
1
11
(3,562)
3,860
5,248
5,201
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
176
Right of use assets
The following table summarises the net book value of right of use assets included within
property, plant and equipment:
Buildings and improvements
Vehicle fleet
Machinery, equipment and containers
Furniture and office equipment
Total
Year ended 31 December
2022
€ million
2021
€ million
465
133
82
3
683
438
135
71
5
649
Total additions to right of use assets during 2022 were €208 million (2021: €120 million).
The following table summarises depreciation charges relating to right of use assets for the
periods presented:
The Group incurred variable lease expenses of €153 million in 2022 (2021: €93 million), primarily
included in administrative expenses. This amount mainly consists of the variable component of
lease payments for product transportation services in Australia and New Zealand, whereby these
components are dependent on various factors such as number of cases of product delivered,
number of trips and pallets.
Note 9
Inventories
Inventories are valued at the lower of cost or net realisable value and cost is determined using
the first-in, first-out (FIFO) method. Inventories consist of raw materials, supplies (primarily
including concentrate, other ingredients and packaging) and finished goods, which also include
direct labour, indirect production and overhead costs. Cost includes all costs incurred to bring
inventories to their present location and condition. Spare parts, classified and accounted as
inventories, are recorded as assets at the time of purchase and are expensed as utilised. Net
realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs necessary to complete and sell the inventory.
The following table summarises the inventory outstanding in the consolidated statement of
financial position as at the dates presented:
Buildings and improvements
Vehicle fleet
Machinery, equipment and containers
Furniture and office equipment
Total
Year ended 31 December
2022
€ million
2021
€ million
63
57
34
2
156
56
59
22
2
139
Finished goods
Raw materials and supplies
Spare parts and other
Total inventories
Year ended 31 December
2022
€ million
777
452
151
1,380
2021
€ million
635
375
147
1,157
During the years ended 31 December 2022 and 31 December 2021, the total expense relating to
low value and short-term leases was €24 million and €16 million, respectively, which is primarily
included in administrative expenses. The Group does not have any residual value guarantees in
relation to its leases. As at 31 December 2022 the total value of lease extension and termination
options included within right of use assets was €35 million (2021: €16 million).
Write downs of inventories totalled €41 million, €41 million and €29 million for the years ended
31 December 2022, 31 December 2021 and 31 December 2020, respectively. The majority of
these write downs were included in cost of sales on the consolidated income statement. None of
these write downs of inventory were subsequently reversed.
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Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
177
Note 10
Trade accounts receivable
The Group sells its products to retailers, wholesalers and other customers and extends credit,
generally without requiring collateral, based on an evaluation of the customer’s financial
condition. While the Group has a concentration of credit risk in the retail sector, this risk is
mitigated due to the diverse nature of the customers the Group serves, including, but not limited
to, their type, geographic location, size and beverage channel.
Trade accounts receivable are initially recognised at fair value and subsequently measured at
amortised cost less provision for impairment. Typically, accounts receivable have terms of 30 to
60 days and do not bear interest. The Group applies an expected credit loss reserve
methodology to assess possible impairments. Balances are considered for impairment on an
individual basis rather than by reference to the extent that they become overdue. The Group
considers factors such as delinquency in payment, financial difficulties, payment history of the
debtor as well as certain forward-looking macroeconomic indicators. The carrying amount of
trade accounts receivable is reduced through the use of an allowance account and the amount
of the loss is recognised in the consolidated income statement. Credit insurance on a portion of
the accounts receivable balance is also carried. Refer to Note 26 for further details on credit risk
management.
As a result of increased recession risk across our European territories, the Group supplemented
its existing credit loss reserve methodology to include an incremental loss allowance for those
receivable balances that were deemed to be higher risk in the current environment. The
incremental allowance is included within allowance for doubtful accounts below, as at
31 December 2022.
The following table summarises the trade accounts receivable outstanding in the consolidated
statement of financial position as at the dates presented:
The following table summarises the ageing of trade accounts receivable, net of allowance for
doubtful accounts, in the consolidated statement of financial position as at the dates presented:
Not past due
Past due 1 – 30 days
Past due 31 – 60 days
Past due 61 – 90 days
Past due 91 – 120 days
Past due 121+ days
Total
Year ended 31 December
2022
€ million
2,287
102
30
15
14
18
2021
€ million
2,172
88
18
9
3
15
2,466
2,305
The following table summarises the change in the allowance for doubtful accounts for the
periods presented:
Trade accounts receivable, gross
Allowance for doubtful accounts
Total trade accounts receivable
Year ended 31 December
As at 31 December 2021
2022
€ million
2,523
(57)
2,466
2021
Provision for impairment recognised during the year
€ million
Receivables written off during the year as uncollectible
2,354
Reversals
(49)
Currency translation adjustments
2,305
As at 31 December 2022
As at 31 December 2020
Provision for impairment recognised during the year
Receivables written off during the year as uncollectible
Allowance for
doubtful accounts
€ million
(39)
(13)
3
(49)
(15)
5
1
1
(57)
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Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
178
Note 11
Cash and cash equivalents and short-term investments
Cash and cash equivalents
Cash and cash equivalents include cash and short-term, highly liquid financial instruments with
maturity dates of less than three months when acquired that are readily convertible to cash and
which are subject to an insignificant risk of changes in value. Counterparties and instruments
used to hold the Group’s cash and cash equivalents are continually assessed, with a focus on
preservation of capital and liquidity.
The following table summarises the cash and cash equivalents outstanding in the consolidated
statement of financial position as at the dates presented:
Cash at banks and on hand
Short-term deposits and securities
Total cash and cash equivalents
Year ended 31 December
2022
€ million
491
896
1,387
2021
€ million
708
699
1,407
Cash and cash equivalents are held in the following currencies as at the dates presented:
Euro
British pound
US dollar
Norwegian krone
Swedish krona
Australian dollar
Indonesian rupiah
Papua New Guinean kina
Other
Total cash and cash equivalents
Year ended 31 December
2022
€ million
2021
€ million
477
190
88
35
21
358
26
102
90
524
337
74
64
31
234
41
45
57
1,387
1,407
Included within Cash and cash equivalents as at 31 December 2022 and 31 December 2021 are
Papua New Guinea cash assets of €102 million and €45 million respectively, denominated in local
currency (Kina). Government-imposed currency controls impact the extent to which the cash
held in Papua New Guinea can be converted into foreign currency and remitted for use
elsewhere in the Group. There are no other material restrictions on the Group’s cash and cash
equivalents.
Short-term investments
Short-term investments are financial assets that are initially recognised at fair value and
subsequently measured at amortised cost. The Group classifies its financial assets as at amortised
cost only if both of the following criteria are met:
• the asset is held within a business model whose objective is to collect the contractual cash
flows; and
• the contractual terms give rise to cash flows that are solely payments for principal and interest.
The short-term investment balance is comprised of time deposits and treasury bills, with
maturity dates of greater than three months and less than one year when acquired, which do not
meet the definition of cash and cash equivalents, and are expected to be held until maturity.
These are highly liquid investments and due to their short-term nature, their carrying amount is
not significantly different from the fair values.
As at 31 December 2022 and 31 December 2021 short-term investments were €256 million and
€58 million respectively , which included €49 million and €44 million respectively, denominated in
Papua New Guinea kina that are subject to government-imposed currency controls which
impact the extent to which these investments, upon maturity, can be converted into foreign
currency and remitted for use elsewhere in the Group.
Note 12
Fair values
Fair value measurements
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy. This is described as one of the following, based on
the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 – Quoted prices in active markets for identical assets or liabilities.
• Level 2 – Observable inputs other than quoted prices included in Level 1. The Group values
assets and liabilities included in this level using dealer and broker quotations, certain pricing
models, bid prices, quoted prices for similar assets and liabilities in active markets or other
inputs that are observable or can be corroborated by observable market data.
• Level 3 – Unobservable inputs that are supported by little or no market activity and that are
significant to the fair value of the assets or liabilities. This includes certain pricing models,
discounted cash flow methodologies and similar techniques that use significant unobservable
inputs.
The fair values of the Group’s cash and cash equivalents, short-term investments, trade accounts
receivable, amounts receivable from related parties, trade and other payables and amounts
payable to related parties approximate their carrying amounts due to their short-term nature.
The fair values of the Group’s borrowings are estimated based on borrowings with similar
maturities and credit quality and current market interest rates. These are categorised within
Level 2 of the fair value hierarchy as the Group uses certain pricing models and quoted prices for
similar liabilities in active markets in assessing their fair values. Refer to Note 14 for further details
regarding the Group’s borrowings.
Strategic Report
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
179
The following table summarises the book value and fair value of the Group’s borrowings as at the
dates presented:
Fair value of borrowings
Book value of borrowings (Note 14)
Year ended 31 December
2022
€ million
10,503
11,907
2021
€ million
13,316
13,140
The Group’s derivative assets and liabilities are carried at fair value, which is determined using a
variety of valuation techniques, depending on the specific characteristics of the hedging
instrument, taking into account credit risk. The fair value of its derivative contracts (including
forwards, options, futures, cross currency swaps and interest rate swaps) is determined using
standard valuation models. The significant inputs used in these models are readily available in
public markets or can be derived from observable market transactions and, therefore, the
derivative contracts have been classified as Level 2. Inputs used in these standard valuation
models include the applicable spot, forward and discount rates. The standard valuation model for
the option contracts also includes implied volatility, which is specific to individual options and is
based on rates quoted from a widely used third party resource. Refer to Note 13 for further
details about the Group’s derivatives.
The following table summarises the fair value of the derivative assets and liabilities as at the dates
presented:
Assets at fair value:
Derivatives (Note 13)
Liabilities at fair value:
Derivatives (Note 13)
Year ended 31 December
2022
€ million
2021
€ million
448
263
376
66
For assets and liabilities that are recognised in the financial statements on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by
reassessing categorisation at the end of each reporting period. There have been no transfers
between levels during the periods presented.
Note 13
Hedging activities
Derivative financial instruments
The Group utilises derivative financial instruments to mitigate its exposure to certain market risks
associated with its ongoing operations. The primary risks that it seeks to manage through the use
of derivative financial instruments include currency exchange risk, commodity price risk and
interest rate risk.
All derivative financial instrument assets and liabilities are recorded at fair value on the
consolidated statement of financial position. The Group does not use derivative financial
instruments for trading or speculative purposes and all hedge ratios are on a 1:1 basis. At the
inception of a hedge transaction, the Group documents the relationship between the hedging
instrument and the hedged item, as well as its risk management objective and strategy for
undertaking the hedge transaction. This process includes linking the derivative financial
instrument designated as a hedging instrument to the specific asset, liability, firm commitment
or forecasted transaction. Refer to Note 26 for further details about the Group’s risk
management strategy and objective. Both at the hedge inception and on an ongoing basis, the
Group assesses and documents whether the derivative financial instrument used in the hedging
transaction is highly effective in maintaining the risk management objectives. Where critical
terms match, the Group uses a qualitative assessment to ensure initial and ongoing effectiveness
criteria. Hedge accounting is discontinued when the hedging instrument expires or is sold,
terminated, exercised, or no longer qualifies for hedge accounting. At that time, any cumulative
gain or loss on the hedging instrument recognised in equity is retained in equity until the
forecasted transaction occurs. If the hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in equity is transferred to the income statement.
While certain derivative financial instruments are designated as hedging instruments, the Group
may also enter into derivative financial instruments that are designed to hedge a risk but are not
designated as hedging instruments (referred to as an economic hedge or a non-designated
hedge). The decision regarding whether or not to designate a hedge for hedge accounting is
made by management considering the size, purpose and tenure of the hedge, as well as the
anticipated ability to achieve and maintain the Group’s risk management objective.
The Group is exposed to counterparty credit risk on all of its derivative financial instruments.
It has established and maintained strict counterparty credit guidelines and enters into hedges
only with financial institutions that are investment grade or better. It continuously monitors
counterparty credit risk and utilises numerous counterparties to minimise its exposure to
potential defaults.
The following table summarises the fair value of the assets and liabilities related to derivative
financial instruments and the respective line items in which they were recorded in the
consolidated statement of financial position as at the dates presented. All derivative instruments
are classified as Level 2 within the fair value hierarchy.
Discussion of the Group’s other financial assets and liabilities is contained elsewhere in these
financial statements. Refer to Note 10 for trade accounts receivable, Note 15 for trade and other
payables, Note 14 for borrowings and Note 20 for amounts receivable and payable with related
parties.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
180
Hedging instrument
Assets:
Derivatives designated as hedging
instruments:
Location – statement
of financial position
Commodity contracts
Non-current derivative assets
Foreign currency contracts
Non-current derivative assets
Interest rate and cross currency
swaps
Non-current derivative assets
Commodity contracts
Current derivative assets
Foreign currency contracts
Current derivative assets
Interest rate and cross currency
swaps
Current derivative assets
Total assets
Liabilities:
Derivatives designated as hedging
instruments:
Commodity contracts
Non-current derivative liabilities
Foreign currency contracts
Non-current derivative liabilities
Interest rate and cross currency
swaps
Non-current derivative liabilities
Commodity contracts
Current derivative liabilities
Foreign currency contracts
Current derivative liabilities
Total liabilities
Year ended 31 December
2022
€ million
2021
€ million
30
4
157
133
27
97
448
6
10
171
47
29
263
75
3
148
128
16
6
376
3
—
44
5
14
66
Cash flow hedges
The Group uses cash flow hedges to mitigate its exposure to changes in cash flows attributable
to currency fluctuations and commodity price fluctuations associated with certain forecasted
transactions, including purchases of raw materials, finished goods and services denominated in
non-functional currencies, the receipt of interest and principal on intercompany loans
denominated in non-functional currencies and the payment of interest and principal on debt
issuances in non-functional currencies. Effective changes in the fair value of these cash flow
hedging instruments are recognised as a component of other reserves on the consolidated
statement of financial position. The effective changes are then recognised within the line item
on the consolidated income statement that is consistent with the nature of the underlying
hedged item in the period that the forecasted purchases or payments impact earnings. Any
changes in the fair value of these cash flow hedges that are the result of ineffectiveness are
recognised immediately in the line item on the consolidated income statement that is consistent
with the nature of the underlying hedged item. Historically, the Group has not experienced, nor
does it expect to experience, material hedge ineffectiveness with the value of the hedged
instrument equalling that of the hedged item.
The net notional amount of outstanding interest rate and cross currency swaps used to hedge
interest rate risk and currency fluctuations of non-functional currency borrowings was €2.1 billion
as at 31 December 2022 and €2.2 billion as at 31 December 2021. The net notional amount of the
other outstanding currency-related cash flow hedges was €1.7 billion as at 31 December 2022 and
€1.1 billion as at 31 December 2021. The net notional amount of outstanding commodity-related
cash flow hedges was €1.4 billion as at 31 December 2022 and €0.9 billion as at 31 December 2021.
Outstanding cash flow hedges as at 31 December 2022 are expected to settle and affect profit
or loss between 2023 and 2036.
Strategic Report
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
181
The following table summarises the Group’s outstanding cash flow hedges by risk category as at
the dates presented (all contracts denominated in a foreign currency have been converted into
euros using the respective year end spot rate):
Notional maturity profile
Total
Less than
1 year
1 to 3 years
3 to 5 years Over 5 years
The following table summarises the net of tax effect for cash flow hedges for the periods
presented within the consolidated income statement:
Amount of gain/(loss) reclassified
from the hedging reserve into profit
Year ended 31 December
2022
2021
Cash flow hedges
€ million
€ million
€ million
€ million
€ million
Cash flow hedging instruments
Location – Income statement
€ million
€ million
Deal contingent foreign currency
forwards
Foreign currency contracts
Interest rate and cross currency swaps
Commodity contracts
As at 31 December 2020
Foreign currency contracts
Interest rate and cross currency swaps
Commodity contracts
As at 31 December 2021
Foreign currency contracts
Interest rate and cross currency swaps
Commodity contracts
As at 31 December 2022
3,000
3,000
310
396
677
4,383
1,074
2,225
922
4,221
1,723
2,079
1,397
5,199
174
396
403
3,973
912
144
566
1,622
1,292
760
834
—
136
—
274
410
162
1,365
356
1,883
431
604
563
2,886
1,598
—
—
—
—
—
—
—
—
—
—
416
—
416
—
—
—
—
—
—
716
—
716
—
299
—
299
The Group recognised within other comprehensive income net gains of €3 million, €125 million
and €25 million for the years ended 31 December 2022, 31 December 2021 and
31 December 2020, respectively, related to changes in the fair values of outstanding cash flow
hedges. The amount of ineffectiveness associated with these cash flow hedges was not material
during any year presented within these financial statements.
During 2021, the Group entered into deal contingent foreign currency forwards with a total
notional amount of €5.6 billion in order to mitigate the foreign currency risk arising from the
Acquisition. These instruments were recorded as cash flow hedges, and on completion of the
Acquisition, gains of €84 million were reclassified to goodwill.
2020
€ million
1
(33)
(3)
23
(12)
Foreign currency contracts
Cost of sales
Commodity contracts
Cost of sales
Commodity contracts
Selling and distribution
expenses
19
83
34
(3)
74
2
Interest rate and cross
currency swaps(A)
Total
Finance costs
(86)
(78)
50
(5)
(A) The gain/(loss) recognised on these currency contracts is offset by the gain/(loss) recognised on the remeasurement of the
underlying debt instruments; therefore, there is a minimal consolidated net effect in non-operating items on the
consolidated income statement.
Fair value hedges
The Group has designated certain cross currency swaps used to mitigate FX risk and interest rate
risk on foreign currency borrowings as fair value hedges. There is an economic relationship
between the hedged item and the hedging instrument as the terms of the cross currency swap
contracts match the terms of the fixed rate borrowings. The Group has established a hedge ratio
of 1:1 for the hedging relationship.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
182
The following table summarises the Group’s outstanding fair value hedges by risk category as at
the dates presented (all contracts denominated in a foreign currency have been converted into
euros using the respective year end spot rate):
Fair value hedges
As at 31 December 2020
Interest rate and cross currency swaps
As at 31 December 2021
Interest rate and cross currency swaps
As at 31 December 2022
Less than
1 year
1 to 3 years
3 to 5 years Over 5 years
Total
€ million
€ million
€ million
€ million
—
166
166
1,165
1,165
—
—
—
—
—
—
—
—
—
—
—
—
—
500
500
—
166
166
665
665
The following table summarises the gains/(losses) recognised from fair value hedges that settled
for the periods presented within the consolidated income statement:
Fair value hedges
Interest rate and cross
currency swaps
Total
Location – Income
statement
Finance costs
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
2
2
(2)
(2)
—
—
The carrying value of the hedged item recognised in borrowings is €1,019 million
(2021: €173 million), which includes accumulated amounts of fair value adjustments of
€(146) million (2021: €15 million).
Non-designated hedges
The Group periodically enters into derivative instruments that are designed to hedge various
risks but are not designated as hedging instruments.
The following table summarises the gains/(losses) recognised from non-designated derivative
financial instruments in the consolidated income statement for the years presented.
Non-designated
hedging instruments
Location – Income statement
Commodity
contracts
Selling and distribution
expenses
Foreign currency
contracts(A)
Total
Non-operating items
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
—
(5)
(5)
—
—
—
(12)
(4)
(16)
(A) The gain/(loss) recognised on these currency contracts is offset by the gain/(loss) recognised on the remeasurement of the
underlying hedged items; therefore, there is a minimal consolidated net effect in non-operating items on the consolidated
income statement.
Net investment hedges
The Group had no net investment hedges in place as at 31 December 2022 or 31 December 2021,
however it continues to monitor its exposure to currency exchange rates and may enter into
future net investment hedges as a result of volatility in the functional currencies of certain of its
subsidiaries.
Note 14
Borrowings and leases
Borrowings
Borrowings are initially recognised at fair value, net of issuance costs incurred. Borrowings
acquired by the Group as part of the Acquisition have been recognised at fair value at the
acquisition date. After initial recognition, borrowings are subsequently measured at amortised
cost using the effective interest rate method. Amortisation of transaction costs, fair value
adjustments made on acquisition, premiums and discounts are recognised as part of finance
costs within the consolidated income statement.
At times, it enters into other short-term non-designated hedges to mitigate its exposure to
changes in cash flows attributable to currency fluctuations associated with short-term
intercompany loans and certain cash equivalents denominated in non-functional currencies.
Changes in the fair value of outstanding non-designated hedges are recognised each reporting
period in the line item on the consolidated income statement that is consistent with the nature
of the hedged risk.
There were €29 million outstanding non-designated foreign currency hedges, hedging
intercompany loans as at 31 December 2022. There were €59 million outstanding non-designated
hedges as at 31 December 2021.
Leases
Since the adoption of IFRS 16, “Leases”, effective 1 January 2019, lease liabilities are included within
borrowings in our consolidated statement of financial position.
The lease liability is measured at the present value of lease payments, discounted using the
Group’s incremental borrowing rate (IBR). The lease term comprises the non-cancellable period
of the contract, together with periods covered by an option to extend the lease whenever the
Group is reasonably certain to exercise that option and has an enforceable right to do so.
Subsequently, the lease liability is measured by increasing the carrying amount to reflect interest
on the lease liability and reducing it by lease payments made.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
183
Borrowings outstanding
The following table summarises the carrying value of the Group’s borrowings as at the dates presented:
Year ended 31 December
2022
€ million
2021
€ million
Year ended 31 December
2022
€ million
2021
€ million
Non-current:
Euro denominated bonds:
€350 million 2.625% Notes 2023
€500 million 1.125% Notes 2024
€350 million 2.375% Notes 2025
€250 million 2.75% Notes 2026(E)
€600 million 1.75% Notes 2026(E)
€400 million 1.50% Notes 2027(E)
€250 million 1.50% Notes 2027
€500 million 1.75% Notes 2028(E)
€750 million 0.20% Notes 2028
€500 million 1.125% Notes 2029
€500 million 1.875% Notes 2030(E)
€500 million 0.70% Notes 2031(E)
€800 million 0.00% Notes 2025
€700 million 0.50% Notes 2029
€1,000 million 0.875% Notes 2033
€750 million 1.50% Notes 2041
Foreign currency bonds (swapped into euro)(D):
US$850 million 0.50% Notes 2023
US$650 million 0.80% Notes 2024
US$500 million 1.50% Notes 2027
—
498
349
240
580
370
259
466
744
495
472
473
798
695
991
746
—
608
466
Australian dollar denominated bonds:
A$100 million 3.50% Notes 2024
A$30 million 4.166% Notes 2025
A$20 million 4.25% Notes 2025
A$30 million 4.125% Notes 2026
A$50 million 4.155% Notes 2028
349
497
348
249
594
A$133 million 2.45% Notes 2029
397
261
A$50 million 4.20% Notes 2031
A$187 million 4.20% Notes 2031
495
A$13 million 4.20% Notes 2031
Foreign currency bonds (swapped into
Australian dollar or New Zealand dollar)(D):
US$25 million 4.34% Notes 2023
US$25 million 4.34% Notes 2023
NOK1 billion 3.04% Notes 2028
NOK750 million 2.75% Notes 2030
US$50 million 2.653% Notes 2030
JPY10 billion 4.15% Notes 2036(E)
JPY12.3 billion 1.06% Notes 2037(E)
Lease obligations
Total non-current borrowings
743
494
496
496
797
694
990
746
747
571
439
66
21
14
20
35
86
36
135
9
—
—
99
73
47
74
71
68
21
14
21
36
87
37
138
10
23
23
105
77
45
90
83
535
10,571
509
11,790
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
184
Year ended 31 December
2022
€ million
2021
€ million
Credit facilities
During 2022, the amount available under the Group’s multi currency credit facility was
€1.95 billion. This amount is available for borrowing with a syndicate of 13 banks. This credit facility
matures in 2025 and is for general corporate purposes and supporting the Group’s working
capital needs. Based on information currently available, there is no indication that the financial
institutions participating in this facility would be unable to fulfill their commitments to the Group
as at the date of these consolidated financial statements. The Group’s current credit facility
contains no financial covenants that would impact its liquidity or access to capital. As at
31 December 2022, the Group had no amounts drawn under this credit facility.
Cash flows from financing activities
The following table provides a reconciliation of movements of liabilities to cash flows arising from
financing activities:
Current:
Euro denominated bonds:
€350 million 2.625% Notes 2023
€700 million 0.75% Notes 2022(A)
Foreign currency bonds (swapped into euro)(D):
US$850 million 0.50% Notes due 2023
Australian dollar denominated bonds:
A$200 million 3.375% Notes 2022(B)
A$30 million 5.06% Notes 2022(C)
A$125 million 3.125% Notes 2022(C)
Foreign currency bonds (swapped into New Zealand
dollar)(D):
US$25 million 4.34% Notes 2023
US$25 million 4.34% Notes 2023
EUR commercial paper
Bank overdraft
Lease obligations
Total current borrowings
350
—
797
—
—
—
24
24
—
—
141
1,336
—
700
—
129
20
81
—
—
285
1
134
As at 31 December 2020
Acquisition of CCL
Changes from financing cash flows
Proceeds from third party borrowings, net
Changes in short-term borrowings(B)
Repayments on third party borrowings(A)
Payment of principal and interest on lease
obligations
1,350
Other non-cash changes
(A) In January 2022, the Group repaid prior to maturity the outstanding amount related to the €700 million 0.75% Notes due in
February 2022.
Amortisation of discount, premium and issue costs
(B) In March 2022, the Group repaid on maturity the outstanding amount related to the A$200 million 3.375% Notes 2022
Lease additions and other non-cash movements
acquired as part of the Acquisition.
(C) In July 2022, the Group repaid on maturity the outstanding amounts related to the A$30 million 5.06% Notes 2022 and A$125
million 3.125% Notes 2022 acquired as part of the Acquisition.
(D) Cross currency swaps are used by the Group to swap foreign currency bonds into the required local currency.
(E) Bond designated in full or partially in a fair value hedge relationship.
During the year, the Group entered into interest rate swaps with notional value of €1 billion, which
were designated in a fair value hedge relationship with euro denominated bonds. As at
31 December 2022, fair value adjustments in respect of those interest rate swaps are €(130)
million, included within non-current borrowings.
Borrowings are stated net of unamortised financing fees of €33 million and €42 million, as at
31 December 2022 and 31 December 2021, respectively.
Interest expense recognised on lease liabilities totalled €14 million, €10 million and €4 million
in 2022, 2021 and 2020, respectively.
Movement as a result of fair value hedges
Currency translation
Reclassifications
Total changes
Current portion
of borrowings
€ million
805
381
—
276
(950)
(149)
—
39
6
33
909
545
Borrowings, less
current portion
€ million
6,382
1,251
4,877
—
—
—
(3)
83
9
100
(909)
5,408
Total
€ million
7,187
1,632
4,877
276
(950)
(149)
(3)
122
15
133
—
5,953
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
185
As at 31 December 2021
Changes from financing cash flows
Changes in short-term borrowings(B)
Repayments on third party borrowings
Payment of principal and interest on lease
obligations
Other financing activities
Other non-cash changes
Amortisation of discounts, premium, issue costs
and fair value adjustments
Lease additions and other non-cash movements
Movement as a result of fair value hedges
Currency translation
Reclassifications
Total changes
As at 31 December 2022
Current portion
of borrowings
€ million
1,350
Borrowings, less
current portion
€ million
11,790
(285)
(938)
(167)
(1)
(1)
34
11
—
1,333
(14)
1,336
—
—
—
—
4
171
(172)
111
(1,333)
(1,219)
10,571
Total
€ million
13,140
(285)
(938)
(167)
(1)
3
205
(161)
111
—
(1,233)
11,907
(A) This line item includes the impact of the cross currency swap hedge from USD to EUR.
(B) In 2022, changes in short-term borrowings include €2,464 million of newly issued and €2,749 million of repaid EUR commercial
paper. In 2021, changes in short-term borrowings included €700 million and €424 million of newly issued and repaid EUR
commercial paper, respectively.
Cash flows from financing activities includes €32 million, €27 million and €24 million of cash
received related to income on a cross currency swap for 2022, 2021 and 2020, respectively.
Total cash outflows for leases were €167 million, €149 million and €120 million for the years ended
31 December 2022, 31 December 2021 and 31 December 2020, respectively.
Note 15
Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the Group prior
to the end of the reporting period, which are unpaid. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period. Trade
and other payables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest rate method. Trade payables are non-interest bearing and are
normally settled between 60 to 70 days.
The Group participates in various programmes and arrangements with customers designed to
increase the sale of our products. The costs of these programmes are recorded as deductions
from revenue. Among the programmes are arrangements under which allowances can be
earned by customers for attaining agreed upon sales levels or for participating in specific
marketing programmes. When these allowances are paid in arrears, the Group accrues the
estimated amount to be paid based upon historical customer experience, the programme’s
contractual terms, expected customer performance and/or estimated sales volume. The costs of
these off-invoice customer marketing costs totalled €5.2 billion, €4.1 billion and €3.2 billion for
2022, 2021 and 2020, respectively.
The following table summarises trade and other payables as at the dates presented:
Trade accounts payable(A)
Accrued customer marketing costs
Accrued deposits
Accrued compensation and benefits
Accrued taxes(B)
Other accrued expenses
Total trade and other payables
Year ended 31 December
2022
€ million
2,221
1,348
288
500
253
442
5,052
2021
€ million
1,691
1,160
264
482
220
420
4,237
(A) Includes amounts of €212 million (2021: €266 million) which are part of a supply chain finance programme facilitated by the
Group. The programme permits suppliers to elect on an invoice by invoice basis to receive a discounted payment from the
partner bank earlier than the agreed payment terms with the Group. If a supplier makes this election, the value and the due
date of the invoice payable by the Group remains unchanged.
(B) This line item includes a payable of €57 million to the Spanish tax authorities. Refer to Note 25 for further details.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
186
Note 16
Post-employment benefits
The cost of providing benefits is determined using the projected unit credit method with
actuarial valuations being carried out at the end of each annual reporting period. All
remeasurements of the defined benefit obligation, such as actuarial gains and losses and return
on plan assets, are recognised directly in other comprehensive income. Remeasurements
recognised in other comprehensive income are reflected immediately in retained earnings and
are not reclassified to profit or loss. Service cost is presented within cost of sales, selling and
distribution expenses and administrative expenses in the consolidated income statement. Past
service cost is recognised immediately within cost of sales, selling and distribution expenses and
administrative expenses in the consolidated income statement. The net interest cost is
calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. Net interest cost is presented within finance costs or finance income,
as applicable, in the consolidated income statement. The defined benefit obligation recognised
in the consolidated statement of financial position represents the present value of the estimated
future cash outflows, using interest rates of high quality corporate bonds which have terms to
maturity approximating the terms of the related liability.
The Group recognises termination benefits at the earlier of the following dates: (1) when the
Group can no longer withdraw the offer of those benefits and (2) when the Group recognises
costs for restructuring that is within the scope of IAS 37, “Provisions, Contingent Liabilities and
Contingent Assets” and involves the payment of termination benefits. In the case of an offer
made to encourage voluntary redundancy, the termination benefits are measured based on the
number of employees expected to accept the offer. Termination benefits are payable whenever
an employee’s employment is terminated before the normal retirement date or whenever an
employee accepts voluntary redundancy in exchange for those benefits.
The following table summarises our non-current employee benefit liabilities as at the dates
presented:
Year ended 31 December
2022
Rest of
world
GB
Total
GB
2021
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
Retirement benefit obligation
Other employee benefit liabilities
Total non-current employee
benefit liabilities
—
—
—
77
31
77
31
108
108
—
—
—
103
35
103
35
138
138
Defined benefit plans
The Group sponsors a number of defined benefit pension plans in Belgium, France, Germany,
Great Britain, Luxembourg, Norway, Australia and Indonesia. The majority of the defined benefit
plans are either career average, final salary or hybrid plans, and operate on a funded basis with
assets held in external funds. The Group’s Great Britain plan (GB Scheme) is the most significant.
The GB Scheme’s defined benefit obligation includes benefits for current employees, former
employees and current pensioners. The level of benefits provided (funded final salary pension)
depends on the member’s length of service and salary at retirement age. Part of the pension
may be exchanged for a tax free cash lump sum. The GB Scheme was closed to new members
with effect from 1 October 2005 and is administered by a board of trustees, which is legally
separate from the Group. The board of trustees is composed of representatives of both the
employer and employees. The board of trustees is required by law to act in the interest of all
relevant beneficiaries and is responsible for the investment policy with regard to the assets plus
the day to day administration of the benefits.
On 8 October 2020, the Group announced a proposal to close the GB Scheme to future accrual,
which was implemented on 31 March 2021. The affected employees were offered to enrol in the
Group’s defined contribution scheme (DC scheme). Subsequent to the implementation of the
closure of the GB Scheme, the members moved from active to deferred status, with future
indexation of deferred pensions before retirement measured by reference to the consumer
price index (CPI).
A full actuarial valuation of the GB Scheme occurs on a triennial basis by a qualified external
actuary, which is used as the basis of determining the Group’s future contributions to the plan.
The latest triennial valuation was carried out as at 5 April 2022 and has been updated to
31 December 2022 to reflect our defined benefit obligation, for known events and changes in
market conditions as allowed under IAS 19, “Employee Benefits”.
Risks
The Group’s defined benefit pension schemes expose the Group to a number of risks, including:
• Asset volatility – the plan liabilities are calculated using a discount rate set with reference to
corporate bond yields; if assets underperform this yield, a deficit would occur. Some of our
plans hold a significant proportion of growth assets (equities and property) which, though
expected to outperform corporate bonds in the long term, create volatility and risk in the short
term. The allocation to growth assets is monitored to ensure it remains appropriate given each
scheme’s long-term objectives.
• Changes in bond yields – a decrease in corporate bond yields will increase the defined benefit
liability, although this will be partially offset by an increase in the value of the plan’s bond
holdings.
• Inflation risk – a significant proportion of our benefit obligations are linked to inflation and
higher inflation will lead to higher liabilities (although, in most cases, caps on the level of
inflationary increases are in place to protect against extreme inflation). The majority of the
assets are either unaffected by or only loosely correlated with inflation, meaning that an
increase in inflation will also increase the deficit.
• Life expectancy – the majority of our plans have an obligation to provide benefits for the life of
the member, so increases in life expectancy will result in an increase in the defined benefit
liabilities.
Strategic Report
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Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
187
Benefit costs
The following table summarises the expense related to pension plans recognised in the
consolidated income statement for the years presented:
Benefit obligation and fair value of plan assets
The following table summarises the changes in the pension plan benefit obligation and the fair
value of plan assets for the periods presented:
Year ended 31 December
2022
Rest of
world
GB
Total
GB
2021
Rest of
world
Total
GB
2020
Rest of
world
Total
Year ended 31 December
2022
Rest of
world
GB
Total
GB
2021
Rest of
world
Total
€ million € million € million
€ million € million € million
€ million € million € million
€ million
€ million
€ million
€ million
€ million
€ million
18
18
10
16
26
52
Reconciliation of benefit obligation:
Service cost
Past service
(credit)/cost(A)
Net interest
(income)/cost
Administrative
expenses
Total cost
—
—
(2)
—
(2)
(2)
(29)
1
1
(1)
1
16
1
1
6
1
1
(23)
2
2
7
(2)
18
(17)
24
37
—
1
2
40
15
—
1
—
16
—
2
2
56
(A) Predominantly comprised of the impact of a plan amendment arising from legislative changes in respect of the minimum
retirement age in Indonesia.
Other comprehensive income
The following table summarises the changes in other comprehensive income related to our
pension plans for the years presented:
Year ended 31 December
2022
Rest of
world
GB
Total
GB
2021
Rest of
world
Total
GB
2020
Rest of
world
€ million € million € million
€ million € million € million
€ million € million € million
(712)
(125)
(837)
(60)
(6)
(66)
159
1
160
808
74
882
(177)
(58)
(235)
(72)
(17)
(89)
Total
Currency translation adjustments
Benefit obligation at end of plan year
Reconciliation of fair value
of plan assets:
Fair value of plan assets at beginning
of plan year
96
(51)
45
(237)
(64)
(301)
87
(16)
71
Employer contributions
Actuarial (gain)/loss
on defined benefit
obligation arising
during the period
Return on plan assets
less/(greater) than
discount rate
Net charge to other
comprehensive
income
Benefit obligation at beginning
of plan year
Service cost
Past service (credit)/cost
Interest costs on defined benefit
obligation
Plan participants contribution
Actuarial loss/(gain) – experience
Actuarial loss/(gain) – demographic
assumptions
Actuarial (gain)/loss – financial
assumptions
Benefit payments
Administrative expenses
Acquisition of CCL
1,739
—
—
32
—
26
2
674
18
(2)
7
28
7
—
2,413
18
(2)
39
28
33
2
1,733
10
(29)
31
—
1
607
16
6
5
59
1
2,340
26
(23)
36
59
2
(1)
(1)
(2)
(740)
(132)
(872)
(60)
(6)
(66)
(57)
(72)
(129)
(69)
(81)
(150)
—
—
(65)
937
1
—
—
1
—
(65)
1
—
122
1
66
1
2
66
123
529
1,466
1,739
674
2,413
Interest income on plan assets
34
6
40
1,840
664
2,504
1,568
Return on plan assets (less)/greater
than discount rate
Plan participants contributions
(808)
(74)
(882)
—
11
28
21
28
32
30
177
—
19
564
4
58
59
20
2,132
34
235
59
39
Benefit payments
Acquisition of CCL
Currency translation adjustment
Fair value of plan assets at end
of plan year
(57)
(72)
(129)
(69)
(81)
(150)
—
(68)
—
(1)
—
(69)
—
115
40
—
40
115
952
572
1,524
1,840
664
2,504
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Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
188
Timing of benefit payments
The weighted average duration of the defined benefit plan obligation as at 31 December 2022 is
16 years, including 17 years for the GB Scheme. The weighted average duration of the defined
benefit plan obligation as at 31 December 2021 was 20 years, including 22 years for the
GB Scheme.
Retirement benefit status
The following table summarises the retirement benefit status of pension plans as at the dates
presented:
Year ended 31 December
2022
Rest of
world
GB
Total
GB
2021
Rest of
world
Total
€ million
€ million
€ million
€ million
€ million
€ million
Demographic assumptions
(weighted average)(A)
Retiring at the end
of the reporting period
Male
Female
Retiring 15 years after the end
of the reporting period
Male
Female
2022
Rest of
world
19.8
23.1
20.0
23.5
GB
21.9
24.4
22.8
25.5
Year ended 31 December
Average
GB
2021
Rest of
world
Average
21.3
24.0
22.1
24.9
21.9
24.4
22.8
25.5
24.3
27.7
25.4
28.5
22.4
25.0
23.3
26.1
Net benefit status:
(A) These assumptions translate into an average life expectancy in years, post-retirement, for an employee retiring at age 65.
Present value of obligation
(937)
(529)
(1,466)
(1,739)
(674)
(2,413)
1,524
1,840
664
2,504
The following tables summarise the sensitivity of the defined benefit obligation to changes in
the weighted average principal assumptions for the periods presented:
Fair value of assets
Net benefit status:
Retirement benefit surplus (Note 25)
Retirement benefit obligation
952
15
15
—
572
43
120
58
135
(77)
(77)
101
101
—
(10)
93
91
194
(103)
(103)
Year ended 31 December 2022
Impact on defined benefit obligation (%)
Increase in assumption
Decrease in assumption
The surplus for 2022 is primarily related to the defined benefit plans in Germany and Belgium as
well as the GB Scheme. The surplus is recognised on the balance sheet on the basis that the
Group is entitled to a refund of any remaining assets once all members have left the plan.
Actuarial assumptions
The following tables summarise the weighted average actuarial assumptions used to determine
the benefit obligations of pension plans as at the dates presented:
Principal assumptions
Discount rate
Rate of compensation
increase(A)
Rate of price inflation
Mortality rates
Change in
assumption
GB
Rest of
world
Average
0.5%
(7.9)
(4.0)
(6.5)
0.5%
0.5%
1 year
N/A
3.9
3.0
1.6
3.1
1.7
0.6
3.6
2.5
GB
8.6
N/A
(3.8)
(2.8)
Rest of
world
Average
4.4
7.1
(1.4)
(2.9)
(1.7)
(0.5)
(3.4)
(2.4)
Financial assumptions
Discount rate
Rate of compensation increase
Rate of price inflation
Year ended 31 December
2022
Rest of
world
Average
%
4.0
3.6
2.4
%
4.5
3.6
3.0
GB
%
4.8
N/A
3.3
2021
Rest of
world
Average
%
1.4
3.2
2.1
%
1.8
3.2
3.1
GB
%
1.9
N/A
3.4
Year ended 31 December 2021
Impact on defined benefit obligation (%)
Increase in assumption
Decrease in assumption
Principal assumptions
Discount rate
Rate of compensation
increase(A)
Rate of price inflation
Mortality rates
Change in
assumption
GB
Rest of
world
Average
0.5%
(9.9)
(4.8)
(8.5)
0.5%
0.5%
1 year
N/A
7.8
4.0
1.7
3.8
2.1
0.5
6.7
3.5
GB
11.4
N/A
(6.8)
(4.0)
Rest of
world
Average
5.3
9.7
(1.5)
(3.5)
(2.1)
(0.4)
(5.9)
(3.4)
(A) The compensation increase assumption is no longer applicable to the valuation of the defined benefit obligation associated
with the GB Scheme in light of the plan closure effective 31 March 2021.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
189
The sensitivity analyses have been determined based on a method that extrapolates the impact
on the defined benefit obligation as a result of reasonable changes in key assumptions occurring
at the end of the reporting period. The sensitivity analyses are based on a change in a significant
assumption, keeping all other assumptions constant. The sensitivity analyses may not be
representative of an actual change in the defined benefit obligation as it is unlikely that changes
in assumptions would occur in isolation of one another.
Pension plan assets
There are formal investment policies for the assets associated with our pension plans. Policy
objectives include: (1) maximising long-term return at acceptable risk levels; (2) diversifying
among asset classes, if appropriate, and among investment managers; and (3) establishing
relevant risk parameters within each asset class. Investment policies reflect the unique
circumstances of the respective plans and include requirements designed to mitigate risk,
including quality and diversification standards. Asset allocation targets are based on periodic
asset liability and/or risk budgeting study results, which help determine the appropriate
investment strategies for acceptable risk levels. The investment policies permit variances from
the targets within certain parameters.
The following table summarises pension plan assets measured at fair value as at the dates presented:
Year ended 31 December 2022
Total
Investments quoted
in active markets
Unquoted investments
Total
Year ended 31 December 2021
Investments quoted
in active markets
Unquoted investments
GB
Rest of world
GB
Rest of world
GB
Rest of world
GB
Rest of world
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
€ million
Equity securities(A)
Fixed income securities:(B)
Corporate bonds and notes
Government bonds (C)
Cash and other short-term investments(D)
Other investments:
Real estate funds(E)
Insurance contracts(F)
Investment funds(G)
Derivatives(H)
Total
—
185
185
56
692
28
274
207
76
6
—
1,131
23
43
—
—
5
1,524
1,202
—
—
(467)
—
216
—
—
1
(250)
—
—
—
—
—
207
71
—
278
221
54
1,506
6
346
240
73
58
—
—
1,476
1
—
—
—
—
221
54
30
5
39
—
—
—
2,504
1,477
349
—
—
—
—
306
—
—
57
363
—
—
—
—
1
240
73
1
315
56
28
5
15
—
5
—
294
(A) Equity securities are comprised of ordinary shares and investments in equity funds. Investments in ordinary shares are valued using quoted market prices multiplied by the number of shares owned. Investments in equity funds are valued at the net asset value
per share, which is calculated predominantly based on the underlying quoted investments market price, multiplied by the number of shares held as of the measurement date.
(B) The fair values of the fixed income securities are determined based on quoted market prices in active markets. Bonds are held mainly in the currency of the geography of the plan.
(C) The unquoted amounts within this category relate to repurchase agreements (where the Scheme has sold government bonds with the agreement to repurchase at a fixed date and price). The commitment to repurchase the government bonds reduces the
pension assets and are valued at the fair value based on the fixed repurchase price. The assets sold are reported at their fair value reflecting that the Scheme retains the risks and rewards of ownership of those assets. The asset portfolio of the GB Scheme was
refined during 2022 by entering into repurchase agreement of government bonds in order to better match the Scheme liability and to offset the exposure to interests and inflation rates, whilst remaining invested in the assets of similar risk profile.
(D) Cash and other short-term investments are valued at €1.00/unit, which approximates fair value. Amounts are generally invested in cash or interest bearing accounts.
(E) The valuation of unquoted real estate funds is based on net assets value per share multiplied by the number of shares owned. For quoted real estate funds, the calculation is based on the underlying quoted investments market price, multiplied by the number
of shares held as of the measurement date.
(F) Insurance contracts exactly match the amount and timing of certain benefits, therefore the fair value of these insurance policies is deemed to be the present value of the related obligations.
(G) Primarily includes investments in equity securities, fixed income securities and combinations of both. Fair values are sourced from broker quotes.
(H) Derivatives are comprised of futures and return swaps the fair values of which are not based on quoted market prices in active markets.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
190
Contributions
To support a long-term funding arrangement, during 2019 the Group entered into a partnership
agreement with the GB Scheme, the CCEP Scottish Limited Partnership (the Partnership).
Certain property assets in Great Britain, with a market value of £171 million were transferred into
the Partnership and subsequently leased back to the Group’s operating subsidiary in Great
Britain. The GB Scheme receives semi-annual distributions from the Partnership, increasing each
year at a fixed cumulative rate of 3% through to 2034. The Group exercises control over the
Partnership and as such it is fully consolidated in these consolidated financial statements. Under
IAS 19, the investment held by the GB Scheme in the Partnership does not represent a plan asset
for the purposes of these consolidated financial statements. Similarly, the associated liability is
not included in the consolidated statement of financial position, rather the distributions are
recognised when paid as a contribution to the plan assets of the scheme.
Contributions to pension plans totalled €32 million, €39 million and €52 million during the years
ended 31 December 2022, 31 December 2021 and 31 December 2020, respectively. Included
within the 2022 contribution is €11 million relating to the Partnership agreement. The Group
expects to make contributions of €30 million for the full year ending 31 December 2023.
Other employee benefit liabilities
In certain territories, the Group has an early retirement programme designed to create an
incentive for employees, within a certain age group, to transition from (full or part time)
employment into retirement before their legal retirement age. Furthermore, the Group also
sponsors deferred compensation plans in other territories. The current portion of these liabilities
totalled €8 million and €10 million as at 31 December 2022 and 31 December 2021, respectively,
and is included within the current portion of employee benefit liabilities. The non-current portion
of these liabilities totalled €31 million and €35 million as at 31 December 2022 and
31 December 2021, respectively, and is included within employee benefit liabilities.
Defined contribution plans
The Group sponsors a number of defined contribution plans across its territories. Contributions
payable for the period are charged to the consolidated income statement as an operating
expense for defined contribution plans. Contributions to these plans totalled €79 million for the
year ended 31 December 2022, €62 million for the year ended 31 December 2021 and €34 million
for the year ended 31 December 2020.
Note 17
Equity
Share capital
As at 31 December 2022, the Company has issued and fully paid 457,106,453 Shares. Shares in issue
have one voting right each and no restrictions related to dividends or return of capital.
As at 1 January 2020
Issuances of Shares
Cancellation of Shares
As at 31 December 2020
Issuance of Shares
Cancellation of Shares
As at 31 December 2021
Issuance of Shares
Cancellation of Shares
As at 31 December 2022
Number of
Shares
Share capital
millions
€ million
456
2
(3)
455
1
—
456
1
—
457
5
—
—
5
—
—
5
—
—
5
The number of Shares increased in 2022, 2021 and 2020 from the issue of 871,421, 1,589,522 and
1,310,833 Shares, respectively, following the exercise of share-based payment awards.
In connection with the Company’s share buyback programmes 3,065,200 shares were cancelled in
2020. No shares were repurchased in 2022 and 2021.
Share premium
The share premium account increased by cash received for the exercise of options by €14 million
in 2022, €28 million in 2021 and €14 million in 2020.
Merger reserves
The consideration transferred to acquire CCIP and CCEG qualified for merger relief under the
Companies Act. As such, the excess consideration transferred over nominal value of €287 million
was required to be excluded from the share premium account and recorded to merger reserves.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
191
2020
€ million
20
197
(754)
—
—
Other reserves
The following table summarises the balances in other reserves (net of tax) as at the dates
presented:
Cash flow hedge reserve
Net investment hedge reserve
Year ended 31 December
2022
€ million
104
197
2021
€ million
151
197
Foreign currency translation adjustment reserve
(728)
(509)
Reserve related to the acquisition of non-controlling
interests
Other reserves(A)
Total other reserves
(79)
(1)
(507)
—
5
(156)
(537)
(A) Other reserves relates to cost of hedging which represents forward point on spot designations, time value of options and
currency basis.
Movements, including the tax effects, in these accounts through to 31 December 2022 are
included in the consolidated statement of comprehensive income.
Dividends
Dividends are recorded within the Group’s consolidated financial statements in the period in
which they are paid.
First half dividend(A)
Second half dividend(B)
Total dividend on ordinary shares paid
Year ended 31 December
2022
€ million
256
507
763
2021
€ million
—
638
638
2020
€ million
—
386
386
(A) Dividend of €0.56 per Share was paid in first half of 2022.
(B) Dividend of €1.12 per Share was paid in second half of 2022.
A full year dividend of €1.40 per Share and €0.85 per Share were paid in 2021 and 2020, respectively.
Dividends attributable to restricted stock units and performance share units that are unvested at
the period end date are accrued accordingly. During 2022, an incremental dividend accrual of €3
million has been recognised (2021: €1 million, 2020: €1 million).
Non-controlling interest
In December 2022, the Group entered into a share purchase agreement (SPA) with TCCC to
acquire the remaining 29.4% ownership interest of its subsidiary, PT Coca-Cola Bottling Indonesia,
for a total consideration of €282 million. The acquisition is expected to be completed in the first
quarter of 2023, following the resolution of customary conditions (refer to Note 27 for further
details). As at 31 December 2022, the non-controlling interest of €205 million has been
derecognised, other reserves have been decreased by €77 million and a redemption liability of
€282 million has been recorded within the Amounts payable to related parties line of our
consolidated statement of financial position.
As at 31 December 2021, equity attributable to non-controlling interest was €177 million
representing 29.4% of PT Coca-Cola Bottling Indonesia held by TCCC and 6.1% of Samoa
Breweries Limited held by numerous investors.
Note 18
Total operating costs
The following tables summarise the significant cost items by nature within operating costs for
the years presented:
Transportation costs(A)
Employee benefits
Depreciation of property, plant and equipment,
excluding restructuring
Amortisation of intangible assets
Restructuring charges, including accelerated
depreciation(B)
Other selling and distribution expenses
Total selling and distribution expenses
Transportation costs(A)
Employee benefits
Depreciation of property, plant and equipment,
excluding restructuring
Amortisation of intangible assets
Acquisition related costs
Restructuring charges, including accelerated
depreciation(B)
Other administrative expenses
Total administrative expenses
Total operating expenses
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
851
1,110
246
7
1
769
2,984
16
544
99
94
3
143
351
1,250
4,234
631
975
245
4
45
596
2,496
2
462
76
83
49
91
311
1,074
3,570
447
788
219
1
58
426
1,939
2
353
45
53
11
248
271
983
2,922
(A) Transportation costs include warehousing and delivery costs to the final customer destination. They exclude depreciation and
amortisation.
(B) See restructuring costs on page 192.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
192
Staff costs
Staff costs included within the income statement were as follows:
Employee costs
Wages and salaries
Social security costs
Pension and other employee benefits
Total employee costs
Year ended 31 December
2022
€ million
1,769
316
233
2,318
2021
€ million
1,544
302
170
2,016
2020
€ million
1,253
283
119
1,655
Directors’ remuneration information is disclosed in the Directors’ remuneration report.
The average number of persons employed by the Group (including Directors) for the periods
presented were as follows:
Commercial
Supply chain
Support functions
Total average staff employed
2022
2021
2020
No. in thousands
No. in thousands
No. in thousands
12.5
16.6
4.0
33.1
10.9
14.9
3.9
29.7
7.3
12.4
2.5
22.2
(B) Restructuring costs
Increase in provision for restructuring
programmes (Note 23)
Amount of provision unused (Note 23)
Accelerated depreciation and non-cash costs
Other cash costs(A)
Total restructuring costs
Restructuring costs by function:
Cost of sales
Selling and distribution expenses
Administrative expenses
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
115
(8)
44
12
163
19
1
143
93
(13)
60
13
153
17
45
91
242
(7)
121
12
368
62
58
248
(A) Other cash costs primarily relate to professional fees, which include consultancy costs, legal fees and other costs directly
associated with restructuring.
Restructuring costs charged in arriving at operating profit for the years presented include
restructuring costs arising under the following programmes and initiatives:
Accelerate Competitiveness
In October 2020, the Group announced a number of proposals aimed at improving productivity
through the use of technology enabled solutions. Included in these proposals was the closure of
certain production facilities, including Liederbach and Sodenthaler in Germany and Malaga in
Iberia. These proposals continue the focus on network optimisation and site rationalisation of the
Group, with the majority of the impacted activities to be transferred within our network of
facilities in each respective territory.
The proposals are also expected to impact a number of functions across the Group, including
business process technology, customer service, sales and marketing, and finance as the Group
seeks to reduce complexity, improve efficiency and increase the use of technology.
In 2022, as part of the continuation of this programme, the Group announced additional
restructuring proposals, mainly related to the transformation of the full service vending
operations and related initiatives in Germany. These initiatives resulted in €82 million of
restructuring charges primarily related to expected severance costs.
During the year ended 31 December 2022, the Group incurred total restructuring charges related
to this programme of €145 million, primarily made up of expected severance costs and
accelerated depreciation.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
193
Auditor’s remuneration
Audit and other fees charged in the income statement concerning the statutory auditor of the
consolidated financial statements, Ernst & Young LLP, were as follows:
The following table summarises net finance costs for the years presented:
Year ended 31 December
2022
2021
2020
Interest income(A)
Interest expense on external debt(A)
Other finance costs(B)
Total finance costs, net
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
67
(162)
(19)
(114)
43
(153)
(19)
(129)
33
(132)
(12)
(111)
Audit of Parent Company and consolidated financial
statements(A)
Audit of the Company’s subsidiaries
Total audit
Audit-related assurance services(B)
Other assurance services
Total audit and audit-related assurance services
All other services(C)
Total non-audit or non-audit-related assurance
services
€ thousand
€ thousand
€ thousand
3,136
6,248
9,384
1,002
213
10,599
47
47
4,751
5,493
10,244
1,234
313
11,791
35
35
3,149
3,046
6,195
909
279
7,383
30
30
Total audit and all other fees
10,646
11,826
7,413
(A) Fees in respect of the audit of the accounts of the Company, including the Group's consolidated financial statements.
(B) Includes professional fees for interim reviews, reporting on internal financial controls, services related to the transactions
entered into with TCCC, issuance of comfort letters for debt issuances, regulatory inspections, certain accounting
consultations and other attest engagements.
(C) Represents fees for all other allowable services.
Note 19
Finance costs
Finance costs are recognised in the consolidated income statement in the period in which they
are incurred, with the exception of general and specific borrowing costs directly attributable to
the acquisition, construction or production of qualifying assets. Qualifying assets are assets that
necessarily take a substantial period of time to get ready for their intended use or sale. Borrowing
costs are added to the cost of those assets, until such time as the assets are substantially ready
for their intended use or sale. All other borrowing costs are recognised within the consolidated
income statement in the period in which they are incurred based upon the effective interest rate
method. Interest income is recognised using the effective interest rate method.
(A) Includes interest income and expense amounts, as applicable, on cross currency swaps and interest rate swaps. Cross currency
swap and interest rate swap income totalled €50 million, €27 million and €24 million in 2022, 2021 and 2020, respectively. Cross
currency swap and interest rate swap expense totalled €31 million, €14 million and €12 million in 2022, 2021 and 2020,
respectively. Refer to Note 13 for further details.
(B) Other finance costs principally includes amortisation of the discount on external debt and interest on leases.
Note 20
Related party transactions
For the purpose of these consolidated financial statements, transactions with related parties
mainly comprise transactions between subsidiaries of the Group and the related parties of the
Group.
Transactions with entities with significant influence over the Group
Transactions with TCCC
TCCC exerts significant influence over the Group, as defined by IAS 24, “Related Party
Disclosures”. As at 31 December 2022, 19.24% of the total outstanding Shares in the Group were
owned by European Refreshments, a wholly owned subsidiary of TCCC. The Group is a key bottler
of TCCC products and has entered into bottling agreements with TCCC to make, sell and
distribute products of TCCC within the Group’s territories. The Group purchases concentrate
from TCCC and also receives marketing funding to help promote the sale of TCCC products. The
Group’s agreements with TCCC in each territory are for 10 year terms and each contains the
right for the Group to request a 10 year renewal. The existing bottling agreements expire no
earlier than 1 September 2025. Additionally, two of the Group’s 17 Directors are nominated by
TCCC.
The Group and TCCC engage in a variety of marketing programmes to promote the sale of
TCCC products in territories in which the Group operates. The Group and TCCC operate under an
incidence based concentrate pricing model and funding programme across most territories, the
terms of which are tied to the bottling agreements. In certain API territories, the Group operates
under a fixed price model with marketing rebates and support.
TCCC makes discretionary marketing contributions under shared marketing agreements to
CCEP’s operating subsidiaries. Amounts to be paid to the Group by TCCC under the programmes
are generally determined annually and are periodically reassessed as the programmes progress.
Under the bottling agreements, TCCC is under no obligation to participate in the programmes or
continue past levels of funding in the future. The amounts paid and terms of similar programmes
with other franchises may differ.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
194
Marketing support funding programmes granted to the Group provide financial support
principally based on product sales or on the completion of stated requirements and are
intended to offset a portion of the costs of the programmes.
Payments from TCCC for marketing programmes to promote the sale of products are classified
as a reduction in cost of sales, unless the presumption that the payment is a reduction in the
price of the franchisors’ products can be overcome. Payments for marketing programmes are
recognised as product is sold.
The following table summarises the transactions with TCCC that directly impacted the
consolidated income statement for the years presented:
Amounts affecting revenue(A)
Amounts affecting cost of sales(B)
Amounts affecting operating expenses(C)
Total net amount affecting
the consolidated income statement
Year ended 31 December
2022
€ million
117
2021
€ million
50
(3,805)
(3,056)
19
9
2020
€ million
50
(2,555)
8
(3,669)
(2,997)
(2,497)
(A) Amounts principally relate to fountain syrup and packaged product sales.
(B) Amounts principally relate to the purchase of concentrate, syrup, mineral water and juice, as well as funding for marketing
programmes.
(C) Amounts principally relate to certain costs associated with new product development initiatives and reimbursement of
certain marketing expenses.
The following table summarises the transactions with TCCC that impacted the consolidated
statement of financial position for the periods presented:
In February 2022, the Group entered into asset sale arrangements with TCCC, pursuant to which,
the Group agreed to sell certain non-alcoholic ready to drink beverage brands predominantly
available in Australia and New Zealand, which were acquired as part of the business combination
transaction consummated on 10 May 2021, for a total consideration approximating €182 million.
The sale price approximated the fair value of the brands assessed at the acquisition date. These
brands were classified as assets held for sale in our consolidated statement of financial position
as at 31 December 2021. During the first half of 2022, the Group partially completed the asset sale
transaction and expects to finalise the remaining portion during 2023. The remaining part of the
transaction was initially expected to be finalised by the end of 2022, however, due to certain
administrative procedures required to be performed, the completion was extended to the first
half of 2023. The Group has also entered into commercial agreements with TCCC to facilitate
ongoing manufacturing, distributing and/or selling activities pertaining to these brands. The
consideration relating to the brands which are yet to be sold to TCCC amounts to €40 million and
those brands are classified as assets held for sale in our consolidated statement of financial
position as at 31 December 2022.
Terms and conditions of transactions with TCCC
Outstanding balances on transactions with TCCC are unsecured, interest free and generally
settled in cash. Receivables from TCCC are considered to be fully recoverable.
Transactions with Cobega companies
Cobega, S.A. (Cobega) exhibits significant influence over the Group, as defined by IAS 24,
“Related Party Disclosures”. As at 31 December 2022, 20.87% of the total outstanding Shares in the
Group were indirectly owned by Cobega through its ownership interest in Olive Partners, S.A.
Additionally, five of the Group’s 17 Directors, including the Chairman, are nominated by
Olive Partners, three of whom are affiliated with Cobega.
The principal transactions with Cobega are for the purchase of packaging materials and
maintenance services for vending machines. The following table summarises the transactions
with Cobega that directly impacted the consolidated income statement for the years presented:
Amounts due from TCCC
Amounts payable to TCCC
Year ended 31 December
2022
€ million
130
442
2021
€ million
135
189
In December 2022, the Group entered into a share purchase agreement (SPA) with TCCC to
acquire the remaining 29.4% ownership interest of its subsidiary, PT Coca-Cola Bottling Indonesia,
for a total consideration of €282 million. The acquisition is expected to be completed in the first
quarter of 2023, following the resolution of customary conditions (refer to Note 27 for further
details). As at 31 December, we have recognised a redemption liability equalling the
consideration amount, which is reflected within the amounts payable to related parties line of
our consolidated statement of financial position.
Amounts affecting revenue(A)
Amounts affecting cost of sales(B)
Amounts affecting operating expenses(C)
Total net amount affecting
the consolidated income statement
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
2
(76)
(17)
(91)
1
(49)
(11)
(59)
1
(43)
(8)
(50)
(A) Amounts principally relate to packaged product sales.
(B) Amounts principally relate to the purchase of packaging materials and concentrate.
(C) Amounts principally relate to maintenance and repair services and transportation.
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Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
195
The following table summarises the transactions with Cobega that impacted the consolidated
statement of financial position for the periods presented:
The following table summarises the balances with associates, joint ventures and other related
parties:
Amounts due from Cobega
Amounts payable to Cobega
Year ended 31 December
2022
€ million
3
24
2021
€ million
2
19
Terms and conditions of transactions with Cobega
Outstanding balances on transactions with Cobega are unsecured, interest free and generally
settled in cash. Receivables from Cobega are considered to be fully recoverable.
Other related parties
Transactions with associates, joint ventures and other related parties
Joint venture investments relate to interests in a manufacturer of alcoholic beverages (divested
during the first half of 2022), a service provider supporting the operation of container refund
schemes in certain Australian states and a PET recycling plant in Indonesia.
Associate investments relate to interests in deposit scheme coordinators and a holding company
of container deposit schemes in certain Australian states and territories. Associate investments
also include the Group’s equity interests in early stage development companies as part of CCEP
Ventures.
Other related parties include coordinators of container deposit schemes in certain Australian
states over which significant influence is held.
The following table summarises the transactions with associates, joint ventures and other related
parties:
Amounts due from associates
Amounts payable to associates
Amounts payable to joint ventures
Amounts payable to other related parties
Year ended 31 December
2022
€ million
2021
€ million
6
9
—
10
6
—
2
—
Terms and conditions of transactions with associates, joint ventures and other
related parties
Outstanding balances on transactions are unsecured, interest free and generally settled in cash.
Receivables are considered to be fully recoverable.
Refer to Note 28 for a listing of associates, joint ventures and other related parties.
Transactions with key management personnel
Key management personnel are the members of the Board of Directors and the members of the
Executive Leadership Team. The following table summarises the total remuneration paid or
accrued during the reporting period related to key management personnel:
Year ended 31 December
Post-employment benefits
2022
€ million
2021
€ million
2020
€ million
Share-based payments
Termination benefits
Salaries and other short-term employee benefits(A)
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
30
—
15
—
45
22
—
7
—
29
20
1
6
5
32
(A) Short-term employee benefits include wages, salaries and social security contributions, paid annual leave and paid sick leave,
paid bonuses and non-monetary benefits.
The Group did not have any loans with key management personnel and was not party to any
other transactions with key management personnel during the periods presented.
Net amounts affecting consolidated income
statement – associates(A)
Net amounts affecting consolidated income
statement – joint ventures(B)
Net amounts affecting consolidated income
statement – other related parties(A)
Total net amount affecting
the consolidated income statement
(73)
(9)
(85)
(49)
(9)
(52)
(167)
(110)
—
—
—
—
(A) Amounts principally relate to container deposit scheme charges in Australia.
(B) Amounts principally relate to the purchase of finished products and resin.
Total
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
196
Note 21
Income taxes
Current tax
Current tax for the period includes amounts expected to be payable on taxable income in the
period together with any adjustments to taxes payable in respect of previous periods, and is
determined based on the tax laws enacted or substantively enacted at the balance sheet date in
the countries where the Group operates and generates taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes provisions, where appropriate, on the
basis of amounts expected to be paid to the tax authorities.
Deferred tax
Deferred tax is determined by identifying the temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date. Deferred tax for the period includes origination and reversal of temporary differences,
remeasurements of deferred tax balances and adjustments in respect of prior periods.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
• When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
• In respect of taxable temporary differences associated with investments in subsidiaries,
branches and associates and interests in joint ventures, when the timing of the reversal of the
temporary differences can be controlled by the Group and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carry forward of
unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences and the carry forward of
unused tax credits and unused tax losses can be utilised, except:
• When the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
• In respect of deductible temporary differences associated with investments in subsidiaries,
branches and associates and interests in joint ventures, deferred tax assets are recognised only
to the extent that it is probable that the temporary differences will reverse in the foreseeable
future and taxable profit will be available against which the temporary differences can be
utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at
each reporting date and are recognised to the extent that it has become probable that future
taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current income tax liabilities and the deferred taxes relate to the
same taxation authority on either the same taxable entity or different taxable entities where
there is an intention to settle the balances on a net basis.
Income tax is recognised in the consolidated income statement. Income tax is recognised in
other comprehensive income or directly in equity to the extent that it relates to items
recognised in other comprehensive income or in equity.
2022, 2021 and 2020 results
The following table summarises the major components of income tax expense for the periods
presented:
Current tax:
Current tax charge
Adjustment in respect of current tax from
prior periods
Total current tax
Deferred tax:
Relating to the origination and reversal of
temporary differences
Adjustment in respect of deferred income tax from
prior periods
Relating to changes in tax rates or the imposition of
new taxes
Total deferred tax
Income tax charge per
the consolidated income statement
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
460
(37)
423
35
(22)
—
13
436
323
(53)
270
6
(9)
127
124
394
230
3
233
(73)
(6)
43
(36)
197
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
197
The following table summarises the taxes on items recognised in other comprehensive income
(OCI) and directly within equity for the periods presented:
Accordingly, the following tables provide reconciliations of the Group’s income tax expense at
the UK statutory tax rate to the actual income tax expense for the periods presented:
Taxes charged/(credited) to OCI:
Deferred tax on net gain/loss on revaluation of
cash flow hedges
Deferred tax on net gain/loss on pension
plan remeasurements
Current tax on net gain/loss on pension plan
remeasurements
Total taxes charged/(credited) to OCI
Taxes charged/(credited) to equity:
Deferred tax charge/(credit): share-based
compensation
Current tax charge/(credit): share-based
compensation
Total taxes charged/(credited) to equity
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
(20)
(11)
—
(31)
(2)
(8)
(10)
63
63
1
127
(3)
—
(3)
(4)
(16)
—
(20)
1
(3)
(2)
The effective tax rate was 22.3%, 28.5% and 28.3% for the years ended 31 December 2022,
31 December 2021 and 31 December 2020, respectively. The parent company of the Group is a
UK company.
Accounting profit before tax
from continuing operations
Tax expense at the UK statutory rate
Taxation of foreign operations, net(A)
Non-deductible expense items for tax purposes
Rate and law change impact, net(B)(C)(D)
Deferred taxes not recognised
Adjustment in respect of prior periods(E)
Total provision for income taxes
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
1,957
1,382
695
371
115
2
—
7
(59)
436
262
72
2
127
(7)
(62)
394
132
23
6
43
(4)
(3)
197
(A) This reflects the impact, net of income tax contingencies, of having operations outside the UK, which are taxed at rates other
than the statutory UK rate of 19% (2021: 19%, 2020: 19%). In prior periods, this included the benefit of some income being fully
or partially exempt from income taxes due to various operating and financing activities.
(B) In 2021, the UK enacted a law change that increased its tax rate to 25% with effect from 1 April 2023. The Group recognised a
deferred tax expense of €123 million to reflect the impact of this change.
(C) In 2021, the Netherlands enacted a law change that increased its tax rate to 25.8% with effect from 1 January 2022. The Group
recognised a deferred tax expense of €2 million to reflect the impact of this change.
(D) In 2021, Indonesia enacted a law change that retained its tax rate of 22% with effect from 1 January 2022, reversing a previously
enacted decrease to 20%. The Group recognised a deferred tax expense of €2 million to reflect the impact of this change.
(E) The prior year adjustment is principally due to the reassessment of our uncertain tax positions and release of tax reserves that
are no longer required primarily due to expiration of statute of limitations.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
198
Deferred income taxes
The following table summarises the movements in the carrying amounts of deferred tax liabilities and assets by significant component during the periods presented:
As at 31 December 2020
Amount charged/(credited) to income statement
(excluding effect of tax rate changes)
Effect of tax rate changes on income statement
Amounts charged/(credited) directly to OCI
Amount charged/(credited) to equity
Acquired through business combinations
Effect of movements in foreign exchange
As at 31 December 2021
Amount charged/(credited) to income statement
(excluding effect of tax rate changes)
Amounts charged/(credited) directly to OCI
Amount charged/(credited) to equity
Acquired through business combinations
Balance sheet reclassifications
Effect of movements in foreign exchange
As at 31 December 2022
Analysed as follows:
Deferred tax asset
Deferred tax liability
Franchise
and other
intangible assets
€ million
1,982
1
106
—
—
1,174
22
3,285
(4)
—
—
(4)
(1)
(22)
3,254
Property, plant
and equipment
Financial assets
and liabilities
Tax
losses
Employee
and retiree
benefit accruals
€ million
€ million
€ million
€ million
187
2
8
—
—
51
3
251
(11)
—
—
2
(2)
(4)
236
(6)
(1)
1
63
—
(19)
(2)
36
5
(20)
—
—
(1)
(3)
17
(6)
(4)
—
—
—
(4)
—
(14)
7
—
—
—
(4)
—
(11)
(89)
8
12
63
(3)
(6)
1
(14)
5
(11)
(2)
—
—
(1)
(23)
Tax
credits
€ million
(10)
(2)
—
—
—
—
—
(12)
—
—
—
—
—
—
(12)
Other,
net
€ million
49
Total,
net
€ million
2,107
(7)
—
—
—
(20)
3
25
11
—
—
—
4
(9)
31
(3)
127
126
(3)
1,176
27
3,557
13
(31)
(2)
(2)
(4)
(39)
3,492
(21)
3,513
This net deferred tax liability includes a net liability of €1,174 million related to the 2021 Acquisition, a €36 million liability arising on assets capitalised under IFRS but expensed for tax, and a €22 million
liability related to purchase accounting on earlier transactions in an acquired entity.
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Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
199
Unrecognised tax items
The utilisation of tax losses and temporary differences carried forward, for which no deferred tax
asset is currently recognised, is subject to the resolution of tax authority enquiries and the
achievement of positive income in periods which are beyond the Group’s current business plan,
and therefore this utilisation is uncertain.
The gross and tax effected amounts including expiry dates, where applicable, of unrecognised
losses, tax credits and deductible temporary differences available for carry forward are as follows:
Tax losses expiring:
Within 10 years
Beyond 10 years
No time limit
Tax credits expiring:
Within 10 years
Beyond 10 years
No time limit
Deductible temporary differences
No time limit
Year ended 31 December
2022
€ million
2021
€ million
2020
€ million
Gross
amount
Tax
effected
Gross
amount
Tax
effected
Gross
amount
Tax
effected
—
3
1,799
1,802
58
43
—
101
79
79
—
1
330
331
58
43
—
101
20
20
—
—
1,803
1,803
100
45
—
145
53
53
—
—
310
310
100
45
—
145
11
11
7
—
1,802
1,809
122
47
—
169
65
65
2
—
278
280
122
47
—
169
14
14
Total
1,982
452
2,001
466
2,043
463
As at 31 December 2022, no deferred tax liability has been recognised in respect of €309 million
of unremitted earnings in subsidiaries, associates and joint ventures.
Tax provisions
The Group is routinely under audit by tax authorities in the ordinary course of business. Due to
their nature, such proceedings and tax matters involve inherent uncertainties including, but not
limited to, court rulings, settlements between affected parties and/or governmental actions. The
probability of outcome is assessed and accrued as a liability and/or disclosed, as appropriate. The
Group maintains provisions for uncertainty relating to these tax matters that it believes
appropriately reflect its risk. As at 31 December 2022, €122 million of these provisions is included
in current tax liabilities and the remainder is included in non-current tax liabilities.
The Group reviews the adequacy of these provisions at the end of each reporting period and
adjusts them based on changing facts and circumstances. Due to the uncertainty associated
with tax matters, it is possible that at some future date, liabilities resulting from audits or
litigation could vary significantly from the Group’s provisions.
The Group has received tax assessments in certain jurisdictions for potential tax related to the
Group’s purchases of concentrate. The value of the Group’s concentrate purchases is significant,
and therefore, the tax assessments are substantial. The Group strongly believes the application
of tax has no technical merit based on applicable tax law, and its tax position would be sustained.
Accordingly, the Group has not recorded a tax liability for these assessments, and is vigorously
defending its position against these assessments.
Note 22
Share-based payment plans
The Group has an established Share options plan and a Long-Term Incentive Plan (LTIP) to
certain executive and management level employees that provide for granting restricted stock
units, some with performance and/or market conditions. These awards are designed to align the
interests of executives and management with the interests of shareholders.
During 2022, the Group launched a new global Employee Share Purchase Plan (ESPP), which
gives the employees the opportunity to purchase CCEP Shares on a regular basis and become a
shareholder, promoting an ownership culture. Under the ESPP, participating employees are
granted matching Shares given that certain vesting and non-vesting conditions are met.
The Group recognises compensation expense equal to the grant date fair value for all
share-based payment awards that are expected to vest. Expense is generally recorded on a
straight-line basis over the requisite service period for each separately vesting portion of the
award.
During the years ended 31 December 2022, 31 December 2021 and 31 December 2020,
compensation expense related to our share-based payment plans totalled €33 million, €17 million
and €14 million, respectively.
Share options
Share options: (1) are granted with exercise prices equal to or greater than the fair value of the
Group’s stock on the date of grant, (2) generally vest in three annual tranches over a period of
36 months and (3) expire 10 years from the date of grant. Generally, when options are exercised,
new Shares will be issued rather than issuing treasury Shares, if available. No options were granted
during the years ended 31 December 2022, 31 December 2021 and 31 December 2020. All options
outstanding as at 31 December 2022, 31 December 2021 and 31 December 2020 were valued
and had exercise prices in US dollars.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
200
Outstanding at
beginning of year
Granted
Exercised
Forfeited, expired or
cancelled
Outstanding at end
of year
Options exercisable
at end of year
The following table summarises our share option activity for the periods presented:
2022
2021
2020
Shares
Average
exercise
price
Shares
Average
exercise
price
Shares
Average
exercise
price
thousands
US$
thousands
US$
thousands
US$
2,758
—
(484)
34.19
—
29.00
4,051
—
(1,290)
31.68
—
26.33
4,815
—
(761)
29.80
—
19.79
PSU awards entitle the participant to the same benefits as RSUs. They generally vest subject to
continued employment for a period of 36 months and the attainment of certain performance
targets. There were 1.8 million, 1.3 million and 1.1 million of unvested PSUs with weighted average
grant date fair values of US$41.65, US$43.07 and US$40.45 outstanding as at 31 December 2022,
31 December 2021 and 31 December 2020, respectively.
The PSUs granted in 2022, 2021 and 2020 are subject to performance conditions of absolute EPS
and ROIC, each with a 42.5% weighting and to a sustainability metric, focused on the reduction of
greenhouse gas emissions (CO2e) across our entire value chain with a 15% weighting.
Key assumptions for grant date fair value
The following table summarises the weighted average grant date fair values per unit:
(2)
23.21
(3)
19.68
(3)
31.97
Grant date fair value – service conditions (US$)
Restricted stock units and performance share units
2,272
35.30
2,758
34.19
4,051
31.68
Grant date fair value – service and performance conditions (US$)
2022
45.43
45.44
2021
47.77
47.68
2,272
35.30
2,758
34.19
4,051
31.68
The weighted average Share price during the years ended 31 December 2022, 31 December 2021
and 31 December 2020 was US$51.21, US$55.68 and US$42.71, respectively.
The following table summarises the weighted average remaining life of options outstanding for
the periods presented:
Range of
exercise prices
US$
15.01 to 25.00
25.01 to 40.00
Total
2022
2021
2020
Options
outstanding
Weighted
average
remaining life
Options
outstanding
Weighted
average
remaining life
Options
outstanding
Weighted
average
remaining life
thousands
years
thousands
years
thousands
years
—
2,272
2,272
0
2.20
2.20
151
2,607
2,758
0.85
3.04
2.92
931
3,120
4,051
1.75
3.85
3.37
Restricted Stock Units (RSUs) and Performance Share Units (PSUs)
RSU awards entitle the participant to accrue dividends, which are paid in cash only if the RSUs
vest. They do not have voting rights. Upon vesting, the participant is granted one Share for each
RSU. They generally vest subject to continued employment for a period of 36 months. Unvested
RSUs are restricted as to disposition and subject to forfeiture.
Employee share purchase plan
Through the ESPP, employees are able to contribute on a regular basis up to a maximum amount
deducted from their salary for the purpose of purchasing CCEP Shares. Every quarter, for each
purchased share, CCEP awards participating employees matching Shares at the same time.
Participating employees become owners of the matching Shares 12 months after the award, as
long as they remain in employment and do not sell the related purchased Shares during this
period. Participants have all the rights of a shareholder in respect of their purchased Shares and
matching Shares (once they are fully owned by the employees), including in respect of dividend
rights and voting rights. During the year ended 31 December 2022, the Group recognised a
compensation expense of €3 million related to the newly launched ESPP.
Note 23
Provisions, contingencies and commitments
Provisions are recognised when the Group has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. When some or all of a provision is expected to be reimbursed, the reimbursement
is recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the consolidated income statement, net of any
reimbursement.
Asset retirement obligations are estimated at the inception of a lease or contract, for which a
liability is recognised. A corresponding asset is also created and depreciated.
There were 0.1 million, 0.1 million and 0.2 million unvested RSUs outstanding with a weighted
average grant date fair value of US$42.74, US$43.29 and US$41.77 as at 31 December 2022,
31 December 2021 and 31 December 2020, respectively.
If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
201
Provisions
The following table summarises the movement in each class of provision for the periods
presented:
Restructuring
provision
Decommissioning
provision
Other
provisions(A)
Total
€ million
€ million
€ million
€ million
As at 31 December 2020
Acquisition of CCL
Charged/(credited) to profit or loss:
Additional provisions recognised
Unused amounts reversed
Utilised during the period
Translation
As at 31 December 2021
Charged/(credited) to profit or loss:
Additional provisions recognised
Unused amounts reversed
Utilised during the period
Translation
As at 31 December 2022
Non-current
Current
As at 31 December 2022
208
9
93
(13)
(192)
(2)
103
115
(8)
(74)
1
137
26
111
137
15
—
6
—
(1)
—
20
7
(2)
(1)
—
24
24
—
24
14
—
5
(2)
(6)
—
11
2
(3)
(1)
—
9
5
4
9
237
9
104
(15)
(199)
(2)
134
124
(13)
(76)
1
170
55
115
170
(A) Other provisions primarily relate to property tax assessment provisions and legal reserves, and are not considered material to
the consolidated financial statements.
Restructuring provision
Restructuring provisions are recognised only when the Group has a constructive obligation, which
is when a detailed formal plan identifies the business or part of the business concerned, the
location and number of employees affected, a detailed estimate of the associated costs and an
appropriate timeline, and the employees affected have been notified of the plan’s main features.
These provisions are expected to be resolved by the time the related programme is substantively
complete.
Refer to Note 18 for further details regarding our restructuring programmes.
Decommissioning provisions
Decommissioning liabilities relate to contractual or legal obligations to pay for asset retirement
costs. The liabilities represent both the reinstatement obligations when the Group is
contractually obligated to pay for the cost of retiring leased buildings and the costs for
collection, treatment, reuse, recovery and environmentally sound disposal of cold drink
equipment. Specific to cold drink equipment obligations, the Group is subject to, and operates in
accordance with, the EU Directive on Waste Electrical and Electronic Equipment (WEEE). Under
the WEEE, companies that put electrical and electronic equipment (such as cold drink
equipment) on the EU market are responsible for the costs of collection, treatment, recovery
and disposal of their own products. Where applicable, the WEEE provision estimate is calculated
using assumptions including disposal cost per unit, average equipment age and the inflation rate,
to determine the appropriate accrual amount.
The period over which the decommissioning liabilities on leased buildings and cold drink
equipment will be settled ranges from 1 to 30 years and 2 to 9 years, respectively.
Contingencies
Legal proceedings and tax matters
The Group is involved in various legal proceedings and tax matters and is routinely under audit by
tax authorities in the ordinary course of business. Due to their nature, such legal proceedings and
tax matters involve inherent uncertainties including, but not limited to, court rulings, settlements
between affected parties and/or governmental actions. The probability of loss for such
contingencies is assessed and accrued as a liability and/or disclosed, as appropriate.
On 24 July 2020, a CCEP subsidiary ‘Associated Products & Distribution Proprietary
Limited’ (APD), was joined to proceedings in the Supreme Court of Queensland between a
Glencore joint venture and the State of Queensland, whereby APD’s entitlement to royalties,
from its sub-surface strata and associated mineral rights, has been challenged by the State of
Queensland. Since 2014 and through to 24 July 2020, CCEP has received and recognised
approximately €50 million in royalties. Effective the commencement of the proceedings,
royalties have been paid directly to court and/or state government and have not been
recognised by the Group. In November 2022, the Group was granted a favourable court ruling
confirming its entitlement to the past and future royalty payments arising from the ownership of
the mineral rights. In December 2022, the Group recognised approximately €96 million of royalty
income related to historical payments as well as the entitlement for the fourth quarter of 2022.
This amount is reflected as “Other Income” in our consolidated income statement for the year
ended 31 December 2022. As at 31 December 2022 the Group is exploring various opportunities in
respect of a potential divestment of the mineral rights. Refer to Note 27 for further details.
Guarantees
In connection with ongoing litigation and tax matters in certain territories, guarantees of
approximately €646 million have been issued (2021: €340 million). The Group was required to
issue these guarantees to satisfy potential obligations arising from such litigation. In addition, we
have approximately €29 million of guarantees issued to third parties through the normal course
of business (2021: €35 million). The guarantees have various terms and the amounts represent
the maximum potential future payments that we could be required to make under the
guarantees. No significant additional liabilities in the accompanying consolidated financial
statements are expected to arise from guarantees issued.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
202
Commitments
Commitments beyond 31 December 2022 are disclosed herein but not accrued for within the
consolidated statement of financial position.
Purchase agreements
Total purchase commitments were €0.1 billion as at 31 December 2022. This amount represents
non-cancellable purchase agreements with various suppliers that are enforceable and legally
binding, and that specify a fixed or minimum quantity that we must purchase. All purchases
made under these agreements have standard quality and performance criteria. In addition to
these amounts, the Group has outstanding capital expenditure purchase orders of
approximately €109 million as at 31 December 2022. The Group also has other purchase orders
raised in the ordinary course of business which are settled in a reasonably short period of time.
Lease agreements
As at 31 December 2022, the Group had committed to a number of lease agreements that have not
yet commenced. The minimum lease payments for these lease agreements totalled €23 million.
Assets classified as held for sale as at 31 December 2022 totalled €94 million and are
predominantly comprised of €40 million related to certain non-alcoholic ready to drink
beverage brands, which are to be sold to TCCC (See Note 20 for further details), as well as
€29 million related to a sale of property in Germany. The Group expects to complete these
transactions during the first half of 2023.
Assets classified as held for sale as at 31 December 2021 totalled €223 million and were
predominantly comprised of certain non-alcoholic ready to drink brands that were acquired as
part of the Acquisition.
Note 25
Other non-current assets
The following table summarises the Group’s other non-current assets as at the dates presented:
Year ended 31 December
2022
€ million
2021
€ million
—
135
35
82
252
214
194
40
86
534
Note 24
Other current assets and assets held for sale
Other current assets
The following table summarises the Group’s other current assets as at the dates presented:
Other non-current assets
VAT receivables
Retirement benefit surplus (Note 16)
Investments
Other current assets
Prepayments
VAT receivables(A)
Coal royalties(B)
Miscellaneous receivables
Total other current assets
Year ended 31 December
Other
2022
€ million
2021
€ million
Total other non-current assets
180
41
96
162
479
101
16
—
154
271
VAT receivables
As at 31 December 2021, the Group had a VAT receivable of €214 million, included within other
non-current assets, relating to a dispute that began in 2014 between the Spanish tax authorities
and the regional tax authorities of Bizkaia (Basque Region) as to the responsibility for refunding
VAT to CCEP for years 2013 to 2016. Under relevant tax laws in Spain, conflicts between
jurisdictions are ruled by a special Arbitration Board and the refund of the VAT is mandated
following the resolution of the issue at the Arbitration Board. As a result of the Arbitration Board
ruling issued in July 2022, €252 million, inclusive of interest, was received in December from the
regional tax authorities of Bizkaia. As at 31 December 2022, in connection with the dispute and
the ruling, the Group has an additional VAT receivable of €25 million from the Basque Region
included within Other current assets, and a payable of €57 million to the Spanish tax authorities
included within Trade and other payables, both inclusive of interest. We believe it remains a
certainty that the Group will continue to be held neutral in respect of the VAT dispute.
Investments
Joint ventures are undertakings in which the Group has an interest and which are jointly
controlled by the Group and one or more other parties. Associates are undertakings where the
Group has an investment in which it does not have control or joint control but can exercise
significant influence. Interests in joint ventures and associates are accounted for using the equity
method and are stated in the consolidated balance sheet at cost, adjusted for the movement in
the Group’s share of their net assets and liabilities. The Group’s share of the profit or loss after tax
of joint ventures and associates is included in the Group’s consolidated income statement as
non-operating items. Where the Group’s share of losses exceeds its interest in the equity
(A) This line item includes a receivable of €25 million from the Basque Region. Refer to Note 25 for further details.
(B) Amount relates to the royalty income recognised in connection with a favourable court ruling pertaining to the ownership of
certain mineral rights in Australia. Refer to Note 23 for further detail.
Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for
sale if it is highly probable that they would be recovered through sale rather than continuous use.
In order for a sale to be considered highly probable, all of the following criteria needs to be met:
management is committed to a plan to sell the assets, an active programme to locate a buyer
and complete the plan has been initiated, the assets are actively marketed at reasonable price,
and the sale is expected to be completed within one year from the date of classification.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and
fair value less cost to sale.
Once classified as held for sale, intangible assets and property, plant and equipment are no longer
amortised or depreciated, and any equity accounted investee is no longer equity accounted.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
203
accounted investee, the carrying amount of the investment is reduced to zero and the
recognition of further losses is discontinued, except to the extent that the Group has an
obligation to make payments on behalf of the investee.
Financial assets at fair value through other comprehensive income relate to equity investments.
These investments are not held for trading purposes and hence the Group has opted to
recognise fair value movements through other comprehensive income. There have been no
significant changes in fair value of these investments during the period.
The following table summarises the Group’s carrying value of investments as at the dates
presented:
Investments
Investments accounted using equity method
Financial assets at fair value through other comprehensive income
Total investments
Year ended 31 December
2022
€ million
2021
€ million
33
2
35
35
5
40
Note 26
Financial risk management
Financial risk factors, objectives and policies
The Group’s activities expose it to several financial risks including market risk, credit risk and
liquidity risk. Financial risk activities are governed by appropriate policies and procedures to
minimise the uncertainties these risks create on the Group’s future cash flows. Such policies are
developed and approved by the Group’s treasury and commodities risk committee, through the
authority delegated to it by the Board.
If interest rates on the Group’s floating rate debt were adjusted by 1% for the years ended
31 December 2022, 31 December 2021 and 31 December 2020, the Group’s finance costs and
pre-tax equity would change on an annual basis by approximately €9 million, €7 million and €2
million, respectively. This amount is determined by calculating the effect of a hypothetical
interest rate change on the Group’s floating rate debt. This estimate does not include the effects
of other actions to mitigate this risk or changes in the Group’s financial structure.
Currency exchange rates
The Group’s exposure to the risk of changes in currency exchange rates relates primarily to its
operating activities denominated in currencies other than the functional currency, the euro. To
manage currency exchange risk arising from future commercial transactions and recognised
monetary assets and liabilities, foreign currency forward and option contracts with external third
parties are used. Typically, up to 80% of anticipated cash flow exposures in each major foreign
currency for the next calendar year are hedged using a combination of forward and option
contracts with third parties.
The Group is also exposed to the risk of changes in currency exchange rates between US dollar
and euro relating to its US denominated borrowings. The following table demonstrates the
sensitivity of the Group’s profit before income taxes and pre-tax equity as a result of changes in
the value of outstanding debt instruments due to reasonable movements in the US dollar
against the euro, with all other variables held constant. This does not take into account the
effects of derivative instruments used to manage exposure to this risk. Movements in foreign
currencies related to the Group’s other financial instruments do not have a material impact on
profit before income taxes or pre-tax equity.
The Group also has borrowing denominated in Australian dollars that are not swapped into euro
and are converted as part of the currency translation of the net assets of API, and as such,
movements in exchange rates would not impact profit.
Change in
currency rate
€ strengthens
against US$
€ weakens
against US$
%
10
10
10
€ million
€ million
197
176
33
(197)
(176)
(36)
Market risk
Market risk represents the risk that the fair value of future cash flows of a financial instrument will
fluctuate due to changes in market prices and includes interest rate risk, currency risk and other
price risk such as commodity price risk. Market risk affects outstanding borrowings, as well as
derivative financial instruments.
Effect on profit before tax and pre-tax equity
Year ended 31 December 2022
Year ended 31 December 2021
Year ended 31 December 2020
Interest rates
The Group is subject to interest rate risk for its outstanding borrowings. To manage interest rate
risk, the Group maintains a significant proportion of its borrowings at fixed rates. Approximately
90% and 95% of the Group’s interest bearing borrowings were comprised of fixed rate
borrowings at 31 December 2022 and 31 December 2021, respectively. As part of the Acquisition,
the Group acquired interest rate swaps used to hedge its interest rate risk associated with CCL-
related borrowings. As at 31 December 2022 and 31 December 2021 the notional value of the
Group’s interest rate swaps was €1,146 million and €291 million, respectively.
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
204
Liquidity risk
Liquidity risk is actively managed to ensure that the Group has sufficient funds to satisfy its
commitments. The Group’s sources of capital include, but are not limited to, cash flows from
operations, public and private issuances of debt and equity securities and bank borrowings. The
Group believes its operating cash flow, cash on hand and available short-term and long-term
capital resources are sufficient to fund its working capital requirements, scheduled borrowing
payments, interest payments, capital expenditures, benefit plan contributions, income tax
obligations and dividends to its shareholders. Counterparties and instruments used to hold cash
and cash equivalents are continuously assessed, with a focus on preservation of capital and
liquidity. Based on information currently available, the Group does not believe it is at significant
risk of default by its counterparties.
The Group has amounts available for borrowing under a €1.95 billion multi currency credit facility
(2021: €1.95 billion) with a syndicate of 13 banks. This credit facility matures in 2025 and is for
general corporate purposes, including serving as a backstop to its commercial paper programme
and supporting the Group’s working capital needs. Based on information currently available, the
Group has no indication that the financial institutions participating in this facility would be unable
to fulfil their commitments as at the date of these financial statements. The current credit
facility contains no financial covenants that would impact the Group’s liquidity or access to
capital. As at 31 December 2022, the Group had no amounts drawn under this credit facility.
During the year the Group implemented a new sustainability-linked supply chain finance
programme. The facility is provided by a third party bank and will help our suppliers get paid
earlier than under contractual credit terms. Supplier balances under supply chain finance
facilities are disclosed in Note 15.
Commodity price risk
The competitive marketplace in which the Group operates may limit its ability to recover
increased costs through higher prices. As such, the Group is subject to market risk with respect to
commodity price fluctuations, principally related to its purchases of aluminium, PET (plastic,
including recycled PET, LDPE), ethylene, sugar and vehicle fuel. When possible, exposure to this
risk is managed primarily through the use of supplier pricing agreements, which enable the
Group to establish the purchase price for certain commodities. Certain suppliers restrict the
Group’s ability to hedge prices through supplier agreements. As a result, commodity hedging
programmes are entered into and generally designated as hedging instruments. Refer to
Note 13 for more information. Typically, up to 80% of the anticipated commodity transaction
exposures for the next calendar year are hedged using a combination of forward and
option contracts executed with third parties. The Group estimates that a 10% change in the
market price of these commodities over the current market prices would affect operating profit
during the next 12 months by approximately €150 million (2021: €116 million, 2020: €47 million).
This does not take into account the effects of derivative instruments used to manage exposure
to this risk or pricing agreements in place.
Credit risk
The Group is exposed to counterparty credit risk on all of its derivative financial instruments.
Strict counterparty credit guidelines are maintained and only financial institutions that are
investment grade or better are acceptable counterparties. Counterparty credit risk is
continuously monitored and numerous counterparties are used to minimise exposure to
potential defaults. Where required, collateral is paid between the counterparties to minimise
counterparty risk. The maximum credit risk exposure for each derivative financial instrument is
the carrying amount of the derivative. Included in trade and other payables is €25 million
(2021: €46 million) related to collateral received from counterparties and included in other
current assets is nil (2021: €4 million) related to collateral paid to counterparties.
Credit is extended in the form of payment terms for trade to customers of the Group, consisting
of retailers, wholesalers and other customers, generally without requiring collateral, based on an
evaluation of the customer’s financial condition. While the Group has a concentration of credit
risk in the retail sector, this risk is mitigated due to the diverse nature of the customers the Group
serves, including, but not limited to, their type, geographic location, size and beverage channel.
Depending on the risk profile of certain customers, we may also seek bank guarantees.
Collections of receivables are dependent on each individual customer’s financial condition and
sales adjustments granted. Trade accounts receivable are carried at net realisable value. Typically,
accounts receivable have terms of 30 to 60 days and do not bear interest. Exposure to losses on
receivables is monitored, and balances are adjusted for expected credit losses. Expected credit
losses are determined by: (1) evaluating the ageing of receivables; (2) analysing the history of
adjustments; and (3) reviewing high risk customers. Credit insurance on a portion of the accounts
receivable balance is also carried.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
205
Refer to Note 12 for the presentation of fair values for each class of financial assets and financial
liabilities and Note 13 for an outline of how the Group utilises derivative financial instruments to
mitigate its exposure to certain market risks associated with its ongoing operations.
Refer to the Strategic Report included within this Integrated Report for disclosure of strategic,
commercial and operational risk relevant to the Group.
The following table analyses the Group’s non-derivative financial liabilities and net settled
derivative financial liabilities into relevant maturity groupings based on the remaining period at
the statement of financial position date to the contractual maturity date. The amounts disclosed
in the table are the contractual undiscounted cash flows:
Financial liabilities
31 December 2022
Trade and other payables
Amounts payable to related parties
Borrowings
Derivatives
Lease liabilities
Total
Less than
1 year
1 to 3 years
3 to 5 years
More than
5 years
€ million
€ million
€ million
€ million
€ million
4,714
485
12,314
263
752
4,714
485
1,336
76
149
—
—
2,597
17
217
—
—
2,179
51
129
—
—
6,202
119
257
Total financial liabilities
18,528
6,760
2,831
2,359
6,578
31 December 2021
Trade and other payables
Amounts payable to related parties
Borrowings
Derivatives
Lease liabilities
3,933
210
13,599
66
714
3,933
210
1,369
19
145
Total financial liabilities
18,522
5,676
—
—
2,551
4
208
2,763
—
—
—
—
2,274
7,405
15
111
28
250
2,400
7,683
Capital management
The primary objective of the Group’s capital management is to ensure a strong credit rating and
appropriate capital ratios are maintained to support the Group’s business and maximise
shareholder value. The Group’s credit ratings are periodically reviewed by rating agencies.
Currently, the Group’s long-term ratings from Moody’s and Fitch are Baa1 and BBB+, respectively.
Changes in the operating results, cash flows or financial position could impact the ratings
assigned by the various rating agencies. The credit rating can be materially influenced by a
number of factors including, but not limited to, acquisitions, investment decisions, capital
management activities of TCCC and/or changes in the credit rating of TCCC. Should the credit
ratings be adjusted downward, the Group may incur higher costs to borrow, which could have a
material impact on the financial condition and results of operations.
The capital structure is managed and, as appropriate, adjustments are made in light of changes
in economic conditions and the Group’s financial policy. The Group monitors its operating
performance in the context of targeted financial leverage by comparing the ratio of net debt
with adjusted EBITDA. Net debt is calculated as being the net of cash and cash equivalents,
short-term investments, borrowings, fair value of hedging instruments related to borrowings and
financial assets/liabilities related to borrowings. Adjusted EBITDA is calculated as EBITDA and
adjusted for items impacting comparability.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
206
Note 27
Significant events after the reporting period
In January 2023, the Group extended the maturity date of the revolving credit facility from
August 2025 to January 2028. The size of the facility remains unchanged at €1.95 billion.
On 15 February 2023, the Group completed the acquisition of the remaining 29.4% ownership
interest of its subsidiary, PT Coca-Cola Bottling Indonesia, for a total consideration of
€282 million.
On 8 February 2023, the Group received a proposed VAT assessment for years 2017 to 2019,
approximating €250 million, inclusive of interest, in relation to a dispute between the Spanish tax
authorities and the regional tax authorities of Bizkaia (Basque Region) regarding the
responsibility for ultimately refunding VAT to the Group. For the period under the proposed
assessment, the VAT refund was issued by the Spanish tax authorities. In July 2022, the Arbitration
Board ruled that the regional tax authorities of Bizkaia were responsible for refunding the VAT to
the Group for years 2013 and 2016 (refer to Note 25 for additional details). We believe that the
Group will continue to be held neutral in respect of the VAT dispute.
On 7 March 2023, the Group entered into an agreement to sell sub-strata and associated mineral
rights in Queensland, Australia. Subject to regulatory approval, the transaction is expected to
complete in the first half of 2023. The financial effects of the transaction will not be material for
the Group.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
207
Note 28
Group companies
In accordance with section 409 of the Companies Act 2006, a full list of the Company’s subsidiaries, partnerships, associates, joint ventures and joint arrangements as at 31 December 2022 is disclosed
below, along with the country of incorporation, the registered address and the effective percentage of equity owned at that date. Unless otherwise stated, each entity has a share capital comprising
a single class of ordinary shares and is wholly owned and indirectly held by CCEP.
Name
Agua De La Vega Del Codorno, S.L.U.
Aguas De Cospeito, S.L.U.
Aguas De Santolin, S.L.U.
Aguas Del Maestrazgo, S.L.U.
Aguas Del Toscal, S.A.U.
Aguas Vilas Del Turbon, S.L.U.
Aitonomi AG
Amalgamated Beverages Great Britain Limited
Apand Pty Ltd
Associated Products & Distribution Proprietary
BBH Investment Ireland Limited
Bebidas Gaseosas Del Noroeste, S.L.U.
Beganet, S.L.U.
Beverage Bottlers (NQ) Pty Ltd
Beverage Bottlers (QLD) Ltd
Birtingahúsið ehf.
BL Bottling Holdings UK Limited
Bottling Great Britain Limited
Bottling Holding France SAS
Bottling Holdings (Luxembourg) SARL
Bottling Holdings (Netherlands) B.V.
Bottling Holdings Europe Limited
Country of
incorporation
% equity
interest
Registered address
Spain
Spain
Spain
Spain
Spain
Spain
100%
100%
100%
100%
100%
100%
Switzerland
United Kingdom 100%(D)
15%
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Crta. Pino km. 1 - 2, 27377, Cospeito (Lugo), Spain
C/ Real, s/n 09246, Quintanaurria , Burgos , Spain
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Ctra. de la Pasadilla, km, 3-35250, ingenio (Gran Canaria), Spain
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Bruderhausstrasse 10, CH-6372 Ennetmoos, Switzerland
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Australia
Australia
Ireland
Spain
Spain
Australia
Australia
100%
100%(D)
100%
100%
100%
100%
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
6th Floor, 2 Grand Canal Square, Dublin 2, Ireland
Avda. Alcalde Alfonso Molina , S/N-15007, (A Coruna), Spain
Avda Paisos Catalans, 32, 08950 , Esplugues de Llobregat, Spain
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
34.5%
Iceland
United Kingdom 100%
United Kingdom 100%(D)
France
Luxembourg
100%
100%
Netherlands
United Kingdom 100%(B)(E)
100%
Laugavegur 174, 105, Reykjavík, Iceland
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
9 chemin de Bretagne , 92784, Issy-les-Moulineaux, France
2, Rue des Joncs, L-1818, Howald, Luxembourg
Marten Meesweg 25 J, 3068 AV ROTTERDAM, Netherlands
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
208
Name
Brewcorp Pty Ltd
Brewhouse Investments Pty Ltd
C - C Bottlers Limited
Can Recycling (S.A.) Pty. Ltd.
CC Digital GmbH
CC Erfrischungsgetränke Oldenburg Verwaltungs GmbH
CC Iberian Partners Gestion S.L.
CC Verpackungsgesellschaft mit beschraenkter Haftung
CCA Bayswater Pty Ltd
CCEP Australia Pty Ltd
CCEP Finance (Australia) Limited
CCEP Finance (Ireland) Designated Activity Company
CCEP Group Services Limited
CCEP Holdings (Australia) Limited
CCEP Holdings (Australia) Pty Ltd
CCEP Holdings Norge AS
CCEP Holdings Sverige AB
CCEP Holdings UK Limited
CCEP Ventures Australia Pty Ltd
CCEP Ventures Europe Limited
CCEP Ventures UK Limited
CCEP Scottish Limited Partnership
CCIP Soporte, S.L.U.
Country of
incorporation
% equity
interest
Registered address
Australia
Australia
Australia
Australia
Germany
Germany
Spain
Germany
Australia
100%
100%
100%
100%(B)
50%
100%(I)
100%
100%
100%
Australia
United Kingdom 100%(A)
100%
100%
Ireland
United Kingdom 100%
United Kingdom 100%(A)(D)
Australia
Norway
100%(A)
100%
100%
Sweden
United Kingdom 100%
100%
Australia
United Kingdom 100%(A)
United Kingdom 100%(A)
United Kingdom 100%
100%
Spain
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Stralauer Allee 4, 10245, Berlin, Germany
Stralauer Allee 4, 10245, Berlin, Germany
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Schieferstrasse 20, 06126, Halle (Saale), Germany
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
6th Floor, 2 Grand Canal Square, Dublin 2, Ireland
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Robsrudskogen 5, Lørenskog, 1470, Norway
Dryckesvägen 2 C, 136 87, Haninge, Sweden
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
52 Milton Road, East Kilbride, Glasgow, Scotland, G74 5DJ
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Building 3, 658 Church Street, Cremorne VIC 3121, Australia
4th Floor, 25-28 Adelaide Road, Dublin 2, D02 RY98, Ireland
Avda Paisos Catalans, 32, 08950 , Esplugues de Llobregat, Spain
1 Bartholomew Lane, London, EC2N 2AX, United Kingdom
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Lot 1, Ratu Dovi Road, Laucala Beach Estate, NASINU, Fiji
Circular Plastics Australia (PET) Holdings Pty Ltd
Classic Brand (Europe) Designated Activity Company
Cobega Embotellador, S.L.U.
Coca-Cola Amatil (UK) Limited
Coca-Cola Europacific Partners (CDE Aust) Pty Limited
Coca-Cola Europacific Partners (Fiji) Pte Limited
Australia
Ireland
16.67%
100%
Spain
United Kingdom 100%(L)
100%
Australia
Fiji
100%
100%
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
209
Name
Coca-Cola Europacific Partners (Holdings) Pty Limited
Coca-Cola Europacific Partners (Initial LP) Limited
Coca-Cola Europacific Partners (Scotland) Limited
Coca-Cola Europacific Partners API Pty Ltd
Coca-Cola Europacific Partners Australia Pty Limited
Coca-Cola Europacific Partners Belgium SRL/BV
Coca-Cola Europacific Partners Deutschland GmbH
Coca-Cola Europacific Partners France SAS
Coca-Cola Europacific Partners Great Britain Limited
Coca-Cola Europacific Partners Holdings Great Britain Limited
Coca-Cola Europacific Partners Holdings NZ Limited
Coca-Cola Europacific Partners Holdings US, Inc.
Country of
incorporation
% equity
interest
Registered address
100%
Australia
United Kingdom 100%
United Kingdom 100%
100%
Australia
Australia
Belgium
Germany
100%
100%
100%(F)
100%(G)
France
United Kingdom 100%
United Kingdom 100%
100%
New Zealand
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
52 Milton Road, College Milton, East Kilbride, Scotland, G74 5DJ, United Kingdom
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Chaussée de Mons 1424, 1070 Brussels, Belgium
Stralauer Allee 4, 10245, Berlin, Germany
9 chemin de Bretagne , 92784, Issy-les-Moulineaux, France
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
The Oasis, 19 Carbine Road, Mount Wellington, Auckland, 1060, New Zealand
United States
100%(A)(D)
Corporation Trust Center, 1209 Orange Street, Wilmington DE, USA
Coca-Cola Europacific Partners Iberia, S.L.U.
Spain
Coca-Cola Europacific Partners Investments (Singapore) Pte. Ltd.
Singapore
Coca-Cola Europacific Partners Ísland ehf.
Coca-Cola Europacific Partners Luxembourg sàrl
Coca-Cola Europacific Partners Nederland B.V.
Coca-Cola Europacific Partners New Zealand Limited
Coca-Cola Europacific Partners Norge AS
Coca-Cola Europacific Partners Papua New Guinea Limited
Iceland
Luxembourg
Netherlands
New Zealand
Norway
Papua New
Guinea
100%
100%
100%
100%
100%
100%
100%
100%
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
80 Robinson Road, #02-00, 068898, Singapore
Studlahals 1, 110, Reykjavik, Iceland
2, Rue des Joncs, L-1818, Howald, Luxembourg
Marten Meesweg 25 J, 3068 AV ROTTERDAM, Netherlands
The Oasis, 19 Carbine Road, Mount Wellington, Auckland, 1060, New Zealand
Robsrudskogen 5, Lørenskog, 1470, Norway
Section 23, Allotment 14, Milfordhaven Road, LAE, Morobe Province, 411, Papua New Guinea
Coca-Cola Europacific Partners Pension Scheme Trustees Limited
Coca-Cola Europacific Partners Portugal Unipessoal LDA
Coca-Cola Europacific Partners Services Bulgaria EOOD
Coca-Cola Europacific Partners Services Europe Limited
Coca-Cola Europacific Partners Services SRL
Coca-Cola Europacific Partners Sverige AB
Coca-Cola Europacific Partners US II, LLC
United Kingdom 100%
100%
Portugal
Bulgaria
100%
United Kingdom 100%
Belgium
Sweden
100%(O)
100%
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Quinta da Salmoura - Cabanas-2925-362 Azeitão, Setúbal, Portugal
48 Sitnyakovo Blvd. , Serdika Centre , Office Building, floor 5 , Sofia , 1505, Bulgaria
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Chaussée de Mons 1424, 1070 Brussels, Belgium
136 87, Haninge, Sweden
United States
100%
Corporation Trust Center, 1209 Orange Street, Wilmington 19801, Delaware, USA
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
210
Name
Coca-Cola Europacific Partners US, LLC
Coca-Cola Europacific Partners Vanuatu Limited
Coca-Cola Immobilier SCI
Coca-Cola Production SAS
Coca-Cola Australia Foundation Limited
Compañía Asturiana De Bebidas Gaseosas, S.L.U.
Compañía Castellana De Bebidas Gaseosas, S.L.
Compañía Levantina De Bebidas Gaseosas, S.L.U.
Compañía Norteña De Bebidas Gaseosas, S.L.U.
Compañía Para La Comunicación De Bebidas Sin Alcohol, S.L.U.
Container Exchange (QLD) Limited
Container Exchange (Services) Pty Ltd
Conversia IT, S.L.U.
Crusta Fruit Juices Proprietary Limited
Developed System Logistics, S.L.U.
Endurvinnslan hf.
Exchange for Change (ACT) Pty Ltd
Exchange for Change (Australia) Pty Ltd
Exchange for Change (NSW) Pty Ltd
Feral Brewing Company Pty Ltd
Foodl B.V.
GR Bottling Holdings UK Limited
Infineo Recyclage SAS
Innovative Tap Solutions Inc.
Instelling voor Bedrijfspensioenvoorziening Coca-Cola Europacific Partners
Belgium/Coca-Cola Europacific Partners Services – Bedienden-Arbeiders
OFP
Instelling voor Bedrijfspensioenvoorziening Coca-Cola Europacific Partners
Belgium/Coca-Cola Europacific Partners Services – Kaderleden OFP
Country of
incorporation
United States
Vanuatu
France
France
Australia
Spain
Spain
Spain
Spain
Spain
Australia
Australia
Spain
Australia
Spain
Iceland
Australia
Australia
Australia
Australia
% equity
interest
100%
100%
100%(G)
100%
—%(M)
100%
100%
100%
100%
100%
—%(M)
50%
100%
100%(J)
100%
20%
20%
20%
20%
100%(K)
33.3%
Netherlands
United Kingdom 100%(A)
49%(H)
France
Registered address
Corporation Trust Center, 1209 Orange Street, Wilmington 19801, USA
1st Floor, Govant Building, Kumul Highway, Port Vila, Vanuatu
9 chemin de Bretagne , 92784, Issy-les-Moulineaux, France
Zone d' entreprises de Bergues , 59380, Commune de Socx, France
Level 13 , 40 Mount Street , North Sydney NSW 2060, Australia
C/ Nava, 18- 3ª (Granda) Siero - 33006, Oviedo, Spain
C/ Ribera Del Loira 20-22, 2a Planta , 28042, (Madrid), Spain
Av. Real Monasterio de Sta. , Maria de Poblet , 3646930, Quart de Poblet , Spain
C/ Ibaizábal, 57 , Galdakao, 48960, Bizkaia, Spain
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Level 17, 100 Creek Street, Brisbane QLD 4000, Australia
Maddocks, Angel Place, Level 27, 123 Pitt Street, Sydney NSW 2000, Australia
C/ Ribera Del Loira 20-22, 2a Planta , 28042, Madrid, Spain
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Av. Henry Ford 25, Manzana 19, Complejo Pq.Ind.Juan , CARLOS I , 46220, Picassent , Valencia , Spain
Knarravogur 4, 104 Reykjavik, Iceland
Building C, Suite 6, Level 1, 1 Homebush Bay Drive, Rhodes NSW 2138, Australia
Building C, Suite 6, Level 1, 1 Homebush Bay Drive, Rhodes NSW 2138, Australia
Building C, Suite 6, Level 1, 1 Homebush Bay Drive, Rhodes NSW 2138, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
HNK Utrecht West, V.02, Weg der Verenigde Naties 1, 3527 KT, Utrecht, Netherlands
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Sainte Marie la Blanche , 21200, Dijon , France
United States
Belgium
21.8%
100%
300 Brookside Avenue, Ambler, PA 19002, USA
1424 – B1070 Bergensesteenweg, Brussels, Belgium
Belgium
100%
1424 – B1070 Bergensesteenweg, Brussels, Belgium
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
211
Name
Iparbal, 99 S.L.
Iparsoft, 2004 S.L.
Kollex GmbH
Lavit Holdings Inc
Lusobega, S.L.
Madrid Ecoplatform, S.L.U.
Mahija Parahita Nusantara Foundation
Matila Nominees Pty. Limited
Neverfail Bottled Water Co Pty Limited
Neverfail SA Pty. Limited
Neverfail Springwater (VIC) Pty Limited
Neverfail Springwater Co Pty Ltd
Neverfail Springwater Co. (QLD) Pty. Limited
Neverfail Springwater Pty Ltd
Neverfail WA Pty. Limited
Pacbev Pty Ltd
Paradise Beverages (Fiji) Pte Limited
PEÑA Umbria S.L.U.
Perfect Fruit Company Pty Ltd
PT Amandina Bumi Nusantara
PT Coca-Cola Bottling Indonesia
PT Coca-Cola Distribution Indonesia
Purna Pty. Ltd.
Quenchy Crusta Sales Pty. Ltd.
Real Oz Water Supply Co (QLD) Pty Limited
Refrescos Envasados Del Sur, S.L.U.
Refrige SGPS, Unipessoal, LDA
Roalba, S.L.U.
Country of
incorporation
% equity
interest
Registered address
Spain
Spain
Germany
United States
Spain
Spain
Indonesia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Fiji
Spain
Australia
Indonesia
Indonesia
Indonesia
Australia
Australia
Australia
Spain
Portugal
Spain
100%
100%
20%
13.7%
100%
100%
—%(M)
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
35.31%
70.6%(C)
70.63%
100%
100%
100%
100%
100%
100%
C/ Ibaizábal, 57, 48960, Bizkaia, Galdakao, Spain
C/ Ibaizábal, 57, 48960, Bizkaia, Galdakao, Spain
Kottbusser Damm 25-26 , 10967, Berlin, Germany
27 West 20th Street, Suite 1004, New York NY 10011, USA
C/ Ibaizábal, 57, 48960, Bizkaia, Galdakao, Spain
C/Pedro Lara, 8 Pq. Tecnologico de Leganes , 28919, (Leganes), Spain
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak, South Jakarta , 12430, Indonesia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
122-164 Foster Road, Walu Bay, Suva, Fiji
Av. Real Monasterio de Sta. , Maria de Poblet , 3646930, Quart de Poblet , Spain
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak, South Jakarta , 12430, Indonesia
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak, South Jakarta , 12430, Indonesia
South Quarter Tower C, 22nd (P) Floor, Jalan R.A. Kartini, Kav.8, Cilandak Barat, Cilandak, South Jakarta , 12430, Indonesia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Autovía del Sur A-IV, km.528- 41309 , La Rinconada, Sevilla, Spain
Quinta da Salmoura - Cabanas-2925-362 Azeitão, Setúbal, Portugal
C/ Ibaizábal, 57, 48960, Bizkaia, Galdakao, Spain
Strategic Report
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Financial Statements
Other Information
Notes to the consolidated financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
212
Name
Sale Proprietary Co 1 Pty Ltd
Sale Proprietary Co 2 Pty Ltd
Sale Proprietary Co 3 Pty Ltd
Sale Proprietary Co 4 Pty Ltd
Sale Proprietary Co 5 Pty Ltd
Sale Proprietary Co 6 Pty Ltd
Sale Proprietary Co 7 Pty Ltd
Samoa Breweries Limited
Solares y Edificios Norteños, S.L.U.
Starstock Group Limited
TasRecycle Limited
VicRecycle Limited
WA Return Recycle Renew Ltd
Wabi Portugal, Unipessoal LDA
WB Investment Ireland 2 Limited
WBH Holdings Luxembourg SCS
WIH UK Limited
Wir Sind Coca-Cola GmbH
Country of
incorporation
% equity
interest
Registered address
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Samoa
100%
100%
100%
100%
100%
100%(P)
100%
93.85%
100%
Spain
United Kingdom 28.05%
—%(N)
Australia
Australia
Australia
Portugal
Ireland
—%(N)
—%(M)
100%
100%
Luxembourg
United Kingdom 100%(A)
100%
Germany
100%
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Level 13, 40 Mount Street, North Sydney NSW 2060, Australia
Vaitele Industrial Zone, Vaitele Tai, Faleata Sisifo, Samoa
C/ Ibaizábal, 57, 48960, Bizkaia, Galdakao, Spain
2nd Floor, 140, Fenchurch Street, London, England, EC3M 6BL, United Kingdom
Level 9, 85 Macquarie Street, Hobart TAS 7000, Australia
HWL Ebsworth Lawyers, Level 8, 447 Collins Street, Melbourne VIC 3000, Australia
Unit 2, 1 Centro Avenue, Subiaco WA 6008, Australia
Nº 16-A, Fracçao B, 5º Piso, Edificio Miraflores Premium Distrito: Lisboa Concelho: Oieras Freguesia: Algés, Linda-a-
Velha e Cruz Quebrada-Dafundo 1495 190 Algés, Portugal
6th Floor, 2 Grand Canal Square, Dublin 2, Ireland
2, Rue des Joncs, L-1818, Howald, Luxembourg
Pemberton House, Bakers Road, Uxbridge, England, UB8 1EZ, United Kingdom
Stralauer Allee 4, 10245, Berlin, Germany
(A) 100% equity interest directly held by Coca-Cola Europacific Partners plc.
(B) Class A and B ordinary shares.
(C) Series A, B, and C shares.
(D) Including preference shares issued to the Group.
(E) 38.3% equity interest directly held by Coca-Cola Europacific Partners plc (100% of A ordinary shares in issue).
(F) 10% equity interest directly held by Coca-Cola Europacific Partners plc.
(G) Group shareholding of 99.99% or greater.
(H) Class A and B shares. The Group holds 49% of Class B shares.
(I) In liquidation.
(J) Class A and F shares.
(K) Includes ordinary shares and B Class shares.
(L) Strike off action in process.
(M) Company limited by guarantee. CCEP is a member along with one other member.
(N) Company limited by guarantee. CCEP is a member along with two other members.
(O) Class A, B and C ordinary shares.
(P) Includes redeemable preference shares and discretionary dividend shares issued to the Group.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc Company financial statements
Statement of comprehensive income
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
213
Revenue from management fees
Dividend income
Administrative expenses
Operating profit
Finance income
Finance costs
Total finance costs, net
Non-operating items
Profit before taxes
Taxes
Profit after taxes
Components of other comprehensive income:
Cash flow hedges that may be subsequently reclassified to the income statement:
Pretax activity, net
Tax effect
Other comprehensive income for the period, net of tax
Comprehensive income for the period
The accompanying notes are an integral part of these Company financial statements.
Note
3
4
4
Year ended 31 December
2022
€ million
2021
€ million
34
581
(47)
568
20
(127)
(107)
(15)
446
2
448
(3)
—
(3)
52
—
(71)
(19)
15
(133)
(118)
46
(91)
(13)
(104)
2
—
2
445
(102)
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
214
Statement of financial position
Year ended 31 December
The accompanying notes are an integral part of these Company financial statements.
Note
2022
€ million
2021
€ million
The financial statements were approved by the Board of Directors and authorised for issue on
17 March 2023. They were signed on its behalf by:
Damian Gammell, Chief Executive Officer
17 March 2023
ASSETS
Non-current:
Investments
Non-current derivative assets
Other non-current assets
Total non-current assets
Current:
Current derivative assets
Other current assets
Total current assets
Total assets
LIABILITIES
Non-current:
Borrowings, less current portion
Amounts payable to related parties
Non-current derivative liabilities
Other non-current liabilities
Total non-current liabilities
Current:
Amounts payable to related parties
Current portion of borrowings
Trade and other payables
Total current liabilities
Total liabilities
EQUITY
Share capital
Share premium
Merger reserves
Retained earnings
Total equity
Total equity and liabilities
5
9
9
7
6
9
6
7
8
8
8
8
27,632
123
9
27,626
92
12
27,764
27,730
86
14
100
6
7
13
27,864
27,743
6,063
3,227
130
11
9,431
3,000
1,148
69
4,217
13,648
5
233
8,466
5,512
14,216
27,864
7,237
3,227
—
14
10,478
1,703
986
85
2,774
13,252
5
220
8,466
5,800
14,491
27,743
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
215
Statement of cash flows
Year ended 31 December
2022
€ million
2021*
€ million
Note
446
(91)
Proceeds from borrowings, net
Cash flows from financing activities:
Year ended 31 December
2022
€ million
2021*
€ million
Note
Cash flows from operating activities:
(Loss)/profit before taxes
Adjustments to reconcile profit before tax to net cash flows
from operating activities:
Dividend income
Depreciation
Amortisation of intangible assets
Share-based payment expense
Finance costs, net
Other non-operating income/(expense)
Investment write-down
Change in operating assets/liabilities
Net cash flows from operating activities*
Cash flows from investing activities:
Investment in subsidiaries, net
Proceeds from loans to related parties
Dividend received
Interest received
Purchase of capitalised software
Net cash flows used in investing activities
Repayments on borrowings
Payments of principal on lease obligations
Interest paid
Dividends paid
Exercise of employee share options
Net cash flows from financing activities
Net change in cash and cash equivalents
8
Net effect of currency exchange rate changes on cash
and cash equivalents*
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
The accompanying notes are an integral part of these Company financial statements.
*Comparative information has been reclassified. Refer to Note 1.
3
(581)
1
2
16
107
—
11
(29)
(27)
—
—
581
19
—
600
5
3
—
2
1
10
118
(46)
—
45
39
(5,729)
350
—
15
(1)
(5,365)
1,304
(985)
(1)
(138)
(766)
13
(573)
—
—
—
—
6,769
(713)
(7)
(114)
(639)
30
5,326
—
—
—
—
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
216
Statement of changes in equity
As at 31 December 2020
Issue of shares during the year
Equity-settled share-based payments
Total comprehensive income for the period
Dividends
As at 31 December 2021
Issue of shares during the year
Equity-settled share-based payments
Total comprehensive income for the period
Dividends
As at 31 December 2022
The accompanying notes are an integral part of these Company financial statements.
Share capital
Share premium
Merger reserves
Retained earnings
Total equity
€ million
5
—
—
—
—
5
—
—
—
—
5
€ million
190
30
—
—
—
220
13
—
—
—
233
€ million
8,466
—
—
—
—
8,466
—
—
—
—
8,466
€ million
6,525
—
16
(102)
(639)
5,800
—
33
445
(766)
5,512
€ million
15,186
30
16
(102)
(639)
14,491
13
33
445
(766)
14,216
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
217
Notes to the Company financial statements
Note 1
General information and basis of preparation
Coca-Cola Europacific Partners plc (the Company) acts as a holding company for investments in
subsidiaries, as well as a provider of various intragroup services. In addition, the Company engages
in general corporate activities such as third party borrowings.
The financial statements of the Company have been prepared in accordance with the UK
adopted International Accounting Standards, International Financial Reporting Standards (IFRS)
as adopted by the European Union and International Financial Reporting Standards as issued by
the International Accounting Standards Board (‘IASB’). The financial statements were approved
and signed by Damian Gammell, Chief Executive Officer on 17 March 2023 having been duly
authorised to do so by the Board of Directors.
As described in the accounting policies in Note 2, the financial statements have been prepared
under the historical cost convention except for certain items measured at fair value. Those
accounting policies have been applied consistently in all periods. The functional and presentation
currency of the Company is euros and amounts are rounded to the nearest million.
The financial statements of the Company have been prepared on a going concern basis (refer to
the “Going concern” paragraph on page 143).
The Company’s prior year Statement of Cash Flows included €146 million of foreign currency
changes within “Net effect of currency exchange changes on cash and cash equivalents”. To
reflect the cross currency hedging in place, the foreign currency changes are presented within
“Change in operating assets/liabilities” in the current year Statement of Cash Flows and the prior
period comparatives have been reclassified. As a consequence, net cash flows from operating
activities and net change in cash and cash equivalents for the period ending 31 December 2021
have increased by €146 million and the net effect of currency exchange changes on cash and
cash equivalents decreased by the same amount.
Note 2
Significant accounting policies
The preparation of these financial statements requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual results may differ from these
estimates. The significant judgements made in applying the Company’s accounting policies were
applied consistently across the annual periods.
Investments
Investments in subsidiaries are initially recognised at cost and carried net of any impairment.
Investments are tested for impairment whenever events or changes in circumstances indicate
that the carrying amounts of those investments may not be recoverable. An asset’s recoverable
amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that
are largely independent of those from other assets or groups of assets. Where the carrying
amount of an asset exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount. Impairment losses on continuing operations are
recognised in the income statement in those expense categories consistent with the function of
the impaired asset.
For assets where an impairment loss subsequently reverses, the carrying amount of the asset or
CGU is increased to the revised estimate of its recoverable amount, not to exceed the carrying
amount that would have been determined, net of depreciation, had no impairment losses been
recognised for the asset or CGU in prior years. A reversal of impairment loss is recognised
immediately in the income statement.
Share-based payments
The Company has established share-based payment plans that provide for the granting of share
options and restricted stock units, some with performance and/or market conditions, to certain
executive and management level employees that are employed by the Company and its
subsidiaries. These awards are designed to align the interests of its employees with the interests
of its shareholders.
The Company recognises compensation expense equal to the grant date fair value for all
share-based payment awards that are expected to vest. Expense is generally recorded on a
straight-line basis over the requisite service period for each separately vesting portion of the
award. As per IAS 27 the Company equity settles share-based payments for employees of
subsidiary entities and accounts for the settlement as an addition to the cost of its investment in
the employing subsidiary. Upon vesting, the Company recharges the costs of the share-based
awards to the employing subsidiary and records a reduction of the investment.
Financial instruments
(i) Financial assets
Initial recognition and measurement
Financial assets within the scope of IFRS 9, “Financial Instruments” are classified as financial assets
at fair value through profit or loss, loans and receivables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate. The Company determines the classification of
its financial assets at initial recognition.
All financial assets are recognised initially at fair value plus, in the case of investments not at fair
value through profit or loss, directly attributable transaction costs.
The Company’s financial assets include cash and short-term deposits, trade and other
receivables, loan notes, and derivative financial instruments.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and
financial assets designated upon initial recognition at fair value through profit or loss. Financial
assets are classified as held for trading if they are acquired for the purpose of selling in the near
term. This category includes derivative financial instruments entered into by the Company that
are not designated as hedging instruments in hedge relationships as defined by IFRS 9.
Derivatives, including separated embedded derivatives, are also classified as held for trading
unless they are designated as effective hedging instruments.
Financial assets at fair value through profit and loss are carried in the statement of financial
position at fair value with changes in fair value recognised in finance income or finance cost in
the statement of comprehensive income.
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
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Notes to the Company financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
218
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Such assets are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest rate (EIR) method, less
impairment. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included
in finance income in the statement of comprehensive income. Losses arising from impairment
are recognised in the income statement in other operating expenses.
(ii) Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at fair value
through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate. The Company determines the classification of its financial
liabilities at initial recognition. All financial liabilities are recognised initially at fair value and, in the
case of loans and borrowings, plus directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss includes financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Interest bearing loans and borrowings
Obligations for loans and borrowings are recognised when the Company becomes party to the
related contracts and are measured initially at the fair value of consideration received less
directly attributable transaction costs.
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest method.
Gains and losses arising on the repurchase, settlement or other cancellation of liabilities are
recognised respectively in finance income and finance cost.
Trade and other payables
Trade and other payable amounts represent liabilities for goods and services provided prior to
the end of the reporting period which are unpaid as of the balance sheet date. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. Trade and other payables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, as applicable.
Management fees
As the ultimate parent entity of the Group, the Company is involved in the provision of
intragroup services to certain subsidiaries. Specifically, the Company’s employees are
above-market roles, who provide services related but not limited to strategy, people and culture,
finance, legal, and business process and technology. In addition, certain intragroup services are
charged to the Company by its subsidiaries. Management fees revenue for intragroup services
provided to subsidiaries is recorded in Revenue. Costs incurred by subsidiaries are recharged to
the Company and are recorded in administrative expenses in the statement of comprehensive
income.
Note 3
Dividend income
Dividends are recognised when the right to receive the dividend is established. During the year
the Company has received the following dividends:
Coca-Cola Europacific Partners Holdings US Inc
Bottling Holdings Europe Limited
Coca-Cola Europacific Partners Deutschland GmbH
Total
Note 4
Finance income/(costs)
Interest income
Total finance income
Interest expense
Amortisation of debt discount
Total finance costs
Year ended 31 December
2022
2021
€ million
€ million
516
49
16
581
—
—
—
—
Year ended 31 December
2022
2021
€ million
€ million
19
19
(125)
(2)
(127)
15
15
(131)
(2)
(133)
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
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Notes to the Company financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
219
Note 5
Investments
Note 6
Amounts receivable from/payable to related parties
Balance at 1 January
Subsequent investment in subsidiaries, net
Capitalised/vested share-based payments, net
Balance at 31 December
27,626
22,284
Non-current amounts payable to related parties:
(11)
17
5,336
Borrowings(A)
6
Total non-current amounts payable to related parties
27,632
27,626
Current amounts payable to related parties:
Year ended 31 December
2022
2021
€ million
€ million
During 2022, the Company recognised a full write down of its investment in CCEP Ventures UK
Limited for €3 million and a partial write down of its investment in CCEP Ventures Europe
Limited for €8 million.
During 2021, the Company subscribed for additional AUD preference shares in CCEP Holdings
(Australia) Limited in exchange for interest bearing notes. As at the acquisition date, all AUD
preference shares were converted into €5,778 million of ordinary shares.
On 31 December 2021, CCEP Holdings (Australia) Limited made a non-cash distribution of
€6,171 million to the Company that was set-off against loan notes issued from the Company to
CCEP Holdings (Australia) Limited. The transaction was deemed a return of capital and the
investment in CCEP Holdings (Australia) Limited was reduced by an equivalent amount. The
residual amount of €7 million represents the remaining investment in CCEP Holdings (Australia)
Limited.
During 2021, the Company also subscribed for €2,251 million ordinary shares in CCEP Finance
(Australia) Limited and for €3,478 million ordinary shares in CCEP Holdings (Australia) Pty in
exchange for cash in these amounts, as part of the acquisition of CCL.
Year ended 31 December
2022
2021
€ million
€ million
3,227
3,227
2,942
58
3,000
6,227
3,227
3,227
1,674
29
1,703
4,930
Cash pool payables(B)
Trade and other payables
Total current amounts payable to related parties
Total amounts payable to related parties
(A) In relation to the acquisition of CCL, the Company borrowed interest bearing euro denominated loan notes from CCEP
Finance (Ireland) DAC due between September 2025 and May 2041 with interest rates between 0.1% and 1.6%.
(B) The Company participates in a cash pooling structure in which its available cash is swept to a cash pool header (CCEP Finance
(Ireland) DAC). Pooling allows the Company to deposit and withdraw cash on a daily basis to meet its working capital needs.
Transactions with key management personnel
Key management personnel are the members of the Board of Directors and the members of the
Executive Leadership Team that are employed by the Company. The following table summarises
the total remuneration paid or accrued during the reporting period related to key management
personnel:
Salaries and other short-term employee benefits(A)
Share-based payments
Total
Year ended 31 December
2022
2021
€ million
€ million
16
2
18
19
4
23
(A) Short-term employee benefits include wages, salaries and social security contributions, paid annual leave and paid sick leave,
paid bonuses and non-monetary benefits.
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
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Notes to the Company financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
220
Employee costs
The following table summarises the total employee costs of the Company during the reporting
period:
Wages and salaries
Social security costs
Total employee costs
Year ended 31 December
2022
2021
€ million
€ million
13
3
16
16
3
19
The average number of persons employed by the Company during the year was 7 (2021: 9).
Note 7
Borrowings
Non-current borrowings:
Loan notes
Lease obligations
Total non-current borrowings
Current borrowings:
Loan notes
Commercial paper
Lease obligations
Total current borrowings
Total borrowings
Year ended 31 December
2022
2021
€ million
€ million
6,059
4
7,232
5
6,063
7,237
1,147
—
1
1,148
7,211
700
285
1
986
8,223
The loan notes as at 31 December 2022 are due between May 2023 and September 2031. The
principal amounts due are €7,195 million (2021: €7,915 million) and the applicable interest rates
are between 0.2% and 2.75%. The loan notes are stated net of unamortised financing fees of
€20 million (2021: €27 million).
During the year, the Company entered into interest rate swaps with notional value of €1 billion,
which were designated in a fair value hedge relationship with euro denominated bonds. As at
31 December 2022 fair value adjustments in respect of those interest rate swaps are €(130)
million included within non-current borrowings.
Trade and other payables includes interest payable on the borrowings of €47 million
(2021: €51 million).
Lease obligations represent the present value of the Company’s lease obligations in respect of
right of use assets.
The Company has amounts available for borrowing under a €1.95 billion multi currency credit
facility with a syndicate of 13 banks. This credit facility matures in 2025 and is for general
corporate purposes and supporting the working capital needs. Based on information currently
available, there is no indication that the financial institutions participating in this facility would be
unable to fulfil their commitments to the Company as at the date of these financial statements.
The Company’s credit facility contains no financial covenants that would impact its liquidity or
access to capital. As at 31 December 2022, the Company had no amounts drawn under this credit
facility.
Note 8
Equity
Share capital
As at 31 December 2022, the Company has issued and fully paid 457,106,453 (2021: 456,235,032)
ordinary Shares with a nominal value of €0.01 per share. Shares in issue have one voting right each
and no restrictions related to dividends or return on capital. For more details please refer to
Note 17 in the consolidated financial statements.
Share premium
The balance in share premium as at 31 December 2022 represents the excess over nominal value
of €0.01 for the 228,244,244 Shares issued to CCE shareholders on 28 May 2016 based on the
adjusted closing stock price of CCE ordinary Shares of €33.33 at the time of the CCEP Merger.
The balance also includes €146 million excess over nominal value of share-based payment
awarded through to 31 December 2022.
Merger reserves
The Company determined that the consideration transferred to acquire CCIP and CCEG
qualified for merger relief under the Companies Act. Therefore, the excess consideration
transferred over nominal value is excluded from share premium. The cumulative balance of
€8.5 billion includes the consideration transferred in excess of nominal value of €0.01 for CCIP and
CCEG of €5.5 billion and €2.9 billion, respectively.
Retained earnings
The balance in retained earnings represents the opening balance on 1 January 2022, combined
with the result for the period, dividends paid and the share-based payment reserve.
Dividends
Dividends are recorded in the period in which they are paid. Refer to Note 17 in the consolidated
financial statements.
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
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Notes to the Company financial statements continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
221
Note 9
Financial risk management
Financial risk factors, objectives and policies
The Company’s activities expose it to several financial risks, market risk and liquidity risk. Financial
risk activities are governed by appropriate policies and procedures to minimise the uncertainties
these risks create on the Company’s future cash flows. Such policies are developed and approved
by the Group’s treasury and commodities risk committee, through the authority delegated to it
by the Board.
Market risk
Market risk represents the risk that the fair value of future cash flows of a financial instrument will
fluctuate due to changes in market prices and includes interest rate risk, currency risk and other
price risk such as commodity price risk. Market risk affects outstanding borrowings, as well as
derivative financial instruments.
Interest rates
The Company is subject to interest rate risk for its outstanding borrowings. To manage interest
rate risk, the Company maintains a significant proportion of its borrowings at fixed rates.
Currency exchange rates
The Company’s exposure to the risk of changes in currency exchange rates relates primarily to its
operating activities denominated in currencies other than the functional currency, the euro. To
manage currency exchange risk arising from future commercial transactions and recognised
monetary assets and liabilities, foreign currency forward and option contracts with external third
parties are used. Such cash flow exposures are hedged using a combination of forward and
option contracts with third parties.
The Company is exposed to the risk of changes in currency exchange rates between US dollar
and euro relating to its US denominated borrowings.
In the statement of financial position, non-current derivative assets represent the fair value
(Level 2) of the cross currency swap of the USD denominated debt to EUR.
Liquidity risk
Liquidity risk is actively managed to ensure that the Company has sufficient funds to satisfy its
commitments. The Company’s sources of capital include, but are not limited to, dividend income,
public and private issuances of debt and equity securities and bank borrowings. The Company
believes its operating cash flow, cash on hand and available short-term and long-term capital
resources are sufficient to fund its working capital requirements, scheduled borrowing payments,
interest payments, capital expenditures, benefit plan contributions, income tax obligations and
dividends to its shareholders. Counterparties and instruments used to hold cash and cash
equivalents are continuously assessed, with a focus on preservation of capital and liquidity. Based
on information currently available, the Company does not believe it is at significant risk of default
by its counterparties.
Note 10
Auditor’s remuneration
Refer to Note 18 of the consolidated financial statements for details of the remuneration of the
Company’s auditor.
Note 11
Commitments
The Company has fully and unconditionally guaranteed unsecured borrowings outstanding as at
31 December 2022. These borrowings have been issued by CCEP Finance (Ireland) DAC for
€3.3 billion, and, prior to the acquisition, Coca-Cola Amatil Limited for €0,8 billion and Coca-Cola
Amatil (NZ) Limited for €46 million.
Note 12
Significant events after the reporting period
In January 2023, the Company extended the revolving credit facility maturity date from August
2025 to January 2028. The size of the facility remained unchanged at €1.95 billion.
This page does not form part of the Coca-Cola Europacific Partners plc Annual Report on Form 20-F for the year ended 31 December 2022 as filed with the SEC.
Other Information
In this section
Risk factors
Other Group information
Form 20-F table of cross references
Exhibits
Signatures
Sustainability key performance data summary
Glossary
Useful addresses
Forward-looking statements
223
230
245
247
248
249
253
257
258
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
223
Risk factors
This section examines the risks Coca-Cola Europacific Partners (CCEP) faces as a business. These
risks may change over time.
Packaging and recycling
Waste and pollution, and the legal and regulatory responses to these
issues, could adversely impact our business.
Waste and pollution, particularly plastic and packaging waste, is a global issue affecting our
business. Although the vast majority of our packaging is fully recyclable, it is not always collected
for recycling across our territories, and can end up as land or marine litter. Concerns regarding
the environmental impacts of packaging, have led to laws and regulations that aim to increase
the collection and recycling of our packs; reduce packaging waste and litter, including through
limiting the use of single use plastic; and introduce quotas for refillable packaging; as well as
specific packaging design requirements.
EU member states are in the process of implementing regulations to comply with the
obligations of the Single Use Plastics Directive. The obligations include a 90% collection target for
plastic bottles by 2029, a requirement that plastic bottles contain at least 30% recycled content
by 2030 and a requirement for plastic beverage bottles to include tethered closures by 2024.
Some member states have adopted or are in the process of adopting regulations that are
stricter than the minimum requirements of the Single Use Plastics Directive.
In November 2022, the European Commission released a proposed revision of the Packaging and
Packaging Waste Directive setting mandatory reuse targets on soft drinks and carbonated
alcoholic beverages of EU member states (10% by 2030 and 25% by 2040) as well as takeaway
beverages filled at the point of sale (20% by 2030 and 80% by 2040), recycled content targets for
plastic packaging (30% per single use plastic bottle by 2030 and 65% by 2040) and mandatory
Deposit Return Scheme (DRS) by 1 January 2029 for single use plastic bottles and metal
containers of up to three litres. Regulations will likely be adopted by EU member states in 2024.
In addition to initiatives at the EU level, several countries in which we operate also have or are
planning other legislative or regulatory measures to reduce the use of single use plastics,
including plastic beverage bottles, and/or to increase plastic collection and recycling. Such
measures may include implementing a DRS under which a deposit fee is added to the consumer
price, which is refunded to them if and when the bottle is returned. Other measures may include
rules on recycled content, requirements to purchase Packaging Recovery Notes (PRN) to show
that we meet our responsibilities for recycling and recovery of packaging waste, individual
collection or recycling targets, or a “plastic tax”. The adoption of new or more stringent rules in
the countries in which we operate could increase our costs and have a material negative impact
on our results of operations.
We are also subject to regulations governing the contents of our packaging, and may become
subject to more stringent regulations in that regard, For example, EFSA is re-evaluating the level
of Bisphenol A (BPA) contact with food and proposes to drastically reduce the tolerable daily
intake to a level which would impact our can coating and potentially rPET development
considering the traces which could be found. We expect the European Commission, once EFSA
makes its final recommendation in Q1 2023, to ban the use of BPA for food contact containers,
creating a new procurement and financial constraint and cost.
If we fail to sufficiently address stakeholder concerns about packaging and recycling, or we are
not able to adapt our business to new legislation and regulation on a timely or cost-effective
basis, or at all, it could result in higher costs through packaging taxes, producer responsibility
reform, regulatory fines, damage to corporate reputation or investor confidence, and a reduction
of consumer acceptance of our products and packaging.
New recycling technologies may not work or may not be developed
quickly enough.
We are exploring innovative ways to achieve the packaging targets that we have set ourselves
and those imposed by legislation and regulation, for example by using plastic that has been
recycled via enhanced/chemical recycling technologies. There is a risk that these new
technologies may not be developed quickly enough or may not work as well as intended, which
could limit our ability to mitigate the impact or restrictions on single use plastics. Also, these
technologies may be more expensive than current solutions, potentially reducing our
profitability.
Legal, regulatory and tax
Future changes to tax laws in the countries in which we operate could
adversely affect our business.
We are subject to multiple national, state, regional, and local taxes in the jurisdictions in which we
operate, including corporate income tax and sales tax. Tax is a complex evolving area, leading to
the risk of increased or unexpected tax costs, and or additional tax reporting obligations. Tax laws
could change on a prospective or retroactive basis. Any such changes could adversely affect our
business and its affiliates, and there is no assurance that we would be able to maintain any
particular worldwide effective corporate tax. An increase in our effective tax rate would
negatively impact our results of operations.
The Organisation for Economic Co-operation and Development (OECD) and the Inclusive
Framework (IF) have agreed to work together to create a consistent and coordinated approach
to reform the international taxation rules to address the tax challenges arising from the
digitalisation of the economy and to ensure that multinational enterprises (MNEs) pay a fair
share of tax wherever they operate and generate profits (a two pillar solution). In 2021, the
Global Anti Base Erosion Model Rules (Pillar Two) was published, providing for a minimum level
of taxation on the income arising in each of the jurisdictions where large MNEs operate. The
OECD has released detailed commentaries and an implementation framework in 2022,
including the Safe Harbours and Penalty Relief guidance. The Pillar Two rules are intended to be
implemented during 2023 to be effective from 1 January 2024. Most of the countries where we
operate are expected to implement these rules within the indicated timeframe.
Additionally, direct or indirect taxes or other charges imposed on the sale of our products could
increase costs or cause consumers to purchase fewer of them. Many countries in which we
operate are looking to implement or increase such taxes. These may relate, for example, to the
use of non-recycled plastic in beverage packaging, or the use of sugar or other sweeteners in our
beverages. Such changes may arise through the raising of an existing tax or the imposition of a
new one. For example, EU regulations set a uniform call rate of €0.80 per kilogram to the weight
of plastic packaging waste generated in each member state that is not recycled. Every EU
member state decides how to collect the money needed to fulfil its contribution. However, we
expect some member states to install some sort of recoupment mechanism (a tax) at national
level to retrieve the outlays made to the EU. Spain has already implemented a unique plastic tax,
and the UK has introduced a plastic packaging tax independent of the European levy.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
224
Risk factors continued
Additional taxes levied on us or our products may increase our costs and decrease consumer
demand for our products, which could have a material adverse effect on our results of
operations.
Additional taxes levied on us could harm our financial results.
Our tax filings for various periods are or may be subject to current or future audit by tax
authorities. These audits have resulted, and may in the future result in assessments of additional
taxes, as well as interest and/or penalties, and could adversely affect our financial results.
Changes in tax laws, regulations, court rulings, related interpretations, and tax accounting
standards in countries in which we operate, or if we are unsuccessful in defending our tax
positions, may adversely affect our financial results. Additionally, amounts we may need to
repatriate for the payment of dividends, share buybacks, interest on debt, salaries and other
costs may be subject to additional taxation when repatriated.
We may be exposed to risks in relation to compliance with anti-corruption
laws and other key regulations and economic sanctions programmes.
We and our subsidiaries are required to comply with the laws and regulations of the various
countries in which we conduct business, as well as certain laws of other countries, including the
US. In particular, our operations are subject to anti-corruption laws such as the US Foreign
Corrupt Practices Act of 1977 (the FCPA), the UK Bribery Act 2010 (UKBA), the Spanish
and Portuguese Criminal Codes and Sapin II, and other key regulations such as the corporate
criminal offence provisions of the UK Criminal Finances Act 2017 and the General Data Protection
Regulation (GDPR). We are also subject to economic sanction programmes, including those
administered by the United Nations, the EU and the Office of Foreign Assets Control of the
US Department of the Treasury (OFAC), and regulations set forth under the US Comprehensive
Iran Sanctions, Accountability, and Divestment Act.
Legal changes could affect our status as a foreign corporation for US
federal income tax purposes, or limit the US tax benefits we receive
from engaging in certain transactions.
In general, for US federal income tax purposes, a corporation is considered a tax resident in the
jurisdiction of its organisation or incorporation. Because CCEP is incorporated under the laws of
England and Wales, it would generally be classified as a non-US corporation (and therefore a
non-US tax resident) under these rules. However, section 7874 of the US Internal Revenue Code
of 1986, as amended (IRC), provides an exception under which a non-US incorporated entity may,
in certain circumstances, be treated as a US corporation for US federal income tax purposes.
Under current law, CCEP expects to be treated as a non-US corporation for US federal income
tax purposes. However, section 7874 of the IRC and the related US Treasury regulations are
complex and there is limited guidance as to their application. In addition, changes to
section 7874 of the IRC or the US Treasury Regulations could adversely affect CCEP’s status as a
foreign corporation for US federal tax purposes, and any such changes could have prospective or
retroactive application. If CCEP were to be treated as a US corporation for US federal income tax
purposes, it could be subject to materially greater US tax liability than as a non-US corporation.
Legislative or regulatory changes that affect our operations, access to raw
materials, products, distribution, or packaging could reduce demand for
our products or increase our costs.
Our business model depends on making our products and packages available in multiple
channels and locations. Laws that restrict our ability to do so, including laws affecting the
promotion and distribution of our products, imposing levies on products with sugar and
sweeteners, and limiting our ability to design or market certain packages, could increase our
costs, decrease demand for our products, and negatively impact our financial results.
For example, our products are subject to, and may in the future be subject to additional
marketing and commercial restrictions based on ultra-processed food or nutrition grounds,
promotions or marketing to children, or pressure from customers or regulators to develop
discriminatory front of pack labelling such as Nutriscore.
Additionally, we are subject to licensing and other regulatory requirements in the jurisdictions in
which we operate, and changes in these rules could increase our compliance costs or impact our
ability to operate.
A GDPR violation could lead to fines of up to 4% of our global annual turnover, as well as
negatively affect our reputation. In addition, EU personal data transfers to third countries are
subject to significant and evolving compliance requirements, including risk assessments of
foreign government surveillance, execution of standard contractual clauses with third parties
and potential supplemental measures. Non-compliance with such transfer requirements
would result in a GDPR violation.
The FCPA, UKBA, and other anti-corruption regulations are aimed at preventing bribery in
dealings with foreign entities. These rules are complex and may reach our dealings with both
public and private sector entities and officials. In our business dealings, we may deal with
governments, state owned business enterprises, and private sector entities.
We do not currently operate in jurisdictions that are subject to territorial sanctions imposed by
OFAC or other relevant sanction authorities. However, such economic sanction programmes
restrict our ability to engage or confirm business dealings with certain sanctioned countries
and with sanctioned parties.
Violations of the above, including anti-corruption, GDPR, economic sanctions, competition law or
other applicable laws and regulations are punishable by civil and sometimes criminal penalties for
individuals and companies. These penalties can include fines, denial of export privileges,
injunctions, asset seizures, debarment from government contracts (and termination of existing
contracts) to revocations or restrictions of licences, as well as criminal fines and imprisonment.
Any violation within one of these compliance risk areas could have a negative impact on our
reputation and on our ability to win future business.
We cannot guarantee that our compliance programmes, policies and procedures will be
followed at all times, or that we will always detect and prevent violations of the applicable laws
by our employees, consultants, agents or partners. Implementing new or additional internal
compliance systems or oversights may also increase our operating costs.
Legal claims against our vendors could affect their ability to provide us
with products and services, which could negatively impact our financial
results.
Many of our vendors supply us with products and services that rely on certain intellectual
property rights or other proprietary information, and are subject to other third party rights, laws
and regulations. If these vendors face legal claims brought by third parties or regulatory
authorities, they could be required to pay large settlements or even cease providing us with
products and services as well as expose us to risk.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
225
Risk factors continued
These outcomes could require us to change vendors or develop replacement solutions or be
subject to third party claims. This could result in business inefficiencies, delays, or higher costs,
which could negatively impact our financial results.
Litigation or legal proceedings could expose us to significant liabilities
and damage our reputation.
We are a party to various litigation claims and legal proceedings. We evaluate these claims and
proceedings to assess the likelihood of unfavourable outcomes and to estimate, if possible, the
amount of potential losses. Based on these assessments and estimates, we establish reserves or
disclose the relevant claims or proceedings, as appropriate. These assessments and estimates are
based on the information available to management at the time and involve a significant amount
of management judgement. Actual outcomes or losses may differ materially from those in the
current assessments and estimates.
Improper conduct by our employees could damage our reputation or lead to litigation or legal
proceedings that could result in civil or criminal penalties, including substantial monetary fines as
well as disgorgement of profits.
Business disruption
Global or regional catastrophic events could negatively impact our
business and financial results.
Our business may be affected by prolonged internal and/or external disruptive events, including
natural disasters such as hurricanes, floods, fires, earthquakes, and health crises such as
pandemics, and man-made events such as wars and political turmoil, that may have a material
impact on our ability to operate the business, or on our suppliers or customers. Recent examples
of disruptive events include the COVID-19 pandemic and the current conflict between Russia
and Ukraine, which have directly and indirectly impacted us and our consumers. Other examples
include the loss of critical assets and infrastructure, the loss of (or loss of access to) critical
employees, including through government lockdowns or industrial disputes, major information
technology (IT) outages due to a cyber incident or similar, and the failure of third party supplied
raw materials, critical services or utilities such as electricity, gas and water.
These disruptive events could have a material adverse impact on our sales volume, cost of sales,
earnings, and overall financial condition.
Cyber and social engineering attacks and IT infrastructure
Cyber attacks, or a deficiency in our cyber security or a customer’s
or supplier’s cyber security, could negatively impact our business.
As our reliance on IT increases, so will the risks posed to our internal and third party systems from
cyber incidents.
A cyber incident is considered to be any adverse event that threatens the confidentiality,
integrity or availability of our data or information systems. It could involve a third party
gaining unauthorised access to systems, either unintentionally or through an intentional
attack (such as activities due to war, state sponsored cyber terrorism, criminal attack, hacking
or a computer virus), which could disrupt operations, compromise or corrupt data, damage
our brand reputation, threaten our Company or employees and negatively impact our
financial results.
Our business processes require high levels of integration between our IT systems and the
systems of third parties (suppliers, customers, business partners, systems providers) and
companies that we invest in or acquire. A cyber incident at any of those entities could either
spread to our systems or indirectly have a negative impact on our ability to operate. Similarly,
cyber attacks in one country might impact our ability to do business in other countries due to the
dependencies on information systems and applications.
Technology failures could disrupt our operations and negatively impact
our business.
We rely extensively on IT systems to process, transmit, store and protect electronic information.
For example, our production and distribution facilities and inventory management all use IT to
maximise efficiencies and minimise costs. Communication between our employees, customers,
and suppliers also depends, to a large extent, on IT.
Our IT and operational technology (OT) systems may be vulnerable to interruptions due to
implementation of new systems or systems upgrades (such as our system applications and
product in data processing (SAP) and its modules) and events that may be beyond our control.
These include, but are not limited to, natural disasters, telecommunications failures, power
outages, hardware failures, human error and security issues, such as cyber attacks. Centralisation
of IT systems might increase the impact of a failure of IT applications. We have IT security
controls, processes and disaster recovery plans in place, but they may not be adequate or
implemented effectively enough to ensure that our operations are not disrupted. If we
miscalculate the level of investment needed, our software, hardware and maintenance
practices could become out of date, and this could result in disruptions to our business. In
addition, when we integrate new entities following investment or acquisition, the integration of
IT systems and applications for those entities will increase the complexity and the risk level of
our IT infrastructure.
Economic and political conditions
The deterioration of global and local economic and political conditions
could adversely affect our business performance and share price.
Our performance is closely linked to the global economic cycle as well as macro and
microeconomic conditions in the countries, regions and cities where we operate. Normally, slow
economic growth or economic contraction decreases demand and drives down sales.
For example, adverse economic conditions decrease individuals’ disposable income, potentially
leading to the purchase of cheaper private label brands, or avoiding buying beverage products
altogether. A weak economic climate could also increase the likelihood of customer
delinquencies and bankruptcies, which would increase the risk of accounts being deemed
uncollectible. For these reasons, a slowing economy would likely adversely impact our business,
operational results, financial condition and share price.
Currently, many major economies are going through monetary tightening to contain high
inflation following a multi year monetary and fiscal expansion and supply chain dislocations. The
war in Ukraine is further increasing the uncertainty and volatility, mainly through energy prices
and supply uncertainty.
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
226
Risk factors continued
The ongoing uncertainties around economic growth, employment, inflation, commodities,
currencies, costs, and the availability of financial resources could directly impact our business,
operating results, financial conditions, cash flows, liquidity requirements and share price.
Geopolitical concerns are higher than last year, particularly with the war in Ukraine, the refugee
crisis, and elections resulting in more populist or extremist parties gaining support and polarised
coalition governments, creating a very volatile macroeconomic environment.
Other key external economic and political factors also have the potential to specifically impact
API, including economic and political instability in Papua New Guinea (PNG) and the impact on
foreign currency availability, tariffs and protectionism, geopolitical turbulence in the form of
US-China trade wars and trade tension between Australia and China. Low economic growth
might be compounded in economies overly exposed to the tourism sector (e.g. Fiji, Bali and
New Zealand to a degree) due to COVID-19 border restrictions and impact on people’s
willingness to travel. Additionally, API is exposed to PNG liquidity risks and the associated impact
on short-term profitability. Access to foreign exchange in PNG is limited due to a supply/
demand imbalance of hard currency. The PNG kina (PGK) is considered to be overvalued. If the
PNG Government requires assistance from the International Monetary Fund to fund its budget
deficit, it could require the PGK to be devalued which could significantly impact API’s financial
results upon translation of PGK earnings and balance sheet into Australian dollars.
Increases in costs, limitation of supplies, or lower than expected quality
of raw materials could harm our financial results.
The cost of our raw materials, ingredients, packaging materials or energy could increase over
time. If that happens, and if we are unable to pass the increased costs on to our customers in the
form of higher prices, our financial results could be adversely affected.
We use supplier pricing agreements and derivative financial instruments to manage volatility and
market risk for certain commodities. Generally, these hedging instruments establish the
purchase price before the time of delivery, which may lock us into prices that are ultimately
higher or lower than the actual market price at the time of delivery.
We continue to experience volatility in commodity prices and foreign exchange mainly driven by
central banks’ global tightening policies; supply chain disruptions due to military conflicts, ever
changing COVID-19 policies on a regional or global scale; political uncertainty across key global
powers; and increased protectionist policies.
Our suppliers could be adversely affected by a number of external events. These could include
war, strikes, adverse weather conditions, speculation, abnormally high demand, governmental
controls, new taxes, national emergencies, natural disasters, health crises, such as a pandemic, and
insolvency. If this happens, and we are unable to find an alternative source for our materials, our
cost of sales, revenues, and ability to manufacture and distribute products could be adversely
affected.
The quality of the materials or finished goods delivered to us could be lower than expected. If
this happens, we may need to substitute those items for ones that meet our standards, or
replace underperforming suppliers. This could disrupt our operations and adversely affect our
business.
Changes in interest rates or our debt rating could harm our financial
results and financial position.
We are subject to interest rate risk, and changes in our debt rating could have a material adverse
effect on interest costs and debt financing sources. Our debt rating can be materially influenced
by a range of factors, including our financial performance, acquisitions, and investment decisions,
as well as the capital management activities of The Coca-Cola Company (TCCC) and changes in
the debt rating of TCCC.
The deterioration in political unity within the EU could significantly
impact our financial results and reduce our competitiveness in the
marketplace.
There are concerns regarding the short-term and long-term stability of the euro and pound
sterling and the euro’s ability to serve as a single currency for a number of individual countries.
These concerns could lead individual countries to revert, or threaten to revert, to local currencies.
In more extreme circumstances, they could exit the EU, and the Eurozone could be dissolved
entirely. Should this occur, the assets we hold in a country that reintroduces local currency could be
subject to significant changes in value when expressed in euros. Furthermore, the full or partial
dissolution of the euro, the exit of one or more EU member states from the EU or the full
dissolution of the EU could cause significant volatility and disruption to the global economy. This
could affect our ability to access capital at acceptable financing costs, the availability of supplies
and materials, and demand for our products, all of which could adversely impact our financial
results.
If it becomes necessary for us to use additional currencies, we would be subjected to additional
earnings volatility as amounts in these currencies are translated into euros.
Consequences of Brexit could continue to impact our profits.
The EU and the United Kingdom (UK) Trade and Cooperation Agreement (TCA) provides the
framework for the relationship between the EU and the UK and consists of a free trade
agreement, a partnership for citizens’ security and a horizontal agreement on governance.
Besides trade in goods and services, the TCA also covers a broad range of areas, such as
investment, competition, state aid, tax transparency, air and road transport, energy and
sustainability, data protection, and social security coordination. The EU and the UK may agree to
additional agreements covering other areas of cooperation in the future.
The full impact of Brexit is still unclear and there is still uncertainty about the future relationship
between the EU and the UK. Our operations may be adversely affected if this relationship
deteriorates or if further trade restrictions are implemented.
Political instability could negatively impact our operations
and profits.
We continue to be exposed to risks associated with political instability in different parts of our
territories.
Such instability could result in prolonged political, economic and operational uncertainty for
our business, our customers and consumers, with potential impacts on tourism, private
consumption and regulation.
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
227
Risk factors continued
Default by or failure of one or more of our counterparty financial
institutions could cause us to incur losses.
We are exposed to the risk of default by, or failure of, counterparty financial institutions with
which we do business. This risk may be heightened during economic downturns and periods of
uncertainty in the financial markets.
If one of our counterparties became insolvent or filed for bankruptcy, our ability to recover
amounts owed from or held in accounts with the counterparty may be limited. In this event we
could incur losses, which could negatively impact our results and financial condition.
Market
We may not be able to respond successfully to changes in the
marketplace.
We operate in the highly competitive beverage industry and face strong competition from other
general and speciality beverage companies. The timing and effectiveness of our response to
continued and increased competitor and customer consolidations and marketplace competition
may result in lower than expected net pricing of our products. Additionally, the loss of key
contracts or customers to our competitors may decrease our sales volume, revenues and
profitability and damage our reputation.
Changes in our relationships with large customers may adversely
impact our financial results.
A significant amount of our volume is sold through large retail chains, including supermarkets
and wholesalers. Many of these customers are consolidating, or are forming buying groups, which
increases their purchasing power. They may seek to use this to improve their profitability through
lower prices, increased emphasis on generic and other private label brands, or increased
promotional programmes and payment of rebates.
Competition from hard discount retailers and online retailers continues to challenge traditional
retail outlets. This can increase the pressure on all customer margins, which may then be
reflected in pressure on suppliers such as us.
In addition, from time to time a customer or customers choose(s) to temporarily or permanently
stop selling some of our products as a result of disputes with us.
These factors, can have a negative impact on the availability of our products, and our profitability.
Adverse weather conditions could limit the demand for our products.
Our sales are significantly influenced by weather conditions in the countries in which we operate.
In particular, due to the seasonality of our business, cold or wet weather during the summer
months may have a negative impact on the demand for our products and contribute to lower
sales. This could have an adverse effect on our financial results.
Our business is vulnerable to products being imported from outside our
territories, which adversely affects our sales.
Some of the territories in which we operate permit imports of products manufactured by
bottlers from countries outside our territories. When these imports come from members of the
EEA, we are prohibited from taking action to stop such imports.
Climate change and water
Water scarcity and additional regulations on water supply or use could
adversely impact our business.
Water is the primary ingredient in most of our products. It is also vital to our manufacturing
processes and is needed to produce the agricultural ingredients that are essential to our
business. Water scarcity and a deterioration in the quality of available water sources in our
territories or to our supply chain, even if temporary, may result in increased production costs or
capacity constraints. This could adversely affect our ability to produce and sell our beverages, and
increase our costs.
Climate change, and the legal and regulatory responses there, could
adversely impact our business.
Climate change is resulting in global average temperature increases and extreme weather
conditions around the world. More frequent extreme weather events, such as storms or floods in
our territories, could disrupt our facilities and distribution network, further impacting our
business. It may also lead to decreased agricultural productivity in certain regions of the world
that limits the availability or increases the cost of key raw materials that we use to produce our
products. Additional climate laws may affect other areas of our business, such a production,
distribution, packaging or the cost of raw materials.
Concern over climate change has led to more environmental legislative and regulatory initiatives
at an EU and national level. These include areas such as greenhouse gas (GHG) emissions, water
use and energy efficiency. At the EU level, the proposed European Climate law provides for a
reduction in GHG by at least 55% compared to 1990 levels by 2030, in line with the EU’s goal of
becoming carbon neutral by 2050. Also, at a national level, we have seen several countries in which
we operate introduce, or start the process of introducing, legislation and regulation.
Governments and private parties are increasingly filing lawsuits or initiating regulatory action
based on allegations that certain public statements regarding sustainability-related matters and
practices by companies are "greenwashing," i.e. misleading information or false claims overstating
potential benefits. Threat of such actions presents additional uncertainty regarding the extent
we may face increased risk of liability stemming from our climate change or sustainability
practices.
As part of our commitment to addressing our climate change impacts, we are investing in
technologies that improve the energy efficiency of our operations and reduce GHG emissions
related to our packaging, cold drink equipment (CDE) and transportation. In general, the cost of
these investments is greater than investments in less energy efficient technologies, and the
period of return is often longer, and there is a risk that we may not achieve our desired returns.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
228
Risk factors continued
Perceived health impact of our beverages and ingredients,
and changing consumer buying trends
Health concerns could reduce consumer demand for some
of our products, impacting our financial performance.
There is concern that the public health consequences of obesity, particularly among young
people, are increasing. Health advocates and dietary guidelines suggest that consumption of
sugar sweetened beverages is a cause of increased obesity rates, and are encouraging
consumers to reduce or eliminate consumption of such products. In addition, governments
have introduced stronger regulations around the marketing, labelling, packaging, or sale
of sugar sweetened beverages. These concerns and regulations could reduce demand for, or
increase the cost of our sugar sweetened beverages.
At the same time, there is additional scrutiny by WHO, EFSA and national health authorities on
sweeteners with many studies and impact assessments on health ongoing. Some of these
studies may lead to additional regulatory constraints or additional tax, like in France, where a
soda tax applies to both products with sugar and sweeteners.
Consumer trends have also led to an increased demand for low-calorie soft drinks, water,
enhanced water, isotonics, energy drinks, teas, coffees and beverages with natural ingredients. If
we are unable to meet this demand by providing a broad enough range of products, our
business and financial results could be negatively impacted.
Business transformation, integration and digital capability
We may not identify sufficient initiatives to realise our cost saving goals to
stay competitive.
We continue to assess opportunities for improvements as part of the ongoing business strategy
to enable us to remain competitive in the future. This strategic objective encompasses three
areas: technology transformation, supply chain and commercial improvements, and working
efficiently with our partners and franchisors.
The initiatives are complex due to their multi functional and multi country nature. Ineffective
coordination and control over single initiatives and interdependent initiatives could result in us
failing to realise the expected benefits.
Restructuring could cause labour and union unrest.
Since our inception, we have restructured in all countries and functions, resulting in a
combination of redeployment and layoffs. While we continue to look for opportunities to
maintain and improve our position within the market, this might have a negative impact on our
relationship with our employee representatives and social partners, and could cause labour and
union unrest. Continual change might trigger change fatigue among our people or social unrest
in the event that such changes result in industrial action.
In the past, we have sought to minimise union unrest through constructive social dialogue, e.g. on
employability, which has not affected our ability to achieve our objectives. However, there is no
guarantee that our efforts will continue to be successful or have the desired effect.
Miscalculation of our need for infrastructure investment could impact our
financial results.
To support revenue growth we are investing in our infrastructure, including CDE, fleet,
technology, sales force, digital capability and production equipment. There is a risk that these
investments will not generate the projected returns, either because of market or technological
changes, ineffective adoption of capabilities, or because the projected requirements of the
investments differ from actual levels. This could adversely affect our financial results.
We may not be able to execute our strategy to pursue suitable
acquisitions or may have difficulty integrating acquired businesses.
Our strategy involves, in part, pursuing disciplined and attractive investments, which are intended
to create shareholder value. Our efforts to execute this strategy require us to identify suitable
acquisition targets, negotiate, and close acquisition and development transactions. Further, to
the extent that we are able to identify suitable investments, may not proceed as anticipated or
that management attention will be diverted by such opportunities, and there is no guarantee
that these investments will support our growth or achieve the intended result.
People and wellbeing
Failure to attract, retain and motivate existing and future employees.
Our ability to achieve our strategic objectives is reliant on having the right talent and people. The
increasing importance of flexible working and future work topics brings the challenge of
attracting, retaining and motivating existing and future employees who have the right talent,
required technical skill set, and the expected levels of motivation to deliver. As a result, we could
fail to achieve our strategic objectives and could experience a decline in employee engagement,
industrial action, reputational damage or litigation.
Increases in the cost of wages and employee benefits, including pension
retirement benefits, could impact our financial results and cash flow.
The increases in the cost of wages and employee benefits, including retirement benefits, may
affect our financial results and cash flow.
The increasing inflationary trend combined with high employment levels we see globally will put
pressure on future wage negotiations and the anticipated salary budget. We are engaged in a
dialogue with social partners on this issue. However, we cannot guarantee that our efforts will be
successful in creating consensus or that unions representing our employees will not take future
actions that are disadvantageous to us.
Adverse effects on our people’s health, wellbeing and safety could impact
our business.
Failure to adequately manage workplace hazards or abide by our health and safety policies and
guidelines could result in injuries and death of our people. In turn, this can have an adverse
impact on employee engagement and productivity levels. The COVID-19 pandemic may
continue to affect the business with a higher degree of mental health issues and increased
absence rates for employees. Wellbeing initiatives require new approaches to reach all
employees, especially when restructuring takes place, which potentially increases the risk to us of
long-term absence and loss of productivity levels.
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
229
Risk factors continued
Relationship with TCCC and other franchisors
Our business success, including our financial results, depends on our
relationship with TCCC and other franchisors.
Around 90% of our revenue for the year ended 31 December 2022 was derived from the
distribution of beverages under agreements with TCCC. We make, sell and distribute these
products through fixed term bottling agreements with TCCC, which typically include the
following terms:
• We purchase our entire requirement of concentrates and syrups for Coca-Cola trademark
beverages (sparkling beverages bearing the trademark “Coca-Cola” or the “Coke” brand name)
and allied beverages (beverages of TCCC or its subsidiaries, but not Coca-Cola trademark
beverages or energy drinks) from TCCC. Prices, terms of payment, and other terms and
conditions of supply are determined from time to time by TCCC at its sole discretion.
• There are no limits on the prices that TCCC may charge for concentrate. TCCC maintains
current effective concentrate incidence at the same levels that CCE, CCIP and CCEG had in
place before the Merger, provided certain specific mutually agreed metrics are achieved.
• Much of the marketing and promotional support that we receive from TCCC is at its discretion.
Programmes may contain requirements, or be subject to conditions, established by TCCC that
we may not be able to achieve or satisfy. The terms of most of the marketing programmes do
not and will not contain an express obligation for TCCC to participate in future programmes or
continue past levels of payments into the future.
• Our bottling agreements with TCCC are for fixed terms, and most of them are renewable only
at the discretion of TCCC at the conclusion of their terms. A decision by TCCC not to renew a
fixed term bottling agreement at the end of its term could substantially and adversely affect
our financial results.
• We are obligated to maintain sound financial capacity to perform our duties, as required and
determined by TCCC at its sole discretion. These duties include, but are not limited to, making
certain investments in marketing activities to stimulate the demand for products in our
territories and making infrastructure improvements to ensure our facilities and distribution
network are capable of handling the demand for these beverages.
Disagreements with TCCC concerning business issues may lead TCCC to act adversely to our
interests with respect to these relationships, which could have a material adverse effect on our
business, results of operations, business and customers relationships, and reputation.
TCCC and Olive Partners, S.A. (Olive Partners) hold significant
shareholdings in CCEP and their views may differ from those of our public
shareholders.
Around 19% and 36% of CCEP’s Shares are owned by European Refreshments (ER, a wholly owned
subsidiary of TCCC) and Olive Partners respectively. Five of our directors, including the Chairman,
were nominated by Olive Partners, and two of our directors were nominated by ER. As a result
of their shareholdings and board seats, TCCC and Olive Partners can influence matters requiring
shareholder and Board approval, subject to our Articles of Association and the Shareholders’
Agreement. The views and interests of TCCC and Olive Partners may not always align with each
other or those of other shareholders.
Product quality
Our business could be adversely affected if we, TCCC or other
franchisors and manufacturers of the products we distribute are
unable to maintain a positive brand image as a result of product
safety, product quality, food defence or food fraud issues.
Our success depends on our products, and those of TCCC and other franchisors, having a positive
brand image among customers and consumers. Product quality issues, whether real or perceived,
or allegations of product contamination, even if false or unfounded, could tarnish the image of
our products and result in customers and consumers choosing other products. Similarly, if
product quality issues arise from products not manufactured by us but imported into one of our
territories, our reputation and consumer goodwill could be damaged.
Product liability claims or product recalls could also negatively impact our brand image and
business results. We could be liable if the consumption of our products causes injuries or illness.
We could also be required to recall products if they become unsafe to consume through
contamination, damage or because of labelling errors such as the failure to declare an allergen.
Opinions about our business, including opinions about the health and safety of our products, can
spread quickly through social media. If we fail to respond to any negative opinions effectively and
in a timely manner, this could harm the perception of our brands and damage our reputation,
regardless of the validity of the statements, and negatively impact our financial results.
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
230
Other Group information
Directors and senior management interest in shares
Other than Sol Daurella, Alfonso Líbano Daurella and José Ignacio Comenge, who indirectly
owned 7.3% (33,357,869 Shares), 1.5% (6,696,072 Shares), and 1.7% (7,836,065 Shares) of the Shares
outstanding as of 28 February 2023, respectively, no Director or member of senior management
individually owned more than 1% of the Company’s Shares as of 28 February 2023.
Table 1 shows the number of share options held by Directors and other members of senior
management as at 28 February 2023, including the applicable exercise price and the date when
the applicable exercise period ends.
Other employee-related matters
Note 18 to the consolidated financial statements provides a breakdown of employees by main
category of activity. As at 31 December 2022, we had around 33,000 employees, of whom none
were located in the US. We have seen a significant increase in the number of employees as a
result of API integration. A number of our employees in Europe and API are covered by
collectively bargained labour agreements, most of which do not expire. However, wage rates, in
some countries must be renegotiated at various dates throughout 2023. We believe we will be
able to renegotiate these wage rates with satisfactory terms.
Table 1
Share options held by Directors and other members of senior
management as at 28 February 2023
Name
Grant date
Expiry date
Exercise price
Damian Gammell
5 November 2015
5 November 2025
US$39.00
Veronique Vuillod
31 October 2013
31 October 2023
US$31.46
Veronique Vuillod
30 October 2014
30 October 2024
US$32.51
Total number of Shares subject
to outstanding options including
exercisable and unvested
options
324,643
1,777
3,200
Shareholder information
The Company was incorporated in England and Wales on 4 August 2015, as a private company
under the Companies Act 2006 (the Companies Act). On 4 May 2016, the Company was
registered as a public company limited by shares and changed its name from Coca-Cola
European Partners Limited to Coca-Cola European Partners plc. On 10 May 2021, the Company
changed its name from Coca-Cola European Partners plc to Coca-Cola Europacific Partners plc.
It is registered at Companies House, Cardiff, under company number 9717350. The business
address for Directors and senior management is Pemberton House, Bakers Road, Uxbridge, UB8
1EZ, England.
The Company is resident in the UK for tax purposes. Its primary objective is to make, sell and
distribute ready to drink beverages.
Annual General Meeting
It is intended that the Company’s 2023 Annual General Meeting (AGM) will be held on 24 May
2023. However, shareholders will be notified if the Company may be required to make alternative
arrangements.
Registered shareholders will be sent a Notice of AGM, or notice of availability of the Notice of
AGM, closer to the time of the AGM, and will be notified of any change affecting the AGM
through an appropriate channel.
Directors and senior management
Biographies of the Directors and senior management are set out on pages 89 - 96. Sol Daurella
and Alfonso Líbano Daurella are first cousins.
Service contracts and loss of office arrangements
It is the Remuneration Committee’s policy that there should be no element of reward for failure.
When considering payments in the event of a loss of office, it takes account of the individual
circumstances, including the reason for the loss of office, Group and individual performance,
contractual obligations of both parties as well as share and pension plan rules.
Service contracts for Executive Directors provide for a notice period of not more than 12 months
from CCEP and not more than 12 months from the individual. The standard Executive Director
service contract does not confer any right to additional payments in the event of termination.
However, it does reserve the right for the Group to impose garden leave (i.e. leave with pay) on
the Executive Director during any notice period. In the event of redundancy, benefits would be
paid according to CCEP’s redundancy guidelines for GB prevailing at that time. Executive
Directors may be eligible for a pro rata bonus for the period served, subject to performance, but
no bonus will be paid in the event of gross misconduct. The treatment of unvested long-term
incentive awards is governed by the rules of the relevant plan and depends on the reasons for
leaving. The cost of legal fees spent on reviewing a settlement agreement on departure may be
provided where appropriate. The Company also reserves the right to pay for outplacement
services as appropriate.
The Non-executive Directors (NEDs), including the Chairman of the Board, do not have service
contracts but have letters of appointment. NEDs are not entitled to compensation on leaving
the Board.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
231
Other Group information continued
Nature of trading market
The Company has one class of ordinary shares. These shares are traded on the Nasdaq Stock
Market (XNAS), London Stock Exchange (LSE), Euronext Amsterdam (AEX) and the Spanish
Stock Exchanges (of which the lead exchange is Madrid (MADX)).
Listing information
Ticker symbol (all exchanges)
ISIN code
Legal entity identifier
CUSIP
SEDOL number (XNAS)
SEDOL number (LSE)
SEDOL number (AEX)
SEDOL number (MADX)
CCEP
GB00BDCPN049
549300LTH67W4GWMRF57
G25839104
BYQQ3P5
BDCPN04
BD4D942
BYSXXS7
Share capital
The Articles of Association of the Company (the Articles) contain no upper limit on the
authorised share capital of the Company. Subject to certain limitations under the Shareholders’
Agreement, the Board has the authority to offer, allot, grant options over or otherwise deal with
or dispose of shares to such persons, at such times, for such consideration and upon such terms
as the Board may decide, only if approved by ordinary resolution of our shareholders.
As at 31 December 2022, the Company had 457,106,453 Shares, nominal value €0.01 per share,
issued and fully paid. As at 28 February 2023, the Company had 457,187,830 Shares issued and
fully paid.
Under the Shareholders’ Agreement and the Articles, the Company is permitted to issue, or grant
to any person rights to be issued, securities, in one or a series of related transactions, in each case
representing 20% or more of our issued share capital, only if approved in advance by special
resolution of our shareholders.
Pursuant to this authority, our shareholders have passed resolutions allowing a maximum of a
further 304,514,012 Shares (as of 28 February 2023) to be allotted and issued, subject to the
restrictions set out below:
(1) pursuant to a shareholder resolution passed on 27 May 2022 regarding the authority to allot
new shares, the Board is authorised to allot shares and to grant rights to subscribe for or
convert any security into shares:
a. up to a nominal amount of €1,522,570.06 (representing 152,257,006 Shares; such amount
to be reduced by any allotments or grants made under paragraph 1(b) below in excess
of such sum); and
comprising equity securities (as defined in the Companies Act) up to a nominal amount
of €3,045,140.12 (representing 304,514,012 Shares; such amount to be reduced by any
allotments or grants made under paragraph 1(a) above) in connection with an offer by
way of a rights issue:
i.
to ordinary shareholders in proportion (as nearly as may be practicable) to their
existing holdings; and
to holders of other equity securities as required by the rights of those securities or as
the Board otherwise considers necessary,
b.
ii.
and so that the Board may impose any limits or restrictions and make any arrangements
which it considers necessary or appropriate to deal with treasury shares, fractional
entitlements, record dates, legal, regulatory or practical problems in, or under the laws of, any
territory or any other matter; and
(2) pursuant to a shareholder resolution passed on 27 May 2022 regarding authority to disapply
pre-emption rights, the Board is authorised to allot equity securities (as defined in the
Companies Act) for cash under the authority given by the shareholder resolution described
in paragraph 1 above and/or to sell shares held by the Company as treasury shares for cash as
if section 561 of the Companies Act did not apply to any such allotment or sale, such power
to be limited:
a.
to the allotment of equity securities and sale of treasury shares in connection with an
offer of, or invitation to apply for, equity securities (but in the case of the authority
granted under paragraph 1(b) above, by way of a rights issue only):
i.
to ordinary shareholders in proportion (as nearly as may be practicable) to their
existing holdings; and
to holders of other equity securities, as required by the rights of those securities, or
as the Board otherwise considers necessary,
ii.
and so that the Board may impose any limits or restrictions and make any arrangements
which it considers necessary or appropriate to deal with treasury shares, fractional
entitlements, record dates, legal, regulatory or practical problems in, or under the laws of,
any territory or any other matter; and
in the case of the authority granted under paragraph 1(a) above and/or in the case of
any sale of treasury shares, to the allotment of equity securities or sale of treasury shares
(otherwise than under paragraph 2(a) above) up to a nominal amount of €228,385.50
(representing 22,838,550 Shares).
b.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
232
Other Group information continued
Shares not representing capital
None.
Table 2
Outstanding share-based payment awards
Shares held by CCEP
We are not permitted under English law to hold our own Shares unless they are repurchased by
us and held in treasury. At our 2022 AGM, our shareholders passed a special resolution that allows
us to buy back our own Shares in the market as permitted by the Companies Act. On 13 February
2020, the Board announced a share buyback programme of up to €1 billion. All Shares
repurchased as part of the buyback programme have been cancelled. Details of the Shares
bought back are provided under Share buyback programme below. In light of macroeconomic
uncertainty brought about by the outbreak of COVID-19, on 23 March 2020, the Company
announced the suspension of the buyback programme until further notice.
Share-based payment awards
Table 2 shows the share-based payment awards outstanding under each of the CCE 2010
Incentive Award Plan (2010 Plan) and the Long-Term Incentive Plan 2016 (CCEP LTIP) as at
31 December 2022 and 28 February 2023.
For more details about the share plans and awards granted see Note 22 to the consolidated financial
statements on pages 199-200
History of share capital
Table 3 on page 233 sets out the history of our share capital for the period from 1 January 2020
until 28 February 2023.
Share buyback programme
The maximum number of Shares authorised for purchase at the 2022 AGM was 45,677,101 Shares,
representing 10% of the issued Shares at 11 April 2022, reduced by the number of Shares
purchased, or agreed to be purchased after 11 April 2022 and before 27 May 2022. No Shares have
been purchased under the 2022 shareholder authority as at the date of this report. The existing
authority to buy back Shares will expire at the 2023 AGM. We intend to seek shareholder approval
to renew the authority to buy back Shares.
US shareholders
To the knowledge of the Company, 205 holders of record with an address in the US held a total of
457,119,678 Shares (or 99.98% of the total number of issued Shares outstanding) as at 28 February
2023. However, some Shares are registered in the names of nominees, meaning that the number
of shareholders with registered addresses in the US may not be representative of the number of
beneficial owners of Shares resident in the US.
Plan
2010 Plan
CCEP LTIP
Date of
award
(dd/mm/yy)
Type of
award(A)
31/10/13
Option
30/10/14
Option
05/11/15
Option
17/03/20
17/03/20
14/12/20
14/12/20
25/06/21
25/06/21
25/06/21
29/09/21
29/09/21
25/11/21
25/11/21
10/03/22
10/03/22
10/03/22
10/03/22
10/03/22
05/09/22
PSU
RSU
PSU
RSU
PSU
RSU
RSU
PSU
RSU
PSU
RSU
PSU
RSU
RSU
RSU
RSU
PSU
Total number of
Shares awarded to
employees
outstanding as at
31 December 2022
Total number of
Shares awarded to
employees
outstanding as at
28 February 2023(B)
Price per
Share
payable on
exercise/
transfer
(US$)
Expiration
date
(dd/mm/yy)
190,848
992,004
31.46
31/10/23
32.51
30/10/24
1,009,881
39.00
05/11/25
194,978
1,067,554
1,009,881
379,240
35,833
14,504
3,744
312
620
312
435,153
39,831
670
34
379,075
35,807
14,504
3,744
312
—
312
432,204
39,545
670
34
473,753
469,533
1,146
1,521
375
46,236
11,800
1,146
1,521
375
45,789
11,800
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
17/03/23
17/03/23
17/03/23
17/03/23
17/03/23
22/02/23
17/03/23
15/03/24
15/03/24
15/03/24
15/03/24
09/03/25
17/03/23
15/03/24
01/03/25
09/03/25
10/03/25
(A) PSU is performance share unit. RSU is restricted stock unit.
(B) When an employee leaves CCEP, the expiration date of their options is shortened so options with a new expiration date may
appear between the year end and the later reporting date. These are not new options but options that have been moved
from another row in the table.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
233
Other Group information continued
Table 3
Share capital history
Period
Nature of Share issuance
Number of
Shares
Consideration
Cumulative balance of
issued Shares at end of
period
Period
Nature of Share issuance
1 January 2020
Opening balance
456,399,877
N/A
456,399,877
1 January to
31 December 2022
1 January to
31 December 2020
1 January to
31 December 2020
1 January to
31 December 2020
1 January to
31 December 2021
1 January to
31 December 2021
1 January to
31 December 2021
Shares issued in
connection with the
exercise of stock
options
Shares issued in
connection with the
fulfilment of RSU and
PSU share-based
payment awards
Shares cancelled as
part of buyback
programme
Shares issued in
connection with the
exercise of stock
options
Shares issued in
connection with the
fulfilment of RSU and
PSU share-based
payment awards
Shares cancelled as
part of buyback
programme
763,103 Exercise price per Share
ranging from US$18.40
to US$32.51
457,162,980
1 January to
31 December 2022
547,730
Nil
457,710,710
(3,065,200)
€128 million
454,645,510
1 January to
31 December 2022
1 January to
28 February 2023
1,290,506 Exercise price per Share
ranging from US$19.68
to US$32.51
455,936,016
1 January to
28 February 2023
299,016
Nil
456,235,032
1 January to
28 February 2023
—
—
456,235,032
Shares issued in
connection with the
exercise of stock
options
Shares issued in
connection with the
fulfilment of RSU and
PSU share-based
payment awards
Shares cancelled as
part of buyback
programme
Shares issued in
connection with the
exercise of stock
options
Shares issued in
connection with the
fulfilment of RSU and
PSU share-based
payment awards
Shares cancelled as
part of buyback
programme
Number of
Shares
Consideration
482,420 Exercise price per Share
ranging from US$23.21 to
US$32.51
Cumulative balance of
issued Shares at end of
period
456,717,452
389,001
Nil
457,106,453
—
—
457,106,453
80,757 Exercise price per Share
ranging from US$31.46
to US$32.51
457,187,210
620
—
Nil
457,187,830
—
457,187,830
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2022 Integrated Report and Form 20-F
234
Other Group information continued
Marketing
CCEP relies extensively on advertising and sales promotions to market its products. TCCC and
other franchisors advertise in all major media to promote sales in the local areas we serve. We also
benefit from regional, local and global advertising programmes conducted by TCCC and other
franchisors. Certain advertising expenditures by TCCC and other franchisors are made pursuant
to annual arrangements.
Competition
CCEP competes mainly in the manufacturing, sale and distribution of non-alcoholic ready to
drink (NARTD) beverages industry and adjacencies, including squashes/cordials, hot beverages,
low alcoholic beverages and premium spirits. CCEP competes in the Western Europe and API
segments, and primarily manufactures, sells and distributes the products of TCCC, as well as
those of other franchisors such as Monster Energy.
CCEP and TCCC engage in a variety of marketing programmes to promote the sale of TCCC’s
products in territories in which we operate. The amounts to be paid to us by TCCC under the
programmes are determined annually and are periodically reassessed as the programmes
progress. Marketing support funding programmes entered into with TCCC provide financial
support, principally based on our product sales or on the completion of stated requirements, to
offset a portion of the cost of our marketing programmes. Except in certain limited
circumstances, TCCC has no specified contractual obligation to participate in expenditures
for advertising, marketing and other support in our territories. The terms of similar programmes
TCCC may have with other licensees and the amounts paid by TCCC under them could differ
from CCEP’s arrangements.
We take part in various programmes and arrangements with customers to increase the sale of
products. These include arrangements under which allowances can be earned by customers for
attaining agreed sales levels or for participating in specific marketing programmes.
Dependence on franchisors
As a franchise business, CCEP’s business success, including its financial results, depends upon its
relationships with TCCC and its other franchisors.
For more about our relationships with franchisors, see the Risk factors on page 229
CCEP competes mainly with:
• NARTD and non-alcoholic, non-ready to drink (for example squashes/cordials and hot
beverages) brand and private label manufacturers, sellers and distributors
• Alcoholic beverage manufacturers, sellers and distributors – in the sense that some of their
products may be considered to be substitutes to CCEP’s own products for certain consumer
occasions. More recently, CCEP entered the hard seltzer market and intends to make further
entrances with alcoholic ready to drink in the near future with launches such as Jack Daniel’s &
Coke RTD.
A small number of such companies may also be contracted by CCEP as manufacturers (e.g. co-
packers) or commercial partners (e.g. on behalf of which CCEP sells and/or distributes, or which
sells and/or distributes on CCEP’s behalf).
CCEP sells and distributes to a wide range of customers, including both physical and online food
and beverage retailers, wholesalers and out of retail customers. The market is highly competitive
and all CCEP customers and consumers may choose freely between products of CCEP and its
competitors. Many of CCEP’s customers are under increasing competitive pressure, including
with the increasing market share of discounters, the growth of e-commerce food and beverage
players, increase of private label, emergence of quick commerce and customer consolidation.
CCEP competes with respect to a wide range of commercial factors, including brand awareness,
product and packaging innovations, supply chain efficacy, customer service, sales strategy,
marketing, and pricing and promotions.
The level of competition faced by CCEP may be affected by, for example, changing customer
and consumer product, brand, and packaging preferences; shifts in customers’ industries;
competitor strategy shifts; new competitor entrants; supplier dynamics; the weather; and social,
economic, political or other external landscape shifts.
Key factors affecting CCEP’s competitive strength include, for example, CCEP’s strategic choices;
investments; partnerships (e.g. with customers, franchisors and suppliers); people management;
asset base (e.g. property, plant, fleet, and equipment); technological sophistication; and
processes and systems.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
235
Other Group information continued
Impact of governmental regulation
Our business is sensitive to the economic and political action and conditions in our countries of
operation. The risks these can pose to our business are set out in our Principal risks on pages
64-71 and in our Risk factors on pages 223-229. By responding to these challenges positively, we
can gain a competitive advantage.
Material contracts
Neither the Company (nor any member of the Group) has entered into any material contracts,
for the two years immediately preceding publication of this report, that are to be performed in
whole or in part at or after the filing of this report, other than contracts entered into in the
ordinary course of business.
Articles of Association
For a summary of certain principal provisions of the Company’s Articles of Association (the
Articles), see Other Information – Other Group information – Articles of Association of the 2018
Annual Report on Form 20-F, filed on 14 March 2019. A copy of the Company’s Articles has been
filed as Exhibit 1 to this Form 20-F.
Documents on display
CCEP is subject to the information requirements of the US Securities Exchange Act of 1934, as
amended (the Exchange Act), applicable to FPIs. In accordance with these requirements, we file
our Annual Report on Form 20-F and other related documents with the US Securities and
Exchange Commission (SEC). It is possible to read and copy documents that we have filed with
the SEC at the SEC’s office. Filings with the SEC are also available to the public from commercial
document retrieval services, and from the website maintained by the SEC at www.sec.gov.
Our Annual Report on Form 20-F is also available on our website at ir.cocacolaep.com/financial-
reports-and-results/integrated-reports. Shareholders may also order a hard copy, free of charge
– see Useful addresses on page 257.
Exchange controls
Other than those individuals and entities subject to economic sanctions that may be in force
from time to time, we are not aware of any other legislative or legal provision currently in force in
the UK, the US, the Netherlands or Spain restricting remittances to non-resident holders of
CCEP’s Shares or affecting the import or export of capital for the Company’s use.
Taxation information for shareholders
US federal income taxation
US federal income tax consequences to US holders of the ownership
and disposition of CCEP Shares
This section summarises the material US federal income tax consequences of owning Shares as
capital assets for tax purposes. It is not, however, a comprehensive analysis of all the potential US
tax consequences for such holders, and it does not discuss the tax consequences of members of
special classes of holders which may be subject to other rules, including, but not limited to: tax
exempt entities, life insurance companies, dealers in securities, traders in securities that elect a
mark-to-market method of accounting for securities holdings, holders liable for alternative
minimum tax, holders that, directly or indirectly, hold 10% or more (by vote or by value) of the
Company’s stock, holders that hold Shares as part of a straddle or a hedging or conversion
transaction, holders that purchase or sell Shares as part of a wash sale for US federal income tax
purposes, or US holders whose functional currency is not the US dollar. In addition, if a partnership
holds Shares, the US federal income tax treatment of a partner will generally depend on the
status of the partner and the tax treatment of the partnership and may not be described fully
below. This summary does not address any aspect of US taxation other than US federal taxation
(such as the estate and gift tax, the Medicare tax on net investment income or US state or local
tax).
Investors should consult their tax advisors regarding the US federal, state, local and other tax
consequences of owning and disposing of Shares in their particular circumstances.
This section is based on the IRC, its legislative history, existing and proposed regulations,
published rulings and court decisions, and on the United Kingdom-United States Tax Treaty (the
Treaty), all of which are subject to change, possibly on a retroactive basis.
A US holder is a beneficial owner of Shares that is, for US federal income tax purposes, (i) a citizen
or individual resident of the US, (ii) a US domestic corporation, (iii) an estate whose income is
subject to US federal income taxation regardless of its source, or (iv) a trust if a US court can
exercise primary supervision over the trust’s administration and one or more US persons are
authorised to control all substantial decisions of the trust. A non-US holder is a beneficial owner
of Shares that is neither a US holder nor a partnership for US federal income tax purposes.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
236
Other Group information continued
Taxation of dividends
Subject to the passive foreign investment company (PFIC) rules discussed below, a US holder is
subject to US federal income taxation on the gross amount of any dividend paid by CCEP out of
the Company’s current or accumulated earnings and profits (as determined for US federal
income tax purposes). Dividends paid to a non-corporate US holder will generally constitute
“qualified dividend income” and be taxable to the holder at a preferential rate, provided that (i)
CCEP is eligible for the benefits of the Treaty, (ii) CCEP is not a PFIC (as discussed below) for
either its taxable year in which the dividend is paid or the preceding taxable year and (iii) certain
minimum holding period and other requirements are met. CCEP currently believes that
dividends paid with respect to its Shares should constitute qualified dividend income for US
federal income tax purposes if CCEP was not, in the year prior to the year in which the dividend
was paid, and is not, in the year in which the dividend is paid, a PFIC for US federal income tax
purposes and provided that the certain minimum holding period is met. US holders should
consult their own tax advisors regarding the availability of the preferential dividend tax rate on
dividends paid by CCEP.
For US federal income tax purposes, a dividend must be included in income when the US holder
actually or constructively receives the dividend. Dividends paid by CCEP to corporate US holders
will generally not be eligible for the dividends received deduction. For foreign tax credit
purposes, dividends will generally be income from sources outside the US and will generally, be
“passive” or “general” income for purposes of computing the foreign tax credit allowable to a US
holder.
The amount of a dividend distribution (including any UK withholding tax) on Shares that is paid in
a currency other than the US dollar will generally be included in ordinary income in an amount
equal to the US dollar value of the currency received on the date such dividend distribution is
includible in income, regardless of whether the payment is, in fact, converted into US dollars on
such date. Generally, any gain or loss resulting from currency exchange fluctuations during the
period from the date the dividend payment is includible in income to the date the payment is
converted into US dollars will be treated as ordinary income or loss and will not be eligible for the
preferential tax rate on qualified dividend income. Generally, the gain or loss will be income or
loss from sources within the US for foreign tax credit purposes.
Distributions in excess of CCEP’s earnings and profits, as determined for US federal income tax
purposes, will be treated as a return of capital to the extent of the US holder’s basis in its Shares
and thereafter as capital gain, subject to taxation as described below.
Taxation of capital gains
Subject to the PFIC rules discussed below, a US holder will generally recognise gain or loss on any
sale, exchange, redemption or other taxable disposition of Shares in an amount equal to the
difference between the US dollar value of the amount realised on the disposition and the US
holder’s tax basis, determined in US dollars, in the Shares. Any such capital gain or loss will
generally be a long-term gain or loss, subject to tax at a preferential rate for a non-corporate US
holder, if the US holder’s holding period for such Shares exceeds one year. Any gain or loss
recognised by a US holder on the sale or exchange of Shares will generally be treated as income
or loss from sources within the US for foreign tax credit limitation purposes. The deductibility of
capital losses is subject to limitations.
PFIC status
A non-US corporation is a PFIC in any taxable year in which, after taking into account the income
and assets of certain subsidiaries, either (i) at least 75% of its gross income is passive income or (ii)
at least 50% of the quarterly average of its assets is attributable to assets that produce or are
held to produce passive income. Currently, we do not believe that CCEP Shares will be treated as
stock of a PFIC for US federal income tax purposes. However, we review this annually, and
therefore this conclusion is subject to change. If CCEP was to be treated as a PFIC, unless a US
holder elects to treat CCEP as a “qualified electing fund” (QEF) or to be taxed annually on a
mark-to-market basis with respect to its Shares, any gain realised on the sale or exchange of such
Shares would in general be treated as ordinary income rather than capital gain. Instead, a US
holder would be treated as if he or she had realised such gain rateably over the holding period for
Shares and generally would be taxed at the highest tax rate in effect for each such year to which
the gain was allocated. In this case, an interest charge in respect of the tax attributable to each
such year would apply. Certain distributions would be similarly treated if CCEP were treated as a
PFIC. In addition, each US person that is a shareholder of a PFIC may be required to file an annual
report disclosing its ownership of shares in a PFIC and certain other information.
We do not intend to provide to US holders the information required to make a valid QEF
election.
Information reporting and backup withholding
In general, information reporting requirements will apply to dividends received by US holders of
Shares, and the proceeds received on the disposition of Shares effected within the US (and, in
certain cases, outside the US), in each case, other than US holders that are exempt recipients
(such as corporations).
Backup withholding may apply to such amounts if the US holder fails to provide an accurate
taxpayer identification number (generally on an IRS Form W-9 provided to the paying agent or
the US holder’s broker) or is otherwise subject to backup withholding.
Backup withholding is not an additional tax. Any amounts withheld under the backup withholding
rules may be allowed as a refund or credit against a holder’s US federal income tax liability, if any,
provided the required information is given to the IRS on a timely basis.
Certain US holders may be required to report to the IRS on Form 8938 information relating to
their ownership of foreign financial assets, such as the Shares, subject to certain exceptions
(including an exception for Shares held in accounts maintained by certain financial institutions).
US holders should consult their tax advisors regarding the effect, if any, of these rules on their
obligations to file information reports with respect to the Shares.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
237
Other Group information continued
US federal income tax consequences to non-US holders of the ownership and
disposition of CCEP Shares
In general, a non-US holder of Shares will not be subject to US federal income tax or, subject to
the discussion below under Information reporting and backup withholding, US federal
withholding tax on any dividends received on Shares or any gain recognised on a sale or other
disposition of Shares including any distribution to the extent it exceeds the adjusted basis in the
non-US holder’s Shares unless:
• the dividend or gain is effectively connected with such non-US holder’s conduct of a trade or
business in the US (and, if required by an applicable tax treaty, is attributable to a permanent
establishment maintained by the non-US holder in the US); or
• in the case of gain only, such non-US holder is a non-resident alien individual present in the US
for 183 days or more during the taxable year of the sale or disposition, and certain other
requirements are met.
Special rules may apply to a non-US holder who was previously a US holder and who again
becomes a US holder in a later year.
A non-US holder that is a corporation may also be subject to a branch profits tax at a rate of 30%
(or such lower rate specified by an applicable tax treaty) on its effectively connected earnings
and profits for the taxable year, as adjusted for certain items.
Information reporting and backup withholding
Dividends with respect to Shares and proceeds from the sale or other disposition of Shares
received in the US or through certain US-related financial intermediaries by a non-US holder, may
be subject to information reporting and backup withholding unless such non-US holder provides
to the applicable withholding agent the required certification showing its non-US status, such as
a valid IRS Form W-8BEN, IRS Form W-8BEN-E or IRS Form W-8ECI, or otherwise establishes an
exemption, and otherwise complies with the applicable requirements of the backup withholding
rules.
Backup withholding is not an additional tax. Any amounts withheld under the backup withholding
rules may be allowed as a refund or credit against a holder’s US federal income tax liability, if any,
provided the required information is given to the IRS on a timely basis.
UK taxation consequences for US holders
The following summarises certain UK tax consequences of the ownership and disposition of
Shares for US holders who are not resident in the UK for tax purposes and to whom split year
treatment does not apply, who do not carry on a trade, profession or vocation through
a permanent establishment or branch or agency in the UK, and who are the absolute beneficial
owners of their Shares and hold such Shares as a capital investment.
This information is a general discussion based on UK tax law and what is understood to be the
practice of HMRC, all as in effect on the date of publication, and all of which are subject to
differing interpretations and change at any time, possibly with retroactive effect. It is not a
complete analysis of all potential UK tax considerations that may apply to a US holder. In addition,
this discussion neither addresses all aspects of UK tax law that may be relevant to particular US
holders nor takes into account the individual facts and circumstances of any particular US holder.
Accordingly, it is not intended to be, and should not be construed as, tax advice.
Distributions on Shares
No UK tax is required to be withheld from cash distributions on Shares paid to US holders. In
addition, US holders will not be subject to UK tax in respect of their receipt of cash distributions
on their Shares.
Sale, exchange, redemption or other dispositions of Shares
US holders will not be subject to UK tax on capital gains in respect of any gain realised by such US
holders on a sale, exchange, redemption or other disposition of their Shares. Special rules may
apply to individual US holders who have ceased to be resident in the UK for tax purposes and who
make a disposition of their Shares before becoming once again resident in the UK for
tax purposes.
While Shares are held within the DTC clearance system, and provided that DTC satisfies various
conditions specified in UK legislation and has not made an election for the alternative system of
change under Section 97A of the UK Finance Act 1986 which applies to the Shares (a Section 97A
Election), electronic book entry transfers of such Shares should not be subject to UK stamp duty,
and agreements to transfer such Shares should not be subject to Stamp Duty Reserve Tax
(SDRT). Confirmation of this position was obtained by way of formal clearance by HMRC and we
are not aware that any Section 97A Election has been made. Likewise, transfers of, or agreements
to transfer, such Shares from the DTC clearance system into another clearance system (or into a
depositary receipt system) should not, provided that the other clearance system or depositary
receipt system satisfies various conditions specified in UK legislation and that DTC has not made
a Section 97A Election, be subject to UK stamp duty or SDRT.
In the event that Shares have left the DTC clearance system, other than into another clearance
system or depositary receipt system, any subsequent transfer of, or agreement to transfer, such
Shares may, subject to any available exemption or relief, be subject to UK stamp duty or SDRT at
a rate of 0.5% of the consideration for such transfer or agreement (in the case of UK stamp duty,
rounded up to the next multiple of £5). Any such UK stamp duty or SDRT will generally be
payable by the transferee and must be paid (and any relevant transfer document duly stamped
by HMRC) before the transfer can be registered in the books of the Company. In the event that
Shares that have left the DTC clearance system, other than into another clearance system or
depositary receipt system, are subsequently transferred back into a clearance system or
depositary receipt system, such transfer or agreement may, subject to any available exemption
or relief, be subject to UK stamp duty or SDRT at a rate of 1.5% of the consideration for such
transfer (or, where there is no such consideration, 1.5% of the value of such Shares).
Notwithstanding the foregoing provisions of this paragraph, a transfer of securities may in
certain circumstances be subject to UK stamp duty or SDRT based on the market value of the
relevant securities if this is higher than the amount of the consideration for the relevant transfer.
THIS SUMMARY IS NOT EXHAUSTIVE OF ALL POSSIBLE TAX CONSEQUENCES. IT IS NOT
INTENDED AS LEGAL OR TAX ADVICE TO ANY PARTICULAR HOLDER OF SHARES AND SHOULD
NOT BE SO CONSTRUED. HOLDERS OF SHARES SHOULD CONSULT THEIR OWN TAX ADVISOR
WITH RESPECT TO THE TAX CONSEQUENCES APPLICABLE TO THEM IN THEIR OWN
PARTICULAR CIRCUMSTANCES.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
238
Other Group information continued
Selected financial data
The following selected financial data has been extracted from, and should be read in conjunction
with the consolidated financial statements of the Group and their accompanying notes.
On 10 May 2021, Coca-Cola European Partners plc (Legacy CCEP) acquired Coca-Cola Amatil
Limited (referred to as CCL pre-acquisition, and API post-Acquisition), and subsequently
changed its name to Coca-Cola Europacific Partners plc (the Company, or Parent Company).
The financial results presented herein for the period from 1 January 2018 through to the
Acquisition date refer to Legacy CCEP and its consolidated subsidiaries, and the period from the
Acquisition date to 31 December 2022 refer to the combined financial results of CCEP.
The financial information presented here has been prepared in accordance with UK adopted
International Accounting Standards, International Financial Reporting Standards (IFRS) as
adopted by the European Union and International Financial Reporting Standards as issued by the
International Accounting Standards Board (IASB).
Income statement
Revenue
Cost of sales
Gross profit
2022
2021
€ million
€ million
17,320
13,763
2020
€ million
10,606
2019
2018
€ million
€ million
12,017
11,518
(11,096)
(8,677)
(6,871)
(7,424)
(7,060)
6,224
5,086
3,735
4,593
Selling and distribution expenses
(2,984)
(2,496)
(1,939)
(2,258)
Administrative expenses
(1,250)
(1,074)
(983)
(787)
Other Income
Operating profit
Finance income
Finance costs
Total finance costs, net
Non-operating items
Profit before taxes
Taxes
Profit after taxes
96
2,086
67
(181)
(114)
(15)
1,957
(436)
1,521
—
1,516
43
(172)
(129)
(5)
1,382
(394)
988
—
813
33
(144)
(111)
(7)
695
(197)
498
—
1,548
49
(145)
(96)
2
1,454
(364)
1,090
4,458
(2,178)
(980)
—
1,300
47
(140)
(93)
(2)
1,205
(296)
909
Statement of financial position
€ million
€ million
€ million
€ million
€ million
2022
2021
2020
2019
2018
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Total equity
Total equity and liabilities
Capital stock data
Number of shares (in millions)
Share capital (in € million)
Share premium (in € million)
Per share data
Basic earnings per share (€)
Diluted earnings per share (€)
Dividends declared per share (€)
22,770
6,543
29,313
14,553
7,313
21,866
7,447
29,313
457
5
234
3.30
3.29
1.68
23,330
5,760
29,090
15,787
6,093
21,880
7,210
29,090
456
5
220
2.15
2.15
1.40
15,161
4,076
19,237
9,072
4,140
13,212
6,025
19,237
455
5
192
1.09
1.09
0.85
15,582
3,103
18,685
8,414
4,115
12,529
6,156
18,685
456
5
178
2.34
2.32
1.24
15,225
2,991
18,216
7,860
3,792
11,652
6,564
18,216
475
5
152
1.88
1.86
1.06
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
239
Other Group information continued
Operations review
Revenue
Revenue increased by €3.5 billion, or 26.0%, from €13.8 billion in 2021 to €17.3 billion in 2022. Refer
to the Business and financial review for a discussion of significant factors that impacted revenue
in 2022, as compared to 2021.
2021 vs 2020
Refer to Other Information – Other Group information – Operations review of the 2021 Annual
Report on Form 20-F, filed on 15 March 2022.
Volume
Refer to the Business and financial review for a discussion of significant factors that impacted
volume in 2022, as compared to 2021.
2021 vs 2020
Refer to Other Information – Other Group information – Operations review of the 2021 Annual
Report on Form 20-F, filed on 15 March 2022.
Cost of sales
On a reported basis, cost of sales increased 28.0%, from €8.7 billion in 2021 to €11.1 billion in 2022.
Refer to the Business and financial review for a discussion of significant factors that impacted
cost of sales in 2022, as compared to 2021.
2021 vs 2020
Refer to Other Information – Other Group information – Operations review of the 2021 Annual
Report on Form 20-F, filed on 15 March 2022.
Selling and distribution expenses and administrative expenses
The following table presents selling and distribution expenses and administrative expenses for
the periods presented:
Selling and distribution expenses
Administrative expenses
Total
2022
2021
€ million
€ million
2,984
1,250
4,234
2,496
1,074
3,570
On a reported basis, total operating expenses increased by 18.5% from €3.6 billion in 2021 to
€4.2 billion in 2022, reflecting the full year impact of the API operations acquired in 2021.
Selling and distribution expenses increased by €488 million, or 19.5%, versus 2021, primarily driven
by the full year impact of the Acquisition and an increase in variable expenses such as logistic
costs due to higher volumes, partially offset by a continued focus on discretionary spend
optimisation in areas such as trade marketing expenses, travel and meetings.
Administrative expenses increased by €176 million, or 16.5%, versus 2021, mainly reflecting
increased inflation and the continuation of restructuring activity related to the Accelerate
Competitiveness programme.
2021 vs 2020
Refer to Other Information – Other Group information – Operations review of the 2021 Annual
Report on Form 20-F, filed on 15 March 2022.
Finance costs, net
Finance costs, net totalled €114 million and €129 million in 2022 and 2021, respectively. The
following table summarises the primary items impacting our interest expense during the periods
presented:
Average outstanding debt balance (€ million)
Weighted average cost of debt during the year
Fixed rate debt (% of portfolio)
Floating rate debt (% of portfolio)
2022
12,431
1.3%
90%
10%
2021
11,428
1.2%
95%
5%
Non-operating items
Non-operating items represented an expense of €15 million in 2022 and an expense of
€5 million in 2021. Non-operating expenses include remeasurement gains and losses related to
currency exchange rate fluctuations on financing transactions denominated in a currency other
than the subsidiary’s functional currency. Non-operating items are shown on a net basis and
reflect the impact of any derivative instruments utilised to hedge the foreign currency
movements of the underlying financing transactions. Non-operating items also include the
Group’s share of the profit or loss after tax of equity accounted investments and impairments.
Tax expense
In 2022, our reported effective tax rate was 22.3%. The decrease from 2021 is largely due to the
remeasurement of deferred tax positions following the enactment of tax rate changes in the
United Kingdom, the Netherlands and Indonesia in the prior period.
In 2021, our reported effective tax rate was 28.5%. This includes a €127 million deferred tax
expense due to the enactment of corporate income tax increases in the UK and the Netherlands
as well as an enacted law change in Indonesia which held its statutory income tax rate, reversing a
previously enacted rate reduction.
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
240
Other Group information continued
Cash flow and liquidity review
Liquidity and capital resources
Our sources of capital include, but are not limited to, cash flows from operating activities, public
and private issuances of debt and equity securities and bank borrowings. Based on information
currently available, we do not believe we are at significant risk of default by our counterparties.
The Group satisfies seasonal working capital needs and other financing requirements with operating
cash flow, cash on hand, short-term borrowings and a line of credit. No new borrowings were issued
during the year. At 31 December 2022, the Group had €1,195 million in third party debt maturities in
the next 12 months, €350 million in the form of euro denominated notes, €797 million of US dollar
denominated notes swapped into euro and €48 million of US dollar denominated notes swapped
into New Zealand dollar. No short-term commercial papers were issued at 31 December 2022. In
addition to using operating cash flow and cash in hand, the Group may repay its short-term
obligations by issuing more debt, which may take the form of commercial paper and/or longer-term
debt. Further details regarding the level of borrowings at the year end are provided in Note 14 of the
consolidated financial statements.
In line with our commitments to deliver long-term value to shareholders, in April and November
2022 the Board declared interim dividends of €0.56 and €1.12 per Share, respectively, maintaining
annualised dividend payout ratio of approximately 50%. For the year ended 31 December 2022,
dividend payments totalled €763 million.
On 23 March 2020, in response to COVID-19, the Board took the decision to suspend the share
buyback programme. No shares were repurchased in 2022.
Credit ratings and covenants
The Group’s credit ratings are periodically reviewed by rating agencies. The ratings outlook from
Moody’s and Fitch is stable and continue to be investment-grade as at end of 2022. Changes in
the operating results, cash flows or financial position could impact the ratings assigned by the
various rating agencies. The credit rating can be materially influenced by a number of factors
including, but not limited to, acquisitions, investment decisions, and capital management
activities of TCCC, and/or changes in the credit rating of TCCC. Should the credit ratings be
adjusted downward, the Group may incur higher costs to borrow, which could have a material
impact on the financial condition and results of operations.
Summary of cash flow activities
2022
During 2022, our primary sources of cash included: (1) €2,932 million from operating activities, net
of cash payments related to restructuring programmes of €86 million and contributions to our
defined benefit pension plans of €32 million; and (2) proceeds of €143 million related to the sale
of certain non-alcoholic ready to drink brands to TCCC.
Our primary uses of cash were: (1) repayments on borrowings of €1,223 million, repayments of principal
on lease obligations of €153 million (refer to Financing activities below) and net interest payments of
€130 million; (3) dividend payments of €763 million; (4) spend on property, plant and equipment of
€500 million and software of €103 million; (5) investments in short-term financial assets of €207 million .
2021
During 2021, our primary sources of cash included: (1) €2,117 million from operating activities, net
of cash payments related to restructuring programmes of €205 million and contributions to our
defined benefit pension plans of €39 million; and (2) proceeds of €5.2 billion from the issuance of
debt for acquisition purposes.
Our primary uses of cash were: (1) acquisition of CCL, net of cash acquired, of €5.4 billion;
(2) repayments on borrowings of €950 million, repayments of principal on lease obligations of
€139 million (refer to Financing activities below) and net interest payments of €97 million;
(3) dividend payments of €638 million; and (4) spend on property, plant and equipment of
€349 million and software of €97 million.
The discussion of our 2020 cash flow activities has not been included as this can be found under
Other Information – Other Group information – Cash flow and liquidity review of the 2020 Annual
Report on Form 20-F, filed on 12 March 2021.
Operating activities
2022 vs 2021
Our cash derived from operating activities totalled €2,932 million in 2022 versus €2,117 million in
2021. This increase was primarily due to the full year impact of inclusion of the API operations
acquired in 2021 and the impact of increased revenue performance.
2021 vs 2020
Refer to Other Information – Other Group information – Cash flow and liquidity review of the
2021 Annual Report on Form 20-F, filed on 15 March 2022.
Investing activities
2022 vs 2021
During 2022, net proceeds related to the sale of certain non-alcoholic ready to drink brands to
TCCC totalled €143 million. Net outflows related to short-term investments were €207 million.
Capital asset investments represent a primary use of cash for our investing activities. The
following table summarises the capital investments for the periods presented:
Supply chain infrastructure
Cold drink equipment
Fleet and other
Total capital asset investments
2022
2021
€ million
€ million
393
83
24
500
267
76
6
349
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
241
Other Group information continued
Investments in supply chain infrastructure relate to investments in our manufacturing and distribution
facilities. In addition, during 2022 the Group spent €103 million (2021: €97 million) on capitalised
development activity, primarily in relation to the continuation of our business capability programme.
During 2023, we expect our capital expenditures to be invested in similar categories as those
listed in the table above. While the level of capital expenditure is uncertain, we expect our
operating cash flow, cash in hand and available short-term capital resources will be sufficient to
fund future capital expenditures.
2022 vs 2021
Refer to Other Information – Other Group information – Cash flow and liquidity review of the
2021 Annual Report on Form 20-F, filed on 15 March 2022.
Financing activities
2022 vs 2021
Our net cash used in financing activities totalled €2,276 million in 2022. In 2021, net cash from
financing activities totalled €3,289 million.
The following table summarises our financing activities related to the issuances of and payments
on debt for the periods presented (in € millions):
Payments on debt
€700 million
A$200 million
A$30 million
A$125 million
€350 million
US$300 million
US$250 million
A$100 million
A$45 million
JPY3 billion
A$100 million
A$30 million
Lease obligations
Issuances of debt
€800 million notes
€700 million notes
€1,000 million notes
€750 million notes
US$850 million notes
US$650 million notes
US$500 million notes
Total issuances of debt, less short-term
borrowings, net of issuance costs
Net issuances of short-term borrowings
Total issuances of debt, net
Maturity date
September 2025
September 2029
May 2033
May 2041
May 2023
May 2024
January 2027
Rate
0.00%
0.50%
0.88%
1.50%
0.50%
0.80%
1.50%
—
(A)
2022
—
—
—
—
—
—
—
—
—
—
2021
797
693
990
745
702
537
413
4,877
276
5,153
Maturity date
February 2022
March 2022
July 2022
July 2022
Rate
0.75%
3.38%
5.06%
3.13%
November 2021
floating
4.50%
3.25%
4.63%
6.65%
2.54%
4.25%
5.95%
—
September 2021
August 2021
May 2021
July 2021
August 2021
August 2021
September 2021
—
—
2022
(700)
(134)
(20)
(84)
—
—
—
—
—
—
—
—
2021
—
—
—
—
(350)
(174)
(223)
(65)
(30)
(24)
(65)
(19)
(153)
(139)
Total repayments on third party
borrowings, less short-term borrowings
Net payments of short-term borrowings
Total payments on debt
(1,091)
(1,089)
(A)
(285)
—
(1,376)
(1,089)
(A) These amounts represent short-term euro commercial paper with varying interest rates. In 2022, changes in short-term
borrowings include €2,464 million of newly issued and €2,749 million of repaid EUR commercial paper. In 2021, changes in
short-term borrowings included €700 million and €424 million of newly issued and repaid EUR commercial paper, respectively
Our financing activities during 2022 included dividend payments totalling €763 million, based on
a full year dividend rate of €1.68 per Share. In 2021, dividend payments totalled €638 million.
There were no payments under the share buyback programme in 2022 and 2021.
There were no drawdowns from our credit facility in 2022 and 2021. The facility was undrawn at
31 December 2022 and 31 December 2021, respectively.
Lease obligations
During the year ended 31 December 2022 and 31 December 2021, total cash outflows from
payments of principal on lease obligations were €153 million and €139 million, respectively.
2022 vs 2021
Refer to Other Information – Other Group information – Cash flow and liquidity review of the
2021 Annual Report on Form 20-F, filed on 15 March 2022.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
242
Other Group information continued
Raw materials
CCEP purchases concentrates and syrups from TCCC and other franchisors to manufacture
products. In addition, the Group purchases sweeteners, juices, coffee, mineral waters, finished
product, carbon dioxide, fuel, pallets, ocean freight, haulage, virgin and recycled PET (plastic)
preforms, glass, aluminium and plastic bottles, aluminium and steel cans, pouches, closures,
post-mix and packaging materials. The Group generally purchases raw materials, other than
concentrates, syrups and mineral waters, from multiple suppliers. The product licensing and
bottling agreements with TCCC and agreements with some of our other franchisors provide that
all authorised containers, closures, cases, cartons and other packages, and labels for their
products must be purchased from manufacturers approved by the respective franchisor. The
principal sweetener we use is sugar derived from sugar beets in Europe and sugar cane in API.
Our sugar purchases are made from multiple suppliers. The Group does not separately purchase
low-calorie sweeteners because sweeteners for low-calorie beverage products are contained in
the concentrates or syrups we purchase.
The Group produces most of its plastic bottle requirements within the production facilities, half
from using preforms purchased from multiple suppliers and the remainder from
self-manufactured preforms. The Group believes the self-manufacture of certain packages
serves to ensure supply and to reduce or manage costs. The Group manages its continuity of
materials and supplies closely, although the supply and price of specific materials or supplies are,
at times, adversely affected by strikes, weather conditions, speculation, abnormally high demand,
governmental controls, new taxes, national emergencies, natural disasters, price or supply
fluctuations of their raw material components, and currency fluctuations.
Contractual obligations
The following table reflects the Group's contractual obligations as at 31 December 2022:
Total
Less than 1 year
1 to 3 years
3 to 5 years More than 5 years
€ million
€ million
€ million
€ million
€ million
Borrowings and
interest
obligations(A)
Lease
obligations(B)
Purchase
agreements(C)
12,314
1,336
2,597
753
114
171
49
215
40
13,181
1,556
2,852
2,179
123
8
2,310
6,202
244
17
6,463
(A) These amounts represent the Group’s scheduled debt maturities and estimated interest payments related to the Group’s
long-term debt obligations, excluding leases. Refer to Note 14 of the consolidated financial statements for further details
about the borrowings of CCEP. Interest on fixed rate debt has been calculated based on applicable rates and payment dates.
Interest on variable rate debt has been calculated using the forward interest rate curve. Refer to Note 26 of the
consolidated financial statements for further details about financial risk management within CCEP.
(B) These amounts represent the Group’s future lease payments including amounts representing interest, obligations related to
lease agreements committed to but not yet commenced and lease payments due under non-cancellable short-term or low
value lease agreements.
(C) These amounts represent non-cancellable purchase agreements with various suppliers that are enforceable and legally
binding and that specify a fixed or minimum quantity that we must purchase. All purchases made under these agreements
have standard quality and performance criteria. In addition to these amounts, the Group has outstanding capital expenditure
purchase orders of approximately €109 million as at 31 December 2022. The Group also has other purchase orders raised in
the ordinary course of business which are settled in a reasonably short period of time. These are excluded from the table
above. The Group expects that the net cash flows generated from operating activities will be able to meet these liabilities as
they fall due.
The above table does not include the impact of contractual obligations related to derivative
financial instruments. A table containing this information is presented in Note 26 of the
consolidated financial statements. Furthermore, the exact timing of our tax provisions is not
certain and these have been excluded from the above table. Refer to Note 21 of the
consolidated financial statements for further information.
The above table also does not reflect employee benefit liabilities of €116 million, which include
current liabilities of €8 million and non-current liabilities of €108 million as at 31 December 2022.
Refer to Note 16 of the consolidated financial statements for further information.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
243
Other Group information continued
Properties
The Group’s principal properties include production facilities, distribution and logistics centres, shared service centres, business unit headquarter offices and corporate offices.
The table below summarises the main properties which the Group uses as at 31 December 2022:
Great Britain
France
Belgium/
Luxembourg
Netherlands
Norway
Sweden
Germany
Iberia
Iceland
Total
Production facilities(A)
Leased
Owned
Total
Distribution and logistics facilities
Leased
Owned
Total
1
4
5
1
—
1
Corporate offices and business unit headquarters
Leased
Owned
Total
2
—
2
Production facilities(A)(B)
Leased
Owned
Total
Distribution and logistics facilities
Leased
Owned
Total
Corporate offices and business unit headquarters
Leased
Owned
Total
—
5
5
—
—
—
1
—
1
—
3
3
2
—
2
1
—
1
—
1
1
—
—
—
1
—
1
—
1
1
1
—
1
—
—
—
—
1
1
—
—
—
—
—
—
2
14
16
13
7
20
1
—
1
1
10
11
3
4
7
3
—
3
—
2
2
—
—
—
—
—
—
4
41
45
20
11
31
9
—
9
Australia
New Zealand and Pacific Islands
Indonesia and Papua New Guinea
Total
10
3
13
9
2
11
1
1
5
7
12
4
—
4
1
1
—
11
11
9
3
12
1
1
15
21
36
22
5
27
3
—
3
(A) All production facilities are a combination of production and warehouse facilities.
(B) Production facilities include NARTD, alcoholic beverage and other production facilities.
The Group uses two shared service centres, both located in Bulgaria.
The Group’s principal properties cover approximately 5.8 million square metres in the aggregate of which 0.9 million square metres is leased and 4.9 million square metres is owned. The Group
believes that its facilities are adequately utilised and sufficient to meet its present operating needs.
At 31 December 2022, the Group operated approximately 14 thousand vehicles of various types, the majority of which are leased. The Group also owned approximately 1.5 million pieces of cold drink
equipment, principally coolers and vending machines.
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2022 Integrated Report and Form 20-F
244
Other Group information continued
Disclosure controls and procedures
Evaluation of disclosure controls and procedures
The Group maintains “disclosure controls and procedures”, as defined in Rule 13a-15(e) under the
Exchange Act, which are designed to ensure that information required to be disclosed in reports
filed or submitted under the Exchange Act is recorded, processed, summarised and reported
within the time periods specified in the US SEC’s rules and forms, and that such information is
accumulated and communicated to the Group’s management, including the Chief Executive
Officer (CEO) and Chief Financial Officer (CFO), as appropriate to allow timely decisions
regarding required disclosure. The Group’s management, with the participation of the CEO and
CFO, has evaluated the effectiveness of the Group’s disclosure controls and procedures pursuant
to Exchange Act Rule 13a-15(b) as at 31 December 2022. Based on that evaluation, the Group’s
CEO and CFO have concluded that the Group’s disclosure controls and procedures were
effective.
Management’s report on internal control over financial reporting
The Group’s management is responsible for establishing and maintaining adequate internal
control over financial reporting for the Group, as defined in Rule 13a-15(f) under the Exchange
Act. Internal control over financial reporting is a process designed under the supervision of the
principal executive and financial officers to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of the Group’s consolidated financial statements for
external reporting purposes in accordance with IFRS issued by the IASB. The Group’s internal
control over financial reporting includes policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the Group’s
transactions and dispositions of assets; (2) are designed to provide reasonable assurance that
transactions are recorded as necessary to permit the preparation of the Group’s consolidated
financial statements in accordance with IFRS, and that receipts and expenditures are being
made only in accordance with authorisations of management and the Directors of the Group;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised
acquisition, use or disposition of the Group’s assets that could have a material effect on the
Group’s consolidated financial statements. Internal control systems, no matter how well
designed, have inherent limitations and may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that
internal controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Management, with the participation of the CEO and CFO, assessed the effectiveness of the
Group’s internal control over financial reporting as at 31 December 2022, using the criteria set
forth in the Internal Control-Integrated Framework issued by The Committee of Sponsoring
Organizations of the Treadway Commission. Based on this assessment, management has
determined that the Group’s internal control over financial reporting as at 31 December 2022
was effective. Ernst & Young LLP (EY), the Group’s independent registered public accounting
firm, has issued a report on the Group’s internal control over financial reporting as at
31 December 2022, which is set out on page 159.
Changes in internal control over financial reporting
There has been no change in the Group’s internal control over financial reporting (as defined in
Rule 13a-15(f) under the Exchange Act) during 2022 that has materially affected, or is reasonably
likely to materially affect, the Group’s internal control over financial reporting.
Auditor’s fees and services
The Audit Committee has established policies and procedures for the engagement of the
independent registered public accounting firm, Ernst & Young LLP (Auditor Firm ID: 1438), to
render audit and certain assurance and tax services. The policies provide for pre-approval by the
Audit Committee of specifically defined audit, audit-related, tax and other services that are not
prohibited by regulatory or other professional requirements. EY is engaged for these services
when its expertise and experience of CCEP are important. Most of this work is of an audit nature.
Under the policy, pre-approval is given for specific services within the following categories: advice
on accounting, auditing and financial reporting matters; internal accounting and risk
management control reviews (excluding any services relating to information systems design and
implementation); non-statutory audit; project assurance and advice on business and accounting
process improvement (excluding any services relating to information systems design and
implementation relating to CCEP’s financial statements or accounting records); due diligence in
connection with acquisitions, disposals and arrangements in which two or more parties have joint
control (excluding valuation or involvement in prospective financial information); income tax and
indirect tax compliance and advisory services; employee tax services (excluding tax services that
could impair independence); provision of, or access to, EY publications, workshops, seminars and
other training materials; provision of reports from data gathered on non-financial policies and
information; and assistance with understanding non-financial regulatory requirements.
The Audit Committee evaluates the performance of the auditor each year. The Committee
keeps under review the scope and results of audit work and the independence and objectivity of
the auditor. External regulation and CCEP policy requires the auditor to rotate its lead audit
partner every five years. The audit fees payable to EY are reviewed by the Committee for cost
effectiveness each year. Details of fees for services provided by the auditor are provided in
Note 18 of the consolidated financial statements.
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
245
Form 20-F table of cross references
Part I
Item 1
Item 2
Item 3
Identity of Directors, Senior Management and Advisors
Offer Statistics and Expected Timetable
Key Information
B – Capitalization and indebtedness
C – Reasons for the offer and use of proceeds
D – Risk factors
Item 4
Information on the Company
A – History and development of the Company
B – Business overview
C – Organizational structure
D – Property, plants and equipment
Item 4A
Unresolved Staff Comments
Item 5
Operating and Financial Review and Prospects
A – Operating Results
B – Liquidity and capital resources
C – Research and development, patents and licences, etc
D – Trend information
E – Critical Accounting Estimates
Item 6
Directors, Senior Management and Employees
A – Directors and senior management
B – Compensation
C – Board practices
D – Employees
E – Share ownership
F – Recovery of Erroneously Awarded Compensation
Item 7
Major Shareholders and Related Party Transactions
A – Major Shareholders
B – Related Party Transactions
C – Interests of experts and counsel
Page
n/a
n/a
n/a
n/a
223-229
165, 168, 191, 230, 235,
240-241, 257
2-3, 5-6, 74-85, 161, 168-170,
174-176, 227, 234-235, 242
207-212
174-176, 243
n/a
76-85, 239-243
80-81, 240-241
143
74-85
n/a
89-96, 230
119-140, 195
88-97, 111-116, 119-140, 230
192, 230
61, 136-137, 230
n/a
142
193-195
n/a
Item 8
Financial Information
A – Consolidated Statements and Other Financial Information
Page
82, 103, 157-212, 235,
238-244
B – Significant Changes
Item 9
The Offer and Listing
A – Offer and listing details
B – Plan of distribution
C – Markets
D – Selling shareholders
E – Dilution
F – Expenses of the issue
Item 10
Additional Information
A – Share capital
B – Memorandum and articles of association
C – Material contracts
D – Exchange controls
E – Taxation
F – Dividends and paying agents
G – Statement by experts
H – Documents on display
I – Subsidiary Information
Item 11
Quantitative and Qualitative Disclosures about Market Risk
Item 12
Description of Securities Other than Equity Securities
A – Debt Securities
B – Warrants and Rights
C – Other Securities
D – American Depository Shares
206
231
n/a
231
n/a
n/a
n/a
231-233
235
235
235
235-237
n/a
n/a
235
207-212
203-205
n/a
n/a
n/a
n/a
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
246
Form 20-F table of cross references continued
Part II
Item 13
Defaults, Dividend Arrearages and Delinquencies
Item 14
Material Modifications to the Rights of Security Holders and Use of
Proceeds
Item 15
Controls and Procedures
Item 16A
Audit Committee Financial Expert
Item 16B
Code of Ethics
Item 16C
Principal Accountant Fees and Services
Item 16D
Exemptions from the Listing Standards for Audit Committee
Item 16E
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Item 16F
Change in Registrant’s Certifying Accountant
Item 16G Corporate Governance
Item 16H Mine Safety Disclosure
Item 16I
Part III
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 17
Financial Statements
Item 18
Financial Statements
Item 19
Exhibits
Page
n/a
n/a
159, 244
98, 112
99
193, 244
n/a
142, 232
n/a
98-99
n/a
n/a
160-164
n/a
247
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Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
247
Exhibits
The following documents, which form a part of this Annual Report on Form 20-F, have been filed with the US Securities and Exchange Commission (SEC) via its EDGAR system and can be viewed on
the SEC’s website at www.sec.gov.
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4.1
Exhibit 4.2
Exhibit 4.3
Exhibit 4.4
Exhibit 4.5
Exhibit 4.6
Exhibit 8
Exhibit 12.1
Exhibit 12.2
Exhibit 13
Exhibit 15.1
Exhibit 101.INS
Exhibit 101.SCH
Exhibit 101.CAL
Exhibit 101.DEF
Exhibit 101.LAB
Exhibit 101.PRE
Articles of Association of CCEP (incorporated by reference to Exhibit 99.1 to CCEP’s Form 6-K filed with the SEC on May 30, 2019).
Description of rights attached to each class of CCEP securities registered under Section 12 of the Exchange Act as at 31 December 2022.
Shareholders’ Agreement by and among the Company, Olive Partners, S.A., European Refreshments, Coca-Cola GmbH and Vivaqa Beteiligungs GmbH & Co. KG (incorporated by reference to Annex C to
the proxy statement/prospectus contained in CCEP’s Form F-4/A registration statement filed with the SEC on April 11, 2016).
Form of Bottler’s Agreement entered into between The Coca-Cola Company and the bottling subsidiaries of CCEP (incorporated by reference to Exhibit 10.7 to the Company’s Form F-4/A registration
statement filed with the SEC on April 7, 2016).
Coca-Cola European Partners plc Long-Term Incentive Plan 2016 (incorporated by reference to Exhibit 4.1 to CCEP’s Form S-8 registration statement filed with the SEC on June 1, 2016).
Rules of the Coca-Cola Enterprises Belgium/Coca-Cola Enterprises Services Belgian and Luxembourg Share Savings Plan (incorporated by reference to Exhibit 4.3 to CCEP’s Form S-8 registration
statement filed with the SEC on June 1, 2016).
Trust Deed and Rules of Coca-Cola Enterprises UK Share Plan (incorporated by reference to Exhibit 4.2 to the Company’s Form S-8 registration statement filed with the SEC on June 1, 2016).
The Coca-Cola Enterprises, Inc. 2010 Incentive Award Plan (as amended Effective February 7, 2012) (incorporated by reference to Exhibit 99.1 to Coca-Cola Enterprises, Inc.’s Current Report on Form 8-K
filed on February 9, 2012).
Deed of Assumption and Replacement relating to Equity Awards of Coca-Cola Enterprises, Inc. (incorporated by reference to Exhibit 4.3 to the Company’s Post-Effective Amendment No. 1 on Form S-8
to Form F-4 registration statement filed with the SEC on June 1, 2016).
List of Subsidiaries of the Company (included in Note 28 of the consolidated financial statements in this Annual Report on Form 20-F).
Rule 13a-14(a) Certification of Damian Gammell.
Rule 13a-14(a) Certification of Nik Jhangiani.
Rule 13a-14(b) Certifications.
Consent of Ernst & Young LLP, UK.
XBRL Instance Document.
XBRL Taxonomy Extension Schema Document.
XBRL Taxonomy Extension Calculation Linkbase Document.
XBRL Taxonomy Extension Definition Linkbase Document.
XBRL Taxonomy Extension Label Linkbase Document.
XBRL Taxonomy Extension Presentation Linkbase Document.
The total amount of long-term debt securities issued by the Company or any subsidiary under any one instrument which requires filing consolidated or unconsolidated financial statements does not
exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. The Company agrees to furnish a copy of any long-term debt security instrument which requires filing
consolidated or unconsolidated financial statements to the SEC on request.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
248
Signatures
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and
that it has duly caused and authorised the undersigned to sign the Annual Report on Form 20-F
on its behalf.
Coca-Cola Europacific Partners plc
/s/ Damian Gammell
Damian Gammell
Chief Executive Officer
17 March 2023
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2022 Integrated Report and Form 20-F
249
Sustainability key performance data summary
Metric
Climate
Scope 1 GHG emissions (tonnes of CO2e)
Scope 2 GHG emissions - market based approach (tonnes of CO2e)
Scope 2 GHG emissions - location based approach (tonnes of CO2e)
Scope 3 GHG emissions (tonnes of CO2e)
Scope 1, 2 and 3 GHG emissions – Full value chain(A) (tonnes of CO2e)
Scope 1, 2 and 3 GHG emissions – Full value chain(A) per litre (g CO2e per litre)
Absolute reduction in total value chain(A) GHG emissions (Scope 1, 2 and 3) since 2019 (%)
Relative reduction in total value chain(A) GHG emissions (Scope 1, 2 and 3) per litre since 2019 (%)
GHG Scope 1 and 2(A) emissions per litre of product produced (g CO2e per litre)
Manufacturing energy use ratio (MJ per litre of finished product produced)
Percentage of electricity purchased that comes from renewable sources (%)
Percentage of electricity consumed that comes from renewable sources (%)
Tonnes of CO2e offset through carbon credits (tonnes of CO2e)
Percentage of carbon strategic suppliers having targets approved by SBTi (%)
Group
2022α
2019
Baselineα
Europe
API
2022α
2021Δ
2019
Baselineα
2022α
2019
Baselineα
295,904
343,784
196,890
205,026
229,748
99,014
186,494
218,082
3,690
4,135
5,728
182,804
114,036
212,354
303,597
380,173
110,012
120,433
167,709
193,585
212,464
4,931,065
5,410,655
3,112,516
3,020,841
3,503,674
1,818,549
1,906,981
5,413,463
5,972,521
3,313,096
3,230,002
3,739,150
2,100,367
2,233,371
289.4
330.7
221.9
239.2
262.0
555.6
590.0
-30% by 2030
100% by 2030
100% by 2025(B)
9.4
12.5
29.1
0.35
75.0
74.4
9,375
17
13.6
8.7
17.1
0.32
100.0
99.4
11.4
15.3
15.1
0.30
100.0
99.5
27
6.0
5.8
84.8
0.56
20.5
23.8
5
Note: For a full list of CCEP’s headline sustainability commitments as part of our This is Forward sustainability action plan, please
refer to ‘Our headline commitments’ on page 27. For details on our approach to reporting and methodology please see our ‘2022
Sustainability reporting methodology’ document on cocacolaep.com/sustainability/download-centre.
(A) Market based approach only
(B) 100% of carbon strategic suppliers to set science-based targets by 2023 (Europe) and 2025 (API). Carbon strategic suppliers
α This metric was subject to external independent limited assurance by DNV for the year ended 31 December 2022.
Δ All Europe 2021 data was subject to external independent limited assurance by DNV for the year ended 31 December 2021,
and was included within our 2021 Integrated Report and Form 20-F. In line with the WRI/WBCSD GHG Protocol, our baseline
figures for 2019, and our 2021 data for Europe have been restated to include updated emissions factors and more accurate
data. These restated emissions were outside the scope of the latest independent limited assurance review by DNV.
account for ~80% of our Scope 3 GHG emissions (approximately 200 suppliers in total).
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Other Information
Sustainability key performance data summary continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
250
Metric
Packaging
Percentage of all primary packaging that is recyclable (%, based on unit case)
Percentage of PET used which is rPET (%, based on tonnes of material)
Primary packaging collected for recycling as a percentage of total primary packaging (%, based on individual units)
Percentage of PET bottles that are 100% rPET (%, based on individual bottles)
Water
Percentage of production facilities with context based water targets(B) (%)
Total water withdrawal (1,000 m3)
Total production volumes from areas of baseline water stress(C) (1,000 m3)
Water replenished as percentage of total sales volumes (%)
Total volume of water replenished (1,000 m3)
Manufacturing water use ratio (litres of water per litre of finished product produced)
Note: For a full list of CCEP’s headline sustainability commitments as part of our This is Forward sustainability action plan, please
refer to ‘Our headline commitments’ on page 27. For details on our approach to reporting and methodology please see our ‘2022
Sustainability reporting methodology’ document on cocacolaep.com/sustainability/download-centre.
(A) 50% recycled plastic (rPET) in our PET bottles by 2023 (Europe) and 2025 (API).
(B) Non-alcoholic ready to drink (NARTD) only.
(C) 21 out of 42 non-alcoholic ready to drink (NARTD) production facilities in Europe and three out of 24 NARTD production
facilities in API are located in areas of water stress (based on WRI water stress mapping).
100% by 2025
50% by 2025(A)
100% by 2030
100%
100% by 2030
Group
Europe
2022α
2022α
2021Δ
API
2022α
48.5
71.8
44.7
100.0
26,584
8,126
105.5
19,732
1.60
98.7
56.3
76.7
54.0
100.0
20,839
7,394
101.6
15,165
1.57
98.3
52.9
1.58
26.9
53.0
25.8
100.0
5,745
731
120.8
4,567
1.73
α This metric was subject to external independent limited assurance by DNV for the year ended 31 December 2022.
Δ This metric was subject to external independent limited assurance by DNV for the year ended 31 December 2021 and was
included in our 2021 Integrated Report and Form 20-F.
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Sustainability key performance data summary continued
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
251
Percentage of volume sold which is low or no calorie (%)
50% by 2030(C)(D)
48.8
48.6
Metric
Supply chain
Percentage of sugar sourced through suppliers in compliance with our Principles for Sustainable Agriculture (PSA) (%)
Percentage of pulp and paper sourced through suppliers in compliance with our PSA (%)
Percentage of total supplier spend covered by Supplier Guiding Principles (%)
Drinks
Europe: Reduction in average sugar per litre in soft drinks(A) portfolio since 2019 (%)
New Zealand: Reduction in average sugar per litre in NARTD(B) portfolio since 2015 (%)
Australia: Reduction in average sugar per litre in NARTD(B) portfolio since 2015 (%)
Indonesia: Reduction in average sugar per litre in NARTD(B) portfolio since 2015 (%)
Society
Percentage of women in management positions (senior manager level and above)(E) (%)
Percentage of women in total workforce (%)
Safety – Total incident rate (TIR) (number per 100 full time equivalent employees)
Safety – Lost time incident rate (LTIR) (number per 100 full time equivalent employees)
Total number of volunteering hours (number of hours)
Total community investment contribution (millions of €)
Note: For a full list of CCEP’s headline sustainability commitments as part of our This is Forward sustainability action plan, please
refer to ‘Our headline commitments’ on page 27. For details on our approach to reporting and methodology please see our ‘2022
Sustainability reporting methodology’ document on cocacolaep.com/sustainability/download-centre.
(A) Sparkling soft drinks, non-carbonated soft drinks and flavoured water only. Does not include water or juice.
(B) Non-alcoholic ready to drink (NARTD), including dairy. Does not include coffee, alcohol, beer or freestyle.
(C) Europe 50% by 2025. Does not include coffee, alcohol, beer or Freestyle. Low calorie beverages ≤20kcal/100ml. Zero calorie
beverages <4kcal/100ml
(D) Full API data not available for 2022 reporting. We aim to report on this indicator in 2023. Percentage of volume sold which is
low or no calorie for 2022 was Australia 44.6%; New Zealand 39.5%; Indonesia 46.8%
(E) Excludes Papua New Guinea, Fiji and Samoa as aligned role grades not available for 2022 reporting. We aim to include these
markets for 2023.
(F) Australia only. Volunteering policy not rolled out to all API markets. We aim to launch this across all API markets by end of 2023.
Group
Europe
API
2022α
2022α
2021Δ
2022α
2021Δ
100%
100%
100%
97.6
99.2
97.5
100.0
99.8
97.3
97.0
10% by 2025
20% by 2025
25% by 2025
35% by 2025
5.2
5.6
45% by 2030
33% by 2030
37.2
23.8
0.87
0.61
1.04
0.75
28,562
28,397
12.2
10.7
9.2
90.3
98.3
98.4
15.9
16.8
31.6
0.62
0.40
165(F)
1.5
13.4
14.9
20.9
1.8
α This metric was subject to external independent limited assurance by DNV for the year ended 31 December 2022.
Δ This metric was subject to external independent limited assurance by DNV for the year ended 31 December 2021. Note the
baseline year for Europe reduction in average sugar per litre in soft drinks portfolio has changed to 2019 since we issued our
2021 Integrated Report and Form 20-F.
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Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
252
External assurance of our
sustainability disclosures
CCEP appointed DNV Business Assurance
Services UK Limited (DNV) to provide limited
assurance over selected sustainability metrics
for the year ended 31 December 2022. The
assurance engagement was planned and
performed in accordance with the
International Standard on Assurance
Engagements (ISAE) 3000 revised – ‘Assurance
Engagements other than Audits and Reviews
of Historical Financial Information’ (revised),
issued by the International Auditing and
Assurance Standards Board. A table of all
sustainability metrics subject to assurance is
available within our Sustainability key
performance data summary on pages 249-251.
DNV has issued an unqualified opinion over the
selected data and their full assurance report
and CCEP’s basis of reporting for assured data
is available on cocacolaep.com/sustainability/
download-centre.
Our approach to reporting
and methodology
GHG emissions (Scope 1, 2 and 3)
Details of our Scope 1, 2 and 3 GHG emissions
in tonnes of CO2 equivalent (CO2e) during
2022 are set out in the table on page 37. Our
Scope 1 and 2 emissions are independent of
any GHG trades. Our Scope 2 emissions are
reported using both a location based and a
market based approach.
Our carbon footprint is calculated in
accordance with the WRI/WBCSD GHG
Protocol Corporate Standard, GHG Protocol
Scope 2 Guidance and GHG Protocol Full
Value Chain (Scope 3) Standard using an
operational control approach to determine
organisational boundaries.
Our GHG emissions are reported on a gross
basis, independent of any offsets or carbon
credits.
Note on sources of data and calculation
methodologies
Under the WRI/WBCSD GHG Protocol, we
measure our emissions in three scopes, except
for CO2e emissions from biologically
sequestered carbon, which we report
separately outside these scopes. Our baseline
year is 2019. We have restated our baseline
2019 and 2021 data to include new emission
factors and more accurate data.
Data is consolidated from a number of sources
across our business and is analysed centrally.
We use a variety of methodologies to gather
our emissions data and measure each part of
our carbon footprint, including packaging and
ingredients, natural gas and purchased
electricity, refrigerant gas losses, CO2 fugitive
gas losses and transport fuel, water supply,
wastewater and waste management and cold
drink equipment. We use emission factors
relevant to the source data including UK
Department for Business, Environment and
Industrial Strategy (BEIS) 2022 and
International Energy Agency (IEA) 2020
emission factors. We also apply the
methodology for reporting beverage CO2e
using the Beverage Industry Environmental
Roundtable (BIER) guidance.
Scope 1 figures include direct sources of
emissions such as the fuel we use for
manufacturing and our own vehicles plus our
fugitive emissions of CO2.
Scope 2 figures include indirect sources from
the generation of electricity we use at our
sites. We report against this on both a location
based and a market based approach.
Commitments and key performance
indicators are tracked using the market based
approach.
Emissions from biologically sequestered
carbon in 2022 were 63,500 tonnes of CO2e,
reported outside of the three scopes, in line
with WRI/WBCSD GHG Protocol guidance.
The following Scope 3 categories are reported
by CCEP in our total GHG emission figures, and
are included in our current SBTi target
boundary (accounting for ~90% of our Scope 3
emissions):
• Category 1: purchased goods and services
(including the packaging we put on the
market, the ingredients used in our products,
and purchased water)
• Category 3: fuel- and energy-related
activities not already included in Scope 1 or
Scope 2 (e.g. well-to-tank, transmission and
distribution from energy supply to our sites
and assets)
• Category 4: upstream transportation and
distribution (transportation of finished
products paid for by CCEP)
• Category 5: waste generated in operations
(emissions from disposal of waste generated
at our production facilities)
• Category 6: business travel (including
employee business travel by rail and air)
• Category 8: upstream leased assets
(including the home charging of company
plug-in hybrid electric vehicles (PHEV) and
Battery Electric Vehicles (BEV))
• Category 11: use of sold products (including
CO2 emissions released by consumers, in
accordance with BIER guidance)
• Category 12: end-of-life treatment of sold
products
• Category 13: downstream leased assets
(including the emissions generated from the
electricity used by our hot and cold drink
equipment at our customers’ premises)
The following Scope 3 categories are not
included in CCEP’s current SBTi target
boundary, but may be included in our 2022
CDP response, using estimated emission
calculations:
• Category 1: purchased goods and services
(additional purchased goods and services
that are not packaging, ingredients or
purchased water)
• Category 2: capital goods
• Category 7: employee commuting (including
commuting and home working emissions)
• Category 11: use of sold products (including
home chilling)
• Category 15: investments (including
investments in joint venture recycling
facilities and CCEP Ventures investments)
We use industry emission factors including
Defra/BEIS 2022 and IEA 2020 emission factors.
Where possible, we have begun to use supplier
specific emission factors for sugar beet in
Europe. We are working to extend this to other
packaging and ingredient suppliers over the
coming years. 1.5% of our value chain carbon
footprint is based on estimated emissions (e.g.
leased offices where energy invoices or the
square metre footage size of the site is not
available).
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2022 Integrated Report and Form 20-F
253
Glossary
Unless the context otherwise requires, the following terms have the meanings shown below.
2010 Plan
CCE 2010 Incentive Award Plan
Accelerate Competitiveness
the Acquisition
proposals announced in October 2020 aimed at reshaping CCEP using
technology enabled solutions to improve productivity and include the
closure of certain production sites in Germany and Iberia
under the binding offer made in November 2020, revised in February 2021,
acquiring the entire issued share capital of Coca-Cola Amatil Limited from
The Coca-Cola Company, under the terms of a Co-operation and Sale Deed,
and from shareholders other than The Coca-Cola Company, effected by
means of a scheme of arrangement
Admission
the date of the Company’s admission to the UK market (28 May 2016)
CCL
CCO
CDE
CDP
CEO
CFO
CIO
CGU
Away from home channel
Annual General Meeting
Australia, Pacific and Indonesia region incorporating Coca-Cola Amatil
Limited and its subsidiaries
Annual report on remuneration
alcoholic ready to drink
Articles of Association of Coca-Cola Europacific Partners plc
Chairman
Cobega
Coca-Cola system
CoC
CODM
Committee(s)
Affiliated Transaction Committee
business to business
business continuity planning
Coca-Cola Amatil Limited
Chief Compliance Officer
cold drink equipment
Formerly Carbon Disclosure Project
Chief Executive Officer (of Coca-Cola Europacific Partners plc)
Chief Financial Officer (of Coca-Cola Europacific Partners plc)
Chief Information Officer (of Coca-Cola Europacific Partners plc)
cash generating unit
the Chairman of Coca-Cola Europacific Partners plc
Cobega, S.A.
comprises The Coca-Cola Company and around 225 bottling partners
worldwide
Code of Conduct
chief operating decision maker
the five Committees with delegated authority from the Board: the Audit,
Remuneration, Nomination, Environmental, Social and Governance and
Affiliated Transaction Committees
Committee Chairman/Chairmen
or Chair
the Chairman/Chairmen of the Committee(s)
UK Department for Business, Environment and Industrial Strategy
Committee member(s)
member(s) of the Committees
Board of Directors of Coca-Cola Europacific Partners plc
Companies Act
the UK Companies Act 2006, as amended
Business Performance Factor
the departure of the UK from the EU
a business unit of the Group
capital expenditure
Company or Parent Company
Coca-Cola Europacific Partners plc
Company Secretary
Company Secretary (of Coca-Cola Europacific Partners plc)
COVID-19 (also coronavirus
and pandemic)
the Coronavirus-19 pandemic, from March 2020 through all of 2021 and into
2022
CCE or Coca-Cola Enterprises
Coca-Cola Enterprises, Inc.
CCEG or Coca-Cola
Erfrischungsgetränke
CCEP or the Group
Coca-Cola Erfrischungsgetränke GmbH (which changed its name to Coca-
Cola European Partners Deutschland GmbH from 22 August 2016)
Coca-Cola Europacific Partners plc (registered in England and Wales
number 9717350) and its subsidiaries and subsidiary undertakings from time
to time
CCEP LTIP
CCEP Long-Term Incentive Plan 2016
CCIP or Coca-Cola Iberian
Partners
Coca-Cola Iberian Partners, S.A. (which changed its name to Coca-Cola
European Partners Iberia S.L.U. from 1 January 2017)
CRC
Deloitte
Director(s)
DNV
DRS
Compliance and Risk Committee, a management committee chaired by the
Chief Compliance Officer
Deloitte LLP
a (the) Director(s) of Coca-Cola Europacific Partners plc
international accredited registrar and classification society
deposit return scheme(s)
AFH
AGM
API
ARR
ARTD
Articles
ATC
B2B
BCP
BEIS
Board
BPF
Brexit
BU
Capex
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2022 Integrated Report and Form 20-F
254
Glossary continued
DTC
DTRs
EBITDA
EEA
EAP
EcoVadis
EFSA
EIR
EPS
ERA
ERM
ESG
EWRA
EY
ESPP
EU
Depository Trust Company
the Disclosure Guidance and Transparency Rules of the UK Financial
Conduct Authority
earnings before interest, tax, depreciation and amortisation
European Economic Area
Employee Assistance Programme
provider of business sustainability ratings
European Food Safety Authority
effective interest rate
earnings per share
enterprise risk assessment
enterprise risk management
Environmental, Social and Governance
Global Enterprise Water Risk Assessment
Ernst & Young LLP
Global Employee Share Purchase Plan
European Union
European Refreshments or ER
European Refreshments Unlimited Company, a wholly-owned subsidiary
of TCCC
Exchange Act
the US Securities Exchange Act of 1934
Executive Leadership Team
or ELT
the CEO and his direct senior leadership reports
E&C
FAWVA
FCPA
FIFO
FMCG
ethics and compliance
Facility Water Vulnerability Assessment
US Foreign Corrupt Practices Act of 1977
first-in, first-out method
fast moving consumer goods
FPI
FRC
Fx or FX
GAAP
GB Scheme
GHG
Group or CCEP
HMRC
HoReCa
HR
ID&E
IAS
IASB
IAS Regulations
IBR
IEA
IFRIC
IFRS
INEDs
IPCC
IPF
IRC
IRS
foreign private issuer, a term that applies to a company under the rules of
the Nasdaq Stock Exchange that is not a domestic US company
the Financial Reporting Council
Foreign exchange
Generally Accepted Accounting Principles
the Great Britain defined benefit pension plan
greenhouse gas
Coca-Cola Europacific Partners plc and its subsidiaries and subsidiary
undertakings from time to time
Her Majesty’s Revenue and Customs, the UK’s tax authority
hotels, restaurant and cafés
human resources
inclusion, diversity and equity
International Accounting Standards
International Accounting Standards Board
International Accounting Standards (IAS) Regulations relate to the
harmonisation of the financial information presented by issuers of securities
in the European Union
incremental borrowing rate
International Energy Agency
International Financial Reporting Interpretations Committee
International Financial Reporting Standards
Independent Non-executive Directors of Coca-Cola Europacific Partners plc
Intergovernmental Panel on Climate Change
Individual Performance Factor
the US Internal Revenue Code of 1986, as amended
US Internal Revenue Service
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
255
Glossary continued
Production facilities which rely on vulnerable water sources or have a high
level of water dependency
Pack mix
the packaging portfolio mix of beverages
Parent Company or Company
Coca-Cola Europacific Partners plc
Olive Partners
Opex
Packageless
Olive Partners, S.A.
operating expenditure
Dispense solutions for serving drinks without packaging such as fountain or
Coca-Cola Freestyle
ISAE 3000
International Standard on Assurance Engagements 3000
International Organization for Standardization
information technology
key performance indicator
ISO
IT
KPI
Leadership locations
LGBTQ+
pertaining collectively to people who identify as lesbian, gay, bisexual, or
transgender, and to people who identify as queer or with gender expressions
outside perceived societal norms, including non-binary, intersex and
questioning of their gender identity and/or sexual orientation, along with
their allies
Paris Agreement
Partnership
Listing Rules or LRs
the Listing Rules of the UK Financial Conduct Authority
LSE
LTI
LTIP
LTIR
M&A
Merger
NARTD
Nasdaq
London Stock Exchange
long-term incentive
Long-Term Incentive Plan
lost time incident rate
merger and acquisition(s)
the formation of Coca-Cola European Partners plc on 28 May 2016 through
the combination of the businesses of Coca-Cola Enterprises, Inc., Coca-Cola
Iberian Partners, S.A. and Coca-Cola Erfrischungsgetränke GmbH
non-alcoholic ready to drink
The Nasdaq Stock Market
Nasdaq Rules
the corporate governance rules of Nasdaq
NEDs
NGO
OCI
OFAC
Official List
Non-executive Directors of Coca-Cola Europacific Partners plc
non-governmental organisation
other comprehensive income
Office of Foreign Assets Control of the US Department of the Treasury
the Official List is the list maintained by the Financial Conduct Authority of
securities issued by companies for the purpose of those securities being
traded on a UK regulated market such as London Stock Exchange
Pension Plan 1 and
Pension Plan 2
PET
PFIC
PRN
PSA
PSU
RAS
RGB
rPET
RSP
RTD
ROIC
RSU
SBTi
the agreement on climate change resulting from UN COP21, the UN Climate
Change Conference, also known as the 2015 Paris Climate Conference
the partnership agreement entered into between the Group, the GB
Scheme and CCEP Scottish Limited Partnership to support a long-term
funding arrangement
the Germany defined benefit pension plans
polyethylene terephthalate
passive foreign investment company
Packaging Recovery Notes
Principles of Sustainable Agriculture
performance share unit
Risk appetite statement
Returnable/Refillable Glass Bottle
recycled PET
CCEP’s Responsible Sourcing Policy, launched in 2022
ready to drink
return on invested capital
restricted stock unit
Science Based Targets initiative
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
256
Glossary continued
SDRT
SDG
SEC
SGP
SKU
stamp duty reserve tax
UN Sustainable Development Goals
Securities and Exchange Commission of the US
Supplier Guiding Principles
stock keeping unit
Shareholders’ Agreement
Shares
SID
the Shareholders’ Agreement dated 28 May 2016 between Coca-Cola
European Partners plc and Olive Partners, S.A., European Refreshments,
Coca-Cola GmbH and Vivaqa Beteiligungs Gmbh & Co. KG
ordinary shares of €0.01 each of Coca-Cola Europacific Partners plc
Senior Independent Director
SOX or the Sarbanes-Oxley Act
the US Sarbanes-Oxley Act of 2002
S&P
Standard & Poor’s
the Spanish Stock Exchanges
the Barcelona, Bilbao, Madrid and Valencia Stock Exchanges
SPO
SSPs
SVA
TIR
TCA
Sustainable Packaging Office
Shared Socioeconomic Pathways
source water vulnerability assessment
total incident rate
EU-UK Trade and Cooperation Agreement
TCCC
TCCF
TCFD
TSR
The Coca-Cola Company
The Coca-Cola Foundation
Task Force on Climate-related Financial Disclosures
total shareholder return
UK Accounting Standards
Financial Reporting Standards issued by the Accounting Standards Board
UKBA
UKCGC
UNESDA
UN
unit case
VAT
WEEE
WHO
WMP
UK Bribery Act 2010
UK Corporate Governance Code 2018
Union of European Soft Drinks Associations
United Nations
approximately 5.678 litres or 24 eight ounce servings, a typical volume
measurement unit
value added tax
EU Directive on Waste Electrical and Electronic Equipment
World Health Organisation
water management plan
WRI/WBCSD GHG Protocol or
GHG Protocol
the GHG Protocol is the internationally recognised, standard framework for
measuring greenhouse gas (GHG) emissions from private and public sector
operations and their value chains
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
257
Useful addresses
Registered office
Coca-Cola Europacific Partners plc
Pemberton House
Bakers Road
Uxbridge
UB8 1EZ
Registered in England and Wales
Company number: 9717350
+44 (0)1895 231313
Share registration
US shareholders:
Computershare
150 Royall Street
Canton
MA 02021
1-800-418-4223
Shareholders in Europe and outside the US:
Computershare
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
+44 (0)370 702 0003
Report ordering
Shareholders who would like a paper copy of the Integrated Report, which will be despatched from around 12 April 2023, can
make their request by post to the Company Secretary, Pemberton House, Bakers Road, Uxbridge UB8 1EZ, United Kingdom or by
making a request via ir.cocacolaep.com/financial-reports-and-results/integrated-reports or by sending an email to
sendmaterial@proxyvote.com or by making a request via www.proxyvote.com or by phoning (in the US) 1-800-579-1639 or
(outside the US) +1-800-579-1639.
Agent for service of process in the US
The Corporation Trust Company
Corporation Trust Center
1209 Orange Street
Wilmington, DE 19801
Strategic Report
Governance and Directors’ Report
Financial Statements
Other Information
Coca-Cola Europacific Partners plc
2022 Integrated Report and Form 20-F
258
Forward-looking statements
This document contains statements, estimates or projections that constitute “forward-looking
statements” concerning the financial condition, performance, results, guidance and outlook,
dividends, consequences of mergers, acquisitions and divestitures, strategy and objectives of
Coca-Cola Europacific Partners plc and its subsidiaries (together CCEP or the Group). Generally,
the words “ambition”, “target”, “aim”, “believe”, “expect”, “intend”, “estimate”, “anticipate”, “project”,
“plan”, “seek”, “may”, “could”, “would”, “should”, “might”, “will”, “forecast”, “outlook”, “guidance”,
“possible”, “potential”, “predict”, “objective” and similar expressions identify forward-looking
statements, which generally are not historical in nature.
Forward-looking statements are subject to certain risks that could cause actual results to differ
materially from CCEP’s historical experience and present expectations or projections. As a result,
undue reliance should not be placed on forward-looking statements, which speak only as of the
date on which they are made. These risks include but are not limited to:
1. those set forth in the “Risk Factors” section of this 2022 Annual Report on Form 20-F;
2. the extent to which COVID-19 will continue to affect CCEP and the results of its operations,
financial condition and cash flows will depend on future developments that are highly uncertain
and cannot be predicted, including the scope and duration of the pandemic and actions taken
by governmental authorities and other third parties in response to the pandemic;
3. risks and uncertainties relating to the global supply chain, including impact from war in Ukraine,
such as the risk that the business will not be able to guarantee sufficient supply of raw materials,
supplies, finished goods, natural gas and oil and increased state-sponsored cyber risks;
4. risks and uncertainties relating to the global economy and/or a potential recession in one or
more countries, including risks from elevated inflation, price increases, price elasticity, disposable
income of consumers and employees, pressure on and from suppliers, increased fraud, and the
perception or manifestation of a global economic downturn; and
5. risks and uncertainties relating to potential global energy crisis, with potential interruptions and
shortages in the global energy supply, specifically the natural gas supply in our territories. Energy
shortages at our sites, our suppliers and customers could cause interruptions to our supply chain
and capability to meet our production and distribution targets.
Due to these risks, CCEP’s actual future financial condition, results of operations, and business
activities, including its results, dividend payments, capital and leverage ratios, growth, including
growth in revenue, cost of sales per unit case and operating profit, free cash flow, market share,
tax rate, efficiency savings, achievement of sustainability goals, including net zero emissions,
capital expenditures, the results of the acquisition of the minority share of our Indonesian
business, the results of the integration of the businesses following the acquisition of
Coca-Cola Amatil, including expected efficiency and combination savings, and ability to remain in
compliance with existing and future regulatory compliance, may differ materially from the plans,
goals, expectations and guidance set out in forward-looking statements. These risks may also
adversely affect CCEP’s share price. Additional risks that may impact CCEP’s future financial
condition and performance are identified in filings with the SEC which are available on the SEC’s
website at www.sec.gov. CCEP does not undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events, or otherwise,
except as required under applicable rules, laws and regulations. Any or all of the forward-looking
statements contained in this filing and in any other of CCEP’s public statements may prove to be
incorrect.