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Coca-Cola Amatil (Aust) Pty LtdNational Packaging Covenant

Action Plan2006 2008


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Message from our Managing Director

It gives me great pleasure to introduce Coca-Cola Amatils (CCA) third individual National Packaging Covenant Action Plan. We submitted our

first plan in 2003, in addition to supporting the Australian Food and Grocery Council (AFGC) action plan.

CCA is of course known as the manufacturer and distributor of the worlds best-known brand, Coca-Cola. What we are less known for is our

commitment to minimising the environmental impact from our operations.

In 1994 CCA was the first company in the world to package a food grade product using recycled content in PET. Initially this was achievedusing a layering technique, whereby the recycled PET was inserted in between virgin PET and later CCA was the first business in Australia to

blend post consumer resin with virgin resin for a food quality package. In 2005, under the banner Refresh, Recycle, Renew, we partnered with

local authorities and our customers to trial public place recycling in key locations.

We have made great progress in reducing the material used in our packaging and in utilising material with recycled content wherever practicable.

Our progress has meant that we have either reached or are approaching physical limits in these areas. With the success of kerbside we see the

challenge for the second covenant to increase away from home recovery rates and at the same time lift the bar in overall industry performance in

packaging design and selection. We look to governments to do their part to ensure that free riders do not gain any competitive advantage from

not complying with both the letter and the spirit of the second covenant.

I invite you to read CCAs 2006-2008 Action Plan, where our focus is on consolidating the work commenced on increasing public place

recycling, improving data collection and on incorporating the new Environment Code of Practice for Packaging into our work processes.

Warwick White

Managing Director

Coca-Cola Amatil (Aust) Pty Ltd

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Our 2006-2008 Action Plan Focus

Public Place Recycling

Over the last 10 years CCA, government and industry has focussed on kerbside recovery. For the next 36 months and beyond CCA will focus

on assisting the expansion of public place recycling. Around half of our products are consumed away from home and CCA is committed to

removing them from the general litter and waste streams. Our objective is to use the knowledge we have on consumer behaviour to assist the

extension of public place recycling.

Kerbside recovery has led to significant environmental savings, with over 800,000 tonnes of material recycled through the system each year.

Kerbside recycling has demonstrated that most Australians are prepared to Do the Right Thing. The challenge now, is to encourage people to

Do the Right Thing away from home. The solution is to make it easy, convenient and cost effective for local authorities.

Our plan complements the extensive activity being undertaken under the Australian Food and Grocery Council (AFGC) industry plan. Our

experience has been that local governments have been reluctant to partner with individual companies in public place recycling. Over the life of

this plan CCA will focus on working with our customers to implement public place recycling in sites such as tourist attractions, public events,and shopping centres. Our approach is to complement and assist work being funded under the National Projects Group of the NPC.

Doing More of the Right Thing

As indicated in our previous Action Plan, whilst we will continue to look at opportunities to reduce packaging weights across our packaging

range, both in primary and secondary packaging, after a decade of continuous improvement in this aspect of our packaging design, we are

approaching the physical limit where further reductions may not be possible without compromising the quality of our product.

CCA will continue to refine our data tracking systems at our manufacturing facilities to record waste to landfill as well as the percentage of our

overall waste being recycled. In 2006 CCA will implement an internal Covenant database to assist in improving our packaging outcomes and to

assist us to meet our Covenant reporting obligations.

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Covenant Commitment

CCA was a founding member of the National Packaging Covenant and continues to be a strong supporter. The Covenant has encouraged even

greater focus on the environmental performance of our packaging and assisted in highlighting the importance of packaging minimisation

throughout the supply chain.

The role of packaging

Packaging is an important component of a product. Packaging allows products to be effectively transported, maintain their quality on shop

shelves, is used to provide information to consumers and ensures their safety is not jeopardised. Less packaging does not necessarily mean a

reduced environmental impact. Light weighting cardboard boxes to the point where they are too weak will result in increased waste through

greater stock losses in transportation. Packaging also ensures products arrive in the consumers hands as they left the production line. Tamper

proof packaging is now an integral component to the safety of consumers.

Focussed on Packaging

Coca-Cola is the worlds most recognised brand. Through our marketing and of course the contour bottle, Coke is differentiated in the

consumers mind. Packaging in fast moving consumer products is essential to distinguish our products and attract potential customers attention.

Packaging is an integral component of new product development.

CCA has commenced incorporating the revised Environmental Code of Practice for Packaging into our new product process. This will include

educating all those involved in the development of new packaging about the environmental impact of that packaging and the issues that need to

be assessed prior to decisions being made about materials and design.

Continually Raising the Bar

Coca-Cola Amatils mission is to To become the supplier of choice every time. Our values are based on continual improvement and

challenging the way things are done. Environmentally, this is reflected in our corporate environmental policy and particularly with the

commitment to always look for a better way. Looking for a better way in new product and packaging has also meant actively seeking better

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environmental outcomes. This means continuous dialogue between our team responsible for new products development, The Coca-Cola

Company technical team and our environmental managers about ensuring the optimal environmental capability of new product packaging.

Working with Industry

CCA is a member of several industry groups in Australia, many of which work with us to meet and exceed covenant commitments. Participation

and support of industry groups such as the Australian Food and Grocery Council (AFGC)enable industry to undertake environmental initiatives

collectively through rationalising the costs involved.

CCA participates in and supports several relevant industry bodies including

Australian Food and Grocery Council and the Packaging Council of Australia

We also represent industry on the National Project Group of the National Packaging Covenant.

Environmental Focus

CCA is committed to conducting our business operations in a sustainable manner. CCA's operations are primarily focused on the manufacturing

and distribution of beverages and are considered to be of low environmental impact.

In assessing the environmental impact of its operations, CCA has identified four key areas:

Water Use Energy Use Waste from Operations Post Consumer Packaging Waste


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Whilst this action plan focuses primarily on packaging, packaging systems are just one component in the overall production and consumption

systems for these products. Our environment assessment process for new packaging is now incorporating these broader impacts.

Shift in Culture

The Covenant and the responsibilities arising from its reporting requirements have fostered an important change in corporate culture over the

past 24 months. Improved processes have been established and followed. Environmental impacts of new products are now considered in the

early stages of the decision process and any changes to primary and secondary packaging are considered in the context of our commitment to the

NPC. Channels of communication have been developed and have greatly aided the business by having environmental impacts of productsconsidered from the outset, rather than as an afterthought. Building on this culture shift is a priority of this action plan.

Who we are

Coca-Cola Amatil (CCA) is a major public company listed on the Australian Stock Exchange. Headquartered in Sydney and operating in the

Asia-Pacific region, CCA is Australias largest manufacturer and distributor of soft drinks and other non-alcoholic beverages, and the market

leader in the industry.

CCA purchases concentrate and beverage bases from The Coca-Cola Company to manufacture its trademarked products including Coca-Cola,

diet Coke, Coca-Cola Zero, Vanilla Coke, Fanta, Sprite, Liftand POWERaDE. CCA also owns a portfolio of its own beverage brands including

Mount Franklin and Kirks.

Coca-Cola Amatil employs over 16, 000 people across our six countries of operation, 2,980 of those in Australia.

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CCA Locations

CCA is headquartered in Sydney and has offices in each state as well as sales offices right across the country. CCAs manufacturing facilities

including Pacific Beverages, Neverfail and Peats Ridge are located at:

Location Address

Northmead (NSW) 128 Briens Road

Northmead 2152

Smithfield (NSW) 1 Sturt St

Smithfield 2164

Richlands (QLD) 260 Orchards Road

Richlands 4077

Thebarton (SA) 33-43 Port Road

Thebarton 5031

Moorabbin (VIC) 16 Levenswell Road

Moorabbin 3189

Melbourne (VIC) 41 Jersey Road

Melbourne 3153

Kewdale (WA) 19 Miles Road

Kewdale 6105

Peats Ridge (NSW) 229 Euloo

Peats Ridge 2250

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Arndell Park (NSW) 16 Lidco Street

Arndell Park NSW 2148

Malaga (WA) 261 Beringarra Avenue

Malaga WA 6090

Torrensville (SA) 70 Hardys Road

Torrensville SA 5031

Springwood (QLD) 2-8 Tolmer Place

Springwood 4127

Garbutt (QLD) 40 Hugh Ryan Drive

Garbutt 4814

CCA Suppliers and Customers

Primary and Secondary Packaging

For the purpose of this Action Plan when reference is made to primary packaging CCA is referring to product packaging (bottles, cans) as well

any other packaging sold to the consumer such as the micro flute used for multipacks. Secondary packaging is anything to do with the

transportation of the product to our customers, such as cardboard cartons and shrink wrap.

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Primary PackagingMaterial Supplier

PET Visy

Hot fill PET AMCOR/ Visy

Aluminium Cans AMCOR

Glass ACI and Sutton Group

Labels Paper Abaris, Label MakersLabels Polypropylene FPSI, Pope Packaging

Closures AMCOR/ Portola

Multi-packs (micro flute) Visy / Amcor

Bag in Box Scholle

HDPE Peats Ridge Bottles Visy Industrial Packaging

Polypropylene Bottles for returnable

Neverfail bottles

Aquatek

Secondary Packaging

Material Supplier

Cardboard Visy

Shrink wrap AMCOR

Stretch wrap AMCOR

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Major Customers7-ELEVEN BP AUSTRALIA LTD

CALTEX AUSTRALIA COLES/MYER

FAL GREATER UNION/BCC

HUNGRY JACKS MCDONALDS

METCASH MOBIL NATIONAL

RED ROOSTER SUBWAY SYSTEMS AUSTRALIA

THE WAREHOUSE GROUP UNITED CONVENIENCE BUYERS

WOOLWORTHS LIMITED

Scope of this Action Plan

This action plan covers all CCA beverage activities in Australia. This action plan also covers CCA owned Pacific Beverages as well as CCAs

water bottling facilities, Peats Ridge and Neverfail/Piccadilly.

Measuring CCAs Action Plan

Success of this action plan will be internally tracked and regular reports and updates given to management. CCA will report on this plan yearly

including reporting on progress or as the Covenant Council dictates. CCAs action plan will also be available on the companys website:

www.ccamatil.com.au

Contact for Action Plan

Alec WagstaffCoca-Cola Amatil

Phone: (02) 9259 6571

Fax: (02) 92413872

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Final Report on Coca-Cola Amatil 2004 -2005 National Packaging Covenant Action Plan

1. Public Place Recycling

Action Status Comment

Partner with councils who respond from

the initial 50 councils CCA have

approached to increase public place

recycling. The execution of this will be ona case-by-case basis, dependent on council

needs and current systems.

Ongoing Of the 50 Councils who CCA contacted only nine responded. Of these Councils,

CCA met with six and have entered into programs with two and the Sydney

Harbour Foreshore Authority. Of the other Councils that CCA met with three have

since established PPR systems, however chose to do so without the assistance ofCCA.

Conduct two public place trials with major

customers operating in high traffic areas

such as food-halls and attractions such as

Zoos.

Achieved CCA launched PPR programs with Taronga Zoo, Thredbo Ski Village and is

working with a number of our other customers on implementing programs

including food halls. CCA will continue to work with our partners to expand the

availability of PPR. Details of these programs can be found on the CCA website:www.ccamatil.com.au

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2. Packaging Design


Lightweight glass packaging to a target of

6%

On-hold These plans were put on hold due to questions around continued production of the

330ml glass bottle.

Discontinue use of PVC in Pacific

Beverages Cordials and move into PET

packaging across the cordial range

Achieved In late 2004 CCA completely exited PVC packaging.

Include recycling logo on all newpackaging.

Ongoing All CCA primary packaging continues to feature the recycling logo and relevantmarkings for material type.

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3.Distribution


Investigate compostable and bio-

degradable shrink/ stretch wrap for our

multi-packs and also for secondary

packaging used for transportation.

Not currently

feasible

The current quality of compostable and bio-degradable shrink/ stretch wrap does

not meet CCAs quality standards. CCA has also engaged State Environment

departments, who have expressed concern about both compostable and bio-

degradable shrink wrap.

To address the issue of shrink and stretch wrap CCA has begun discussions withour major customers on programs for recovery of the materials.

Provide retail customers with details of

secondary packaging supplied to them to

assist with their NPC commitments

Ongoing In 2004- 2005 we responded to two customer requests for information.

Set up internal database with all

information relevant to our NPC

commitments and to also meet the needs of

our customers request for information.

On-hold This was not completed in this action plan, due to the KPIs for Covenant 2 not

being set within its timeframe. These systems will be set up for reporting under

Covenant 2.

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4.Disposal


Conduct regular manufacturing site reviews

to maintain and improve practices, waste

generation and movements across our

operations.

Ongoing Continuous improvement of waste practices has been integrated into site

management and reporting structures as part of CCAs ISO14001 platform. This

includes waste service providers providing total integrated waste management

solutions, incorporation of waste issues into monthly team and staff meetings, and

the expansion of recycling systems to now include areas of the business and

material types not previously included

Further improve our waste tracking system

to include sites from all states.

All CCA, Pacific Beverages, Peats Ridge and Neverfail sites provide monthly

reports, which are fed into CCAs EPM Report. The recently acquired Crusta site

will be integrated into this reporting system over the next two years.

Move to recording all environmental data

in finished beverage litres (FBL).

Currently this is done to record most of our

environmental data, however over this

action plan we will move to record all data

in this form to make it consistent.

Completed Waste, water and energy are all reported monthly as either L/FBL, kg/1000 FBL or

FBL/GJ.

Audit recycling stations located at all

operations

Completed Waste service providers at our Richlands site undertake formal visual audits. Other

sites undertake a weekly visual audit to monitor bin content, the results of which

are then used to raise staff awareness of the correct system. Environmental

snapshots also include performance in waste management and recycling.

Continue to refine reporting systems to

provide comprehensive data across all

recycling activities.

Ongoing The quality of data being collected at the site level has improved over 2004-2005,

however there are still some inconsistencies with what is being measured. CCA is

currently reviewing what data should be collected to enable a more consistent

format and structure.

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Quantify amount of waste product for

acquired sites as a base line for futurecomparisons.

Achieved Sites acquired prior to this Action Plan now report on waste and recycling figures

as part of the EPM report. The recently acquired Crusta site will be integrated intothis reporting structure over the next two years.

Reduce amount of general waste sent to

landfill to 5% of total waste across

Australia

Ongoing The current average across all sites is 26% of generated waste sent to landfill, with

the other 74% recycled.

The 2006 target for diversion from landfill is 80%.

This is an ambitious long-term target for CCA.

Continue support for AFGC initiatives Ongoing CCA has used AFGCs Dont Waste Australia campaign on the bumper bars of

all the sales fleet. CCA has also been working closely with AFGC on a number ofour PPR programs.

Maintain continual improvement initiatives

using ISO 14001 as a benchmark

Completed:

All CSD

Operations

now certified

under ISO

14001:2004

Environmental KPIs are set annually at a national level. Sites then setthemselves KPIs to compliment the national target.

Continual improvement is the overarching objective of these KPIs, whichgenerally set a 5% improvement on the previous target.

Our review process comprising surveillance and certification audits under14001:2004, and internal GAP audits, identify risks and/or areas ofimprovement.

On the managerial side our Management Review Committee meetings both ata national/HO and site level ensure adherence to the objectives and targets set

across all levels of the business

Full implementation and maintenance of

Pacific Beverages Environmental

Management Systems

Ongoing with

aim of full

integration by

Q1 2006.

Pacific Beverages are in the process of developing their EMS with a target for

implementation by Q2 2006.

Refine contracts with all waste contract

companies to supply information in full on

amount of waste recovered and percentage

going to landfill.

Achieved All sites are provided with a full breakdown of materials and weights for disposal

and recycling by service providers.


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5. Education


Continue to deliver Environmental

awareness training module (Includes

reference to principles and objectives of the

NPC) to all manufacturing staff as they join

CCA or as needed

Ongoing Waste management training is incorporated into induction programs and general

environmental awareness training delivered across operations sites. Over the next 6

months, it is anticipated that greater detail on the NPC and its impact on sites

activities will be delivered to key site personnel. The National Environmental

Awareness Training program is currently under review and will be updated to

reflect CCAs involvement and activities within the Covenant.Formally include environmental

consideration through developing a

checklist derived from the ECoPP into the

Capital expenditure approval process for

new products to ensure that environmental

impacts of new packaging investments are

considered in the initial stages of putting

proposals forward.

On-hold This was put on hold until the revised Code for Covenant 2 was finalised and will

be integrated into CCAs product development processes.

Install additional office container recycling

stations in meeting rooms to complement

individual paper recycling stations and

container recycling facilities in kitchens.

Completed All CCA offices have recycling stations and there are plans in place to provide

recycling facilities for all acquired sites.

Through our push into public place

recycling, extend the consumer education

program to point of sale where appropriate

Ongoing In Summer 04-05 CCA placed recycling communication at the point of sale in

Councils that had existing PPR systems. As part of the Thredbo PPR program a

recycling campaign has been developed for use in all shops and businessesthroughout the resort to promote the program. A general recycling promotion

program was also integrated in to the Coca-Cola Summer 2004-2005 program.

Finalise Environmental and OH&S check

list and adapt for use in the new product

development and marketing teams.

On-hold This was put on hold until the revised Code for Covenant 2 was finalised and will

be integrated into CCAs product development processes.

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2006-2008 National Packaging Covenant Action Plan

Covenant KPI Responsibility CCA Response Timing

1. Total weight of consumer packaging

(domestic & imported) sold per annum into

the Australian market and the total weight

of products packaged.

1A Report tonnes of packaging by materialtype by source (local or imported).

1B Report tonnes of packaged product sold

1C Report ratio of product to packaging (by

weight).

Individual

brand owners.

CCA has conducted an initial baseline assessment of its

packaging usage.

CCA will report its packaging usage by type on a commercial in

confidence basis to the NPCC.

In Australia CCA sold some 1.7 million tonnes of packaged

product during 2005.

For the 2005 calendar year CCAs ratio by weight of product to

packaging was 15:1.

Ongoing.

Data will be

reported

internally on

a quarterly

basis.

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4. Changes to protection, safety, hygiene,shelf life or supply chain considerations

affecting amount & type of packaging used.

4A Report changes to protection, safety,

hygiene, shelf life or supply chain

considerations affecting amount and type of

packaging used with examples, and theirassociated impact on the amounts and types

of packaging used.

4B Quantitative details of changes should

be provided of substantial changes where

possible eg additional tonnes of packaging

required, changes to materials used etc.

All packagingsupply chain

signatories.

CCA is currently in the process of implementing the ECoPP, sothat the environmental impacts of new packaging investments

are considered and documented.

This will ensure environmental impacts are taken into

consideration at the inception and supply chain stages of

packaging design and development, and in the event of any

substantial changes made to packaging.

Changes shall be reported as part of the Annual Report in

October 2006.

Ongoing.Data will be

reported

internally on

a quarterly

basis.

6. Total weight, by type, of non-recyclable consumer packaging sold per

annum into the Australian market.

6A Report tonnage of non-recyclable

packaging sold by material type and total.

6B Report total non-recyclable as a % of

total packaging sold.

Individualbrand owners.

CCA will report tonnage of non-recyclable packaging sold bymaterial type on a commercial in confidence basis to the NPCC.

Total non-recyclable packaging sold is 5.20% of the total

packagingsold by CCA.

Ongoing.Data will be

reported

internally on

a quarterly

basis.

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16. Percentage of signatories providing

recycling collection facilities for post-

consumer packaging generated on-site.

16A Report whether on-site recycling

facilities are provided or not.

16B If yes, provide details.

All signatories. All key CCA sites have recycling collection facilities for post-

consumer packaging.

CCA will maintain office container recycling stations in

meeting rooms to complement individual paper recycling

stations and container recycling facilities in kitchens.

CCA will continue to review and modify recycling practiceswithin these operations.

Environmental snapshots will continue to include performance

in waste management and recycling.

CCA will continue to refine reporting systems to provide

comprehensive data across all recycling activities.

Ongoing.

Data will be

reported

internally on

a quarterly

basis.

17. Amount and type of consumerpackaging in the litter stream.

State, Territorygovernment

signatories.

CCA will continue to provide significant financial supportthrough AFGC to encourage appropriate litter disposal

behaviour.

Ongoing.

20. Improvement in littering behaviour. State, Territory

government

signatories.

Through the AFGC, CCA will encourage other consumer

goods companies to join in cooperative programs to support

effective litter programs.

Ongoing.

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Covenant KPI Responsibility CCA Response Timing21. Estimated tonnage of consumer

packaging sent (a) for recycling and (b) to

landfill from on-site collection facilities.

21A Report on amounts of consumer

packaging from on-site collection which is:

i) sent for recycling (tonnes and % oftotal waste); and

ii) sent to landfill (tonnes and % of

total waste).

All signatories. CCA has established an internal long term target to reduce the

amount of general waste sent to landfill to 5% of total waste

across Australia.

Waste management training is incorporated into induction

programs and general environmental awareness training

delivered across operations sites. Over the next six months, it isanticipated that greater detail on the NPC2 and its impact on

sites activities will be delivered to key site personnel. The

National Environmental Awareness Training program will be

updated to reflect CCAs involvement and activities within the

Covenant.

CCA sent a total of 3, 993.1 tonnes of consumer packaging

waste to recycling from key sites between January andDecember 2005. This represents an average of 74% of total

waste.

CCA sent a total of 1, 238.9 tonnes of consumer packaging

waste to landfill from key sites between January and December

2005. This represents an average of 26% of total generated

waste.

Ongoing.

Data will be

reported

internally on

a quarterly

basis.

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Covenant KPI Responsibility CCA Response Timing22. Number of signatories who have

formally adopted the ECoPP and developed

systems for its implementation.

22A Report whether ECoPP has been

formally adopted.

22B Report actions and commitments that

demonstrate the ECoPP has been

implemented.

Packaging supply

chain (designers,

manufacturers,

brand owners,

retail buyers and

product

importers).

CCA will formally adopt and implement the ECoPP.

A checklist derived from the ECoPP will be developed and

added to the approval process for new products and packaging.

This will ensure that environmental impacts of new packaging

investments are considered and documented in the initial

stages of new product development.

Ongoing.

Process to

be fully

operational

by June

2006 and

reviewedannually.

Data will be

reported

internally on

a quarterly

basis.

26. Implementation of Buy Recycled

purchasing policy or practices.

26A Report whether the signatory has

implemented a Buy Recycled purchasing

policy or practices.

26B If yes, provide details and quantitative

data if available.

All signatories. CCA will maintain its current purchasing policy which

commits us to give preference throughout our business topurchasing products which have recycled content, where

economically and practically feasible.

Ongoing.

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27. Establishment of baseline performancedata.

27A Report indicative baseline data (where

available) including qualifiers and

assumptions, by 30 November 2005.

27B Report established baseline data by 31

October 2006.

All signatories. CCA has established and reported preliminary baseline datafor 2005.

The data collection process will be refined during 2006.

Completed.

Ongoing.

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Covenant KPI Responsibility CCA Response Timing28. Annual reporting against action plan.

28A Report to be lodged by 31 October

each year commencing 2006.

All signatories. CCA will establish an internal database and reporting system

with all information relevant to our NPC commitments.

Progress against our NPC commitments is reported at Board

level.

CCA will publicly report progress against this plan.

Annual

reporting.

29. Demonstrated improvement and

achievements against individual targets &

milestones.

29A Annual report to clearly demonstrate

continuous improvement and performance

against individual targets and timelines in

action plan.

All signatories. CCA is committed to maintaining continual improvement and

developing new initiatives using ISO 14001 standards as a

guide.

CCA will report on its improvement and performance against

targets and timelines in this Action Plan during our Annual

Report.

Initial

database

established

in January

2006, to be

subject to

annual

review.

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