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Innovation powers 爱游戏体育‑Cola Company鈥檚 approach to bring to market more of the great-tasting drinks people want in smart, responsible ways that positively impact our business, communities and planet.听

The constant pursuit of innovation puts consumers at the heart of our initiatives and it extends across our business鈥攆rom our ever-evolving portfolio of beverages and marketing transformation to operational processes and the programs and partnerships that drive our sustainability progress.听

鈥淚nnovation is anything new that creates value,鈥� explains John Murphy, President and Chief Financial Officer. 鈥淲hen you take on that mindset, you can apply it into all aspects of the business. Staying ahead of the curve requires constant invention and reinvention, with an understanding of what鈥檚 happening in the marketplace.鈥�

In recent years, we鈥檝e raised the bar for our innovation agenda with an intentional focus on strategic, data-driven experimentation and agility.听

Bold Beverages, New Experiences聽

As a total beverage company, we are constantly evaluating and refreshing our lineup of drinks, from reducing sugar to introducing new offerings. Recent highlights include:

• Debuting Flashlyte, an advanced hydration drink formulated with six electrolytes, in Mexico.

• Expanding the Cappy juice platform, now available in Europe, Africa and the Middle East, with new reduced-sugar and vitamin-fortified varieties.

• Introducing smartwater alkaline 9.5+ pH with antioxidant in North America.

• Doubling sales of the Authentic Tea House lineup of unsweetened, cold-brewed teas in China.

• Experimenting and expanding our footprint in the Alcohol Ready-to-Drink (aRTD) category. Recent launches include Jack Daniel鈥檚 & Coca‑Cola and Jack Daniel鈥檚 & Coca‑Cola Zero Sugar in Latin America, Europe, Asia and North America; Absolut Vodka & Sprite and Absolut Vodka & Sprite Zero Sugar in Europe; and Peace Hard Tea and Minute Maid Spiked in North America.

Our test-learn-scale approach to innovation includes exploring new ways to engage consumers through our marketing. We create authentic, culturally relevant experiences for our brands that revolve around consumer passions including music, gaming, food and sports. This means shifting our marketing investments towards digital, live and retail experiences, meeting our consumers where they are.听

Coca鈥慍ola Creations introduces new flavors, designs and unexpected experiences that blend music, fashion and technology for fans to enjoy around the world. By tapping into emerging technologies, collaborating with artists and designers, and creating experiences across digital and physical worlds, the platform continues to infuse the iconic Coca鈥慍ola brand with new expressions of creativity and cultural connections allowing fans to experience the Real Magic of Coca鈥慍ola.

Coke Studio, which originated in Pakistan and has expanded to our top 40 markets, taps into consumers' passion for music. The platform uses packaging as digital portals to access Real Magic experiences.

We鈥檙e celebrating nearly 100 years of greatness as the longest-running partner of the Olympic Games. At the Olympic and Paralympic Games Paris 2024, we aim to refresh athletes, officials and fans with our wide product portfolio of beverages, including Coca‑Cola, Powerade,鈥疐uze鈥疶ea and鈥痵martwater.听

Using AI and Emerging Tech to Connect with Consumers聽

We are leading the most radical marketing transformation in our history to support our long-term growth agenda. Combined with the expertise of our people, we鈥檙e using AI and other emerging digital technologies to engage consumers with culturally relevant, experience-driven campaigns. It starts with metrics and goes to innovation, marketing effectiveness and efficiency.听

We appointed our global agency network partner, WPP Open X, to manage end-to-end creative, media, data and technology across our brand portfolio in ~200 countries and territories.听

Technology is at the heart of our transformation. In 2023, we became the first company to join a global services alliance launched by Bain & Company and OpenAI, developers of DALL-E and ChatGPT. We are committed to being at the forefront of AI experimentation, learning and implementation.听

We are leveraging Generative AI to engage consumers through innovative campaigns, including:

• Introducing Coca鈥慍ola庐 Y3000 Zero Sugar, the first futuristic Coca鈥慍ola flavor co-created with human and artificial intelligence. Part of the Coca‑Cola Creations lineup of fantasy flavors, the limited-edition drink was supported by an AI-powered digital activation and experiential takeover at the Las Vegas Sphere.

• Launching an AI-powered card generator to support our global Coca‑Cola holiday campaign. Consumers in more than 40 markets reimagined iconic Coca‑Cola holiday images and sent personalized digital cards to loved ones.

Digital-driven marketing is fueling our company鈥檚 performance, serving as the 鈥渕otor driving the top line and bottom line,鈥� Chairman and CEO James Quincey told investors in October 2023.

Beyond marketing, we are exploring ways to leverage AI鈥攆rom internal knowledge management and workflows, to customer service and ordering, to point-of-sale material creation.听

Crafting Great-Tasting Beverages 鈥�

Our Research and Development (R&D) teams leverage industry-leading capabilities and insights in taste and aroma science to create bolder and more successful innovations, including flavor breakthroughs for low- and no-sugar options.

The continued success of the recently reformulated Coca‑Cola Zero Sugar proves how superior taste drives demand.

Other recent innovations include the Aquarius sports drink in Japan, which delivers superior hydration via amino acids and electrolytes with zero sugars, and continued advancements to improve the taste and texture of fairlife鈥檚 high-protein Core Power, Nutrition Plan and Ultra-Filtered Milk offerings in North America.听

We also use our technical expertise to launch groundbreaking equipment offerings鈥攊ncluding the Coca‑Cola Freestyle fountain platform, Costa Express coffee dispensers and Coke&GO autonomous coolers鈥攁nd sustainable packaging innovations including label-less and ultra-lightweight plastic bottles made with 100% recycled PET (rPET)*. *excludes cap and label

厂耻蝉迟补颈苍补产颈濒颈迟测听

We continue to explore ideas for new technologies and innovation to help us achieve our sustainability goals, which focus on water, packaging, climate and agriculture. This includes innovating our packaging to help reduce waste and carbon emissions and designing solutions to help improve our water and energy use across our operations and value chain.

Our markets around the world are innovating in this space:聽

• Lighter bottles and bottles made from recycled materials aim to minimize plastic use and help reduce carbon emissions. This includes new lightweight bottle designs across several products in the North America 辫辞谤迟蹿辞濒颈辞.听

• Label-less bottles help make recycling easier. Following the roll-out in Japan, China and South Korea, we have also trialed this innovation with .听

• We are exploring ways to use AI to automate the collection and analysis of data for watershed restoration work in India and sustainable agriculture programs in T眉rkiye among other opportunities.听