At the beginning of each year, we take a long, hard look at the previous 12 months and try to isolate the key elements that really changed our partners and our performance. This year, with the pandemic as a context, the assessment was much more complex.
But from the very beginning, one thing that impressed me was the way our people and our business adapted: quickly, with great care for all stakeholders and with an incredible focus on our priorities. I believe this has been at the heart of our ability to 'win' over the last 12 months.
It is clear to me that as consumers and customers demand more, those who are the smartest and can adapt the fastest will win.
New skills for a new age
The World Economic Forum recently highlighted critical thinking and problem solving among the skills that will be needed in the next five years. This should be complemented by self-management, active learning, resilience and agility. I am particularly proud of the ways in which each part of our business has demonstrated these skills over the last 12 months.
The more I think about it, the more I realize how far we've come in building this operational agility in our culture over the last few years, and the more I realize that sometimes we take things for granted. This crisis also resulted in the fact that the contribution of each individual is important and extremely valuable, regardless of business level or rank. It is the contribution and response of each individual that determines our collective success. It was this agility and adaptability that played a crucial role in our performance during the most challenging year we have ever had.
This organizational change does not happen by accident. Over the past few years, we have targeted resources to build the core strengths of our business that will accelerate adaptation: a fast mindset; the strongest, most extensive, most flexible portfolio in the industry; a true partnership with customers and the community; digital and technical infrastructure; and supply chain strength. All of these elements have played an important role in our ability to adapt and win in 2020. A big source of pride for us is the fact that we have not lost a day of production in our facilities, we have maintained service to our customers and supported our people and our communities.
Dynamic 24/7 portfolio development
The strength and scale of our portfolio has enabled us to act quickly and seize new opportunities, especially in a dynamic market environment. And the pandemic has definitely accelerated changes in consumer behavior, as our homes have become the epicenter of our lives and environments for work, socializing and entertainment.
As many customers in the on-trade segment were forced to close their doors, there was a need to re-evaluate our channels and marketing strategy. In our markets, we have increased support in food markets and retail in general to create new solutions for these growing "occasions at home", with a particular focus on increasing the importance of our carbonated soft drinks during meals and screen time.
Coffee is a big opportunity for us in the next decade, but going into 14 markets in the middle of a global pandemic can never be easy. Thanks to the partnership with our customers and the dedication of our people, we have been able to adapt and respond to the need of coffee lovers by providing an almost barista experience at home. What will please coffee lovers in Montenegro is that, thanks to our company, in the near future they will be able to enjoy the taste of Costa coffee, one of the most famous coffee brands that is part of the rich Coca-Cola portfolio.
We've applied the same consumer customization and creativity to our adult fizzy drinks, such as Schweppes, combined with the premium range of spirits we distribute to fuel the excitement of the 'Aperitivo moment' at home.
To meet the needs of Montenegrin consumers
Our Montenegrin team realized two activations for consumers, in a period when movement and working hours of all shops were limited, and catering facilities were not working. Through one activation, we enabled free food delivery, so that our consumers could enjoy the combination of food and Coca-Cola in their homes, while through the second, we provided special packaging for all those who buy water and coffee, or Coca-Cola at gas stations and coffee, thus making it easier for them to enjoy their favorite drinks anywhere, in the park or on a walk, completely practically.
Our marketing and commercial teams in partnership with our customers have developed a faster route to market; investing in food aggregators and delivery channels to capitalize on the delivery opportunity and increasing our online customer activations with leading retailers.
In Montenegro, the organizational agility of our fantastic and dedicated team enabled us to manage resources expediently in the season, as well as in the period when catering facilities were not working. Although the tourist season was strongly affected by the pandemic, we as a company did not stop investments in this sector, but found ways to support it in the most difficult times.
Even closer to you through digital technologies
Digital technologies have also played a key role in our customer support solutions, enabling our sales teams in different markets around the world to focus on more value-adding activities. We revived our online customer portal, which included the introduction of a digital ordering system and image recognition technology for scanning shelves. These innovations have made life easier for our customers and ensured that our products are easily delivered from the warehouse to the shelf. Throughout the year, our investment in ATM card payment systems has also facilitated basic "contactless" solutions for our consumers.
Support for a thousand vulnerable families from all over Montenegro and a donation to medical workers
We also believe that responsiveness means recognizing and responding to the concerns of others, and this belief has shaped our support for communities for 70 years. Together with our partners, The Coca-Cola Company, with whom we are strongly rooted in the community, we were well positioned to act quickly and with an understanding of the community's needs.
In Montenegro, for example, we donated over 10 thousand liters of our products to medical workers, as well as to engaged people in quarantines. Cooperation with local and government institutions has always been high on the list of our priorities, because we know that only by working together can we make lasting positive changes in society. It is especially important that we are united in extraordinary and difficult situations, such as we have witnessed in the last year. We also supported the most vulnerable in our society, who are in a state of social need and at increased risk of poverty during the epidemic. Together with the Coca-Cola Foundation, we donated 50 thousand dollars to the Red Cross of Montenegro, thanks to which help reached those who need it most. Valuable volunteers of the Red Cross reached every town in Montenegro and thousands of families most affected by the consequences of the coronavirus epidemic and distributed packages with basic food and hygiene items.
This and hundreds of other examples in our markets testify to how we have adapted to the pandemic thanks to the investment in our people and their strong belief in our common purpose. Building a rapid, sustainable recovery that creates value for all will be an extremely demanding endeavor, but also a fulfilling one. With adaptability "hard-wired" into our thinking and our culture and care for our people and partners with whom we share our journey, I am convinced that we are heading in a winning direction.
Zoran Bogdanović, Chief Executive Officer, Coca-Cola HBC AG
Bogdanović has been the CEO of Coca-Cola HBC AG since 2017. The company headed by him together with his customers refreshes more than 600 million consumers from as many as 28 countries, spanning 3 continents, with its rich portfolio. Through its operations, Coca-Cola HBC AG creates value for its partners, supporting the socio-economic development of the communities in which it operates and believes that a positive impact on the environment is key to the future joint growth and development of communities.
