Progress Update

September 2012

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Table of Contents

The Case for Empowerment

5by20 and Our Value Chain

Breaking Down Barriers

Global Reach

Market Focus: Brazil

Market Focus: South Africa

Market Focus: India

Market Focus: The Philippines

Spotlight on Agriculture in Africa

Spotlight on Micro Distribution Centers

Scaling for Success

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The Case for Empowerment

At The Coca-Cola Company, we believe women are a powerful but undervalued economic force. Women control $20 trillion in spending globally and studies show they devote more of their earned income to food, education and healthcare for their children and their families.1 Additionally, studies from the World Economic Forum show a strong correlation between an increase in gender equality and an increase in per capita gross domestic product.2 Investing in women can strengthen entire communities and bolster local economies.

The Coca-Cola Company and global leaders from business, government and civil society are committed to investing in women to spur economic development and to unleash untapped potential.

“Now more than ever, the world needs to unleash women’s talent and energy if we are to make our economies and societies stronger. Companies like The Coca-Cola Company are realizing that investing in women is an essential ingredient in the formula for success…

We can no longer afford to waste the potential of half the world’s population. It is both a matter of justice as well as good business and economic sense.”

Michelle Bachelet, Executive Director, UN Women

“It’s not just enough to say that gender equality is a moral challenge and we have to fix it. You also have to recognize that the economy plays a huge role and economic empowerment plays a huge role. If you’re not using half the potential workforce in your country, how can you possibly reach the full potential of your economic growth?”

Sheryl WuDunn, Half the Sky: Turning Oppression into Opportunity for Women Worldwide

“There is a mountain of research today that is coming from all sources – multilateral organizations, governments, private sector, think tanks, academia – and they’re all essentially pointing in the same direction. When there are investments made in women and girls, those investments have enormous payoffs.”

Melanne Verveer, U.S. Ambassador-at-Large, Global Women’s Issues

1 Sayre, Kate, Silverstein, Michael. Women Want More (HarperCollins, 2009). 2 The World Bank, “2012 World Development Report on Gender Equality and Development.” 

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5by20 and Our Value Chain

The Coca-Cola Company’s 5by20 initiative will enable the economic empowerment of 5 million women entrepreneurs across the Company’s global value chain by the year 2020. By collaborating with non-governmental organizations (NGOs), governments and businesses, we will break down the economic and social barriers that can prevent women’s success in business. We will provide business skills training, access to financial assets and services, and linkages to networks of peers and mentors. By helping women grow their businesses across our value chain, these women will in turn help to grow our own business as well as their communities. From producers to artisans, 5by20 will reach women across our value chain, as described below:

Growing fruit, sugar, coffee, tea and other agricultural ingredients, producers

represent the first step in our global business.

suppliers

distributors

retailers

recyclers

artisans

Suppliers are partners who provide our business system with ingredients, packaging, machinery, as well as goods and services.

Distributors deliver our beverages from our bottling partners to our retailers every day, bringing Coca-Cola’s global brand to local communities.

From hand carts to large convenience stores, retailers place our products directly into the hands of the consumer.

Collecting, sorting and trading used packaging, recyclers earn a living and help to bring our product life-cycle full circle.

Artisans transform packaging into artistic items of value that help drive family income and local economies.

producers

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Breaking Down Barriers

The women we reach through 5by20 exemplify the spirit of entrepreneurship – they are creative, determined and optimistic. But we have found that across our global value chain, they face common barriers to business success. Since 5by20’s inception in late 2010, we have worked with our partners to develop and implement programs that address these barriers. We focus on providing three critical enablers of economic empowerment:

Business Skills Training

Financial Services and Assets

Peer Networks and Mentoring

By increasing access to these foundations of economic empowerment, we have seen that women entrepreneurs gain confidence, see improved business results and many become viewed as leaders amongst their peers and in their communities.

Measuring ProgressWe are committed to measuring and reporting on our progress in a credible and transparent manner. We will seek to understand the impact of our investments on individual women and their businesses and on communities and our business more broadly by:

Measuring our progress is critical to ensuring that we can effectively scale up our work over time to reach our ambitious goal. Together with our partners, we will seek to replicate and build on our successes as we learn more about the most impactful, scalable and cost-effective approaches to economic empowerment.

Tracking progress toward our goal by counting each woman who participates in an enabling program.

Measuring the long-term impact of a cross-sample of programs on participating women, their families, their communities and on our business.

Partnering with respected third parties on independent, in-depth studies of program progress, effectiveness and scalability.

Impact

Insight

Track

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Global Reach

The Coca-Cola Company operates in more than 200 countries worldwide. Our focus in the first phase of 5by20 was to focus our efforts on four lead countries – Brazil, India, the Philippines and South Africa. We then expanded our reach in the program’s second phase to include China, Mexico, Nigeria, Kenya, Uganda, Haiti and Egypt. In the years ahead, we expect to reach every region of the globe as our program grows exponentially.

Working in CollaborationPartnerships are critical to 5by20’s success. When business, government and civil society come together we can bring to life creative solutions to the world’s most intractable problems. Women’s economic empowerment is no exception. Our partners provide essential insights and innovation on development that work in powerful synergy with our business experience and footprint. Together, we have the potential to bring these solutions to scale around the world. Our valued partners include:

Phase One

Phase Two

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Coletivo 1st Job teaches retailing skills to young adults living in low-income communities and has reached more than 25,000 young adults to date, 66 percent of whom are women. Students have also developed business plans for 6,000 small outlets. After the two-month program, 30 percent of graduates get a job through our retail customers.

Coletivo Business teaches female heads of household how to open a formalized individual business, giving them training in management, pricing and retail concepts.

Market Focus: Brazil

In low-income communities of Brazil, many women have the ambition and desire to get a formal job or start their own business, but lack the business skills to get it off the ground. The Coca-Cola Company launched the Coletivo program – which means “collective” in Portuguese – as a means of helping women in the region become entrepreneurial leaders while also promoting local economic stability. Coletivo, which offers business and retail training, has grown from five programs to 136 programs across Brazil. The program features several focus areas that directly connect with our value chain.

Coletivo Recycling supports recycling cooperatives by investing in materials, infrastructure and specific skills which will allow cooperatives to increase efficiency and sustainability.

Coletivo Arts provides small groups of artisans access to design skills to help them develop a range of handcrafted items made from recycled beverage container materials. Since the beginning of the program, the income of participating women has increased by 50 percent.

ASTA & Coletivo ASTA ASTA was established in 2008 as the first direct selling network of inclusive products in Brazil. Local artisans create products like jewelry, fabrics and other accessories and sell them throughout the nation. Today, there are over 650 retailers selling work from about 600 artisans. Ninety-seven percent of these artisans are women. Coletivo is now partnering with ASTA to enhance their distribution models, helping to expand ASTA’s reach in Brazil and empowering more women entrepreneurs in the process.

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Local Profile: Brazil

Zilda Bareto

“I don’t think happiness is something you find. You make your own happiness.”

Zilda Bareto’s neighborhood in Rio de Janeiro is constantly bustling as residents crowd the narrow streets on their way to work, the market or their homes. Zilda, and thousands of others who live in the favelas, or shantytowns, live in densely populated communities with limited access to resources and conventional modes of transportation. Even the recycling trucks that service the rest of the city cannot fit on the narrow, steep streets of Zilda’s neighborhood, causing trash and recyclables to pile up in plain view.

But where others saw a problem, Zilda saw an opportunity. Ten years ago, she was struggling to find work and lived in a makeshift home with her son and husband. Zilda knew she needed to generate an income if she wanted to provide her son with opportunities that she never had. Inspired by a television program on recycling collectors, Zilda was soon traversing the streets of her favela to pick up bottles, cans and other recyclables that she could trade for a small sum at her local cooperative. But Zilda didn’t stop there. She identified a need in her community and was soon recruiting other women in her favela to join her. Today, 28 people work at her cooperative.

Without proper transport Zilda and her team still faced the challenge of efficiently gathering the recyclables that would normally litter the streets. In 2011, the Coca-Cola Brazil Institute partnered with Zilda’s cooperative to provide business skills training and coaching and also provided a custom-made motorbike and trailer to help them navigate the narrow streets. For Zilda and the others working at her cooperative, the motorbike has allowed them to gather more recyclables in less time and the trainings have streamlining their processes, making it more likely for their cooperative to gain increased funding from the city government.

In an area where getting from one place to another can be especially difficult, the motorbike is helping bring Zilda and her family up out of poverty and onto a more solid financial foundation. With the consistent source of income that collecting recyclables brings, Zilda can provide for her family and know that she is helping to protect the earth and improve her community.

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Market Focus: South Africa

In South Africa, where unemployment among women is nearly 27 percent,1 many women are entrepreneurs out of necessity. Despite the difficulties of launching a new business, these women strive to earn a living to support their families. But most of them lack access to business training that could help them drive revenue and growth for their businesses. The Coca-Cola Company is working with its partner in South Africa to develop training and classes that focus on the specific issues affecting South African women entrepreneurs.

Access to an Inclusive Business Model Our goal is to focus on helping women entrepreneurs sell our beverages more effectively by providing them with collective empowerment solutions that help them grow their business over time. Elements include:

�•���Remote�wireless�technology�and�cashless�trading�helps�women�to�market their products

�•���Solar�electricity�supplies�help�store�owners�stay�open�longer�and�keep�beverages cool

•���Training�programs,�created�in�conjunction�with�our�bottling�partners,�help�provide women with the knowledge and business savvy they need to succeed

•���Networking�opportunities�offer�women�a�chance�to�connect�with�other�entrepreneurs, helping to eliminate middlemen and improve their bottom line

To date, our original program participants have seen an average monthly income increase of 4 times their previous income. Additionally, 50 percent of participants have acquired a second business where they are employing more people and sharing their knowledge. Some of these women are even serving as consultants to other businesses.

1 “Decent Work Country Profile of South Africa,” International Labor Office, 2011.

Women’s Empowerment Training Program The program aims to empower women within The Coca-Cola Company’s distribution and retail network with skills in technology, finance, trading and networking via classroom and field exercises. Trained through programs created in partnership with the University of Pretoria, the first class of participants graduated in October 2011 and will receive continual support from our teams in the field, including refresher courses on new promotions that can help them more efficiently run their businesses.

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Local Profile: South Africa

Malehlohonolo Moleko“As women, I think that we should learn to stand for ourselves, learn things for ourselves and not expect husbands or boyfriends to support us financially.”

Malehlohonolo Moleko lives in the busy factory town of Vander Bjilpark, South Africa, where hungry factory workers are a constant fixture of her community. Every morning, she gets up at 3:30 am to prepare breakfast, which the employees purchase on their way to work. Her small business began as a bakery, a lifelong passion that Malehlohonolo turned into source of income so she could help support her family and pay for her son’s education. The bakery quickly grew popular and now she serves full meals, including her famous beef stew.

However, the road to success hasn’t been an easy one; at times, her business had trouble staying profitable, she lacked an efficient system for restocking her supplies, and the day-to-day expenses of supporting a family were often overwhelming. Malehlohonolo knew she needed a more efficient way to manage her business and her expenses – what she was missing were the specific business skills that would help her achieve this.

The Coca-Cola Company organized a skills workshop for the women business leaders around her town. At this training, Malehlohonolo learned how to balance budgets, stock inventory and ultimately how to increase her business’ revenue. The workshops changed the way she ran her business and she has since seen her income triple.

In addition to workshops, The Coca-Cola Company helped Malehlohonolo expand her business by providing a kiosk – a portable container store from which she can sell a variety of basic goods. The kiosk also has a public phone and charging station, enabling her business to be an integral part of the local community and a natural place for local residents to congregate and connect with the world.

Today, Malehlohonolo’s goal is to see her son graduate from business school – a dream that is now possible due to the success of her business, which will pay his tuition. She also wants to purchase her own house and continue to build her business. “Things are really looking good,” she says confidently.

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Market Focus: India

Women across India face the challenge of building their business capability amidst inconsistent access to resources. India’s high population density presents a unique challenge that requires innovative solutions that can be easily scaled. The Coca-Cola Company is piloting several initiatives aimed at making sure resources are more readily available and that entrepreneurial women have the tools and know-how they need to succeed in business. Each of these programs is scaling up to reach more women entrepreneurs:

eKOCool In Agra, India, where electricity is often intermittent, the “eKOCool” coolers are powered exclusively by solar energy, allowing retailers to sell chilled beverages without ice or electricity. But the coolers also provide charging ports for mobile phones and solar lanterns, allowing the owners to keep their stores open even after the sun sets and helping to ensure the economic and social sustainability of remote village communities.led by Coca-Cola certified trainers.

Project Unnati Mango farming can be a difficult way to make a living. By enabling the adoption of Ultra High Density Farming (UDHP) techniques which allow mango farmers to plant more trees in less space, combined with a drip irrigation system, Project Unnati helps farmers double their crop yield and also their income. Over the next five years, Project Unnati aims to reach out to 50,000 farmers, 20 percent of whom will be women.

Parivartan By providing training in mobile classrooms that travel throughout rural India, “Parivartan” or “positive change,” equips shop owners and local entrepreneurs with the skills required to succeed in India’s evolving retail landscape. In each city, traditional retailers gather together to learn about ways to more efficiently manage their shops, stocks, customers and finances. Offered in 14 languages, the workshops are

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Local Profile: India

Preeti Gupta

“The most important moment in my life was when I started my own shop.”

Preeti Gupta lives in rural India, 15 km outside the city of Agra, where the dusty roads of her village are filled with children playing, horses pulling bullock carts and motorbikes zipping by. Over the years, she and her family have been without power for days at a time with no warning, as electricity in the area is very limited and undependable.

Like many women in her village, Preeti was expected to remain at home and care for her family after having children. But, Preeti was determined to give her children a chance at a better life. She needed to generate additional income to support these dreams, so she and her husband took out loans to open a small shop in their living room where today she sells grains, snacks and beverages as well as many other household goods. Living and working with only intermittent electricity proved challenging, but the recent addition of a solar-powered cooler provided by The Coca-Cola Company has begun to change Preeti and her family’s lives.

How exactly can a cooler have such an impact? The device chills two cases of beverages at a time and also has outside ports to charge a solar lantern and a mobile phone, forming a literal line to the outside in developing nations and rural communities. Now, Preeti can offer her customers cold beverages – a bit of a novelty to a community “off the grid” – and she can keep her shop open after the sun sets and the other shops have closed. Perhaps the most important benefit is that her children can study at night as they pursue an education and a better life.

In Preeti’s case, something as simple as a beverage cooler is making dreams a reality. Income and quality of life for Preeti and her family have increased since getting the cooler, with Coca-Cola beverage sales providing approximately 15-20 percent of their earnings depending on season. This income means Preeti can invest in needs many others consider basic: healthcare for her family and an education for her children. They now have an opportunity to get ahead.

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Market Focus: The Philippines

In the Philippines, approximately 86 percent of the retail shops, or “sari-sari stores,” that we do business with are owned and operated by women. Their stores are a vital aspect of the Philippine economy, but many of the women owners have had no training to help them make the most of their businesses. The Coca-Cola Company is working with the Philippine government through the Technical Education and Skills Development Authority (TESDA) to provide new learning and networking opportunities that will help drive growth for women sari-sari store owners throughout the country.

TESDA is a Philippine government agency mandated to create policies, programs and standards that foster quality technical education and skills development. In an innovative partnership, TESDA and The Coca-Cola Company are implementing a comprehensive entrepreneurship training program.

The women sari-sari store owners in the Philippines are already driven entrepreneurs, many of whom open their businesses out of their own homes. Coca-Cola first worked with TESDA to offer business training to 300 women, helping enhance TESDA’s course curriculum with our own knowledge of entrepreneurial training, making the curriculum competency-based, gender-sensitive and customized for small retail stores.

In May 2012, we signed a partnership with TESDA that is expanding the training nationwide with the intent of empowering 100,000 women entrepreneurs by 2020. The program provides training in entrepreneurship, retail management, accessing financial and merchandising assistance, and gender-based values.

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Local Profile: The Philippines

Teresita Antonio

“What men can do, women can also do, because women have the power.”

Teresita Antonio still gets teary-eyed when she recalls her old life. Living off the minimal earnings her husband collected as a seasonal carpenter in Palawan, the Philippines, she and her husband struggled to provide for their family, especially when her husband searched for work. But Teresita knew that she needed to keep a level head and find a more consistent source of income if she wanted to make her family’s life easier.

So Teresita took matters into her own hands and decided to open a sari-sari store – a convenience store – near their home. Lacking start-up capital, she pawned a bracelet passed down to her from her father and used the proceeds to purchase the first products for her store. Soon Teresita was selling basic goods, like refreshments and snacks, to her local community, but she still lacked formalized education on how to run a business and improve her bottom line.

The Coca-Cola Company reached out to Teresita to offer her a position as one of the first 1,000 women to participate in the 5by20 pilot program in Palawan. Together with other women small business owners, she learned how to monitor sales and efficiently use rising income to expand her business. Through focused group discussions, Teresita and these women also exchanged best practices and effective strategies to promote success. Additionally, Teresita participates in regular peer mentoring and business skills trainings with her local Coca-Cola representative.

Today, Teresita’s sales are soaring and she spends her profit on reinvesting in more products to increase store growth. She is using tactics and strategies she learned through 5by20, as well as a cooler donated by The Coca-Cola Company, to drive her success. Teresita can now help support her family and share her knowledge with other women in her community. And her hard work has not gone without some reward – she was eventually able to track down and buy back the bracelet she sold to launch her store. Now Teresita is looking forward to a brighter future with her family.

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Spotlight on Agriculture in Africa

Africa’s economy and its future hinges on its success in agriculture. More than 70 percent of Africa’s poor are engaged in farming as their sole source of income.1 5by20 is working to empower the women farmers who grow ingredients for our beverages. Together, the Bill & Melinda Gates Foundation and The Coca-Cola Company are aiming to empower 50,000 smallholder fruit farmers in Kenya and Uganda by 2014. This $11.5 million partnership, implemented by TechnoServe, is designed to double the farm income of these mango and passion fruit farmers by providing them with training on farm productivity and agronomy, and by providing them with access to a market for their fruits. By 2011, almost 40,000 farmers had been trained, 17,000 of whom were women. Today, fruit grown by participating farmers is processed locally into juice and sold to local consumers through Coca-Cola’s Minute Maid brands, linking small farmers and consumer brands in a transformative way.

MARGARET NJERI, also known as “Mama Njeri,” owns a 25-acre farm in Kenya that produces mangoes and other crops. Like many small farmers, Mama Njeri and her family have struggled to find a steady supply of buyers who are willing to pay a fair price for their produce.

Area farmers often lack access to financing and agricultural best practices, while a lack of infrastructure and fragmented supply chain makes it difficult to maintain a reliable supply of high-quality, locally-produced fruit that can be easily distributed. But thanks to Project Nurture, farmers receive access to financial services and training in sustainable farming including crop husbandry, agronomic practices, record keeping, negotiating skills, marketing and group governance to help them form coops that can work together to sell and distribute their products.

Today, Mama Njeri is a member of Karima Fruit Growers producer business group (PBG). Project Nurture has linked her to East African Growers (a local exporter), juice processors and traders from Kenyan markets who purchase her mangoes regularly at competitive prices. Local farmers now leverage their collective bargaining power and economies of scale, increasing incomes and quality of life across the region. Mama also uses her farm to train her neighbors, demonstrating good agricultural practices—and serving as an example to women everywhere.

ALICE KARIUKI, a mother of three, is the elected chairlady of the Maji Kiboko farmer group, Alice trains other members on mango nutrition, crop protocol and the necessities of crop protection.

TechnoServe and The Coca-Cola Company also provided her group with important information regarding pest and disease control and connected Alice with pesticide producers so that farmers in her region can source the pesticides as a group, thereby reducing costs. Under Alice’s leadership, the Maji Kiboko group has increased its membership and the volume of mangoes sent to market. She takes pride in the changes she’s seen around her, especially in the opportunities she is helping to provide to the young women in her community.

Local Profiles

1 The World Bank http://go.worldbank.org/WH2MXLDZH0

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Spotlight on Micro Distribution Centers

A significant component of the Company’s growth by 2020 will be derived through small retailers in emerging and developing markets, many of them owned by women. Our micro distribution centers (MDCs) are small, independently owned distributors who deliver our beverages to local retailers and help us to do business in hard-to-reach communities. 5by20’s innovative, experiential training program builds business, entrepreneurial and life skills, and helps the MDC owners get their businesses off the ground and thriving.

In Africa, more than 3,400 of these small MDC businesses employ over 19,000 people directly. More than 800 MDCs are owned by women and an additional 850 are co-owned by women. These numbers are growing rapidly in North and West Africa, and particularly in Nigeria and Ghana, where over 70 percent of the micro distributors are owned by women. And since 2009, more than 50 percent of all new MDCs created are owned and run by women.

ROSEMARY NJERI originally launched her distribution business as a way of helping her husband and supporting her family. She started very small, but little by little her business began to grow and her turnover increased.

With the support of The Coca-Cola Company, Rosemary has received training on stock keeping, book keeping and IT, and the local Coca-Cola bottling partner has provided assets such as equipment and signage as well as management training. As a result, Rosemary’s distribution center is now a thriving business and is the second largest of the 37 centers that Coca-Cola supports in the urban region of Nairobi.

Rosemary’s business has grown through her enthusiasm, hands-on approach and determination, and she has increased the number of her employees from two people to 16, including members of her family. She has also started a group of women distributors who meet regularly to discuss the issues that they face as businesswomen and to encourage and support one another.

Local Profiles

Bottling Facility Micro Distribution Center Local Retailers Consumers

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Scaling for Success

In the two years since 5by20’s inception, we have focused on having a positive impact while also building momentum, learning about what works and identifying programs to take to scale. We have reached more than 131,000 women to date and we aim to reach 300,000 by the end of 2012.

As we continue to measure and evaluate success, we will gain broader insight into the effects of 5by20 on women’s incomes, careers, families and communities. We already know that women are tremendous force multipliers – they disproportionately reinvest in their families and local communities. Through this multiplier effect, our hope is that our investment will have an even broader impact.

Around the globe, the women we are reaching through 5by20 inspire us every day. Bolstered by their success, we are inspired to continue on this journey toward our goal of enabling the economic empowerment of five million women worldwide.

4 Countries 8-15 Countries 20-30 Countries 50-80 Countries 100 Countries

300,000

1.5 Million

3.4 Million

5 Million

131,000

2013-15

2016-19

2012

2011

2020

Insights & Learning Validation Best Practice Scale Up

*The above forward-looking numbers represent our intentions and projections, not actual performance or achievement which may be affected by many factors.

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“I feel good that I am running this shop along with my husband. I have gained respect in my family. Now I desire for my children to go to a good school and make something of themselves.”

Preeti GuptaShop Keeper

India

“Coca-Cola organized a workshop for ladies who are in business. The most important things that I learned from the Coca-Cola workshops were managing my finances, making sure the customers are happy, and how to use my expertise to run the business.”

Malehlohonolo MolekoBakery & Shop Keeper

South Africa

“I think if there were more women in the mango business, or in the farm business, they’d be able to raise healthy families. When a woman is empowered, the whole family is empowered.”

Alice KariukiMango Farmer

Kenya

“A mom, a wife, a recyclables collector, an environmental educator…I define myself as many parts…Strength. Courage. Determination. We have to be strong, believe, and always think positive.”

Zilda BaretoRecyclables Collector

Brazil“I am so inspired by the courage, drive and determination of the women whose lives have been transformed through participation in 5by20. They motivate me to work harder every day with our partners in business, government and civil society to break down the barriers they face to success.”

Charlotte OadesGlobal Director of Women’s Economic Empowerment

The Coca-Cola Company

“It feels so good to have my own business…It’s a big thing to help my husband earn for the family.”

Teresita AntonioShop Keeper

The Philippines