Sustainability Council member Paul Schnell of Coca-Cola Europacific Partners chatted to Shae Courtney, Coles Liquor Group National Quality and Sustainability Manager about Coles Liquor’s key priorities, challenges and opportunities in sustainability and the value of partnerships in delivering mutual objectives.
Driving innovation
When it comes to innovation, Shae argues that it comes back to the question of “how can we better serve our customers?” And he sees that the drinks industry is ripe with innovation, with brands and products that continue to challenge the status quo.
The trick, he admits, is creating products that excite customers while also delivering a sustainability benefit. It’s about hitting that sweet spot with a product that delivers from a commercial perspective, gives the customer something that they don’t already have and also helps to meet sustainability objectives.
“Look at the work we’ve done with Local Brewing Co. as an example,” he shares. “We’re taking surplus bread and fruit from our supermarket operations and creating a new, higher value product in the form of beer. The best innovation in sustainability brings together different and diverse groups to find opportunities to address existing challenges, such as surplus product, and turning it into a new product that offers the customer something unique.”
The key to successful partnerships
Shae explains that Coles Group is focused on investing in partnering with like-minded organisations – suppliers, third parties and not-for-profits – to help meet mutual obligations and targets.
“We know that we’re not the only business in the Australian market, or indeed globally, asking our suppliers to support us on key parts of sustainability,” he says. “So, how can we make that a more seamless process for suppliers? I think that’s really important in terms of the ease of doing business with us.”
Shae is no stranger to successful partnerships, recently announcing one with Lion and XXXX Tropical, following hot on the heels of a collaboration with Australian Vintage and Nepenthe Elevation. Whatever the drive behind a partnership or collaboration, Shae is clear that it must deliver.
“A partnership might be for a clear period of time, maybe just for the summer, or it could be something with a long-term focus,” he adds. “But partnership collaborations must really deliver on shared objectives, and in the case of every XXXX Tropical sale, it will benefit the Great Barrier Reef Foundation, with Lion’s $100,000 commitment to restore seagrass meadows that are critical to marine life.”
This is in addition to Coles Group’s ongoing engagement, which involves a $10 million donation to the Great Barrier Reef Foundation over a 10-year period.
Balancing sustainability with commercial objectives
At any time – but particularly so in the current economic climate – Shae shares that sustainability objectives must be balanced with commercial ones.
“We are in challenging economic times,” he explains. “The ability for customers to invest in sustainable products that may come at a premium is diminished. You need to look at how you can create a product that is appropriately priced, high-quality, supported by the right campaign and is, therefore, really attractive from a customer perspective.”
Shae sees this as a challenge for sustainability and cautions against products that lead with sustainability as the primary message.
“You really need to be looking at products that build sustainability into business as usual. That helps customers to understand that they’re getting something that is doing some good for the planet but also not hurting their hip pocket, for example the Nepenthe Elevation range that is exclusive to Coles Liquor.”
Starting the sustainability journey
For businesses in the early stages of their sustainability journey, Shae recommends first looking at what your customers require and what is right for your business.
“It’s really important to know where every customer and every supplier sits in the market and to know where they want to get to,” he explains. “If you’re looking at what changes can be made and what progress can be achieved, it’s important to anchor these to defined targets that are based on clear evidence, so baseline your key metrics and ensure progress is measurable over time.”
“Once you have your targets, even small changes that might seem relatively inconsequential, such as switching from a heavyweight bottle to a lightweight bottle or removing unnecessary packaging, can be significant, particularly at scale.”
“We think there is always more to do in this space and so that is a challenge for all of us,” he finishes. “To continue to step up and challenge the status quo, and to look at opportunities that really deliver for the customer but also look at opportunities that deliver on our commitment to the planet as well.