Green game
For a former British world-class pentathlete, it must be very satisfying to now be running a company that is one of the core sponsors of this year's London Olympic Games.
"My first main career was as a sportsman, says Simon Baldry, md of Coca-Cola Enterprises (CCE). I was a modern pentathelete for many years albeit I only made it to world championships. I now finally get to go to the Olympic Games, which is quite exciting."
Baldry exudes the focus of a top-class athlete. A marketing man through and through before being elevated to general management, his sporting background has given him the drive and determination to win whatever the challenge. And he's certainly been faced with a few during his career.
He has been with CCE since October 2008. Before joining CCE, he was md of Cadbury Schweppes in Great Britain & Ireland and, before that, he was responsible for developing the Cadbury brands and businesses in Eastern Europe, where he was based for 10 years. In all, he's been in the food and drink industry for around 25 years working around the world, with stints in Russia, Poland and America.
He studied management science at Loughborough University, although he's quick to stress that it was the four-year sandwich course that attracted him rather than Loughborough's international reputation in sport. He spent his business placement at the Disney Corporation in Florida, which no doubt helped hone a belief that business should be fun.
But it was his experiences in Eastern Europe that really tested his mettle. First there was a business start-up in Russia. That included the time during the August 1998 financial crisis that saw the Ruble devalued by 78% overnight. He had to convince the Cadbury Board that it was better to pay the local staff in kind rather in cash.
"That was probably one of the most challenging moments," says Baldry. "When you go into a factory and tell people you are going to pay them in kind. And you get a sigh of relief because they have actually got a job as a result of it rather than the manufacturer pulling out."
Needless to say, selling this idea to the Cadbury Board was "a tough conversation", remarks Baldry. But he succeeded, which probably marked him out as a problem solver. The job not only presented him with the challenge of starting a business from scratch, but in ensuring the new team were properly trained in the skills necessary to run a sustainable firm.
It's all about the people, he says. "How do you get the most out of people? How do you understand people's needs? That has always been part of what, to me, is day-to-day management."
In Poland he was presented with a completely different challenge of a business turnaround that involved bringing the workforces from two competing companies together and convincing them to accept a single common vision and strategy. Once again, Baldry demonstrated his ability to think laterally when circumstances demanded. Rather than building the Cadbury brand in Poland as originally planned, he used Cadbury's expertise to grow the iconic Wedel brand that had been acquired, since he identified that this offered the greatest potential.
Hurdles along the track
The challenges Baldry faces today while quite different are no less taxing. For CCE, which is the UK's biggest soft drinks supplier, it's all about driving growth but sustainably. Sustainability is a term that Baldry returns to time and again. And it's not just 'corporate speak', he really believes it is the only way for the company to navigate the turbulent waters that lie ahead. As part of CCE's sustainability strategy, it has set seven targets to be achieved by 2020. Among others, they include initiatives to reduce greenhouse gas emissions, water footprint and increase the sustainability of its packaging.
"We want to create a low-carbon, zero waste business," he says. "And we want to ensure that we take leadership in how we drive a sustainable tomorrow."
CCE intends to use the Olympics to showcase its environmental credentials. "As a result of the games we have chosen to put 22.5% plant PET [polyethylene terephthalate] into our Coke bottles. That is PET made from sugar cane renewable sources. But also, come Games time, we will put 25% recycled PET into a Coke bottle through the investment we have made up at Continuum Recycling. So it will actually be one of the most sustainable bottles we have ever put onto the marketplace."
While Baldry might have the luxury of leading a business that is operating in a sector with "a headroom for growth of £1.4bn", he recognises that it will have to be growth that accommodates societal change. Change is inevitable, both in the lifestyle and tastes of CCE's consumers, as well as the climate it has to work within economically and environmentally. "We have been working with our retail partners to unlock that growth," he says.
The third important challenge will be to continue building and investing in CCE's manufacturing platform in the UK. This would be helped by government doing more to recognise and support food and drink manufacturers like CCE in achieving their growth goals, says Baldry. "We have not focused as a nation as much behind our indigenous manufacturing base as I would like us to," he says.
An area he recognises as crucial is having the right pool of talent to draw on. CCE has put its money where its mouth is in this respect by investing in a number of new education centres at its factories. These show the local communities in which CCE operates the career opportunities which are available. "That is all part of how we become sustainable within the communities in which we operate," say Baldry.
Health and nutrition
So, how does Baldry respond to critics of companies such as his own? Some claim they are helping to fuel the nation's obesity epidemic through extensive advertising, sponsorship of events such as the Olympics and generally promoting a fast food culture.
"What we are trying to do within CCE within the Coca-Cola system is first and foremost to ensure that if you want to enjoy one of our brands there is a zero-calorie or low-calorie alternative you can choose," says Baldry. "As far as Coke is concerned, we have one of the highest levels of zero-calorie products across Europe. So 46% of our total portfolio is zero calorie, through Zero and Light."
Baldry also points to the extensive support that CCE is giving to organisations that are encouraging young people from disadvantaged backgrounds to adopt active lifestyles such as the charity Street Games as part of its Olympic sponsorship.
He will never convince all of Coke's critics that it is actually a positive force for change, but the company does have a bloody good story to tell not least in its support for the Olympic Games, which has been ongoing since 1928.
As the clock in CCE's Hammersmith offices counts down to the start of the 2012 London Olympic Games on July 27, Baldry is looking forward to a successful event, which he is confident will bring a record number of Gold medals for GB athletes. He is also confident it will leave a positive lasting legacy for the nation in many more ways too. Let's hope he is right.
