Coca-Cola & Partners Launch Sustainable Venture Fund

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by KnowESG,

Coca-Cola

KnowESG_Coca-Cola's partnership creates sustainability venture capital fund
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The Coca-Cola Company and its global bottling partners have announced the successful closure of a new venture capital fund worth $137.7 million with a strong focus on sustainability investments.

Leading seed-to-growth venture capital firm Greycroft has been selected to manage the Greycroft Coca-Cola System Sustainability Fund. This marks a significant milestone for Greycroft, as the fund represents its first venture of this kind. Greycroft typically invests in enterprise and consumer solutions across various industries and stages of development.

The key priority of the fund will be to address the carbon footprint of the Coca-Cola system. To achieve this, it will initially concentrate on five vital areas:

  1. Packaging

  2. Heating and cooling

  3. Facility decarbonisation

  4. Distribution

  5. Supply chain

John Murphy, President and Chief Financial Officer of The Coca-Cola Company, expressed enthusiasm for the opportunities this fund presents. He stated that it would allow for the exploration of innovative solutions and their rapid implementation within the Coca-Cola system and the wider industry. Access to emerging technologies and scientific advancements related to sustainability and carbon reduction is expected to greatly benefit the company.

The fund's objective is to invest in companies at the stage of commercialisation. Collaborating with the Coca-Cola system offers Greycroft a compelling opportunity to scale innovations alongside some of the world's leading bottling operations.

Dana Settle, Co-Founder and Managing Partner of Greycroft, highlighted the growing market for sustainable supply chain and manufacturing technology. As consumer brands strive to meet the demands of environmentally conscious customers, the potential for startups with climate tech solutions ready to scale has increased. Greycroft's versatile "invest anywhere" approach positions the firm to identify promising ventures in this field.

The $137.7 million capital for the fund primarily originates from committed investments of $15 million from each of the following companies:

  • The Coca-Cola Company

  • Arca Continental

  • Coca-Cola Bottling Co. UNITED

  • Coca-Cola Consolidated

  • Coca-Cola Europacific Partners

  • Coca-Cola FEMSA

  • Coca-Cola HBC

  • Reyes Coca-Cola Bottling

  • Swire Coca-Cola

Together, these bottlers represent nearly half of the volume of the Coca-Cola system worldwide.

The Coca-Cola system has a longstanding commitment to sustainability-focused projects that address global challenges. Notable investments include:

  • In Latin America, The Coca-Cola Company and Arca Continental have invested in PetStar, a leading recycled PET processing company. Coca-Cola FEMSA has also invested in IMER and a high-tech PET recycling plant called PLANETA.

  • In the Philippines, Coca-Cola Beverages Philippines and Indorama Ventures have invested in PETValue, the country's largest PET recycling plant.

  • In Indonesia, Coca-Cola Europacific Partners and Dynapack have invested in the Amandina PET recycled content production facility. Additionally, in Australia, a cross-industry partnership involving Cleanaway, Asahi Beverages, Pact Group, and CCEP has invested in PET plastic recycling and production facilities.

  • In Europe, The Coca-Cola Company has provided a loan to Ioniqa, supporting the development of technology capable of transforming mixed-color, partly contaminated PET waste into clear, food-grade PET.

  • CCEP Ventures, a branch of CCEP, has invested in CuRe Technology, a recycling start-up utilising polyester rejuvenation. This innovative process targets plastics that cannot be recycled through mechanical means and prevents them from being incinerated, downcycled, or sent to landfills.

  • Coca-Cola HBC has invested in in-house rPET production in Italy, Poland, and Romania. Furthermore, plans are in place to transition to 100% rPET portfolios in Switzerland, Italy, and Austria, with similar initiatives scheduled for Romania and the Island of Ireland later this year.

  • Several bottlers within the system, including Arca Continental, Coca-Cola FEMSA, and Coca-Cola HBC, have issued green bonds to support sustainability-focused initiatives.

  • Swire Coca-Cola has played a pivotal role in establishing the first food-grade ready plastic recycling facility in Hong Kong.

For further insights into sustainability efforts at The Coca-Cola Company, visit their official website: https://www.coca-colacompany.com/reports/business-and-sustainability-report.

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Source: Business Wire

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