Striking a balance

Coca-Cola Europacific Partners

Coca-Cola Europacific Partners’ Sam Jones says regulation shouldn’t stifle growth or innovation

With the SNP Government retaining power in Holyrood and Andy Burnham having begun his tenure as PM at Westminster, we are in a political period defined by new regulatory ambition and persistent economic uncertainty. With businesses facing the prospect of additional rules in already highly regulated environments, it’s no surprise many are paying close attention to how decision makers approach the next phase of policy.

Reflecting a cautious optimism, Sam Jones sees the policy landscape evolving in key areas such as public health regulation, environmental reform and regional economic development. However, the Director, Sustainability and Policy at Coca-Cola Europacific Partners Great Britain (CCEP), the UK-based multinational bottling company, believes changes must be measured, evidence-based and mindful of consequences in order to be effective.

He points to the ongoing political focus on public health, particularly around obesity and diet-related illness, as an example. Here he believes there is a case for caution around further regulatory change at this stage, particularly the proposed updates to the Nutrient Profiling Model (NPM) – from the 2004 system to a 2018 framework to determine whether products are classified as High in Fat, Salt, and Sugar (HFSS). The UK Government published its updated NPM in January and ran a public consultation, ending in June, to apply it to existing HFSS rules.

“It’s difficult to envisage a strong case for changes on health,” Jones says, “whilst there are ongoing discussions around changes to the NPM. Remember, this underpins the HFSS regulations across a range of sectors – not only in soft drinks, but manufacturing of biscuits, sweets and confectionery. So, it is a complex area, there are significant costs associated with making changes, and measuring the resulting health outcomes won’t be straightforward. 

“There is a question over whether further regulation at this stage would deliver clear benefits to justify additional complexity. Government may look at it and think: ‘Actually, we also need these businesses to be investing, growing and creating jobs, so any further regulatory changes need to be proportionate and well supported by the evidence.’

There are significant costs associated with making changes, and measuring the resulting health outcomes won’t be straightforward

“Certainly, there are concerns across categories in retail about how workable the proposals would be in practice. There is still some uncertainty, for example, around how the 2018 model would be applied, while products such as yoghurts and smoothies and fruit juices could potentially fall within HFSS classification. Many consumers regard a bottle of apple juice, a berry smoothie or a fruit yoghurt as part of a healthy diet, so there is a risk that changes to their classification could create some uncertainty. 

“Consumers may understandably ask what those changes mean for the choices they make, so communicating the rationale clearly will be important. Moreover, we know educating people about healthy diets is a long-term strategy.” 

Underlying his caution is a broader point: public health outcomes can take years, if not decades, to measure effectively. In his view,  frequent changes to regulatory frameworks over short periods of time can risk undermining compliance efforts for businesses and long-term evaluation.

Jones notes: “Scotland is a good example. If the underpinning model is changed after a relatively short period of time, it becomes more difficult to assess how well the original approach is working. There is an argument for giving the existing framework sufficient time to demonstrate its impact before making further changes.”

If alterations to health policy seem tentative, Jones is encouraged by the fact the UK’s Deposit Return Scheme (DRS), by contrast, is a picture of relative policy stability. Here, CCEP is proactively helping its customers and partners prepare for the change – designed to encourage recycling by placing a small deposit on drinks containers – so they can navigate the transition with confidence.

“I don’t think we would expect any change in this area. DRS is funded by industry for industry and it’s in a fantastic state of progression across Scotland, Northern Ireland and England – and we remain optimistic of delivering a four nations scheme with Wales as well.”

“The official operator, Exchange For Change, are doing a fantastic job. In many ways, they are building the track while driving the train. They’re meeting the deadlines, they’re succeeding with output deliverables, machine specifications, transition plan timings, return handling fees... Exchange For Change are hitting their schedule. It’s unbelievable!”

As DRS efforts have shifted from planning to full-scale implementation support, the focus has moved to ensuring businesses understand and can comply with new requirements. This includes providing guidance on machine specifications for reverse vending systems, updates to barcoding processes, and practical advice on day-to-day operations. For many retailers and hospitality operators, this level of support will be critical. 

The potential rewards are significant. According to Defra, the scheme could bring £10bn in external investment over the next 10 years and generate 4,000 jobs. The real challenge, however, lies in scale. Reaching thousands of smaller retailers remains a logistical hurdle, though Exchange for Change and industry bodies are ramping up efforts to ensure no one is left behind.

“There’s a huge amount of work CCEP are doing, too. There is still quite a lot of the key information to call – with elements such as material specifications, barcode changes, invoicing – but what was a trickle is now a torrent of ongoing conversations: we’re out there, having meetings and calls.

“With lots of our hospitality customers and high street customers, we’re talking them through international examples and how they work and trying to help them understand the business case. If you’re a convenience store, for example, what’s the business case for putting a machine in versus an exemption or manual handling? So, we’re right down to the local store level on lots of detail. 

“It’s literally impossible for us to go and have a conversation with everyone but we’ve done video messages, some brilliant online webinars. We’re always really careful, obviously, that we make sure our approach is complementary to Exchange For Change and not duplicative.”

Beyond environmental and health policies, there are signs Andy Burnham’s new government is shifting attention to economic revitalisation, particularly in the UK’s struggling high streets.

I think the area where we’d hope to see a bit more is on supporting hospitality in the high street

“I think the area where we’d hope to see a bit more is on supporting hospitality in the high street,” says Jones, “and the UK Government has already started to make announcements on supporting a really, really challenged sector.

“This plays into the new PM’s focus on localness: support for local pubs, local cafes, local restaurants, local bars, protecting them... listening to what people want their town centres to feel like on a Saturday night. At CCEP, we’re doing everything we can to support them as customers and it will remain a big priority for us for the next year.”

Beyond regulation and economics, there is also a recognition at CCEP of the role businesses continue to play in supporting local communities through job creation and retention. 

In Scotland, at its East Kilbride manufacturing site, investment in facilities, apprenticeships and workforce development programmes are a key part of CCEP’s overall strategy. As official Soft Drinks Provider to the Glasgow 2026 Commonwealth Games and Official Partner of Team Scotland, the site welcomed the King’s Baton Relay as part of its 23-day journey across Scotland.

Alongside apprenticeships and employee upskilling, technical innovation is vital too. CCEP recently introduced Spot, a robotic inspection dog, at its East Kilbride and Wakefield manufacturing sites, where it will support maintenance teams in monitoring almost 600 inspection points across seven production lines, collecting real-time data on equipment status without interrupting production.

Grassroot connections outside of the workplace are equally as important. For Coca-Cola and CCEP, this is reflected in a range of inclusive initiatives, including sponsorship of major sporting events such as the Fifa World Cup, the Glasgow 2026 Commonwealth Games and the Special Olympics National Summer Games. 

They also support grassroots environmental actions, such as river clean-ups, with 120 volunteers taking to the River Clyde in paddleboards and kayaks to help clear litter from the city’s waterway ahead of Glasgow 2026.

Following such a successful summer of sport, Jones is already looking ahead. “In terms of future policy the two core topics for us will always be consumer health and product packaging. However, a major topic we’d like to start engaging on a bit more is water.”

While current debate tends to focus on water quality and pollution, CCEP is joining a range of industry voices calling for a broader conversation about long-term supply. Jones believes the challenge is to move beyond short-term fixes and develop a coherent national strategy.
“We’ve all seen the front page headlines and documentaries around sewage and water quality and dumping.

“We talk about leaks but we don’t talk about reservoirs. In this sense, we don’t really talk about national infrastructure as a whole and, for instance, the advent of data centres that will require so much water for cooling. All of this is something we would really like to talk more about.”

Ultimately, few would argue that regulation, when done well, can drive innovation and deliver public benefit. However, today’s regulatory environment is one where momentum in areas such as environmental reform and local economic development is balanced by a need for stability, consistency and a commitment to evidence-based policymaking.

As the UK navigates the pressing challenges of economic recovery, climate change and ever-shifting political dynamics, striking that balance will be crucial. For Sam Jones and CCEP, the message is measured yet firm: progress is welcome but it must be grounded in reality.

This article is sponsored by Coca-Cola Europacific Partners

www.cocacolaep.com