Coca-Cola Starts "Give It Back" Program, Asks Retailers To G

Financial News Network
April 14, 2011 AT 8:16 PM
Coca-Cola (NYSE:KO), continuing its efforts as a global leader in sustainability, has taken the unusual step of asking U.S. retailers to give back the shelves that hold Coca-Cola products.Coca-Cola is developing a family of 100% recyclable merchandise display racks for use in grocery and convenience stores in the U.S. The first "Give It Back" racks are freestanding units made of easily recyclable corrugated cardboard.The racks are the first step toward a comprehensive closed-loop retail equipment program where Coca-Cola creates recyclable in-store merchandise racks and then recovers, reuses andor recycles the displays, a first in the industry.Gary Wygant, vice president of business development, Coca-Cola Recycling said, "Coca-Cola recovered 400 million pounds of cans and bottles in the U.S. in 2010, yet we want to do more. By creating a 100 percent recyclable merchandise display rack, Coca-Cola is asking grocery and convenience stores to join our sustainability efforts by returning or recycling our racks, just like we ask consumers to return or recycle our product packaging."The racks are being initially tested in select markets, and are expected to become widely available late this year.Bruce Karas, director of sustainability and environment, Coca-Cola Refreshments said, "Sustainability is core to our business, so we want to demonstrate this commitment to our customers and consumers at every level. These new racks are a great example of how we can find innovative ways to make our equipment both sustainable and part of the shopping experience. With the Give It Back rack, we're helping people feel good about their purchasing decisions as we work toward our overall sustainability goals."Shares of Coca-Cola are trading up 1.32% at $68.17.Coca-Cola has a potential upside of 5.6% based on a current price of $68.17 and an average consensus analyst price target of $72.