Coke Goes "Green" with New Bottle

The Coca-Cola Company (KO - Analyst Report) has introduced a new plastic bottle which is partially made from renewable, recyclable, plant-based plastic. The PlantBottle™ is more environmentally-friendly version of the traditional petroleum-based PET plastic bottle. Ultimately, Coca-Cola hopes to have bottles that are 100% recyclable and renewable.

The PlantBottle™ is made from a blend of petroleum-based materials and up to 30% plant-based materials, which are derived from the by-products of sugar production, specifically sugar cane and molasses. Also, the manufacturing process using the plant-based materials reduces carbon emissions by up to 25% compared with the petroleum-based PET manufacturing process.

Coca-Cola North America will pilot the introduction of the "PlantBottle™" with Dasani and some sparkling brands in select markets later in 2009. The innovative packaging will be available for vitaminwater in 2010.   The PlantBottle™ will be identified with on-package labeling.

Product innovations, including packaging innovation, are keys to sparking consumer demand and increasing volume growth. Historically, The Coca-Cola Company has been a leader in packaging innovation. For example, it was the first company to introduce a beverage bottle made with recycled plastic.

Also, a major retailer is utilizing its Power as a Buyer. Wal-Mart Stores (WMT - Snapshot Report) has introduced a packaging scorecard, which rates suppliers on the environmentally-friendliness of their packaging. Many food and beverage companies are being influenced by this retailer’s moral suasion by reducing the size of packages and making the packages more environmental friendly.

In the company’s effort to become more "green," The Coca-Cola Company opened the world's largest plastic bottle-to-bottle recycling plant in Spartanburg , SC earlier this year. The plant will be able to produce 100 million pounds of recycled PET plastic for reuse annually.

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