Red Garage operates as a venture builder/ start-up studio partnering with The Coca-Cola Company. Ourindependence is key to moving with speed, keeping lean and building value. Red Garage conducts the early stage problem exploration, concept development, and business model validation. In this presentation, I will discuss: 1. Why innovation inside of an existing corporation is so difficult and how companies can employ the tools and processes successful start-ups use to drive innovation 2. How corporates can innovate leveraging their assets and startup thinking to exploit new growth areas 3. Outlining the Red Garage Ventures concept and what to consider when setting up a corporate venture fund 4. Ensuring successful commercialization and acceleration of a startup by leveraging the “mother ship” assets, relationships and being a key R&D customer

1. The Coca-Cola Company’s creation of Red
Garage Ventures to Drive Internal
Disruption
Franki Chamaki
Founding Director
Red Garage Ventures & HIVERY

2. Classified – Confidential | Page 2
Going to cover…
1. Importance of clear innovation goal
2. Leverage internal assets to create a competitor advantage
3. Experiment (i.e. Learn by doing)

3. 1.
Incremental
innovation:
Sometimes called
continuous
improvement.
2.
Radical
innovation:
Sometimes called
revolutionary, typically
leveraging the same
business model.
3.
Transformational
innovation:
Sometimes called
disruptive innovation -
this changes strategy.
Creates a new business
model.
Return
Risk
Existing Business
Model
(70%)
New Business
Model
(10%)
Leveraging existing
Business Model
(20%)
Classified – Confidential | Page 3
Where to play? Define your Innovation Agenda

4. Risk
Lean, Six Sigma,
Continuous
improvement etc.
Partially known Unknown
Return
Known
Classified – Confidential | Page 4
Horizon 1
Defining your innovation agenda helps define your approach…
Pilots, Agile,
Scrum etc.
Lean Start-up
(a lot of experimentation)
This means different type of governance regimes, execution approaches and more importantly
different kinds of KPIs/reporting and incentives

5. Cokes Assets + Start up thinking
=
New business model

6. Managers not
Explorers
Version 1.0
Inside not
outside
Version 2.0
Connected not
depended
Version 3.0
Learning by Doing

7. Sydney was the first prototype

8. Coke invests in founders, helps set
up a separate independent entity
provides seed funding, becomes the
first customer, and then takes a
minority share if and when the
business becomes viable.

9. Recruitment &
induction
Senior level
Support Independence
Internal Advisor

10. Buenos Aires
Rio de Janeiro
Mexico City
San Francisco
Berlin
Bangalore
Singapore
Sydney
Tel Aviv
London
Shanghai
Coca-Cola Entrepreneurial Program
“Founders program” was launched in 2013 to “co-create”
with Coke solve big problems

11. Launch
• Coke scouts and
selects 1-2
founders
• Funders contract /
convertible note
• “Deep
immersion” of
challenges and
assets
• Founders launch
new company
(startup)
• Startup begins
searching for
problem/solution
fit
• Coke supports
lean startup and
tracks progress
• Develop
commercial
agreements to
scale solution
across Coke
• Startup scales the
company—beyond
Coke
• Coke converts or
chooses to follow-
on in additional
funding rounds
• Collaborate with
Coke to test
assumptions
• Startup iterates on
product, expands
customers beyond
Coke
• Coke helps
connect
relationships with
external investors
and media
Build Prove ScaleSet-up
• Coke commits to
seed funding and
• Appoints a local
Business Unit
(BU) Advisor
Coca-Cola Entrepreneurial Program

12. Buenos Aires
Rio de Janeiro
Mexico City
San Francisco
Berlin
Bangalore
Singapore
Sydney
Tel Aviv
London
Shanghai
Coca-Cola Entrepreneurial Program
In December 2016 the program closed for new ventures.
Re-focus back to the core business

14. Circular
Economy
Distribution
Big Data
Welling
Hydration
Esens
Asset:
Expertise &
relationships
Asset:
Big data
Asset:
Waste

15. Circular
Economy
Distribution
Big Data
Welling
Hydration
Esens
Innovation:
Design
Thinking
Innovation:
Hackathon
Innovation:
Trend &
collaboration

16. Circular
Economy
Distribution
Big Data
Welling
Hydration
Esens
Focus:
Science
Focus: Scale Focus: Model

17. ① Define the agenda
② Think assets as
platform
③ Learn by doing
④ Just on the edge
⑤ Skin in the game

18. Franki Chamaki
franki@redgarage.co
Redgarage.co