Coke_AR07_Year_In_Review

8/7/2019 Coke_AR07_Year_In_Review

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12 The Coca-Cola Company

1.5 llon tmes a day,our eerages are enjoyed

around the world.


2/16

2007 Annual Review 13

Inovaes, rarachir, energize speaking the language o rereshmentto so many people each day requires innovation on a global scale, inside

and outside the bottle. That is why we are constantly exploring new

ways to improve our business and enhance our relationships with those

who are touched by itrom the armers who grow our ingredients

to the consumers who enjoy our beverages. Expanding our beverageoerings and improving our packaging, sales equipment, distribution

and customer service are part o how we will build our business proftably

and sustainably. Our goal is to reward our shareowners, satisy our

consumers and contribute positively to communities around the world.


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JAqUELiNE LivES iN RiO DE JANEiRO AND DRiNkS kUAT. pAULO LivES iN vANCOUvER AND DRiNkS DiET COkE.

LEE LivES iN bEiJiNG AND DRiNkS SpRiTE. JESSiCA LivES iN NEW ORLEANS AND DRiNkS DASANi pLUS.


4/162007 Annual Review 15

Great Strdes, balanced Growth

In 2007, we made great strides in strengthening our brands,

revitalizing our culture, re-energizing our marketing and improving

operational execution throughout The Coca-Cola Company.

Our 6 percent unit case volume growth was balanced across ourportolio and diverse geographies. We believe that adaptability is

a characteristic o real growth companies, and we have continued

to renew, reresh and sustain our business since 1886.

The beverage industry is growing and vibrant, and no one knows it

better than we do. Our strong results rom 2007 are evidence that

our Manifesto for Growthour holistic vision or the sustainability

o our business and communitiesis working. We are winning again.

From the 90,500 associates who are entrusted with our brands to

the people around the world who enjoy 1.5 billion servings o ourbeverages daily, the language o rereshment connects us all.

2007 in Review

Visit the Our Companysection of our website, www.thecoca-colacompany.com, for more information on

our performance in 2007.


5/1616 The Coca-Cola Company

ApARNA WORkS AT COCACOLA iNDiA AND DRiNkS LiMCA. Our associates are increasingly engagedinvolved in and

enthusiastic about their workas shown by a 79 percent score on our most recent Employee Insights Survey. This level oengagement exceeds the beverage industry norm.


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2007 Annual Reiew 17

Fo ca, T CocaCoa Compay a too o optimim

a appi. O o t tig I a I wa ao t a

i Atata a i o f ocatio i tat o aociat a

gag a, jt a impotaty, ty a aig agai.

E. Neille Isdell, Chairman o the Board and Chie Executie Ocer

We hae made good progress on engaging and urther deeloping our

associates. B ocusing on eectieness and productiit, we hae become

more energetic and motiated. We are executing more uickl, simpliing

decision making and managing expenses more eectiel, allowing us to

better inest in the marketplace.

In 2007, the Societ or Human Resource Management recognized our Manifesto

for Growth or helping our Compan reinent itsel and work toward our long-term

sustainable growth obecties. One o the goals in our Manifesto is to be recognized

as a great place to work around the world. In recent ears, we hae ranked highl in

man countries or our workplace practices. For example, in 2007, Coca-Cola Chile

was ranked No. 1 b the Great Place to Work Institute Chile, and Coca-Cola India

ranked No. 2 in the Most Respected Fast Moing Consumer Goods Companies

sure b Businessworldand the Indian Market Research Bureau.

We ormalized our long-standing commitment to treat our associates airl and

with dignit with the launch in 2007 o our global Workplace Rights Policyand

Human Rights Statement, guided b international rights standards, including the

Uniersal Declaration o Human Rights and the International Labour Organizations

Declaration on Fundamental Principles and Rights at Work.

In 2006, we became a signator to the United Nations (UN) Global Compact,

arming our commitment to embrace, support and enact a set o core

alues in the areas o human rights, labor standards, the enironment and

anti-corruption. The UN Global Compact reuires a Communication on Progress

rom all signatories in the rst two ears o membership, and in August 2007,

we reported our progress in our 2006 Corporate Responsibility Review.

Visit the Corporate Responsibilitysection of our website, www.thecocacolacompany.com,for more information on our policies, principles and practices.

Winning Spirit

Mo ta 100 popopmt om

were held across our

Company in 2007,

resulting in clear

development and

succession planning.

Goa Wom

Iitiati ac

in 2007 to accelerate

the recruitment,

advancement and

retention o women.

O Compay a

i t top f on

The 2007 DiversityInc

Top 50 Companies

or Diversity list.


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18 The Coca-Cola Compan

CocaCoa it oy a i. It a ia, a iio, a ig.

It coctio a mt.

Muhtar Kent, President and Chie Operating Ocer

We hae built our business on the worlds loe o sparkling beerages, sales o

which drie our business results and accounted or 80 percent o our worldwideunit case olume in 2007.

We passionatel continue to strengthen and expand our sparkling beerage

oerings. We hae streamlined processes and enhanced our innoation pipeline

in order to get new products and technologies out to the market aster to meet

consumers eer-changing preerences. In 2007, we continued to leerage our

leading brands and expanded the choices we oer consumers. We beliee there

is tremendous growth potential or our beerages, particularl or Coca-Cola,

Coca-Cola Zero and Diet Coke. Our three-cola strateg, which ocuses on these

brands, contributed to the highest annual growth rate or Trademark Coca-Cola

since 1998.

Connecting with consumers also uels our growth across the portolio. New

platorms, such as The Coke Side o Lie, are reaching consumers with

adertisements, online experiences and other programs that refect the optimism

and hope that hae historicall characterized our brands and Compan.

We beliee all our beerages can pla a role in a balanced diet. We also

understand that consumers want ariet and choice and are concerned about

managing their health, including maintaining a health weight. To address our

consumers needs, we oer more than 2,800 beerage products, including a

growing ariet o ull, reduced and no-calorie beerages, portion sizes andpackage options. We support inormed choice b including nutrition labels

on almost all beerage packages worldwide, een though relatiel ew

goernments mandate this practice. We also oluntaril adopted responsible sales

and adertising policies in primar and secondar schools. Inormation on these

school policies is aailable on our website at www.thecoca-colacompan.com.

+8%TRADEMARK SPRITEUNIT CASE vOLUMEGROWTH

+4%TRADEMARK COCA-COLAUNIT CASE vOLUMEGROWTH

+5%TRADEMARK FANTAUNIT CASE vOLUMEGROWTH

Visit our Beverage Institute For Health & Wellness website at www.beverageinstitute.orgfor information on nutrition, research and education.

Sparkling Beerages


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2007 Annual Reiew 19

brIAn lIves In JOhAnnesburG And drInks COCACOlA. Our unit case olume in Arica grew 10 percent in 2007, led b

growth in sparkling beerages. Trademark Coca-Cola accounted or 45 percent o our total unit case olume in Arica in 2007.

Our grip bottle is now

in 15 countries and uses

5% PeT, reducing

our carbon ootprint and

manuacturing costs.

We have 450+ a that include

2,800+ ag poct. CocaCola,

Diet Coke, Sprite and Fanta are our

o the worlds top fve nonalcoholic

sparkling brands.


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20 The Coca-Cola Compan

POWerAde UNIT CASE vOLUME GREW 10%

IN 2007, WHILE THE INDUSTRyS SPORTS DRINK

CATEGORy GREW ONLy 4%. POWERADE IS

AvAILABLE IN MORE THAN 70 COUNTRIES.

vITAMInWATer IS ONE OF THE NEWEST MEMBERS

OF OUR STILL BEvERAGE PORTFOLIO. EACH OF OUR

15 vITAMINWATER PRODUCTS OFFERS A UNIqUE

BLEND OF vITAMINS AND OTHER NUTRIENTS.

CIel UNIT CASE vOLUME GREW 14% IN 2007.

CIEL IS OUR COMPANyS NO. 1 WATER BRAND

AND ACCOUNTS FOR MORE THAN 60% OF OUR STILL

BEvERAGE UNIT CASE vOLUME IN LATIN AMERICA.

MINUTE MAID UNIT CASE vOLUME GREW 5% IN 2007.

IN CHINA, MInuTe MAId OrAnGe PulP UNIT CASE

vOLUME GREW MORE THAN 60% IN 2007 AND IS THE

NO. 1 jUICE BRAND IN KEy METROPOLITAN MARKETS.


10/16

2007 Annal Review 21

Wr r actn. W nw a a cltr nnatn, an

w rl a t nl trl lbal bra cman.

E. Neville Isdell, Chairman o the Board and Chie Exective Ocer

We oer or consmers a choice o still beverages that reresh, hydrate, energie

and norish. We contine to create beverages to meet consmers evolvingliestyles and taste preerences. We are ocsed on maintaining the great taste o

or beverages and expanding or portolio o prodcts that provide benets sch

as vitamins and ntrients.

In 2007, we added more than 450 new still beverage prodcts to or portolio,

inclding prodcts gained throgh acqisitions. Trademarks Powerade, Aqaris,

Minte Maid and Simply perormed strongly dring the year, as did water brands

sch as Bonaqa, Ciel and Dasani. For the year, or nit case volme in still

beverages grew 12 percent, ollowing 7 percent growth in 2006.

We moved qickly to gain capability and scale throgh strategic bolt-on

acqisitions. Or 2007 acqisition o glaca, the maker o vitaminwater and

smartwater, was the largest in or Companys history. We invested $4.1 billion to

acqire glaca and believe this acqisition will be a catalyst or growth across or

total beverage portolio. It has already helped galvanie the Coca-Cola system in

North America. Together with or largest bottling partner in Latin America, we

acqired Jgos del Valle, strengthening and expanding or portolio in the rapidly

growing jice and jice drink market.

Additionally, new partnerships are expanding or reach in areas where we previosly

did not have signicant presence. For example, or partnership in North America

with Caribo Coee will increase or presence in the ready-to-drink coee space.

This partnership will strengthen or prole in this growing category.

Still Beverages

1 Collaboration with the China Academy o Chinese Medical Sciences2 Acqisition pending approval by reglatory athorities in Brail

T CcaCla

Rarc Cntr rCn Mcn1

in Beijing ocuses on

innovation in beverages

that contribute to

well-being.

Our acquisition2

oL Jnr wll a

mr tan 50 rct

t r tll bra

rtl n Brazl,

including Matte Leo,

a beverage avorite

since 1938.

Visit the Brandssection of our website, www.thecoca-colacompany.com, for moreinformation on our still and sparkling beverage products.


11/16


Cnmr nn r nnalclc ratrnk bra

rwn at 6l rcnt r art t amn cnmr

acka . W a a wnrl amn n r an tat

w n t k ln.

Mhtar Kent, President and Chie Operating Ocer

Today, the Coca-Cola system captres jst 20 percent o approximately

$580 billion* in global consmer spend on nonalcoholic ready-to-drink (NARTD)

beverages. Ftre indstry prot growth is expected to be airly evenly distribted

among emerging markets, developed markets and BRIC contriesBrail, Rssia,

India and China.

Or international bsiness is thriving, led by doble-digit growth in BRIC

contries in 2007. Contined ocs on driving growth in sparkling beverages,

immediate-consmption exection and alignment with or bottling partners

reslted in 9 percent nit case volme growth in Latin America, the highest in

that operating grop since 1997. Latin America was the second most protable

operating grop or or Company in 2007. And as we look orward to the

Beijing 2008 Olympic Games, we are strategically investing in or inrastrctre

and rote to market to connect or brands with consmers in the Pacicoperating grop.

Across the Coca-Cola system, we are strengthening or exection in the

marketplace. We share best practices globally and implement tailored plans to

meet localied market needs. Or balanced portolio, geographic diversity and

changing global demographics position s well to contine growing or bsiness.

And in challenging markets sch as India, Japan and the Philippines, we have

measrably stabilied or bsiness and retrned to nit case volme growth.

We also contine to work toward retrning or bsiness in North America to

sstainable, consistent growth.

A complete description of our business, operations and financial performance is provided inour2007 Annual Report on Form 10-K.

T 10 cntr based

on unit case volume:

1. United States

2. Mexico

3. Brazil

4. China

5. Japan

6. Germany

7. Spain

8. South Arica

9. Argentina

10. Great Britain

More than70% o ournet operating revenues

and nearly 75% o our

unit case volume are

nrat t

Nrt Amrca.

Room to Grow

*$580 billion covers 80 markets that represent 98 percent o global consmer spendEromonitor International Sot Drink

Indstry Database, Janary 2008.


12/16


We LeAd oNe o The WoRLds LARgesT CoNsuMeR goods sysTeMs, with revene o more than $80 billion.

Cann mracare driving signifcant

conversion to NARTD

beverages.

MORE PEOPLE MORE CITY-DWELLERS MORE WEALTH

+730MM +650MM +800MM

GROWTH INPOPuLATION

GROWTH INuRBANIzATION

MIDDLE-CLASS POPuLATIONGROWTH IN BRIC COuNTRIES

2005 2015

6.4B 7.1B

2005 2015

3.1B 3.8B

2005 2015

0.3B 1.1B

Sorces: Poplation Division o Economic and Social Aairs o the united Nations Secretariat and World Bank World Development Indicators


13/16


The CoCACoLA sysTeM hAs iMpLeMeNTed CoLLABoRATive CusToMeR ReLATioNship MANAgeMeNT with the majority

o or largest 20 cstomers, eciently sharing knowledge that drives reslts at every point along the retail vale chain.


14/16


A k ara nnatn actall wat w ar n wt t ctmr.

W a a wl nw ml rn rwt manamntnrn

w maxmz rn n ar ackawc a nfcant art

acn marn nancmnt.

E. Neville Isdell, Chairman o the Board and Chie Exective Ocer

We are deepening or insights into how to contine bilding or bsiness

protably and responsibly or the long term. We think abot every aspect o or

vale chain, rom or sppliers to or bottling partners, cstomers and consmers.

The Coca-Cola Company is only part o the eqation. The strength o or bsiness

depends on the strength o the Coca-Cola system. Not only did the Company

realie solid reslts in 2007, bt Company-owned bottling operations and or

independent bottling partners also improved their perormance.

We have been working very closely with or bottling partners to create

collaborative relationships with or cstomers or mtal vale. This approach

is ocsed on creating vale or all o or cstomers, rom or largest global

retailers to or local corner stores. Throgh the Coca-Cola systems REDright

exection dailystrategy, we are able to provide a high level o service to or

cstomers, contribting to the health and protability o their bsinesses.

When a consmer walks into the typical spermarket, he or she has approximately

30,000 prodcts to choose rom dring the shopping experience. We are

improving or connections with consmers by strengthening or merchandising,

point-o-prchase marketing, and cooler and vending machine design and

placement. And we contine execting against or revene growth management

strategy: getting the right package in the right channel at the right price.

Visit the Our Companysection of our website, www.thecoca-colacompany.com, for moreinformation on the Coca-Cola system.

immat

cnmtn

nt ca lm

rw 6% in 2007,

driving proftable

growth or our

Company.

Sm o Or Parts

The Coca-Cola system

has 10 million coolers and

vending machines, and

t nmbr clr

n BRiC* cntr

ncra mr tan

30% in 2007.

*Brail, Rssia, India and China


15/16


An amazn tn an wn cnmc, cal an nrnmntal

rc wrk ttr r t bttrmnt all. stanabl cmmnt

rn rt. CcaCla want t b art t ltn, wc tak

man rm, lk jb, ntmnt an cnratn.

Mhtar Kent, President and Chie Operating Ocer

We recognie that the health o the Coca-Cola bsiness relies on the strength

o or entire vale chain. In recent years, we have increased or transparency in

terms o or practices as they relate to the sstainable growth o or bsiness

and or eorts to contribte to the sstainability o commnities.

We take seriosly or responsibility to the commnities we serve and in which we

operate. Working together with or bottling partners and many nongovernmental

organiations (NGOs), governments and commnity members, we believe we

have made a positive and meaningl dierence arond the world. This incldes

a ocs on responsible environmental practices.

In 2007, we set the goal to retrn all the water we se, in or beverages and in

their prodction, back to natre. Additionally, we are working toward resing or

recycling 100 percent o or PET packaging in the united States and to improving

energy eciency in or operations. We are committed to growing or bsiness,

withot growing or carbon ootprint.

The direct and indirect economic impact o the Coca-Cola system fows along

or vale chain, reaching retailers, street vendors, growers and other sppliers.

In 2007, or Company paid $3.1 billion in dividends and $1.6 billion in income

taxes and spent $1.6 billion on capital expenditres. The Company and

The Coca-Cola Fondation invested nearly $100 million in commnity programs.

These programs ocs on areas sch as environmental stewardship, HIV/AIDS

prevention and awareness, disaster relie, physical activity and edcation.

Visit the Corporate Responsibilitysection of our website, www.thecoca-colacompany.com,for more information on our initiatives.

We have more than

100 cmmnt

watr rjct n

49 cntr.

We plan to place at least

5,000 clmatrnl

clr an nn

macnat the Beijing

2008 Olympic Games.

W rccl peT,la an almnm

or use in uture beverage

containers, as well as or

clothing, bags and jewelry

available at our retail

Coca-Cola stores and online

at www.coca-colastore.com.

Sstaining Or Bsiness,

Sstaining Commnities


16/16


iN pARTNeRship WiTh MANy goveRNMeNTs ANd Ngo, the Coca-Cola system helps establish commnity programs, sch as

the installation o clean water sorces in Indonesian schools.

Documents

Coke_AR07_Year_In_Review