Adv ancing our global momentum For 125 years, we have looked for innovative ways to supplement our beverage portfolio by anticipating and meeting our consumers’ preferences and needs. We continue to grow in tough economic times and play a leadership role in driving sustainable, environmentally responsible business practices in the communities where we operate. Moments of refreshment We serve Coca‑Cola nearly 200 million times a day in North America.
M omentum in North America
Diet Coke™ is No. 2 Important moments in Diet Coke is now the No. 2 our 125-year history: sparkling beverage brand in We introduced the first automatic the United States behind our soda fountain dispenser in 1933 flagship brand, Coca‑Cola. at the Chicago World’s Fair. Growing the business in North America is essential to the future of our Company.
North America, our flagship market, is a developed power of each brand in our North American portfolio; market with significant opportunities for long-term deliver significant cost and revenue synergies; growth, driven by a large and growing population operate a fully integrated, world-class supply chain and strong disposable income. that is a global leader in quality, customer service, safety and sustainability; and further enhance a Our plans for growth start with strong brands. system that embodies a growth-oriented, externally We are focused on accelerating expansion and focused and customer-driven environment. share in the sparkling beverage category, led by Coca‑Cola, while increasing the value of our still Our newly formed North American business system, beverage portfolio and strengthening our innovation consisting of Coca‑Cola Refreshments and Coca‑Cola in brands, packaging and equipment. Within the North America, will operate with distinct capabilities, sparkling beverage category, we are engaging with responsibilities and strengths and is expected to teens and moms in new and exciting ways to reinforce deliver at least $350 million in annual synergies the connection they have with our brands. And within by the end of 2014. our still beverage portfolio, we are building strong ™ In the next 10 years, the U.S. brands for today and tomorrow, such as glacéau , We believe the reshaping of our North American teen population will become the Powerade™ and Simply. business will help us achieve our strategy of creating third largest in the world, after capabilities that enable us to sustain and repeat India and China. Using digital platforms, we are well-equipped We are also transforming our ability to translate our success. We are implementing best practices to capture opportunities within the value of our brands into value for our customers. from our global system and developing a disciplined, this growing segment. On October 2, 2010, we completed the acquisition proven execution approach to create a distinct of the North American operations of Coca‑Cola competitive advantage across our business, from Enterprises Inc.— a move designed to help us cutting-edge marketing and in-market execution sustainably grow volume, profit and share in line to world-class procurement, product supply and with our 2020 Vision; bring to life the passion and customer service.
2010 Annual Review 13 gro wing our juice business
World’s largest juice and juice drink company The Coca‑Cola Company is the world’s largest ready-to-drink juice and juice drink company, with nearly twice the market share we had 10 years ago.
Launch of Minute Important moments in Maid Kids Tropical™ our 125-year history: Minute Maid Kids Tropical, introduced The Coca‑Cola Company in Tunisia, is fortified with vitamins acquired the Minute Maid and made from the juice of five fruits: Corporation in 1960, adding orange, pineapple,apple, peach a line of juice products to and mango. our portfolio. We are continuing to meet the needs of consumers by growing our juice business.
The juice and juice drink category is a fast-growing Minute Maid and Minute Maid Pulpy, Odwalla, and dynamic segment of nonalcoholic ready-to-drink Maaza™ and Simply, we are able to offer a wide variety (NARTD) beverages. We recognize consumers drink of options, each of which is tailored to the preferences juice to enjoy the great taste and receive the benefits and needs of consumers in individual markets. of fruit and natural nutrition. To meet their needs, we offer a range of more than 1,000 products, including Our juice business depends on a variety of natural In March 2010, we announced the juices, nectars, juice drinks and smoothies, made from ingredients. To ensure the health of our products Haiti Hope Project in partnership with the Multilateral Investment a variety of fruits sourced from all over the world. and longevity of our business, we are doing our part Fund of the Inter-American to support agricultural initiatives to reduce costs, Development Bank (IDB), the U.S. Agency for International For our juice business, our strategy centers on a improve ingredient quality and promote sustainable Development (USAID) and combination of organic growth, strategic acquisitions practices. One example of our agricultural advocacy TechnoServe. This five-year, and innovative products and packaging. The packaging is our work to eradicate Huanglongbing, also known $9.5 million partnership creates opportunities for Haitian mango ™ for many of our brands, such as Minute Maid , as citrus greening—one of the most destructive citrus farmers and their families. The Del Valle™, Cappy™ and Cepita™, shares a common crop diseases, which ravages the productive capacity initiative seeks to double the fruit incomes of 25,000 farmers look and feel, which creates a universal product of citrus trees. Together with Sucocitrico Cutrale of and improve local mango farming experience for our consumers. Through more recent Brazil, we have committed to donate a combined capacity, thereby promoting acquisitions and investments in dynamic companies, $3 million to the University of Florida Foundation to economic growth and sustainable development. In January 2011, such as Jugos del Valle, Multon, Nidan and innocent, support research projects designed to protect the Odwalla launched Haiti Hope and with strong organic growth in brands such as health of citrus groves. Mango Tango to replace Haiti Hope Mango Lime-Aid and committed to donating 10 cents for every bottle sold to the Haiti Hope Project, up to $500,000 per year of the initiative.
2010 Annual Review 15 Ea xp nding Our Beverage Portfolio
Our 14 billion dollar brands Coca‑Cola, Diet Coke, Coca‑Cola Zero, Sprite™, Fanta™, Minute Maid, Powerade, Aquarius™, Dasani™, vitaminwater™, Georgia™, Sokenbicha™, Simply and Minute Maid Pulpy
No. 1 $1 trillion industry Low- and no- Coca ‑Cola Zero turns five The Coca‑Cola Company is the The NARTD beverage industry is calorie beverages Coca‑Cola Zero’s fifth anniversary was celebrated ™ number-one provider of sparkling expected to grow by 50 billion unit More than 800 beverages— with the launch of Caffeine Free Coca‑Cola Zero , beverages, juices and juice drinks, cases by 2020, on the way to nearly 25% of our product which offers all the great taste of Coca‑Cola, with zero and ready-to-drink teas and becoming a $1 trillion industry. portfolio—are low- or sugar or caffeine. The product launched in France, coffees in the world. no-calorie. Japan and Spain, with future launches planned for Belgium, Luxembourg and the Netherlands. The strength of brand Coca‑Cola fuels our expanding portfolio.
Our Company started with a single beverage, and Coca‑Cola Zero following close behind. The T UitoTAL n Case Coca‑Cola, which sold at a single location, Jacobs’ profitability of these brands, as well as our entire Volume Mix Pharmacy in Atlanta, Georgia. With the vision of beverage portfolio, allows us to invest in research • Sparkling Beverages fearless pioneers and creative ingenuity, we have and development to produce a wider array of • Still Beverages grown into the world’s largest beverage company, beverage options. Our profitability also allows us to 11% with more than 500 brands and 3,500 beverage invest in our extensive distribution network, which 2000 products. Our portfolio includes a range of full-, enables our products to reach even the most remote 89% low- and no-calorie sparkling beverages, juices areas of the world. and juice drinks, waters, sports and energy drinks, teas, coffees and dairy-based beverages. In 2010, we gained volume and value share globally 2010 24% in total NARTD beverages, driven by share gains in We offer a variety of high-quality beverage options, both sparkling and still beverages. We attribute this 76% but we continue to rely on the strength and steady growth to targeted consumer marketing at the point growth of brand Coca‑Cola, our flagship brand, to of sale, and to our commitment to offer beverages fuel our rapidly expanding portfolio. Coca‑Cola is tailored to specific markets and consumer needs Ice n r menTAL Unit the Company’s only product that sells in every market around the world. This commitment is aligned with Case Volume Mix where we operate, with Diet Coke/Coca‑Cola light™ the long-term strategy of the Company to profitably • Sparkling Beverages grow our business in a sustainable way. • Still Beverages
We realize the future is unpredictable, and we may 2000 experience headwinds along the way. However, we 34% 66% Coca‑Cola is believe there is no better consumer business to be in than the NARTD business, and we remain focused
a $67 billion on growing our Company and shareowner value 2010 1 through 2020 and beyond. brand. 46% 54% 1 Annual retail sales (source: Euromonitor International and internal estimates)
2010 Annual Review 17 R eaching out With 5 billion mobile phones in the world, mobile marketing is increasingly becoming the most important medium we use to engage consumers. In 2010, we used mobile marketing campaigns around the world, from daily communication in Japan through Coca‑Cola Park, to consumption-driving campaigns in India, to iPhone™ and iPad™ apps like Magic Bottle.
Olympic Games 22 million fans sponsor since 1928 on Facebook™ eng aging Our role as an Olympic Games sponsor provides By the end of 2010, we had nearly 22 million an ideal outlet for connecting consumers to our fans of our Coca‑Cola Facebook™ page and brands by illustrating how our products refresh were the No. 1 Most Followed and the No. 1 athletes, volunteers, officials and spectators Most Influential Food/Beverage Product with during the Olympic Games. Brand on Twitter™. consumers Effectively marketing our products is at the core of our business success.
To us, effective marketing involves striking a balance hybrid vehicles to deliver products, and we between inspirational and operational approaches. sold our beverages in 100 percent recyclable To maximize brand love and brand value, we believe PlantBottle packaging. in the importance and enduring impact of powerful 2010 World Exposition storytelling that engages consumers with our brands Digital media is an increasingly powerful channel in Shanghai and Company. Consumers’ increasing use of digital for communicating with our consumers, particularly The Shanghai 2010 World Expo, technology means we must actively participate to teens. Our “Happiness Machine” viral video, which the largest event in the Expo’s history, attracted more than co-create the content and conversation of our brands. shows hidden-camera footage of students interacting 73 million visitors. The Happiness This shared approach underscores our evolving view with a Coca‑Cola vending machine that unexpectedly Factory pavilion provided of marketing. dispenses flowers, pizza and, of course,C oca‑Cola, The Coca‑Cola Company with an unprecedented opportunity has been viewed more than 3 million times and to engage consumers, media Global partnerships are one way we establish received a coveted Gold Clio award. and key stakeholders. The pavilion showcased product, package connections in consumers’ daily lives while promoting and equipment innovations and our brands and beverage portfolio. In 2010, our In 2010, music was a key component of our integrated provided guests with the opportunity marketing campaign for the FIFA World Cup™, the marketing success. To celebrate the FIFA World Cup™, to taste new beverages and learn about our commitment to building single-largest sporting event in the world, was our we partnered with recording artist K’NAAN to produce sustainable communities in China. biggest global marketing activation ever—spanning “Wavin’ Flag—Coca‑Cola Celebration Mix,” an uplifting Our efforts earned us the Best Expo Marketing Award and Best Pavilion 160 countries. Through a globally connected campaign anthem released in more than 150 markets and from China Business News. leveraging paid, owned, earned and shared media, sung in a dozen languages, which reached No. 1 we extended our impact to billions of consumers. in 17 countries. Building on our music success, we In addition, our sponsorship of the Vancouver 2010 worked with the band Train to launch “Shake Up We began our long-standing partnership with Fédération Olympic Winter Games helped raise awareness about Happiness” for our 2010 holiday campaign, which Internationale de Football the importance of environmental stewardship. At we activated in more than 90 countries. Association (FIFA™) in 1974. those Olympic Games, we eliminated a substantial The song reminded all of us how amount of our direct greenhouse gas emissions sharing a Coca‑Cola can inspire and reduced energy use 35 percent through the moments of happiness. use of 1,400 proprietary HFC-free coolers. We used
2010 Annual Review 19 Water partnership In Zinder, Niger, The Coca‑Cola Africa Foundation and USAID partnered on a project to provide doing business water access and sanitation to sustainably 14,000 people.
Leading the industry Community water projects 2.5 billion PlantBottles In addition to providing basic nutrition Since 2005, we have conducted more than By the end of 2010, we had 2.5 billion PlantBottle information on our products, our Company 300 community water partnership projects packages in the market, and we expect to double made a global commitment—a beverage in 86 countries. External experts estimate this number in 2011. In 2010, the presence of industry first—to provide front-of-package that the equivalent of 31% of the water used renewable material in these packages eliminated
calorie/kilocalorie/kilojoule information in our finished beverages was replenished almost 30,000 metric tons of carbon dioxide (CO2), (per serving) on nearly all of our products through the projects we conducted from or the equivalent of approximately 60,000 barrels by the end of 2011. 2005 through 2010. of oil use for our system. Our commitment to making a positive difference in the world.
We see our commitment to sustainability as more business. We do this by delivering innovative products, than a responsibility. It is an opportunity for us to packaging and systems; strengthening our advanced make a lasting, positive difference in the communities global supply chain; enhancing our presence in in which we operate. From purchasing our ingredients communities; and managing our impact on the world’s to creating and packaging our beverages, we strive natural resources. We recognize people want to to make our business more environmentally and interact with, and purchase products from, companies socially beneficial.LIVE POSITIVELY is our commitment that share their values. By helping people achieve to making a positive difference in the world by active, healthy lives and developing technologies redesigning the way we work and live so that that reduce materials and waste and lower carbon sustainability is incorporated into everything we do. emissions, we are able to think holistically about Both locally and globally, we invest in community sustainability and focus on driving growth in the PJ RO ECT NURTURE initiatives to strengthen the communities where we live. context of bettering the world for future generations. In Uganda and Kenya, we launched To learn more about our sustainability efforts, Project Nurture, a four-year, Through our LIVE POSITIVELY sustainability framework, download the 2009/2010 Sustainability Review $11.5 million partnership with the Bill & Melinda Gates Foundation we strive to create and maintain a sustainable at www.sustainability.thecoca-colacompany.com. and TechnoServe to double the incomes of more than 50,000 small farmers by 2014 by increasing the production of mango and passion fruit. The juice from this initiative will 3,200 local MDCs created support our growing juice business. Building on our commitment to grow our Micro Distribution We have helped independent entrepreneurs create more Project implementation began in Center (MDC) system, 5 BY 20 is our ambitious, global initiative than 3,200 local MDCs to distribute Coca‑Cola products January 2010, and Minute Maid to empower 5 million women entrepreneurs in our system by in Africa, employing more than 13,500 people. Since our Mango Nectar, the first product to 2020. Together with civil society, governments and other private Clinton Global Initiative commitment in 2009, over 50% use locally sourced juice as a result sector partners, we will provide access to financing and financial of our new MDCs are owned and run by women. of this project, was launched in services, business and life-skills training, and mentors and fourth quarter 2010 in Kenya. To networks—all designed to help women overcome barriers to date, more than 23,000 farmers growing their businesses and incomes. have been selected and trained.
2010 Annual Review 21