Coca Cola 2003 Annual Report Download - page 6

We sell the concentrates and syrups for bottled and canned beverages to authorized bottling and canning
operations. In addition to concentrates and syrups for soft drink products and flavored noncarbonated
beverages, we also sell concentrates for purified water products such as Dasani to authorized
bottling operations.
Authorized bottlers or canners either combine our syrup with carbonated water or combine our concentrate
with sweetener, water and carbonated water to produce finished soft drinks. The finished soft drinks are
packaged in authorized containers bearing our trademarks—such as cans, refillable and non-refillable glass and
plastic bottles (‘‘bottle/can products’’)—and are then sold to retailers (‘‘bottle/can retailers’’) or, in some
cases, wholesalers.
For our fountain products in the United States, we manufacture fountain syrups and sell them to authorized
fountain wholesalers and some fountain retailers. For fountain retailers that have multiple outlets such as quick
serve restaurants, often called ‘‘chain’’ accounts, we typically sell fountain syrups to the chain retailers directly,
with fountain wholesalers or bottlers delivering and billing on our behalf for a fee. For fountain retailers that are
not part of a chain, the retailers typically purchase fountain syrups from fountain wholesalers (including certain
bottlers) that purchase the syrups from our Company. These wholesalers are authorized to sell the Company’s
fountain syrups by a non-exclusive appointment from us that neither restricts us in setting the prices at which we
sell fountain syrups to the wholesaler, nor restricts the territory in which the wholesaler may resell in the United
States. Outside the United States, fountain syrups typically are manufactured by authorized bottlers from
concentrates sold to them by the Company. The bottlers then typically sell the fountain syrups to wholesalers or
directly to fountain retailers.
Finished beverages manufactured by us include a variety of carbonated and noncarbonated beverages. Most
of these finished beverages are sold by us to authorized bottlers or distributors, who in turn sell these products to
retailers or, in some cases, wholesalers. Both directly and through a network of business partners, including
certain Coca-Cola bottlers, Company-manufactured juice and juice-drink products and certain water products
are sold by us to retailers and wholesalers in the United States and numerous other countries.
The Company’s beverage products include bottled and canned beverages produced by independent and
Company-owned bottling and canning operations, as well as concentrates, syrups and some non-ready-to-drink
powder products. Our beverage products include Coca-Cola, Coca-Cola classic, caffeine free Coca-Cola,
caffeine free Coca-Cola classic, diet Coke (sold under the trademark Coca-Cola light in many countries other
than the United States), caffeine free diet Coke, diet Coke with lemon, diet Coke with lime, Vanilla Coke, diet
Vanilla Coke, Cherry Coke, diet Cherry Coke, Fanta brand soft drinks, Sprite, diet Sprite (sold under the
trademark Sprite light in many countries other than the United States), Sprite Remix, Mr. Pibb, Mello Yello,
TAB, Fresca, Barq’s root beer and other flavors, Citra, POWERade, Minute Maid flavors, Aquarius,
Sokenbicha, Ciel, Bonaqa, Bonaqua, Dasani, Lift, Thums Up, Kinley, Pop, Eight O’Clock, Qoo and other
products developed for specific countries, including Georgia brand ready-to-drink coffees, and numerous other
brands. In many countries (excluding the United States, among others), our Company’s beverage products also
include Schweppes, Canada Dry, Dr Pepper and Crush. Our Company produces, distributes and markets juice
and juice-drink products, including Minute Maid juices and juice drinks, Simply Orange orange juice, Odwalla
super premium juices and drinks, Five Alive refreshment beverages, Bacardi tropical fruit mixers (manufactured
and marketed under a license from Bacardi & Company Limited), and Hi-C ready-to-serve fruit drinks.
Beverage Partners Worldwide, the Company’s 50%-owned joint venture with Nestl´ e S.A., markets
ready-to-drink teas and coffees in certain countries. Our Company is the exclusive master distributor of Evian
bottled water in the United States and Canada. In addition, CCDA Waters, L.L.C., a 51%-owned consolidated
subsidiary, markets Dannon, Sparkletts and other water brands in the United States under a license from
Groupe Danone.
Consumer demand determines the optimal menu of Company product offerings. Consumer demand can
vary from one locale to another and can change over time within a single locale. Employing our business
strategy, and with special focus on Coca-Cola, our Company seeks to build its existing brands and, at the same
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