Coca Cola 2004 Annual Report Download - page 5

• ‘‘fountain syrups’’ means syrups that are sold to fountain retailers, such as restaurants, that use dispensing
equipment to mix the syrups with carbonated or noncarbonated water at the time of purchase to produce
finished beverages that are served in cups or glasses for immediate consumption;
• ‘‘soft drinks’’ means nonalcoholic carbonated beverages containing flavorings and sweeteners, excluding,
among others, waters and flavored waters, juices and juice drinks, sports drinks, teas and coffees;
• ‘‘noncarbonated beverages’’ means nonalcoholic beverages without carbonation including, but not limited
to, waters and flavored waters, juices and juice drinks, sports drinks, teas and coffees;
• ‘‘Company Trademark Beverages’’ means beverages bearing our trademarks and certain other beverage
products licensed to us or owned by our bottling partners and distributors, for which we provide
marketing support and derive income from the sales; and
• additional terms used in this report are defined in the Glossary beginning on page 119.
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 (depending on the product), 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 nonexclusive 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 and certain water products 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 not-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, Coca-Cola with Lime, Diet Coke with
Lime, Vanilla Coke, Diet Vanilla Coke, Cherry Coke, Diet Cherry Coke, Coca-Cola C2, Fanta brand soft drinks,
Sprite, Diet Sprite Zero/Sprite Zero (sold under the trademark Sprite Light in many countries other than the
United States), Sprite Remix, Pibb Xtra, 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, Full Throttle, other products developed for specific countries (including
3