Coca Cola 2005 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2005 Coca Cola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

and approximately 7 percent of its unit case volume consisted of beverage products of Coca-Cola HBC or other
companies.
Coca-Cola FEMSA, S.A. de C.V. (‘‘Coca-Cola FEMSA’’). Our ownership interest in Coca-Cola FEMSA
was approximately 40 percent at December 31, 2005. Coca-Cola FEMSA is a Mexican holding company with
bottling subsidiaries in a substantial part of central Mexico, including Mexico City and southeastern Mexico;
greater S˜
ao Paulo, Campinas, Santos, the state of Matto Grosso do Sul and part of the state of Goias in Brazil;
central Guatemala; most of Colombia; all of Costa Rica, Nicaragua, Panama and Venezuela; and greater Buenos
Aires, Argentina. Coca-Cola FEMSA estimates that the territories in which it markets beverage products
contain approximately 48 percent of the population of Mexico, 16 percent of the population of Brazil, 98 percent
of the population of Colombia, 47 percent of the population of Guatemala, 100 percent of the populations of
Costa Rica, Nicaragua, Panama and Venezuela and 30 percent of the population of Argentina. In 2005,
Coca-Cola FEMSA’s net sales of beverage products were approximately $4.5 billion. In 2005, approximately
62 percent of the unit case volume of Coca-Cola FEMSA consisted of Coca-Cola Trademark Beverages,
34 percent of its unit case volume consisted of other Company Trademark Beverages and 4 percent of its unit
case volume consisted of beverage products of Coca-Cola FEMSA or other companies.
Coca-Cola Amatil Limited (‘‘Coca-Cola Amatil’’). At December 31, 2005, our Company’s ownership
interest in Coca-Cola Amatil was approximately 32 percent. Coca-Cola Amatil has bottling and distribution
rights, through direct ownership or joint ventures, in Australia, New Zealand, Fiji, Papua New Guinea,
Indonesia and South Korea. Coca-Cola Amatil estimates that the territories in which it markets beverage
products contain 100 percent of the populations of Australia, New Zealand, Fiji, South Korea and Papua New
Guinea, and 98 percent of the population of Indonesia. In 2005, Coca-Cola Amatil’s net sales of beverage
products were approximately $3.0 billion. In 2005, approximately 51 percent of the unit case volume of
Coca-Cola Amatil consisted of Coca-Cola Trademark Beverages, approximately 40 percent of its unit case
volume consisted of other Company Trademark Beverages, approximately 8 percent of its unit case volume
consisted of beverage products of Coca-Cola Amatil and less than 1 percent of its unit case volume consisted of
beverage products of other companies.
Other Interests. We own a 50 percent interest in BPW, a joint venture with Nestl´
e and certain of its
subsidiaries that is focused upon the ready-to-drink tea and coffee businesses. BPW had sales in the United
States and 65 other countries during the year ended December 31, 2005. BPW serves as the exclusive vehicle
through which our Company and Nestl´
e participate in the ready-to-drink tea and coffee businesses, except in
Japan. BPW markets ready-to-drink tea products primarily under the Nestea, Belt´
e, Yang Guang, Nagomi,
Heaven and Earth, Funchum, Frestea, Ten Ren, Modern Tea Workshop, Caf´
e Zu, Shizen and Tian Tey
trademarks, and ready-to-drink coffee products primarily under the Nescaf´
e, Taster’s Choice and Georgia Club
trademarks. We also own a 50 percent interest in Multon, a Russian juice business (‘‘Multon’’), which we
acquired in April 2005 jointly with Coca-Cola HBC. Multon produces and distributes juice products under the
DOBRIY, Rich, Nico and other trademarks in Russia, Ukraine and Belarus.
Seasonality
Sales of our ready-to-drink nonalcoholic beverages are somewhat seasonal, with the second and third
calendar quarters accounting for the highest sales volumes. The volume of sales in the beverages business may
be affected by weather conditions.
Competition
Our Company competes in the nonalcoholic beverages segment of the commercial beverages industry.
Based on internally available data and a variety of industry sources, we believe that, in 2005, worldwide sales of
Company products accounted for approximately 10 percent of total worldwide sales of nonalcoholic beverage
products. The nonalcoholic beverages segment of the commercial beverages industry is highly competitive,
9