Coca Cola 2006 Annual Report Download - page 45

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Volume
We measure our sales volume in two ways: (1) unit cases of finished products and (2) gallons. A ‘‘unit case’’
is a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings). Unit case
volume represents the number of unit cases of Company beverage products directly or indirectly sold by the
Company and its bottling partners (‘‘Coca-Cola system’’) to consumers. Unit case volume primarily consists of
beverage products bearing Company trademarks. Also included in unit case volume are certain products
licensed to, or distributed by, our Company, and brands owned by Coca-Cola system bottlers for which our
Company provides marketing support and from the sale of which it derives income. Such products licensed to, or
distributed by, our Company or owned by Coca-Cola system bottlers account for a minimal portion of total unit
case volume. In addition, unit case volume includes sales by joint ventures in which the Company is a partner.
Unit case volume is derived based on estimates supplied by our bottling partners and distributors. A ‘‘gallon’’ is a
unit of measurement for concentrates, syrups, beverage bases, finished beverages and powders (in all cases
expressed in equivalent gallons of syrup) sold by the Company to its bottling partners or other customers. Most
of our revenues are based on gallon sales, a primarily wholesale activity, as discussed under ‘‘Item 1. Business’’ in
Part I of this report and the heading ‘‘Net Operating Revenues,’’ below. Unit case volume and gallon sales
growth rates are not necessarily equal during any given period. Items such as seasonality, bottlers’ inventory
practices, supply point changes, timing of price increases and new product introductions and changes in product
mix can impact unit case volume and gallon sales and can create differences between unit case volume and
gallon sales growth rates.
Information about our volume growth by operating segment is as follows:
Percentage Change
2006 vs. 2005 2005 vs. 2004
Year Ended December 31, Unit Cases1,2 Gallons Unit Cases1,2 Gallons
Worldwide 4% 4% 4% 3%
International 6 5 5 4
Africa 4 3 6 7
East, South Asia and Pacific Rim (5) (4) (4) (6)
European Union 6 4 — —
Latin America 7 7 6 6
North America — — 2 1
North Asia, Eurasia and Middle East 11 7 15 10
Bottling Investments 16 N/A 6 N/A
1Bottling Investments segment data reflects unit case volume growth for consolidated bottlers only.
2Geographic segment data reflects unit case volume growth for all bottlers in the applicable
geographic areas, both consolidated and unconsolidated.
Unit Case Volume
Although most of our Company’s revenues are not based directly on unit case volume, we believe unit case
volume is one of the measures of the underlying strength of the Coca-Cola system because it measures our
product trends at the consumer level. The Coca-Cola system sold approximately 21.4 billion unit cases of our
products in 2006, approximately 20.6 billion unit cases in 2005, and approximately 19.8 billion unit cases in 2004.
In Africa, unit case volume increased 4 percent in 2006 compared to 2005, reflecting growth across the
majority of divisions, which was partially offset by a slight decline in Nigeria primarily related to affordability
issues and competitive and economic pressure. The unit case volume increase in Africa was also partially offset
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