Coca Cola 2006 Annual Report Download - page 48

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In North America, unit case volume in Retail increased 2 percent in 2005 versus 2004, reflecting improved
performance in the bottler-delivered business primarily related to Dasani, Coca-Cola Zero and still beverages,
along with growth in the warehouse juice and warehouse water operations. Foodservice and Hospitality had a
1 percent increase in 2005 compared to 2004, reflecting improved trends in restaurant traffic and the impact of a
new customer conversion partially offset by the impact of higher fuel costs and Hurricane Katrina on consumer
restaurant spending.
In North Asia, Eurasia and Middle East, unit case volume grew 15 percent in 2005 versus 2004, led by
22 percent growth in China, 2 percent growth in Japan, 54 percent growth in Russia and 14 percent growth in
Turkey. The increase in unit case volume in China was led by significant growth in both sparkling and still
beverages. Japan’s growth was primarily due to new product introductions. The unit case volume growth in
Turkey was largely due to improving macroeconomic trends, strong bottler execution and successful marketing
programs. The unit case volume growth in Russia was the result of the joint acquisition of Multon as well as
improving macroeconomic trends, strong bottler execution and successful marketing programs.
Unit case volume for Bottling Investments increased 6 percent in 2005 versus 2004, primarily related to the
acquisitions and full-year impact of consolidation of certain bottling operations under Interpretation No. 46(R).
The unit case volume increase in 2005 was partially offset by a decline in India bottling operations and
dispositions of certain bottling operations.
Gallon Sales
Company-wide gallon sales and unit case volume both grew 4 percent in 2006 when compared to 2005. In
Africa, the gallon sales increase was lower than the unit case volume increase mostly due to planned inventory
reductions in Nigeria. In East, South Asia and Pacific Rim, the gallon sales decline was lower than the unit case
volume decline due to demand for Coca-Cola Zero in Australia and timing of gallon sales in India. In the
European Union, unit case volume increased ahead of gallon sales volume due to timing of gallon sales. Both in
Latin America and North America, gallon sales and unit case volume were approximately equal. In North Asia,
Eurasia and Middle East, unit case volume increased ahead of gallon sales primarily due to inventory reductions
in Russia. Unit case volume growth also reflected the impact of a full-year of unit case volume compared to a
partial year in 2005 due to the joint acquisition of Multon with Coca-Cola HBC in the second quarter of 2005.
The Company only reports unit case volume related to Multon, as the Company does not sell concentrates or
syrups to Multon.
Company-wide gallon sales grew 3 percent while unit case volume grew 4 percent in 2005 compared to 2004.
In Africa, gallon sales growth of 7 percent exceeded unit case volume growth of 6 percent in 2005 compared to
2004, primarily due to timing of gallon shipments. In East, South Asia and Pacific Rim, the gallon sales decline
was higher than the unit case volume decline primarily due to timing of gallon sales in India and the impact of
2005 planned inventory reductions in Australia. Both in the European Union and in Latin America, gallon sales
growth and unit case volume growth were even in 2005 versus 2004. In North America, gallon sales increased
1 percent while unit case volume increased 2 percent, primarily due to the impact of higher gallon sales in 2004
related to the launch of Coca-Cola C2 and a change in shipping routes in 2004. In North Asia, Eurasia and
Middle East, unit case volume increased ahead of gallon sales volume due to the joint acquisition of Multon,
which contributed to unit case volume in 2005, along with timing of 2004 gallon sales, which impacted most of
the remaining divisions in the operating segment. Multon had full-year unit case volume of approximately
80 million unit cases in 2004.
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