Coca Cola 2007 Annual Report Download - page 14

by entities that we have consolidated under the Financial Accounting Standards Board (“FASB”) Interpretation No. 46
(revised December 2003), “Consolidation of Variable Interest Entities” (“Interpretation No. 46(R)”). At the end of
2007 and 2006, our Company had approximately 13,200 and 12,200 associates, respectively, located in the United
States, of which approximately 1,300 and 1,200, respectively, were employed by entities that we have consolidated
under Interpretation No. 46(R). The increase in the total number of associates in 2007 was primarily due to acquisitions
and the consolidation of certain bottling operations, mainly in the Philippines, Brazil and Germany.
Our Company, through its divisions and subsidiaries, has entered into numerous collective bargaining agreements.
We currently expect that we will be able to renegotiate such agreements on satisfactory terms when they expire. The
Company believes that its relations with its associates are generally satisfactory.
Securities Exchange Act Reports
The Company maintains a website at the following address: www.thecoca-colacompany.com. The information on
the Company’s website is not incorporated by reference in this annual report on Form 10-K.
We make available on or through our website certain reports and amendments to those reports that we file with or
furnish to the Securities and Exchange Commission (the “SEC”) in accordance with the Securities Exchange Act of
1934, as amended (the “Exchange Act”). These include our annual reports on Form 10-K, our quarterly reports on
Form 10-Q and our current reports on Form 8-K. We make this information available on our website free of charge as
soon as reasonably practicable after we electronically file the information with, or furnish it to, the SEC.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the following factors,
which could materially affect our business, financial condition or future results. The risks described below are not the
only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem
to be immaterial also may materially adversely affect our business, financial condition or results of operations.
Obesity and other health concerns may reduce demand for some of our products.
Consumers, public health officials and government officials are becoming increasingly aware of and concerned
about the public health consequences associated with obesity, particularly among young people. In addition, some
researchers, health advocates and dietary guidelines are encouraging consumers to reduce consumption of certain types
of beverages, especially sugar-sweetened beverages. Increasing public awareness about these issues, possible new
governmental regulations concerning the marketing, labeling or availability of our beverages, and negative publicity
resulting from actual or threatened legal actions against us or other companies in our industry relating to the marketing,
labeling or sale of sparkling beverages may reduce demand for our beverages, which could affect our profitability.
Water scarcity and poor quality could negatively impact the Coca-Cola system’s production costs and capacity.
Water is the main ingredient in substantially all of our products. It is also a limited resource in many parts of the
world, facing unprecedented challenges from overexploitation, increasing pollution and poor management. As demand
for water continues to increase around the world, and as the quality of available water deteriorates, our system may
incur increasing production costs or face capacity constraints which could adversely affect our profitability or net
operating revenues in the long run.
Changes in the nonalcoholic beverages business environment could impact our financial results.
The nonalcoholic beverages business environment is rapidly evolving as a result of, among other things, changes
in consumer preferences, including changes based on health and nutrition considerations and obesity concerns, shifting
consumer tastes and needs, changes in consumer lifestyles and competitive product and pricing pressures. In addition,
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