Coca Cola 2007 Annual Report Download - page 36

Commercial Leadership
The Coca-Cola system has millions of customers around the world who sell or serve our products directly to
consumers. We focus on enhancing value for our customers and providing solutions to grow their beverage businesses.
Our approach includes understanding each customer’s business and needs, whether that customer is a sophisticated
retailer in a developed market or a kiosk owner in an emerging market. We focus on ensuring that our customers have
the right product and package offerings and the right promotional tools to deliver enhanced value to themselves and the
Company. We are constantly looking to build new beverage consumption occasions in our customers’ outlets through
unique and innovative consumer experiences, product availability and delivery systems, and beverage merchandising
and displays.
Franchise Leadership
We must continue to improve our franchise leadership capabilities to give our Company and our bottling partners
the ability to grow together through shared values, aligned incentives and a sense of urgency and flexibility that
supports consumers’ always changing needs and tastes. The financial health and success of our bottling partners are
critical components of the Company’s success. We work with our bottling partners to continuously look for ways to
improve system economics, and we share best practices throughout the bottling system. We also design business
models for still beverages in specific markets to ensure that we appropriately share the value created by these beverages
with our bottling partners. We will continue to build a supply chain network that leverages the size and scale of the
Coca-Cola system to gain a competitive advantage.
Challenges and Risks
Being a global company provides unique opportunities for our Company. Challenges and risks accompany those
opportunities.
Our management has identified certain challenges and risks that demand the attention of the nonalcoholic
beverages segment of the commercial beverages industry and our Company. Of these, four key challenges and risks are
discussed below.
Obesity and Inactive Lifestyles. Increasing awareness among consumers, public health professionals and
government agencies of the potential health problems associated with obesity and inactive lifestyles represents a
significant challenge to our industry. We recognize that obesity is a complex public health problem. Our commitment
to consumers begins with our broad product line, which includes a wide selection of diet and light beverages, juices and
juice drinks, sports drinks and water products. Our commitment also includes adhering to responsible policies in
schools and in the marketplace; supporting programs to encourage physical activity and promote nutrition education;
and continuously meeting changing consumer needs through beverage innovation, choice and variety. We are
committed to playing an appropriate role in helping address this issue in cooperation with governments, educators and
consumers through science-based solutions and programs.
Water Quality and Quantity. Water quality and quantity is an issue that increasingly requires our Company’s
attention and collaboration with the nonalcoholic beverages segment of the commercial beverages industry,
governments, nongovernmental organizations and communities where we operate. Water is the main ingredient in
substantially all of our products. It is also a limited natural resource facing unprecedented challenges from
overexploitation, increasing pollution and poor management. Our Company is in an excellent position to share the
water-related knowledge we have developed in the communities we serve—water-resource management, water
treatment, wastewater treatment systems, and models for working with communities and partners in addressing water
and sanitation needs. We are actively engaged in assessing the specific water-related risks that we and many of our
bottling partners face and have implemented a formal water risk management program. We are working with our global
partners to develop water sustainability projects. We are actively encouraging improved water efficiency and
conservation efforts throughout our system. As demand for water continues to increase around the world, we expect
commitment and continued action on our part will be crucial in the successful long-term stewardship of this critical
natural resource.
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