Coca Cola 2008 Annual Report Download - page 11

In 2008, approximately 41 percent of the unit case volume of Coca-Cola Hellenic consisted of Coca-Cola
Trademark Beverages; approximately 54 percent of its unit case volume consisted of other Company Trademark
Beverages; and approximately 5 percent of its unit case volume consisted of beverage products of Coca-Cola
Hellenic or other companies.
Coca-Cola FEMSA, S.A.B. de C.V. (‘‘Coca-Cola FEMSA’’). Our ownership interest in Coca-Cola FEMSA
was approximately 32 percent at December 31, 2008. 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, the state of Minas Gerais 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, 26 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 31 percent of the
population of Argentina. In 2008, Coca-Cola FEMSA’s net sales of beverage products were approximately
$8 billion. In 2008, approximately 64 percent of the unit case volume of Coca-Cola FEMSA consisted of
Coca-Cola Trademark Beverages; approximately 35 percent of its unit case volume consisted of other Company
Trademark Beverages; and approximately 1 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, 2008, our Company’s ownership
interest in Coca-Cola Amatil was approximately 30 percent. Coca-Cola Amatil has bottling and distribution
rights, through direct ownership or joint ventures, in Australia, New Zealand, Fiji, Papua New Guinea and
Indonesia. Coca-Cola Amatil estimates that the territories in which it markets beverage products contain
100 percent of the populations of Australia, New Zealand, Fiji and Papua New Guinea, and 98 percent of the
population of Indonesia. In 2008, Coca-Cola Amatil’s net sales of beverage products were approximately
$2.9 billion. In 2008, approximately 48 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; and approximately 12 percent of its unit case volume consisted of beverage products of
Coca-Cola Amatil.
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. The
nonalcoholic beverages segment of the commercial beverages industry is highly competitive, consisting of
numerous firms. These include firms that, like our Company, compete in multiple geographic areas, as well as
firms that are primarily regional or local in operation. Competitive products include numerous nonalcoholic
sparkling beverages; various water products, including packaged, flavored and enhanced waters; juices and
nectars; fruit drinks and dilutables (including syrups and powdered drinks); coffees and teas; energy and sports
and other performance-enhancing drinks; dairy-based drinks; functional beverages; and various other
nonalcoholic beverages. These competitive beverages are sold to consumers in both ready-to-drink and other
than ready-to-drink form. In many of the countries in which we do business, including the United States,
PepsiCo, Inc. is one of our primary competitors. Other significant competitors include, but are not limited to,
Nestl´ e, Dr Pepper Snapple Group, Inc., Groupe Danone, Kraft Foods Inc. and Unilever. We also compete
against numerous regional and local firms in various geographic areas in which we operate.
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