Coca Cola 2008 Annual Report Download - page 20

that could result in civil or criminal penalties, including substantial monetary fines, as well as disgorgement of
profits.
Adverse weather conditions could reduce the demand for our products.
The sales of our products are influenced to some extent by weather conditions in the markets in which we
operate. Unusually cold or rainy weather during the summer months may have a temporary effect on the
demand for our products and contribute to lower sales, which could have an adverse effect on our results of
operations for such periods.
If we are unable to maintain our brand image and corporate reputation, our business may suffer.
Our success depends on our ability to maintain brand image for our existing products and effectively build
up brand image for new products and brand extensions. We cannot assure you, however, that additional
expenditures and our continuing commitment to advertising and marketing will have the desired impact on our
products’ brand image and on consumer preferences. Changes in consumers’ media preferences, such as the
shift away from traditional mass media to the Internet, may undermine the effectiveness of our media
advertising campaigns in reaching consumers and may increase our marketing costs. Product quality issues,
actual or perceived, or allegations of product contamination, even when false or unfounded, could tarnish the
image of the affected brands and may cause consumers to choose other products. Allegations of product
contamination, even if untrue, may require us from time to time to recall a beverage or other product from all of
the markets in which the affected production was distributed. Product recalls could negatively affect our
profitability and brand image. Also, adverse publicity surrounding obesity concerns, water usage, labor relations
and the like, and campaigns by activists attempting to connect our system to environmental issues, water
shortages or workplace or human rights violations in certain developing countries in which we operate, could
negatively affect our Company’s overall reputation and our products’ acceptance by consumers.
Changes in the legal and regulatory environment in the countries in which we operate could increase our costs or reduce
our net operating revenues.
Our Company’s business is subject to various laws and regulations in the numerous countries throughout
the world in which we do business, including laws and regulations relating to competition, product safety,
advertising and labeling, container deposits, recycling or stewardship, the protection of the environment, and
employment and labor practices. In the United States, the production, distribution and sale of many of our
products are subject to, among others, the Federal Food, Drug, and Cosmetic Act, the Federal Trade
Commission Act, the Lanham Act, state consumer protection laws, the Occupational Safety and Health Act,
various environmental statutes, as well as various state and local statutes and regulations. Outside the United
States, the production, distribution, sale, advertising and labeling of many of our products are also subject to
various laws and regulations. Changes in applicable laws or regulations or evolving interpretations thereof,
including increased government regulations to limit carbon dioxide and other greenhouse gas emissions as a
result of concern over climate change, may result in increased compliance costs, capital expenditures and other
financial obligations for us and our bottling partners, which could affect our profitability or impede the
production or distribution of our products, which could affect our net operating revenues.
Changes in accounting standards and taxation requirements could affect our financial results.
New accounting standards or pronouncements that may become applicable to our Company from time to
time, or changes in the interpretation of existing standards and pronouncements, could have a significant effect
on our reported results for the affected periods. We are also subject to income tax in the numerous jurisdictions
in which we generate net operating revenues. In addition, our products are subject to import and excise duties
and/or sales or value-added taxes in many jurisdictions in which we operate. Increases in income tax rates could
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