Coca Cola 2008 Annual Report Download - page 36

operations during 2008 and 2007 have resulted in a substantial increase in the number of Company-owned
bottling plants included in our consolidated financial statements and in the number of our associates. In 2008,
net operating revenues generated by Company-owned and consolidated bottling operations (which are included
in the Bottling Investments operating segment) represented approximately 27 percent of our Company’s
consolidated net operating revenues and distributed approximately 11 percent of our worldwide unit case
volume.
We have three types of bottling relationships: bottlers in which our Company has no ownership interest,
bottlers in which our Company has a noncontrolling ownership interest and bottlers in which our Company has a
controlling ownership interest. We authorize our bottling partners to manufacture and package products made
from our concentrates and syrups into branded finished products that they then distribute and sell. In 2008,
bottling partners in which our Company has no ownership interest or a noncontrolling ownership interest
produced and distributed approximately 78 percent of our worldwide unit case volume.
We make significant marketing expenditures in support of our brands, including expenditures for
advertising, sponsorship fees and special promotional events. As part of our marketing activities, we, at our
discretion, provide retailers and distributors with promotions and point-of-sale displays; our bottling partners
with advertising support and funds designated for the purchase of cold-drink equipment; and our consumers
with coupons, discounts and promotional incentives. These marketing expenditures help to enhance awareness
of and increase consumer preference for our brands. We believe that greater awareness and preference promote
long-term growth in unit case volume, per capita consumption and our share of worldwide nonalcoholic
beverage sales.
The Nonalcoholic Beverages Segment of the Commercial Beverages Industry
We operate in the highly competitive nonalcoholic beverages segment of the commercial beverages
industry. We face strong competition from numerous other general and specialty beverage companies. We, along
with other beverage companies, are affected by a number of factors, including, but not limited to, cost to
manufacture and distribute products, consumer spending, economic conditions, availability and quality of water,
consumer preferences, inflation, political climate, local and national laws and regulations, foreign currency
exchange fluctuations, fuel prices and weather patterns.
Our Objective
Our objective is to use our formidable assets—brands, financial strength, unrivaled distribution system,
global reach, and a strong commitment by our management and associates worldwide—to achieve long-term
sustainable growth. Our vision for sustainable growth includes the following:
• People: Being a great place to work where people are inspired to be the best they can be.
• Portfolio: Bringing to the world a portfolio of beverage brands that anticipates and satisfies people’s
desires and needs.
• Partners: Nurturing a winning network of partners and building mutual loyalty.
• Planet: Being a responsible global citizen that makes a difference.
• Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
• Productivity: Managing our people, time and money for greatest effectiveness.
Strategic Priorities
We have four strategic priorities designed to create long-term sustainable growth for our Company and the
Coca-Cola system and value for our shareowners. These strategic priorities are driving global beverage
leadership; accelerating innovation; leveraging our balanced geographic portfolio; and leading the Coca-Cola
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