Coca Cola 2008 Annual Report Download - page 48

Operations Review
We manufacture, distribute and market nonalcoholic beverage concentrates and syrups. We also
manufacture, distribute and market finished beverages. Our organizational structure as of December 31, 2008,
consisted of the following operating segments, the first six of which are sometimes referred to as ‘‘operating
groups’’ or ‘‘groups’’: Eurasia and Africa; Europe; Latin America; North America; Pacific; Bottling Investments;
and Corporate. We revised previously reported group information to conform to our operating structure in
effect as of December 31, 2008. For further information regarding our operating segments, including a
discussion of changes made to our operating segments effective July 1, 2008, refer to Note 21 of Notes to
Consolidated Financial Statements.
Beverage Volume
We measure our sales volume in two ways: (1) unit cases of finished products and (2) concentrate sales. A
‘‘unit case’’ is a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce
servings). Unit case volume represents the number of unit cases of Company beverage products directly or
indirectly sold by the Company and its bottling partners (‘‘Coca-Cola system’’) to customers. Unit case volume
primarily consists of beverage products bearing Company trademarks. Also included in unit case volume are
certain products licensed to, or distributed by, our Company, and brands owned by Coca-Cola system bottlers
for which our Company provides marketing support and from the sale of which we derive economic benefit.
Such products licensed to, or distributed by, our Company or owned by Coca-Cola system bottlers account for a
minimal portion of total unit case volume. In addition, unit case volume includes sales by joint ventures in which
the Company has an equity interest. Unit case volume is derived based on estimates supplied by our bottling
partners and distributors. Concentrate sales volume represents the amount of concentrates, syrups, beverage
bases and powders (in all cases expressed in equivalent unit cases) sold by, or used in finished beverages sold by,
the Company to its bottling partners or other customers. Most of our revenues are based on concentrate sales, a
primarily wholesale activity. Unit case volume and concentrate sales growth rates are not necessarily equal
during any given period. Factors such as seasonality, bottlers’ inventory practices, supply point changes, timing of
price increases, new product introductions and changes in product mix can impact unit case volume and
concentrate sales and can create differences between unit case volume and concentrate sales growth rates. In
addition to the items mentioned above, the impact of unit case volume from certain joint ventures, in which the
Company has an equity interest, but to which the Company does not sell concentrates, may give rise to
differences between unit case volume and concentrate sales growth rates.
Information about our volume growth by operating segment is as follows:
Percentage Change
2008 vs. 2007 2007 vs. 2006
Concentrate Concentrate
Year Ended December 31, Unit Cases1,2 Sales Unit Cases1,2 Sales
Worldwide 5% 4% 6% 6%
Eurasia & Africa 7 7 12 12
Europe 3 0 5 5
Latin America 8 6 9 9
North America (1) (2) (1) —
Pacific 8 8 7 7
Bottling Investments 14 N/A 64 N/A
1Bottling Investments operating segment data reflects unit case volume growth for consolidated
bottlers only.
2Geographic segment data reflects unit case volume growth for all bottlers in the applicable geographic
areas, both consolidated and unconsolidated.
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