Coca Cola 2008 Annual Report Download - page 50

Minute Maid accounted for the majority of China’s 30 percent unit case volume growth in still beverages. Also
contributing to the volume growth of still beverages in China was the impact of Yuan Ye, an original leaf tea,
which was launched earlier in the year. The strong performance in China across our brands is partly attributable
to our successful activation of the Beijing 2008 Olympic Games. In Japan, unit case volume was even in 2008.
Sparkling beverage unit case volume grew 5 percent for the year, led by 6 percent growth in Trademark
Coca-Cola and 13 percent growth in Trademark Fanta. Unit case volume growth in Trademark Coca-Cola was
primarily attributable to the continued success of Coca-Cola Zero and the successful execution of the three-cola
strategy (focusing on driving unit case volume growth for Coca-Cola, Coca-Cola Zero and Diet Coke or
Coca-Cola light). Still beverage unit case volume declined 1 percent in 2008, primarily due to declines in
Sokenbicha and Aquarius. The impact of these volume declines on still beverages was partially offset by a
2 percent unit case volume increase in Georgia Coffee.
Unit case volume for Bottling Investments increased 14 percent in 2008 compared to 2007. The current year
unit case volume growth was primarily attributable to the full year impact of prior year acquisitions, including,
but not limited to, 18 bottling and distribution operations in Germany, Nordeste Refrigerantes S.A. (‘‘NORSA’’)
and CCBPI. Refer to Note 20 of Notes to Consolidated Financial Statements. Additionally, the unit case volume
growth reflected the overall improving health of the Company’s consolidated bottling operations. The favorable
impact that the previously mentioned items had on unit case volume growth was partially offset by the sale of
Refrigerantes Minas Gerais Ltda. (‘‘Remil’’), a bottler in Brazil, and the sale of a portion of our ownership
interest in Coca-Cola Beverages Pakistan Ltd. (‘‘Coca-Cola Pakistan’’), which resulted in its deconsolidation.
Refer to the heading ‘‘Operations Review—Other Income (Loss)—Net’’ and Note 3 and Note 19 of Notes to
Consolidated Financial Statements.
In Eurasia and Africa, unit case volume increased 12 percent in 2007 compared to 2006. Double-digit unit
case volume growth in South Africa, Russia, India, Turkey, Middle East and Southern Eurasia drove the results.
South Africa unit case volume increased 13 percent in 2007, primarily attributable to strong marketing, the
replenishment of trade inventory resulting from the carbon dioxide shortage in the fourth quarter of 2006 and
favorable weather. In India, continued investment in marketing initiatives on the quality and safety of our
products and focus on improved execution by the consolidated bottling operations resulted in 14 percent unit
case volume growth. In addition, strong marketing and bottler execution resulted in solid volume growth in
North and West Africa and in East and Central Africa during 2007.
Unit case volume in Europe increased 5 percent in 2007 compared to 2006, primarily due to unit case
volume growth in most key countries, including double-digit unit case volume growth in Eastern Europe. The
results reflected the benefits of key initiatives across the group, including Coca-Cola Zero launches and the
three-cola strategy, The Coke Side of Life Campaign, Christmas programs, and activation of the Rugby World
Cup. In addition, the full year impact of the 2006 acquisition of Apollinaris GmbH, a German premium source
water brand (‘‘Apollinaris’’), and the 2006 joint acquisition of Fonti del Vulture S.r.l. (‘‘Fonti del Vulture’’), an
Italian mineral water company, with Coca-Cola Hellenic contributed to unit case volume growth in 2007. The
group’s 2007 unit case volume growth reflected the negative impact of unseasonably cool and rainy summer
weather and the favorable impact the World Cup had on volume in 2006.
In Latin America, unit case volume increased 9 percent in 2007 versus 2006, which reflected volume growth
of 16 percent in Brazil, 6 percent in Mexico and 9 percent in Argentina. The group’s unit case volume growth
included a 7 percent growth in Trademark Coca-Cola, primarily due to the introduction of Coca-Cola Zero
during the first quarter of 2007. The acquisition of Leao Junior, S.A. (‘‘Leao Junior’’) in Brazil also favorably
impacted the unit case volume in 2007.
Unit case volume in North America decreased 1 percent in 2007 versus 2006, reflecting a 1 percent decline
in the Foodservice and Hospitality business due to the challenging restaurant industry environment. Unit case
volume in Retail was even in 2007, reflecting a 1 percent favorable impact from acquisitions primarily related to
glac´ eau. In 2007, the Company transferred the majority of the distribution of glac´ eau branded products to its
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