Coca Cola 2010 Annual Report Download - page 5

Products and Brands
As used in this report:
• ‘‘concentrates’’ means flavoring ingredients and, depending on the product, sweeteners used to prepare syrups or
finished beverages, and includes powders for purified water products such as Dasani;
• ‘‘syrups’’ means beverage ingredients produced by combining concentrates and, depending on the product,
sweeteners and added water;
• ‘‘fountain syrups’’ means syrups that are sold to fountain retailers, such as restaurants and convenience stores,
which use dispensing equipment to mix the syrups with sparkling or still water at the time of purchase to
produce finished beverages that are served in cups or glasses for immediate consumption;
• ‘‘sparkling beverages’’ means nonalcoholic ready-to-drink beverages with carbonation, including carbonated
energy drinks and carbonated waters and flavored waters;
• ‘‘still beverages’’ means nonalcoholic beverages without carbonation, including noncarbonated waters, flavored
waters and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and
coffees and sports drinks;
• ‘‘Company Trademark Beverages’’ means beverages bearing our trademarks and certain other beverage products
bearing trademarks licensed to us by third parties for which we provide marketing support and from the sale of
which we derive economic benefit; and
• ‘‘Trademark Coca-Cola Beverages’’ or ‘‘Trademark Coca-Cola’’ means beverages bearing the trademark
Coca-Cola or any trademark that includes Coca-Cola or Coke (that is, Coca-Cola, Diet Coke and Coca-Cola
Zero and all their variations and line extensions, including Coca-Cola Light, Coke Zero, caffeine free Diet Coke,
Cherry Coke, etc.). Likewise, when we use the capitalized word ‘‘Trademark’’ together with the name of one of
our other beverage products (such as ‘‘Trademark Fanta,’’ ‘‘Trademark Sprite’’ or ‘‘Trademark Simply’’), we mean
beverages bearing the indicated trademark (that is, Fanta, Sprite or Simply, respectively) and all its variations
and line extensions (such that ‘‘Trademark Fanta’’ includes Fanta Orange, Fanta Zero Orange and Fanta Apple;
‘‘Trademark Sprite’’ includes Sprite, Diet Sprite, Sprite Zero and Sprite Light; and ‘‘Trademark Simply’’ includes
Simply Orange, Simply Apple and Simply Grapefruit).
Our Company markets, manufactures and sells:
• beverage concentrates, sometimes referred to as ‘‘beverage bases,’’ and syrups, including fountain syrups (we
refer to this part of our business as our ‘‘concentrate business’’ or ‘‘concentrate operations’’); and
• finished sparkling and still beverages (we refer to this part of our business as our ‘‘finished products business’’ or
‘‘finished products operations’’).
Generally, finished products operations generate higher net operating revenues but lower gross profit margins than
concentrate operations.
In our concentrate operations, we typically generate net operating revenues by selling concentrates and syrups to
authorized bottling and canning operations (to which we typically refer as our ‘‘bottlers’’ or our ‘‘bottling partners’’).
Our bottling partners either combine the concentrates with sweeteners (depending on the product), still water and/or
sparkling water or combine the syrups with sparkling water to produce finished beverages. The finished beverages are
packaged in authorized containers bearing our trademarks or trademarks licensed to us — such as cans and refillable
and nonrefillable glass and plastic bottles — and are then sold to retailers directly or, in some cases, through
wholesalers or other bottlers. Outside the United States, we also sell concentrates for fountain beverages to our bottling
partners who are typically authorized to manufacture fountain syrups, which they sell to fountain retailers such as
restaurants and convenience stores which use the fountain syrups to produce beverages for immediate consumption, or
to fountain wholesalers who in turn sell and distribute the fountain syrups to fountain retailers.
Our finished products operations consist primarily of the production, sales and distribution operations managed by CCR
and our Company-owned or controlled bottling and distribution operations. CCR is included in our North America
operating segment, and our Company-owned or controlled bottling and distribution operations are included in our
Bottling Investments operating segment. Our finished products operations generate net operating revenues by selling
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