Coca Cola 2010 Annual Report Download - page 9

capture growth by manufacturing, distributing and marketing existing, enhanced and new innovative products to our
consumers throughout the world.
The Coca-Cola system sold approximately 25.5 billion, 24.4 billion and 23.7 billion unit cases of our products in 2010,
2009 and 2008, respectively. Sparkling beverages represented approximately 76 percent, 77 percent and 78 percent of
our worldwide unit case volume for 2010, 2009 and 2008, respectively. Trademark Coca-Cola Beverages accounted for
approximately 50 percent, 51 percent and 51 percent of our worldwide unit case volume for 2010, 2009 and 2008,
respectively.
In 2010, unit case volume in the United States (‘‘U.S. unit case volume’’) represented approximately 20 percent of the
Company’s worldwide unit case volume. Of the U.S. unit case volume for 2010, approximately 71 percent was
attributable to sparkling beverages and approximately 29 percent to still beverages. Trademark Coca-Cola Beverages
accounted for approximately 51 percent of U.S. unit case volume for 2010.
Unit case volume outside the United States represented approximately 80 percent of the Company’s worldwide unit
case volume for 2010. The countries outside the United States in which our unit case volumes were the largest in 2010
were Mexico, China, Brazil and Japan, which together accounted for approximately 31 percent of our worldwide unit
case volume. Of the non-U.S. unit case volume for 2010, approximately 78 percent was attributable to sparkling
beverages and 22 percent to still beverages. Trademark Coca-Cola Beverages accounted for approximately 50 percent of
non-U.S. unit case volume for 2010.
In our concentrate operations, we typically sell concentrates and syrups to our bottling partners, who use the
concentrate to manufacture finished products which they sell to distributors and other customers. Separate contracts
(‘‘Bottler’s Agreements’’) exist between our Company and each of our bottling partners regarding the manufacture and
sale of Company products. Subject to specified terms and conditions and certain variations, the Bottler’s Agreements
generally authorize the bottlers to prepare specified Company Trademark Beverages, to package the same in authorized
containers, and to distribute and sell the same in (but, subject to applicable local law, generally only in) an identified
territory. The bottler is obligated to purchase its entire requirement of concentrates or syrups for the designated
Company Trademark Beverages from the Company or Company-authorized suppliers. We typically agree to refrain from
selling or distributing, or from authorizing third parties to sell or distribute, the designated Company Trademark
Beverages throughout the identified territory in the particular authorized containers; however, we typically reserve for
ourselves or our designee the right (1) to prepare and package such beverages in such containers in the territory for
sale outside the territory, and (2) to prepare, package, distribute and sell such beverages in the territory in any other
manner or form. Territorial restrictions on bottlers vary in some cases in accordance with local law.
Being a bottler does not create a legal partnership or joint venture between us and our bottlers. Our bottlers are
independent contractors and are not our agents.
While, as described below, under most of our Bottler’s Agreements we generally have complete flexibility to determine
the price and other terms of sale of the concentrates and syrups we sell to our bottlers, as a practical matter, our
Company’s ability to exercise its contractual flexibility to determine the price and other terms of sale of its syrups,
concentrates and finished beverages is subject, both outside and within the United States, to competitive market
conditions.
Bottler’s Agreements Outside the United States
The Bottler’s Agreements between us and our authorized bottlers outside the United States generally are of stated
duration, subject in some cases to possible extensions or renewals of the term of the contract. Generally, these contracts
are subject to termination by the Company following the occurrence of certain designated events. These events include
defined events of default and certain changes in ownership or control of the bottler.
In certain parts of the world outside the United States, we have not granted comprehensive beverage production rights
to the bottlers. In such instances, we or our authorized suppliers sell Company Trademark Beverages to the bottlers for
sale and distribution throughout the designated territory, often on a nonexclusive basis. Most of the Bottler’s
Agreements in force between us and bottlers outside the United States authorize the bottlers to manufacture and
distribute fountain syrups, usually on a nonexclusive basis.
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