Coca Cola 2011 Annual Report Download - page 35

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Challenges and Risks
Being a global company provides unique opportunities for our Company. Challenges and risks accompany those opportunities.
Our management has identified certain challenges and risks that demand the attention of the nonalcoholic beverage segment of
the commercial beverage industry and our Company. Of these, four key challenges and risks are discussed below.
Obesity and Inactive Lifestyles. Increasing concern among consumers, public health professionals and government agencies of the
potential health problems associated with obesity and inactive lifestyles represents a significant challenge to our industry. We
recognize that obesity is a complex public health problem. Our commitment to consumers begins with our broad product line,
which includes a wide selection of diet and light beverages, juices and juice drinks, sports drinks and water products. Our
commitment also includes adhering to responsible policies in schools and in the marketplace; supporting programs to encourage
physical activity and promote nutrition education; and continuously meeting changing consumer needs through beverage
innovation, choice and variety. We are committed to playing an appropriate role in helping address this issue in cooperation with
governments, educators and consumers through science-based solutions and programs.
Water Quality and Quantity. Water quality and quantity is an issue that increasingly requires our Company’s attention and
collaboration with the nonalcoholic beverage segment of the commercial beverage industry, governments, nongovernmental
organizations and communities where we operate. Water is the main ingredient in substantially all of our products. It is also a
limited natural resource facing unprecedented challenges from overexploitation, increasing pollution and poor management. Our
Company is in an excellent position to share the water-related knowledge we have developed in the communities we serve —
water resource management, water treatment, wastewater treatment systems, and models for working with communities and
partners in addressing water and sanitation needs. We are actively engaged in assessing the specific water-related risks that we and
many of our bottling partners face and have implemented a formal water risk management program. We are working with our
global partners to develop water sustainability projects. We are actively encouraging improved water efficiency and conservation
efforts throughout our system. As demand for water continues to increase around the world, we expect commitment and
continued action on our part will be crucial to the successful long-term stewardship of this critical natural resource.
Evolving Consumer Preferences. Consumers want more choices. We are impacted by shifting consumer demographics and needs,
on-the-go lifestyles, aging populations in developed markets and consumers who are empowered with more information than ever.
We are committed to generating new avenues for growth through our core brands with a focus on diet and light products. We are
also committed to continuing to expand the variety of choices we provide to consumers to meet their needs, desires and lifestyle
choices.
Increased Competition and Capabilities in the Marketplace. Our Company is facing strong competition from some well-established
global companies and many local participants. We must continue to selectively expand into other profitable segments of the
nonalcoholic beverage segment of the commercial beverage industry and strengthen our capabilities in marketing and innovation
in order to maintain our brand loyalty and market share.
All four of these challenges and risks — obesity and inactive lifestyles, water quality and quantity, evolving consumer preferences,
and increased competition and capabilities in the marketplace — have the potential to have a material adverse effect on the
nonalcoholic beverage segment of the commercial beverage industry and on our Company; however, we believe our Company is
well positioned to appropriately address these challenges and risks.
See also ‘‘Item 1A. Risk Factors’’ in Part I of this report for additional information about risks and uncertainties facing our
Company.
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