Coca Cola 2011 Annual Report Download - page 50

Unit Case Volume
The Coca-Cola system sold approximately 26.7 billion unit cases of our products in 2011, approximately 25.5 billion unit cases in
2010 and approximately 24.4 billion unit cases in 2009.
Year Ended December 31, 2011, versus Year Ended December 31, 2010
In Eurasia and Africa, unit case volume increased 6 percent, which consisted of 5 percent growth in sparkling beverages and
13 percent growth in still beverages. The group’s unit case volume growth was largely due to growth in our key markets, including
India and Turkey. India experienced 12 percent unit case volume growth, which consisted of 12 percent growth in sparkling
beverages and 11 percent growth in still beverages. India’s growth in sparkling beverages was primarily due to 17 percent growth
in Trademark Sprite, 15 percent growth in Trademark Thums Up and 11 percent growth in Trademark Coca-Cola. Still beverages
in India benefited from 14 percent growth in our Kinley water brand and 11 percent growth in Maaza, a component of our juice
portfolio in India. The group also benefited from unit case volume growth of 10 percent in Turkey, which included strong growth
in brand Coca-Cola. Unit case volume grew 5 percent in Russia, primarily due to our acquisition of Nidan in the third quarter of
2010. Excluding the impact of the acquired Nidan juice, Russia’s overall unit case volume declined 2 percent in 2011. Eurasia and
Africa also benefited from unit case volume growth of 8 percent in the Company’s Middle East and North Africa Business Unit
despite ongoing geopolitical challenges in the region. The group’s unit case volume growth in the markets described above was
partially offset by a 2 percent unit case volume decline in South Africa. This decline was primarily due to the impact of
unfavorable weather conditions during our peak summer selling season as well as higher pricing in the marketplace.
Unit case volume in Europe increased 2 percent, despite an unseasonably cold and rainy summer selling season and moderate
consumer confidence. The Company achieved these results by strategically tailoring our price and package offerings to meet the
needs of each market with consideration for the current economic environment. The group benefited from the Company’s
successful launch of our 125th anniversary marketing campaign as well as other integrated marketing campaigns. The group had
2 percent growth in sparkling beverages, including 3 percent growth in Trademark Coca-Cola and growth of 14 percent in
Coca-Cola Zero. Unit case volume for still beverages increased 2 percent, led by growth in energy drinks and tea. Germany’s unit
case volume increased 6 percent, primarily attributable to 6 percent growth in Trademark Coca-Cola and 13 percent growth in
Trademark Fanta. Our German business continued to benefit from the Company’s bottler restructuring efforts and our effective
marketing campaigns. In addition, France and Great Britain had growth of 5 percent and 4 percent, respectively, each led by
growth in Trademark Coca-Cola.
In Latin America, unit case volume increased 6 percent, which consisted of 4 percent growth in sparkling beverages and
15 percent growth in still beverages. The group’s sparkling beverage unit case volume growth was led by 4 percent growth in
brand Coca-Cola. Still beverages benefited from the successful performance of Del Valle as well as strong growth in other still
beverages, including water and tea. Mexico had unit case volume growth of 9 percent, led by 7 percent growth in sparkling
beverages, which included 7 percent growth in Trademark Coca-Cola. In addition, Argentina had 10 percent growth in Trademark
Coca-Cola which contributed to its overall unit case volume growth of 10 percent. Argentina’s unit case volume growth benefited
from strong integrated marketing campaigns, including sponsorship of the Copa America soccer tournament in July. Brazil’s unit
case volume increased 1 percent despite a general slowdown in the country’s economy. The group’s unit case volume growth in
the markets described above was partially offset by a 10 percent volume decline in Venezuela. The decline in Venezuela is a
reflection of the continued economic and political pressures affecting the country.
Unit case volume in North America increased 4 percent, including 3 percent growth attributable to the new license agreements
with DPS. The group’s unit case volume growth was driven by 3 percent growth in sparkling beverages, primarily due to the sale
of Dr Pepper brands under the new license agreements. Coca-Cola Zero continued its strong performance in North America with
11 percent unit case volume growth. Unit case volume for still beverages in North America increased 4 percent, including
12 percent growth in Trademark Powerade, 10 percent growth in Trademark Dasani and 48 percent growth in Gold Peak. The
growth in still beverages in North America was partially offset by a decline of 2 percent in juice and juice drinks, a reflection of
increased pricing to offset commodity costs. In December 2011, the Company acquired Great Plains Coca-Cola Bottling Company
(‘‘Great Plains’’) in the United States. As a result of this acquisition, we will report volume from cross-licensed brands, primarily
Dr Pepper, that were previously distributed by Great Plains. Unit case volume for these cross-licensed brands was 12 million unit
cases for full year 2011. The Company began reporting unit case volume for these cross-licensed brands in December 2011.
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