Coca Cola 2013 Annual Report Download - page 35

Bottling and Distribution Operations
Most of our Company beverage products are manufactured, sold and distributed by independent bottling partners. However, we
often acquire bottlers in underperforming markets where we believe we can use our resources and expertise to improve
performance. Owning such a controlling interest enables us to compensate for limited local resources; help focus the bottler’s sales
and marketing programs; assist in the development of the bottler’s business and information systems; and establish an appropriate
capital structure for the bottler.
Our Company has a long history of providing world-class customer service, demonstrating leadership in the marketplace and
leveraging the talent of our global workforce. In addition, we have an experienced bottler management team. All of these factors
are critical to build upon as we manage our growing bottling and distribution operations.
The Company has a deep commitment to continuously improving our business. This includes our efforts to develop innovative
packaging and merchandising solutions which help drive demand for our beverages and meet the growing needs of our consumers.
As we further transform the way we go to market, the Company continues to seek out ways to be more efficient.
Challenges and Risks
Being global 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, six key challenges and risks are discussed below.
Obesity, Poor Diets and Inactive Lifestyles
The rates of obesity affecting communities, cultures and countries worldwide continue to be too high. There is growing concern
among consumers, public health professionals and government agencies about the health problems associated with obesity, which
results from poor diets that are too high in calories combined with inactive lifestyles. This concern represents a significant
challenge to our industry. We understand and recognize that obesity is a complex public health challenge and are committed to
being a part of the solution.
We recognize the uniqueness of consumers’ lifestyles and dietary choices. All of our products can be part of an active, healthy
lifestyle that includes a sensible and balanced diet, proper hydration and regular physical activity. However, when it comes to
weight management, all calories count, whatever food or beverage they come from, including calories from our beverages.
The following four global initiatives will guide our efforts to address obesity and bring people together to pursue solutions:
• Offer low- or no-calorie beverage options
• Provide transparent nutrition information, featuring calories on the front of all of our packages
• Help get people moving by supporting physical activity programs
• Market responsibly, including no advertising to children under 12
We recognize the health of our business is interwoven with the well-being of our consumers, our employees and the communities
we serve, and we are working in cooperation with governments, educators and consumers.
Water Quality and Quantity
Water quality and quantity is an issue that increasingly requires our Company’s attention and collaboration with other companies,
suppliers, governments, nongovernmental organizations and communities where we operate. Water is the main ingredient in
substantially all of our products, is vital to our manufacturing processes and is needed to produce the agricultural ingredients on
which our business relies. It also is critical to the prosperity of the communities we serve. Today, water is a limited natural
resource facing unprecedented challenges from overexploitation, flourishing food demand, increasing pollution, poor management
and the effects of climate change.
Our Company has a robust water stewardship and management program and continues to work to improve water use
efficiency, treat wastewater prior to discharge and to achieve our goal of replenishing the water that we and our bottling
partners source and use in our finished products. We regularly assess 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 actively collaborating with
other companies, governments, nongovernmental organizations and communities to advocate for needed water policy reforms
and action to protect water availability and quality around the world. We are working with our global partners to develop and
implement sustainability-related water projects. We are encouraging improved water efficiency and conservation efforts throughout
our system. Through these integrated programs, we believe that our Company is in an excellent position to leverage the water-
related knowledge we have developed in the communities we serve — through source water availability assessments, water
resource management, water treatment, wastewater treatment systems and models for working with communities and partners
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