Coca Cola 2013 Annual Report Download - page 47

Year Ended December 31, 2013, versus Year Ended December 31, 2012
In Eurasia and Africa unit case volume increased 7 percent, which consisted of 6 percent growth in sparkling and 13 percent
growth in still beverages. The group’s sparkling beverage growth was led by 6 percent growth in brand Coca-Cola, 5 percent
growth in Trademark Sprite and 3 percent growth in Trademark Fanta. This growth reflects a continued focus on driving
exceptional capabilities in the marketplace, integrated marketing campaigns and greater consumer choice in package and price
options. Growth in still beverages was led by packaged water, juices and juice drinks, and teas. Russia reported unit case growth
of 3 percent, driven by growth of 11 percent in brand Coca-Cola. Still beverage growth in Russia included growth of 7 percent and
24 percent in our juice brands Dobriy and Rich, respectively. Unit case growth in Russia was favorably impacted by the
Company’s marketing activities related to the Sochi 2014 Winter Olympics and Olympic Torch Relay. Eurasia and Africa also
benefited from unit case volume growth of 14 percent in the Company’s Middle East and North Africa business unit, including a
5 percent benefit primarily related to our Aujan partnership, and 8 percent growth in the Company’s Central, East and West
Africa business unit.
Unit case volume in Europe declined 1 percent, which consisted of a 1 percent decline in sparkling beverages and a 5 percent
decline in still beverages, primarily packaged water and teas. These declines reflect the impact of particularly poor weather across
many countries during the second quarter of 2013, including severe flooding in parts of Germany and Central Europe, competitive
pricing, and ongoing weakness in consumer confidence and spending across the region. In spite of these challenges, our Germany
business unit reported growth of 2 percent and our Northwest Europe and Nordics business unit reported growth of 1 percent.
This growth was driven by the Company’s strong commercial campaigns such as ‘‘Share a Coke,’’ ‘‘Coke with Meals,’’ and the
Coca-Cola Christmas Truck Tour. These increases were offset by a decline in unit case volume of 4 percent in the Central and
Southern Europe business unit and a volume decline of 3 percent in the Iberia business unit which continue to manage through
very tough macroeconomic conditions.
In Latin America, unit case volume increased 1 percent, which primarily reflects 8 percent growth in still beverages while volume
in sparkling beverages was even. The group reported growth of 6 percent in the Latin Center business unit and growth of
4 percent in the South Latin business unit, driven by strong activation of brand and category advertising as well as investments in
cold-drink equipment and continued segmentation across multiple price points and package sizes. The group’s still beverage
growth reflects increases in the tea, packaged water, and juice and juice drink categories of 16 percent, 6 percent and 5 percent,
respectively. Argentina reported unit case growth of 7 percent, led by strong growth in Trademark Bonaqua and 5 percent growth
in brand Coca-Cola. The growth in the Mexico business unit was even due to a slower economy and the significant disruption
caused by hurricanes Manuel and Ingrid in September 2013. Volume in Brazil declined 2 percent, which reflects some consumer
uncertainty given the economic slowdown in the country. Effective January 1, 2014, the Mexican government implemented a new
tax on sugar-sweetened beverages. We believe that this tax will have a negative impact on our 2014 volume.
Unit case volume in North America was even reflecting overall category softness, unseasonably cold and wet weather during the
second quarter of 2013 and weak consumer confidence, which negatively impacted consumer spending. Sparkling beverages
declined 2 percent, whereas still beverages grew 5 percent during the period. Still beverage growth in North America was led by
strong performance in teas, juices and juice drinks and packaged water. The group continued to implement a multi-brand strategy
around teas and reported 15 percent volume growth, primarily due to increases in Gold Peak, Honest Tea and Fuze. Volume
growth in juices and juice drinks was 4 percent, led by 7 percent growth in Trademark Simply, and packaged water volume
benefited from strong growth in Dasani and smartwater.
In Pacific, unit case volume increased 3 percent, which consisted of 3 percent growth in sparkling beverages and 4 percent growth
in still beverages. Sparkling beverage growth was led by 5 percent growth in brand Coca-Cola and 4 percent growth in Trademark
Fanta. India reported 4 percent unit case volume growth, led by growth of 18 percent in brand Coca-Cola and 5 percent growth in
Trademark Sprite. India’s growth reflects the impact of strong integrated marketing campaigns and continued expansion of
packaging choices to consumers. Japan’s unit case growth was 1 percent during the period, including 2 percent growth in sparkling
beverages. China reported unit case volume growth of 3 percent, including volume growth of 4 percent in sparkling beverages and
3 percent in still beverages. The group’s volume results also benefited from 25 percent growth in Vietnam and 9 percent growth in
Thailand, partially offset by declines of 3 percent in the Philippines and 4 percent in Australia.
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