Coca Cola 2013 Annual Report Download - page 5

Products and Brands
As used in this report:
• ‘‘concentrates’’ means flavoring ingredients and, depending on the product, sweeteners used to prepare syrups or finished
beverages, and includes powders for purified water products such as Dasani;
• ‘‘syrups’’ means beverage ingredients produced by combining concentrates and, depending on the product, sweeteners and
added water;
• ‘‘fountain syrups’’ means syrups that are sold to fountain retailers, such as restaurants and convenience stores, which use
dispensing equipment to mix the syrups with sparkling or still water at the time of purchase to produce finished beverages
that are served in cups or glasses for immediate consumption;
• ‘‘sparkling beverages’’ means nonalcoholic ready-to-drink beverages with carbonation, including carbonated energy drinks
and carbonated waters and flavored waters;
• ‘‘still beverages’’ means nonalcoholic beverages without carbonation, including noncarbonated waters, flavored waters and
enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks;
• ‘‘Company Trademark Beverages’’ means beverages bearing our trademarks and certain other beverage products bearing
trademarks licensed to us by third parties for which we provide marketing support and from the sale of which we derive
economic benefit; and
• ‘‘Trademark Coca-Cola Beverages’’ or ‘‘Trademark Coca-Cola’’ means beverages bearing the trademark Coca-Cola or any
trademark that includes Coca-Cola or Coke (that is, Coca-Cola, Diet Coke and Coca-Cola Zero and all their variations and
line extensions, including Coca-Cola Light, caffeine free Diet Coke, Cherry Coke, etc.). Likewise, when we use the
capitalized word ‘‘Trademark’’ together with the name of one of our other beverage products (such as ‘‘Trademark Fanta,’’
‘‘Trademark Sprite’’ or ‘‘Trademark Simply’’), we mean beverages bearing the indicated trademark (that is, Fanta, Sprite or
Simply, respectively) and all its variations and line extensions (such that ‘‘Trademark Fanta’’ includes Fanta Orange, Fanta
Zero Orange, Fanta Apple, etc.; ‘‘Trademark Sprite’’ includes Sprite, Diet Sprite, Sprite Zero, Sprite Light, etc.; and
‘‘Trademark Simply’’ includes Simply Orange, Simply Apple, Simply Grapefruit, etc.).
Our Company markets, manufactures and sells:
• beverage concentrates, sometimes referred to as ‘‘beverage bases,’’ and syrups, including fountain syrups (we refer to this
part of our business as our ‘‘concentrate business’’ or ‘‘concentrate operations’’); and
• finished sparkling and still beverages (we refer to this part of our business as our ‘‘finished product business’’ or ‘‘finished
product operations’’).
Generally, finished product operations generate higher net operating revenues but lower gross profit margins than concentrate
operations.
In our concentrate operations, we typically generate net operating revenues by selling concentrates and syrups to authorized
bottling and canning operations (to which we typically refer as our ‘‘bottlers’’ or our ‘‘bottling partners’’). Our bottling partners
either combine the concentrates with sweeteners (depending on the product), still water and/or sparkling water, or combine the
syrups with sparkling water to produce finished beverages. The finished beverages are packaged in authorized containers — such
as cans and refillable and nonrefillable glass and plastic bottles — bearing our trademarks or trademarks licensed to us and are
then sold to retailers directly or, in some cases, through wholesalers or other bottlers. Outside the United States, we also sell
concentrates for fountain beverages to our bottling partners who are typically authorized to manufacture fountain syrups, which
they sell to fountain retailers such as restaurants and convenience stores which use the fountain syrups to produce beverages for
immediate consumption, or to authorized fountain wholesalers who in turn sell and distribute the fountain syrups to fountain
retailers.
Our finished product operations consist primarily of our Company-owned or -controlled bottling, sales and distribution
operations, including CCR. Our Company-owned or -controlled bottling, sales and distribution operations, other than CCR, are
included in our Bottling Investments operating segment. CCR is included in our North America operating segment. Our
finished product operations generate net operating revenues by selling sparkling beverages and a variety of still beverages, such
as juices and juice drinks, energy and sports drinks, ready-to-drink teas and coffees, and certain water products, to retailers or
to distributors, wholesalers and bottling partners who distribute them to retailers. In addition, in the United States, we
manufacture fountain syrups and sell them to fountain retailers, such as restaurants and convenience stores who use the fountain
syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners who resell the
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