Coca Cola 2013 Annual Report Download - page 7

from certain joint ventures in which the Company has an equity interest but to which the Company does not sell concentrates or
syrups may give rise to differences between unit case volume and concentrate sales volume growth rates.
Distribution System and Bottler’s Agreements
We make our branded beverage products available to consumers in more than 200 countries through our network of Company-
owned or -controlled bottling and distribution operations as well as independent bottling partners, distributors, wholesalers and
retailers — the world’s largest beverage distribution system. Consumers enjoy finished beverage products bearing our trademarks
at a rate of 1.9 billion servings each day. We continue to expand our marketing presence in an effort to increase our unit case
volume in developed, developing and emerging markets. Our strong and stable system helps us to capture growth by
manufacturing, distributing and marketing existing, enhanced and new innovative products to our consumers throughout the world.
The Coca-Cola system sold 28.2 billion, 27.7 billion and 26.7 billion unit cases of our products in 2013, 2012 and 2011,
respectively. The number of unit cases sold in 2012 does not include BPW unit case volume for those countries in which BPW was
phased out during 2012, nor does it include unit case volume of products distributed in the United States under a sublicense from
a subsidiary of Nestl´ e which terminated at the end of 2012. Sparkling beverages represented 74 percent, 75 percent and 75 percent
of our worldwide unit case volume for 2013, 2012 and 2011, respectively. Trademark Coca-Cola Beverages accounted for
47 percent, 48 percent and 49 percent of our worldwide unit case volume for 2013, 2012 and 2011, respectively.
In 2013, unit case volume in the United States (‘‘U.S. unit case volume’’) represented 19 percent of the Company’s worldwide unit
case volume. Of the U.S. unit case volume for 2013, 68 percent was attributable to sparkling beverages and 32 percent to still
beverages. Trademark Coca-Cola Beverages accounted for 46 percent of U.S. unit case volume for 2013.
Unit case volume outside the United States represented 81 percent of the Company’s worldwide unit case volume for 2013. The
countries outside the United States in which our unit case volumes were the largest in 2013 were Mexico, China, Brazil and Japan,
which together accounted for 31 percent of our worldwide unit case volume. Of the non-U.S. unit case volume for 2013,
75 percent was attributable to sparkling beverages and 25 percent to still beverages. Trademark Coca-Cola Beverages accounted
for 48 percent of non-U.S. unit case volume for 2013.
In our concentrate operations, we typically sell concentrates and syrups to our bottling partners, who use the concentrate to
manufacture finished products which they sell to distributors and other customers. Outside the United States, our concentrate
operations also include the sale of 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 five largest independent bottling partners based on unit case volume in 2013 were:
• Coca-Cola FEMSA, S.A.B. de C.V. (‘‘Coca-Cola FEMSA’’), which has bottling and distribution operations in a substantial
part of central Mexico, including Mexico City, and the southeast and northeast parts of Mexico; greater S˜ ao Paulo,
Campinas, Santos, the state of Mato Grosso do Sul, the state of Paran´ a, part of the state of Goi´ as, part of the state of Rio
de Janeiro and part of the state of Minas Gerais in Brazil; Guatemala City and the surrounding areas in Guatemala; most
of Colombia; all of Costa Rica, Nicaragua, Panama and Venezuela; greater Buenos Aires, Argentina; and all of the
Philippines;
• Coca-Cola HBC AG (‘‘Coca-Cola Hellenic’’), which has bottling and distribution operations in Armenia, Austria, Belarus,
Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, the Former Yugoslav Republic of Macedonia,
Greece, Hungary, Italy, Latvia, Lithuania, Moldova, Montenegro, Nigeria, Northern Ireland, Poland, Republic of Ireland,
Romania, Russia, Serbia, Slovakia, Slovenia, Switzerland and Ukraine;
• Arca Continental, S.A.B. de C.V., which has bottling and distribution operations in northern and western Mexico, Ecuador
and northern Argentina;
• New CCE, which has bottling and distribution operations in Belgium, continental France, Great Britain, Luxembourg,
Monaco, the Netherlands, Norway and Sweden; and
• Swire Beverages (‘‘Swire’’), which has bottling and distribution operations in Hong Kong, Taiwan, seven provinces in
mainland China and territories in 11 states in the western United States.
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