Coca Cola 2014 Annual Report Download - page 35

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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 a main ingredient in
substantially all of our products, is vital to the production of the agricultural ingredients on which our business relies and is needed in
our manufacturing process. It also is critical to the prosperity of the communities we serve. 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 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
that address local needs. 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 and planning, water resource management,
water treatment, wastewater treatment systems and models for working with communities and partners in addressing water and
sanitation needs. As demand for water continues to increase around the world, we expect commitment and continued action on our
part will be crucial to the successful long-term stewardship of this critical natural resource.
Evolving Consumer Preferences
We are impacted by shifting consumer demographics and needs, on-the-go lifestyles, aging populations and consumers who are
empowered with more information than ever. As a consequence, consumers want more choices. We are committed to meeting their
needs and to generating new growth through our portfolio of more than 500 brands and more than 3,600 beverage products, including
more than 1,000 low- and no-calorie products, new product offerings, innovative packaging and ingredient education efforts. We are
also committed to continuing to expand the variety of choices we provide to consumers to meet their ever-changing needs, desires and
lifestyles.