Coca Cola 2015 Annual Report Download - page 11

Juice and juice concentrate from various fruits, particularly orange juice and orange juice concentrate, are the principal raw materials for our juice and juice
drink products. We source our orange juice and orange juice concentrate primarily from Florida and the Southern Hemisphere (particularly Brazil). We work
closely with Cutrale Citrus Juices U.S.A., Inc., our primary supplier of orange juice from Florida and Brazil, to ensure an adequate supply of orange juice and
orange juice concentrate that meets our Company's standards. However, the citrus industry is impacted by greening disease and the variability of weather
conditions. In particular, freezing weather or hurricanes in central Florida may result in shortages and higher prices for orange juice and orange juice
concentrate throughout the industry. In addition, greening disease is reducing the number of trees and increasing grower costs and prices.
Our Company-owned or consolidated bottling and canning operations and our finished product business also purchase various other raw materials including,
but not limited to, polyethylene terephthalate ("PET") resin, preforms and bottles; glass and aluminum bottles; aluminum and steel cans; plastic closures;
aseptic fiber packaging; labels; cartons; cases; postmix packaging; and carbon dioxide. We generally purchase these raw materials from multiple suppliers
and historically have not experienced significant shortages.
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Our Company owns numerous patents, copyrights and trade secrets, as well as substantial know-how and technology, which we collectively refer to in this
report as "technology." This technology generally relates to our Company's products and the processes for their production; the packages used for our
products; the design and operation of various processes and equipment used in our business; and certain quality assurance software. Some of the technology
is licensed to suppliers and other parties. Our sparkling beverage and other beverage formulae are among the important trade secrets of our Company.
We own numerous trademarks that are very important to our business. Depending upon the jurisdiction, trademarks are valid as long as they are in use and/or
their registrations are properly maintained. Pursuant to our Bottler's Agreements, we authorize our bottlers to use applicable Company trademarks in
connection with their manufacture, sale and distribution of Company products. In addition, we grant licenses to third parties from time to time to use certain
of our trademarks in conjunction with certain merchandise and food products.
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Our Company is required to comply, and it is our policy to comply, with all applicable laws in the numerous countries throughout the world in which we do
business. In many jurisdictions, compliance with competition laws is of special importance to us, and our operations may come under special scrutiny by
competition law authorities due to our competitive position in those jurisdictions.
In the United States, the safety, production, transportation, distribution, advertising, labeling and sale of many of our Company's products and their
ingredients are subject to the Federal Food, Drug, and Cosmetic Act; the Federal Trade Commission Act; the Lanham Act; state consumer protection laws;
competition laws; federal, state and local workplace health and safety laws; various federal, state and local environmental protection laws; and various other
federal, state and local statutes and regulations. Outside the United States, our business is subject to numerous similar statutes and regulations, as well as
other legal and regulatory requirements.
Under a California law known as Proposition 65, if the state has determined that a substance causes cancer or harms human reproduction, a warning must
appear on any product sold in the state that exposes consumers to that substance. The state maintains lists of these substances and periodically adds other
substances to them. Proposition 65 exposes all food and beverage producers to the possibility of having to provide warnings on their products in California
because it does not provide for any generally applicable quantitative threshold below which the presence of a listed substance is exempt from the warning
requirement. Consequently, the detection of even a trace amount of a listed substance can subject an affected product to the requirement of a warning label.
However, Proposition 65 does not require a warning if the manufacturer of a product can demonstrate that the use of that product exposes consumers to a
daily quantity of a listed substance that is:
• below a "safe harbor" threshold that may be established;
• naturally occurring;
• the result of necessary cooking; or
• subject to another applicable exemption.
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