Coca Cola 2015 Annual Report Download - page 37

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
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. We are working to pair commercial actions with community engagement to bring
together business, government and civil society to help pursue solutions that address obesity. Commercially, we continue to:
• offer reduced-, low- or no-calorie beverage options;
• provide transparent nutrition information, featuring calories on the front of all of our packages;
• provide our beverages in a range of packaging sizes; and
• market responsibly, including no advertising to children under 12.
The heritage of our Company is to lead, and innovation is critical for leadership. As such, we are resolute in continuing to innovate and are committed to
partnering to find winning solutions in the area of noncaloric sweeteners. This includes working to reduce caloric sweeteners, and therefore the calories, in
our beverages. We want to be a more helpful and credible partner in the fight against obesity. Across the Coca-Cola system, we are mobilizing our assets in
marketing and in community outreach to increase awareness and spur action.
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 of these changes, 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 3,800 beverage products, including more than 1,100 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.
35