Coca Cola 2015 Annual Report Download - page 38

Increased Competition and Capabilities in the Marketplace
Our Company is facing strong competition from some well-established global companies and many local participants. We must continue to strengthen our
capabilities in marketing and innovation in order to maintain our brand loyalty and market share while we strategically expand into other profitable
categories of the nonalcoholic beverage segment of the commercial beverage industry.
Product Safety and Quality
As the world's largest beverage company, we strive to meet the highest of standards in both product safety and product quality. We are aware that some
consumers have concerns and negative viewpoints regarding certain ingredients used in our products. Our system works every day to share safe and
refreshing beverages with the world. We have rigorous product and ingredient safety and quality standards designed to ensure safety and quality in each of
our products, and we drive innovation that provides new beverage options to meet consumers' evolving needs and preferences. Across the Coca-Cola system,
we take great care in an effort to ensure that every one of our beverages meets the highest standards for safety and quality.
We work to ensure consistent safety and quality through strong governance and compliance with applicable regulations and standards. We stay current with
new regulations, industry best practices and marketplace conditions and engage with standard-setting and industry organizations. Additionally, we
manufacture and distribute our products according to strict policies, requirements and specifications set forth in an integrated quality management program
that continually measures all operations within the Coca-Cola system against the same stringent standards. Our quality management system also identifies
and mitigates risks and drives improvement. In our quality laboratories, we stringently measure the quality attributes of ingredients as well as samples of
finished products collected from the marketplace.
We perform due diligence to ensure that product and ingredient safety and quality standards are maintained in the more than 200 countries where our
products are sold. We consistently reassess the relevance of our requirements and standards and continually work to improve and refine them across our entire
supply chain.
Food Security
Increased demand for commodities and decreased agricultural productivity in certain regions of the world as a result of changing weather patterns may limit
the availability or increase the cost of key agricultural commodities, such as sugarcane, corn, sugar beets, citrus, coffee and tea, which are important sources
of ingredients for our products and could impact the food security of communities around the world. We are dedicated to implementing our sustainable
sourcing commitment, which is founded on principles that protect the environment, uphold workplace rights and help build more sustainable communities.
To support this commitment, our programs focus on economic opportunity, with an emphasis on female farmers, and environmental sustainability designed
to help address these agricultural challenges. Through joint efforts with farmers, communities, bottlers, suppliers and key partners, as well as our increased
and continued investment in sustainable agriculture, we can together help make a positive strategic impact on food security.
All of these challenges and risks — obesity; water quality and quantity; evolving consumer preferences; increased competition and capabilities in the
marketplace; product safety and quality; and food security — have the potential to have a material adverse effect on the nonalcoholic beverage segment of
the commercial beverage industry and on our Company; however, we believe our Company is well positioned to appropriately address these challenges and
risks.
See also ''Item 1A. Risk Factors'' in Part I of this report for additional information about risks and uncertainties facing our Company.
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Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States, which require
management to make estimates, judgments and assumptions that affect the amounts reported in our consolidated financial statements and accompanying
notes. We believe our most critical accounting policies and estimates relate to the following:
• Principles of Consolidation
• Recoverability of Current and Noncurrent Assets
• Pension Plan Valuations
• Revenue Recognition
• Income Taxes
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