Coca Cola 2015 Annual Report Download - page 5

Our Company markets, manufactures and sells:
• beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our
"concentrate business" or "concentrate operations"); and
• finished sparkling and still beverages (we refer to this part of our business as our "finished product business" or "finished product operations").
Generally, finished product operations generate higher net operating revenues but lower gross profit margins than concentrate operations.
In our concentrate operations, we typically generate net operating revenues by selling concentrates and syrups to authorized bottling and canning operations
(to which we typically refer as our "bottlers" or our "bottling partners"). Our bottling partners either combine the concentrates with sweeteners (depending on
the product), still water and/or sparkling water, or combine the syrups with sparkling water to produce finished beverages. The finished beverages are
packaged in authorized containers — such as cans and refillable and nonrefillable glass and plastic bottles — bearing our trademarks or trademarks licensed
to us and are then sold to retailers directly or, in some cases, through wholesalers or other bottlers. Outside the United States, we also sell 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 finished product operations consist primarily of our Company-owned or -controlled bottling, sales and distribution operations, including CCR. Our
finished product operations generate net operating revenues by selling sparkling beverages and a variety of still beverages, such as juices and juice drinks,
energy and sports drinks, ready-to-drink teas and coffees, and certain water products, to retailers or to distributors, wholesalers and bottling partners who
distribute them to retailers. In addition, in the United States, we manufacture fountain syrups and sell them to fountain retailers, such as restaurants and
convenience stores who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners
who resell the fountain syrups to fountain retailers. In the United States, we authorize wholesalers to resell our fountain syrups through nonexclusive
appointments that neither restrict us in setting the prices at which we sell fountain syrups to the wholesalers nor restrict the territories in which the
wholesalers may resell in the United States.
For information about net operating revenues and unit case volume related to our concentrate operations and finished product operations, refer to the heading
"Our Business — General" set forth in Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this
report, which is incorporated herein by reference.
We own numerous valuable nonalcoholic beverage brands, including the following:
Coca-Cola Minute Maid Aquarius Bonaqua/Bonaqa
Diet Coke/Coca-Cola Light Georgia1Minute Maid Pulpy4Gold Peak6
Coca-Cola Zero Powerade Dasani FUZE TEA7
Fanta Del Valle2Simply5Glacéau Smartwater8
Sprite Schweppes3Glacéau Vitaminwater Ice Dew9
1 Georgia is primarily a coffee brand sold mainly in Japan.
2 We manufacture, market and sell juices and juice drinks under the Del Valle trademark primarily in Mexico and Brazil through joint ventures with our bottling partners.
3 Schweppes is owned by the Company in certain countries other than the United States.
4 Minute Maid Pulpy is a juice drink brand sold primarily in Asia Pacific.
5 Simply is a juice and juice drink brand sold in North America.
6 Gold Peak is primarily a tea brand sold in North America.
7 FUZE TEA is a brand sold outside of North America.
8 Glacéau Smartwater is a vapor-distilled water with added electrolytes which is sold mainly in North America and Great Britain.
9 Ice Dew is a water brand sold in China.
3