Coca Cola 2015 Annual Report Download - page 6

In addition to the beverage brands we own, we also provide marketing support and otherwise participate in the sales of other nonalcoholic beverage brands
through licenses, joint ventures and strategic partnerships, including, but not limited to, the following:
• We and certain of our bottlers distribute certain brands of Monster Beverage Corporation ("Monster"), primarily Monster Energy, in designated
territories in the United States, Canada and other international territories pursuant to distribution coordination agreements between the Company
and Monster and related distribution agreements between Monster and Company-owned or -controlled bottling operations, including CCR, and
independent bottling and distribution partners.
• We produce and/or distribute certain other third-party brands, including brands owned by Dr Pepper Snapple Group, Inc. ("DPSG"), which we
produce and distribute in designated territories in the United States and Canada pursuant to license agreements with DPSG.
• We have a strategic partnership with Aujan Industries Company J.S.C. ("Aujan"), one of the largest independent beverage companies in the Middle
East. We own 50 percent of the entity that holds the rights in certain territories to brands produced and distributed by Aujan, including Rani, a juice
brand, and Barbican, a flavored malt beverage brand.
• We have a joint venture with Nestlé S.A. ("Nestlé") named Beverage Partners Worldwide ("BPW") which markets and distributes Nestea products in
Europe and Canada under agreements with our bottlers. The Nestea trademark is owned by Société des Produits Nestlé S.A.
Consumer demand determines the optimal menu of Company product offerings. Consumer demand can vary from one locale to another and can change over
time within a single locale. Employing our business strategy, and with special focus on core brands, our Company seeks to build its existing brands and, at
the same time, to broaden its historical family of brands, products and services in order to create and satisfy consumer demand locale by locale.
We measure the volume of Company beverage products sold in two ways: (1) unit cases of finished products and (2) concentrate sales. As used in this report,
"unit case" means a unit of measurement equal to 192 U.S. fluid ounces of finished beverage (24 eight-ounce servings), and "unit case volume" means the
number of unit cases (or unit case equivalents) of Company beverage products directly or indirectly sold by the Company and its bottling partners ("Coca-
Cola system") to customers. Unit case volume primarily consists of beverage products bearing Company trademarks. Also included in unit case volume are
certain products licensed to, or distributed by, our Company, and brands owned by Coca-Cola system bottlers for which our Company provides marketing
support and from the sale of which we derive economic benefit. In addition, unit case volume includes sales by certain joint ventures in which the Company
has an equity interest. We believe unit case volume is one of the measures of the underlying strength of the Coca-Cola system because it measures trends at
the consumer level. The unit case volume numbers used in this report are derived based on estimates received by the Company from its bottling partners and
distributors. Concentrate sales volume represents the amount of concentrates and syrups (in all instances expressed in equivalent unit cases) sold by, or used
in finished beverages sold by, the Company to its bottling partners or other customers. Unit case volume and concentrate sales volume growth rates are not
necessarily equal during any given period. Factors such as seasonality, bottlers' inventory practices, supply point changes, timing of price increases, new
product introductions and changes in product mix can impact unit case volume and concentrate sales volume and can create differences between unit case
volume and concentrate sales volume growth rates. In addition to the items mentioned above, the impact of unit case volume from certain joint ventures in
which the Company has an equity interest but to which the Company does not sell concentrates or syrups may give rise to differences between unit case
volume and concentrate sales volume growth rates.
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We make our branded beverage products available to consumers in more than 200 countries through our network of Company-owned or -controlled bottling
and distribution operations, independent bottling partners, distributors, wholesalers and retailers — the world's largest beverage distribution system.
Consumers enjoy finished beverage products bearing trademarks owned by or licensed to us at a rate of more than 1.9 billion servings each day. We continue
to expand our marketing presence in an effort to increase our unit case volume and net operating revenues in developed, developing and emerging markets.
Our strong and stable system helps us to capture growth by manufacturing, distributing and marketing existing, enhanced and new innovative products to our
consumers throughout the world.
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