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The Coca Cola Company

Type

Public

Traded as

NYSE: KO Dow Jones Component S&P 500 Component

Industry

Beverage

Founded

1892

Founder(s)

Asa Candler

Headquarters

Coca-Cola headquarters, Atlanta, Georgia, U.S.

Area served

Worldwide

Key people

Muhtar Kent (Chairman & CEO)

Products

List of The Coca Cola Company products

Revenue

US$ 35.119 billion (2010)[1]

Operating income

US$ 8.449 billion (2010)[1]

Net income

US$ 11.809 billion (2010)[1]

Total assets

US$ 72.921 billion (2010)[1]

Total equity

US$ 31.317 billion (2010)[1]

Employees

139,600 (2010)[1]

Subsidiaries

List of The Coca Cola Company subsidiaries

Website

TheCoca-ColaCompany.com

INTRODUCTION WITH SOFT DRINKS

The main production of soft drink was stored in 1830s and since then from those experimental beginning there was an evolution until in 1781 when the worlds first Cola flavored beverages was introduced.

These drinks were called soft drink only to separate them from hard drinks / alcohol beverage. This drinks dont contain alcohol & broadly specifying this beverages includes a variety of regulated carbonated soft drinks, diet and caffeine free drinks, bottled water, juices, juice drinks, sport drinks, and even ready to drink tea\coffee packs. Therefore, we can say that soft drinks mean carbonated drinks. Today soft drink is more favorite refreshment drink other than tea, coffee juice etc. It is said that where there is consumer there is producer and this result in to completion. Bigger the player, the harder the play. In such situation, broad identity is very strong. It takes long time to make broad famous. Coca Cola had its beginning in 1981 & since then has been one of the three most dominate players in this industry. In 1997, Coca Cola, Pepsi and Cadbury Schweppes have a combined 90% of the world market.

HISTORY OF SOFT DRINKS

Soft drinks production begins with the creation of flavored syrup using a closely guarded company recipe. The syrup is mixed with purified water and then carbonated by adding carbon dioxide under pressure. This carbonation creates Tingly Fizz that gives soft drink a refreshing taste. The real beginning of establishing soft drink industry started from 1913. The first soft drink industry was setup in 1919 in U.S.A. known as the American Bothers of Carbonated Beverages. The manufacturing of soft drinks on large scale began in the 1980s. However, the evolution of soft drinks took place over a much longer time. Hippocrates Father of

Medicine ,first suspected that mineral water could beneficial to our well-being. The Greeks and Romans used them for bathing and relaxation. More than a thousand years passed before mineral water was used as a beverage. The developments of carbonated water lead to the invention of soft drinks. Pharmacists experimented with different ingredients and some ended up creating some very tasty flavors like ginger ale, Root Beer and Sarsaparilla. Over the years, soft drinks have satisfied people all over the world. Demand and supply continues to increase as more people are introduced to this wonderful innovation. It was customary the mind of 1800s had together grounded the local soda fountains and had refreshment made on the spot. Some of the popular soft drinks had a great history like Coca Cola developed in May 1886 by Dr. Johns Pemberton. Than pharmacist, Charles Anderson developed the wonderful flavoring syrup that was named Dr. Pepper and then came Pepsi Cola by Caleb Bradhan in 1896.

IMPORTANT YEARS IN HISTORY OF SOFT DRINKS 1798 - The soda water was introduced 1809 1815 1835 1830 1861 1974 1881 1892 1899 1913 1923 -First U.S. patent issued for manufacturing of imitation mineral water -First soda formations is patented -Bottled soda water -Manual hand feet filling, corking device is first used for bottling soda water -Soft drinks referred to as pop -The first ice cream soda was served -First cold flavor was added -Invention of a crown cup -First patent for glass blowing machine, use to make glass bottles -New era of industry, when animal carriage were replaced by trucks -Into a home pack

Early 1920s Automatic vending machine begins to dispense soda in cups

1934 1952 1958 1959 1962 1965 1970 1973

-Use of colour labels are used to merchandise product -First diet soft drink -First time packed in tin\can -First diet cola drink into -Easy opening, pull ring tabs are firstly available -Resalable caps were introduced -First time plastic bottle was used -Creation of the PET bottle

Mid 1980s -Caffeine free & low sodium soft drink gain popularity Early 1990s -clear Cola manufactured 1991 1993 1959 1962 1965 1970 1973 -Soft drink co. begins to use PET bottles -Number of soft drink containers recycle since the first Earth Day in 1970 reaches 384 -First diet cola drink into -Easy opening, pull ring tabs are firstly available -Resalable caps were introduced -First time plastic bottle was used -Creation of the PET bottle

billion first time packed in tin can.

Mid 1980s -Caffeine free & low sodium soft drink gain popularity Early 1990s -clear Cola manufactured 1991 1993 billion -Soft drink co. begins to use PET bottles -Number of soft drink containers recycle since the first Earth Day in 1970 reaches 384

ABOUT COCA-COLA The Coca-Cola Company is the world's largest beverage company. Along with CocaCola, recognized as the world's most valuable brand, the Company markets four of the world's top five soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage distribution

system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.3 billion servings each day.

This story begins in Atlanta, Georgia on May 8, 1886, when a pharmacist called Dr. John Smith Pemberton first mixed Coca-Cola in his back yard. This formula, which was made from carbonated water, cane sugar syrup, caffeine, extracts of kola nuts and cola leaves, was brought to the nearby Jacobs Pharmacy where it made its Debut as a soft drink the same day, selling for only 5 cent. His bookkeeper named this drink Coca-Cola after the first two ingredients and the same distinctive script he wrote it in is the same logo they use To this day.

In January 1893 Coca-Cola was registered with the U.S. patent office. Later on in 1915 the Root glass company created the famous contour glass bottle for Coca-Cola in 1915. In 1917 Coca-Cola was found to be the worlds most recognized trademark with a record of 3 million Cokes sold per day. Unfortunately, John Pemberton fell ill, and did not live to see his products success Sadly, in the first year of Cokes existence, Pemberton and his partner only made $50. Pemberton sold two third of his business in 1888 to cover his losses and keep the business afloat. He died later that year, and Mr. Candler, an Atlanta druggist, purchased total interest in Coca-Cola for an unbelievable $2,300 in 1891. In 1891,Candler and his brother formed the Coca-Cola Company.

EARLY GROWTH

In 1893 Candler registered Coca-Cola as a patented trademark. He also responded to growing concern over the dangers of cocaine by reducing the amount of coca in the drink to a trace. However, he kept some coca extract in Coca-Cola so the name would accurately describe the drink. Candler only had a patent on the name, and not the drink syrup that is, the drinks base, containing all the ingredients minus carbonated water. He figured that keeping the Coca in his formula would legally allow the company to distinguish its drink from imitations. Other companies also produced soda drink made with cola nut extract. In particular, the Pepsi-Cola Company would become Coca-Cola Companys major competitor over the next few decades. Candler also spent more than $11,000 on his first massive advertising campaign in 1892. The Coca-Cola logo appeared across the country painted as a mural on walls; displayed on posters and soda such as calendars and drinking glasses. In addition, Candler was the first person ever to use coupons to gain customers for a product. He distributed flyers offering free soda fountain glasses of Coca-Cola to people visiting his drugstore. In 1894 the Coca-Cola Company opened its first Coke syrup production plant outside of Atlanta, in Dallas Texa. That same year a candy storeowner in Vicksburg, Mississippi installed bottling machines and produced the first bottled Coke. It had previously been sold only at soda fountains. By 1895 the drink was sold in all U.S. states and territories. In 1899 lawyers Benjamin Thomas and Joseph Whitehead of Chattanooga, Tennessee, bought the exclusive right to distribute Coke syrup to bottles throughout most of the country for only on dollars, at the time, Candler saw little profit in bottling and was more than willing to give up that part of the business. In 1915 the Root Glass Company created a couture glass bottle for Coke, its design based on the curvature of a coca bean. This bottle design became a Coke trademark worldwide. The same year, Candler retired from the company, passing it on to his children and moving into polities. He was elected mayor of Atlanta in 1916.

In 1919 the Candler family sold Coca-Cola to businessman Ernest Woodruff of Columbus, Georgia, for $25 million. Woodruff son, Robert, was elected company president in 1923. Robert Woodruff was a skilled marketer and he put more of the companys resources into market research than manufacturing Coke.

Overview of world market As the world's largest manufacturer and distributor of non-alcoholic beverages, CocaCola is certainly no stranger to global marketing. Established in the US, Coca-Cola initiated its global expansion in 1919 and now markets to more than 200 countries worldwide. It is one of the most recognizable brands on the planet and also owns a large portfolio of other soft drink brands including Schweppes, Oasis, 5 alive, Kea Oar, Fanta, Lilt, Dr Pepper, Sprite and Powerade. Despite this, Coca-Cola often struggles to maintain its market share over its main rival PepsiCo in some overseas markets, particularly Asian countries.

cocacola saw sales growth across all its leading worldwide markets during the fourth quarter for the first time since 2003, supported by strengthening consumer demand and gains in market share from investments in marketing and distribution.

The worlds largest soft drinks company by sales said its worldwide sales by unit case volume rose 5 per cent against the same quarter last year, with sales growth in the US, western Europe and Japan reinforcing continued strength in emerging markets. Muhtar Kent, chief executive, said Coca-Cola had seen positive volume sales growth in both regional markets and across its leading brands and categories.

Sales in emerging markets continued to grow, with volume sales in Russia up 31 per cent, India up 12 per cent, and Brazil and Mexico up 7 and 8 per cent respectively against the same quarter last year. Volume sales in China declined 3 per cent, largely reflecting a shift in timing of sales aimed at the lunar new year holidays.But Coca-Cola also saw sales of its Coke brand in North America increase by one per cent, while sales of still beverages rose 7 per cent. It also reported growth in Japan and in Germany, and recovering demand in Eastern Europe. During the companys 2010 fiscal year, the company said that 40 per cent of its sales growth came from China, Russia, India and Brazil. Mr Kent also noticed that China, India and Brazil accounted for over a third of the cold drink equipment it deployed during the year to drive sales. Net income at Coca-Cola more than doubled to $5.78bn, or $2.46 per share, against a year ago, boosted by its acquisition of the US assets of Coca-Cola Enterprises, its largest bottler, which closed in October. Excluding the acquisition, net income per share rose 9 per cent, to 72 cents per share, in line with Wall Streets expectations. Overall revenues rose 40 per cent to $10.49bn.

RECENT DEVELOPMENTS

In 1986 The COCA-COLA Company consolidated all of its no franchised U.S. bottling operating as Coca-Cola Enterprise, Inc. The new company began acquiring independent bottling companies, a venture that grew into the worlds largest bottle of soft drinks by 1988, while Coca-Cola Enterprise distributes over half of all Coca-Cola products in the United

States, small franchises businesses continue to bottle can and distribute the companys drink worldwide. In 1987 The Coca-Cola Company was fisted in the prestigious Dow Jones Industrial Averages index of stock market performance. Its stock is traded on the New York Stock Exchange. Coca Cola and Pepsi Company products occupied nine of the top ten spots in the U.S. soft drink market in themed-1990s.

Worldwide, Coca-Cola ranked first in soft drink sales, and the company earned almost 80 percent of its profits from international sales.

Overview of world market TOP 9 COUNTRIES IN CONSUMPTION OF SOFT DRINK Name of the Countries America Mexico Ice Land Malta Norway Canada Island Chile Ireland Consumption per head in gallons 219 151 140 134 126 122 120 110 110

C N I M A r h s o a c e m i n r l x e l a w t i r e n d a L c i n d y a o c d n a d

Top 9 Countries In Consumption of Soft Drink

Overview of Indian market

INTRODUCTION

The Indian Soft-Drink Industry is a 3500 crore rupee Industry comprised of consumers throughout the country, and of all ages. The industry has been comprised of all Indian Soft-Drinks manufactures and the multinational Coca-Cola up to 1976. From 1976 to 1989, the industry only comprised of Indian manufacturers namely, Parle, Campa-Cola and Dukes. Decades of 90s have brought changes in Government Policies of liberalization, which has helped user in two huge American Multinational Pepsi-Cola international and Coca-Cola

CONSUMPTION OF SOFT DRINKS IN INDIA

India is one of the lowest soft drink consuming country in the world. According to per capita in India is 5 bottles per year while highest consumption is in USA of 800 bottles per year. Delhi is the highest soft drink consuming state in India with 50 bottles per year per capita. Lower, lower middle & upper middle class consume 91% of soft drink market. BRANDS THUMS UP COCA COLA LIMCA FANTA KINLEY SPRITE MAAZA Rs. (CRORE) 1740 1350 1030 600 540 400 350

7 UP MIRINDA PEPSI

250 210 127.1

Major Players In Indian Market

3% 46% 51% PEPSI COCA COLA OTHERS

GROWTH AND SIZE OF MARKET

The consumption diagram graph of soft drink has never decrease if once it has increased. It is increasing at 24-25% per year.

Even in India the market is constantly growing in 1993 the people of India consume only 0.7 lt./Head while in 1995 it increased from 0.7 to 0.93 lt./Head in 1997 it was 1.14head & in 2001 it was 1.62 lt. head.

Cola is the largest selling brand in the world but at the second place in India after Pepsi. In world it has launched 230 brands, which includes cola drinks, juice, teas & sport drinks. While in India it has launched only most famous brands of the world.

Pepsi that is at the second place in world is leading brand in India. In International market it has entered since 1919 with snack food, soft drink, juice etc. while in India it has only entered with soft drinks.

Cadbury Schweppes the third major player in soft drink industrial market, which sells about 150 brands in 200 countries. He has not yet entered in India has major player.

MARKET SHARE IN INDIA

The two global majors Pepsi and Coca - Cola dominate the soft drink market. Coca Cola, which had winded up its India operations during the introduction of the IERA regime reentered in India after 16 years later in 1993.

Coca Cola acquired a major share in soft drink market by buying out local brands like Thums Up, Limca and Gold Spot from Parle Beverages. Coca Cola has also acquired Cadbury Schweppes soft drinks brands like Crush, Canada Dry & Sport Cola in early 1999 & in Oct 2000, it acquired distribution rights of these brands from IFB Agro limited. Pepsi although started a couple of years before Coca Cola in 1991, right now it has lower market share. It has brought over Mumbai based Dukes range of soft drink. Both cola manufactures Pepsi & Coca - Cola come up with their own market share and claim to have increased their share. Recently in Aug 200 Pepsi claimed to have increased its market share for first five months of calendar year 2000 to 49% from earlier levels to 47.3%, while Coke claims to have increased its share in the market to 57% in the same period from 55% in the corresponding period last year. Market share (in %) BRAND NAME Pepsi Coca Cola MARKET SHARE (IN %) (ORG FIGURE) 41 57 MARKET SHARE ( IN %) (IMRB FIGURE) 49 48

History History of Bottling Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed thatCocaCola became the world-famous brand it is today. 1894 A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage calledCocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major

progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Colabottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales ofCoca-Cola exceeded fountain sales.

1920s and 30s International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began,Coca-Cola was being bottled in 44 countries. 1940s Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of

these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

1950s Packaging innovations For the first time, consumers had choices of Coca-Colapackage size and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s New brands introduced Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brandCocaCola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the

distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

The Coca-Cola Company Fact Sheet The Coca-Cola Company is the worlds largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, the worlds most valuable brand, the Companys portfolio features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply and Georgia. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the worlds largest beverage distribution system, consumers in more than 200 countries enjoy the Companys beverages at a rate of 1.7 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that reduce our environmental footprint, support active, healthy living, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Fast Facts: Established: 1886 Ranking: We own 4 of the worlds top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta

Company Associates: 139,600 worldwide (as of December 31, 2010). Operational Reach: 200+ countries Consumer Servings (per day): 1.7 billion Beverage Variety: We offer more than 3,500 products including diet and regular sparkling beverages, and still beverages such as 100 percent juices, juice drinks, waters, sports and energy drinks, teas and coffees, and milk- and soy-based beverages. New York Stock Exchange Ticker Symbol: KO Our Mission: To refresh the world... To inspire moments of optimism... To create value and make a difference. Our Commitment to Sustainability 2009/2010 Highlights: Respecting People: We offered more than 1,720 training classes to Company associates. Protecting the Environment: In 2010 we introduced more than 2.5 billion PlantBottle packages. PlantBottle is a fully recyclable PET plastic bottle that is up to 30 percent made from plants. Offering Safe, Quality Products: We launched more than 150 low and no-calorie products in 2010, as well as more than 200 juice and juice drink products. In addition to our product and packaging innovations, we support more

than 250 nutrition education and physical activity initiatives in more than 100 countries. Were committed to have a physical activity program in every country where we operate by 2015. Supporting Communities: In 2010, The Coca-Cola Company and The Coca-Cola Foundation made charitable contributions of $88 million to sustainable community initiatives worldwide. 2010 Financial Highlights: Unit case volume grew 5% to 25.5 billion unit cases worldwide. Operating cash flow grew 16% to $9.5 billion. Almost 70% of our net operating revenues and nearly 80% of our unit case volume were generated outside of North America. For more information about our Company, please visit our website at www.thecocacolacompany.com.

Mission, Vision & Values The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roadmap" for winning together with our bottling partners. Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality. Live Our Values Our values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Focus on the Market

Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Work Smart

Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently

Act Like Owners

Be accountable for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didnt

Be the Brand

Inspire creativity, passion, optimism and fun

The Coca-Cola Company Joins UN Global Compact

(New York, 8 March 2006) Reflecting the growing importance of corporate responsibility to the U.S. and international business community, The Coca-Cola Company announced today that it has officially joined the United Nations Global Compact, the worlds largest voluntary corporate citizenship initiative. Coca-Cola Chairman and Chief Executive Officer E. Neville Isdell informed UN Secretary-General Kofi Annan of the companys commitment to the Global Compact and its ten principles during a meeting at United Nations Headquarters. The Coca-Cola Company is the worlds largest beverage company. Headquartered in Atlanta/Georgia, the company has one of the worlds most extensive distribution systems and markets a variety of beverages in more than 200 countries. In the most recent fiscal year the company posted net operating revenues of approximately $23 billion. Coca-Colas participation is an affirmation of the growing momentum of the Global Compact around the world and particularly in the U.S. market, where more and more companies are engaging, said Georg Kell, Executive Head of the Global Compact. "The Coca-Cola Company is in a powerful position to advance the tenets of corporate responsibility and the Global Compacts ten principles in the areas of human rights, labour standards, the environment and anti-corruption. The Global Compact is the worlds largest corporate responsibility initiative with 2,900 participants and stakeholders from 90 countries, including a number of major U.S. corporations. Through its web of approximately 50 Local Networks spanning every region of the world, the Global Compact aims to balance global reach with local contextualization of its ten principles and related corporate citizenship issues. "Our support for the United Nations Global Compact is a formal expression of The Coca-Cola Company's commitment to conduct our business with the utmost respect for universal principles around human rights, workplace standards, responsible environmental practices, and anticorruption," said Mr. Isdell. Our commitment applies to The Coca-Cola Company and all of the entities that it owns or in which it holds a majority interest.

Mr. Kell noted that The Coca-Cola Company has in recent years implemented a range of corporate citizenship initiatives and projects around the world including programs related to HIV/AIDS, water sanitation and minority empowerment. The company is working in partnership with various United Nations organizations, including UNICEF, United Nations Development Programme and UNAIDS, on many such projects. By joining the Global Compact, Coca-Cola has an opportunity to build on its already impressive work and help contribute to a more sustainable and inclusive global economy," he said.

About the UN Global Compact Launched in 2000, the UN Global Compact brings business together with UN agencies, labour, civil society and governments to advance universal principles in the areas of human rights, labour standards, the environment and anti-corruption. For more information, please visit www.unglobalcompact.org. About The Coca-Cola Company The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola, recognized as the world's most valuable brand, the Company markets four of the world's top five soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.3 billion servings each day. For more information about The Coca-Cola Company, please visit www.coca-cola.com.

The Coca-Cola Company (NYSE: KO) is the worlds largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. Based in Atlanta, Georgia, KO sells concentrated forms of its beverages to bottlers who then produce, package, and sell the finished products to retailers. The Coca-Cola Company operates in over 200 countries and sells more than 400 different brands that produce over 3000 different products, including the famous Coca-Cola and Sprite lines of soft drinks. [1]

Growing consumer preference for healthier drinksand increasingly saturated markets has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KOs sales. [2] KOs profits are also vulnerable to the volatile costs for the raw materials used to make drinks - the corn syrup used as a sweetener, thealuminum used in cans, and the plastic used in bottles. Furthermore, decreased consumer spending in Coke's large North American market compounds the challenge of rising costs and a weak economic environment.
[3]

Finally, Coca-Cola earns approximately 75% of revenue from international sales, exposing it

to currency fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD). [4] Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is growing quickly, the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. The size and variety of KOs offerings in the CSD category, coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to maintain its share of this important market. KO has also responded to consumers changing tastes with new, nonCSD product launches and acquisitions such as that of Glaceau[5]. Strong international growth has also more than offset a weak domestic market.

Global Footprint When it comes to international presence, Coca-Cola easily trumps Pepsico. Coca-Cola's larger global footprint exposes it more to international economic forces, particularly in the developing world. While this led to strong growth through much of the decade, weakness in emerging market economies could easily slow this momentum. Furthermore, because Coke generates so much of its revenue abroad, it stands to suffer from the continuing strengthening of the dollar as sales denominated in foreign currencies are suddenly worth less money back in the US. At the same time, Pepsico's heavy dependence on North America makes it much more susceptible to a slowing US economy. The company is also interested in developing a joint venture partnership for growing mangoes, similar to an operation they already have in Brazil.[9] International Competition Internationally, the Coca-Cola Companys largest competitor is, again, PepsiCo (PEP). Both companies have significant presence in the domestic market, but KO sells more beverages outside of the U.S. KO receives nearly 80% of its operating income from international sources and holds over half of the global market share for non-alcoholic beverages. PEP, meanwhile, makes only 42% of its net revenue from outside the U.S., and a large portion of PEPs income comes instead from its snack business, a market in which KO does not participate. [11] In addition to PEP, Dr Pepper Snapple Group (DPS) also sells beverages internationally, specifically in Australia, Mexico, and Canada. DPS's predecessor Cadbury Schweppes (CSG) had previously sold beverages in Europe, South Africa, and Hong Kong, among others, but the new company since sold its businesses in all markets except Australia and North America. DPS generates only 10% of its revenue from abroad, relfecting the companys desire to concentrate on its strongest markets. [12] There are various other concentrate manufacturers and beverage franchisers across the world, though none hold a significant percentage of the global market, instead focusing on particular geographic regions. Coca-Cola Company Must Grow Its Coffee and Tea Lines With a partnership between Starbucks, Pepsi is the undisputed owner of the U.S. ready-to-drink (i.e., canned) coffee and tea market, with 90% market share. The global market is a different

story - Coca-Cola's Georgia product line owns over 30% of the international market, easily dwarfing Starbuck's 4%. However, the Pepsi-Starbucks partnership has started to exert pressure on Coca-Cola Company's international sales with the 2008 beginning of its two year expansion into new markets, including China. Coca-Cola will have to protect its sales from the new competition, which is supported both by Pepsi's distribution strength and Starbucks' brand recognition.[10]

The Coca-Cola Company is the world's biggest drinks company, controlling more than half the global market in carbonated soft drinks as well as a substantial chunk of the non-carbonated segment. It owns four of the world's five best-selling soft drinks. Its principal brand is of course Coca-Cola itself, the world's best-known and most valuable brand. But the company also sells almost 500 other beverage brands ranging from variants like Diet Coke and sister products such as Fanta and Sprite to a vast range of carbonated and non-carbonated juice-based drinks, bottled waters, iced teas and coffees. Increasingly Coca-Cola has found that its sheer size works against it. Competition authorities now watch the company's every move, effectively ruling out the acquisition of anything other than marginal products; and market saturation and economic downturns in both emerging and mature markets caused sales growth to stall for more than a decade. Since 2006, though, the company's performance has begun to fizz once again, mainly through aggressive development of non-cola products, including bottled water. See also:

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