Coca-Cola
2012 Shareholder Letter
Dear Shareholder,
Coca-Cola is a long-term smart company that is excited about the future. Through this past year
Coca-Cola was able to sustain growth despite the poor conditions of the economy. Untiring
dedication to our 2020 vision is one of the driving forces at Coca-Cola. We believe that through
commitment to the Coca-Cola system we will be able to grow in value and brand recognition
yearly. The Coca-Cola system embodies values which we believe will continue to contribute to
our growth and ability to be a global beverage leader.
- People: Be a great place to work.
- Partners: Be the most preferred and trusted beverage partner.
- Profit: More than double system revenues while increasing system margins.
- Portfolio: More than double our servings to over 3 billion a day and be No. 1 in the NARTD
beverages businesses in every market and every category that is of value to us.
- Planet: Be a global leader in sustainable water use, packaging, energy, and climate protection.
- Productivity: Manage people, time and money for greatest effectiveness.
Innovation, Tradition and Growth
Through our traditional branding, creativity, and efficient company operations Coca-Cola is able
to sell our products at a rate of 1.7 billion serving per day, this past year. Our trademark CocaCola brand is now sold in more than 200 countries and is growing at a promising rate in both
major markets, and growing markets. India, one of the fastest growing markets in the world had
its fifth consecutive year of double digit growth for unit case volume. Smaller markets such as
Central, East, and West Africa are on the rise as well with grow percents topping out at nearly
20%.
Our top four brands Coca-Cola, Sprite, Fanta, and Diet Coke all exceeded $10 billion in global
retail sales in 2011, once again. We cultivate excitement on every level for our traditional
product. Even though Coca-Cola has been around for 125 years we still manage to refresh our
image every year, while staying true to the classic Coca-Cola feeling.
This year Coca-Cola received a refreshing positive impact from our innovative new Coca-Cola
Freestyle. We have revolutionized the fountain drink experience with the Freestyle. The
Freestyle is currently operating in 80 U.S. markets and seeking to expand rapidly. The CocaCola Freestyle is capable of producing more than 125 beverages and is an environmentally
friendly way to dispense Coca-Cola products.
Along with new products, cold beverage dispensers, and consistent growth 2011 has also brought
many advances in our efforts to support our communities on a philanthropic level. Coca-Cola has
teamed up with organizations such as :
- RED to raise awareness for HIV.
- Heinz to produce environmentally friendly packaging,
- International Federation of Red Cross (IFRC) to aid disaster relief efforts.
- World Wildlife Fund to protect Polar Bears.
We strive to give our customers an affordable luxury. However, we know that our commitment
is bigger than what we create. At Coca-Cola giving back to the community and environment on a
worldwide scale is important. Our success year after year gives us the ability to have a major
impact on the world in a positive way.
Vision and Expectations
Happiness is a word often associated with Coca-Cola. We believe what we do should cultivate
happiness for everyone involved. With a happy workforce and happy customers we are happy to
announce another profitable year. In the past two years we have taken control of 30% of the
industry volume growth and nearly 40% of industry value in growth. In 2011, we sold more than
700 million incremental unit cases of trademark Coca-Cola. This year we showed leadership in
many aspects. Our innovative marketing earned us the title of “Marketer of the Year” from Ad
Age. As a company we are also very proud to announce that we moved up to number eight on
Baron’s ranking for world’s most respected companies. Not only does our unwavering
excitement for our brand and dedication to our values reflect positively to the public, but it also
keeps us growing. We are excited for the future.
Sincerely,
Spencer L. Griffin