Taylor Wetzel
November 8, 2012
Coca Cola is celebrating its 125-year anniversary, and every year has been more
successful than the last. I’m pleased to report that Coca Cola has achieved
substantial growth for the 2011 year. Coca Cola reached its five key growth
drivers: increasing our unit case volume growth, creating a global office of
sustainability, increasing consumer engagement through social media,
restructuring our portfolio, and creating new innovations. Throughout 2011 we
have worked hard and reached our worldwide goal in growth.
Coca Cola is a worldwide organization serving the world’s top four nonalcoholic
sparkling beverage brands: Coca-Cola, Diet Coke, Fanta, and Sprite. Our
products are being sold in more than 200 countries. We sell our products at a
rate of more than 1.7 billion servings a day.
Unit Case Volume Growth:
Coca Cola’s unit case volume growth has increased everywhere due to our clear
occasion-based, brand, package, price, and channel strategies for each of our
products. We sold a total of 26.7 billion unit cases. Earning $46.5 billion in
revenues.
2011 Worldwide Unit Case Volume growth:
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Latin America: 6 percent growth
North America: 4 percent growth
Eurasia and Africa: 6 percent growth
Europe: 2 percent growth
Pacific: 5 percent growth
We have increased our total market share. The board of directors increased
Coca Cola’s quarterly dividend 8.5 percent in 2012.
Sustainability:
As we become a larger company we have to become more sustainable and
responsible by protecting the resources our business relies on. In 2011 we
created a global Office of Sustainability. Our sustainability efforts will reduce our
environmental footprint, promote healthy living, create a safe work environment
for our associates, and support the economic development of the communities
where we operate.
This new sustainability team will also help unify the many projects we have
started around the world. For instance, Coca Cola announced a partnership with
UN women in support of our global 5 by 20 initiative to empower 5 million women
entrepreneurs by 2020.
Consumer Engagement:
We are refreshing our approach to consumer engagement through social media.
In 2011 we gained almost double the impressions on Facebook and YouTube
across all participating brands. Coca Cola started a project called “Where Will
Happiness Strike Next?” Coca-Cola teams in more than 40 markets have
produced more than 100 films based on surprising moments of authentic
happiness. The program has been a success and generated more than 285
million online and offline impressions globally. Ad Age announced Coca Cola as
the 2011 marketer of the year.
Portfolio:
Our portfolio is constantly evolving and expanding based on the changing needs
and tastes of our consumers. We launched 500 new products in 2011. Immediate
consumption beverages grew four percent, juices and juice drinks grew seven
percent, and water grew ten percent for the year. Our brand portfolio is stronger
than ever.
Our brand portfolio is strong because of the unique innovations we have created.
PlantBottle packaging is a fully recyclable plastic package made with 30 percent
plant based material. PlantBottle packaging is available in 20 markets. This
innovative kind of packaging is helping the planet while improving sales and
brand love.
Another innovation is the Coca-Cola Freestyle. We reinvented the soda fountain
a sleek more sustainable dispenser that offers consumers more than 125
beverage choices. It’s now available in more than 80 U.S. markets and is
expanding to international markets as well. The Coca-Cola Freestyle drives
revenue and reduces our negative environmental impact.
Investments:
Coca Cola is committed to investing $30 billion over the next five years to
support global growth throughout the company. These investments will help us
create new manufacturing facilities in developed markets and new distribution
systems and marketing programs in emerging economies. A partial amount of
this investment will be spread out between India, China, Russia, Middle East,
and North Africa. The rest will be invested in our brands through marketing,
commercial strategies, and new innovations. Through these investments we
expect to create 100,000 new jobs in this decade.
We enter 2012 confident that we are positioned for another year of good growth.
We are constantly working on reaching our 2020 vision. By 2020 we want to
double our revenues, develop new beverage products for our consumers, and
make a positive impact on the communities we operate in. Our 2020 vision will
be made possible because of our investors and the 146,200 hard-working
women and men of the Coca-Cola Company.
I would like to end by thanking you for investing with Coca Cola. We value your
investment, and appreciate your trust and confidence in our company. We look
forward to reporting on our continuing growth.
Thank you,
Muhtar Kent
Chairman of the Board of Directors
and Chief Executive Officer
November 8, 2012