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Together, The Coca-Cola Company and its 40 bottling partners constitute the largest single private employer in Africa. Coca-Cola was first bottled in Africa in 1929 and today the Company markets more than 80 brands, with local beverages such as Sparletta, Hawai and Splash
complementing core brands including Coca-Cola, Fanta and Sprite.
In 2003, the “Real” integrated marketing platform launched in 55 countries and territories. The “Real” campaign and new packaging options contributed to net operating revenues of $827 million, an increase of 21 percent compared
with 2002. Total unit case volume increased 5 percent and carbonated soft-drink unit case volume also increased 5 percent versus 2002.
South Africa, our Company’s largest profit and volume country on the continent, experienced strong growth in 2003. The introduction of the “Real” campaign, a successful summer promotion and solid marketplace execution by our bottling
partners helped increase total unit case volume by 8 percent in 2003. Trademark Coca-Cola beverages and brand Coca-Cola volumes were up 11 percent and 8 percent, respectively, in 2003.
The continent’s most extensive distribution system continued to provide opportunities to expand the Company’s array of noncarbonated beverages. The African bottled-water category experienced 15 percent compound annual volume growth from
2001 to 2003. In response to these needs, we successfully introduced Dasani on the African continent in 2003. In Ghana and Kenya, Dasani marketing has focused on local priorities such as the safety and purity of bottled water. Including Dasani, 2003 noncarbonated unit case volume growth of 9
percent was realized from products such as Bonaqua, Play, POWERADE, Miami and Bibo.
In Nigeria, our second-largest profit and volume country in Africa and home to one in six Africans, the Coca-Cola system’s price realization strategy yielded strong revenue growth in 2003. Additionally, Coca-Cola Nigeria was awarded “Best
Use of New Media” and “Best Use of Outdoor Media” by Brandfaces, Nigeria’s leading marketing trade magazine.
Strong marketing of brand Coca-Cola and Fanta, together with bottler restructuring and alignment of priorities, contributed to a solid year in northern Africa. In Morocco, unit case volume grew 7 percent in 2003
compared with 2002.
Throughout the year, the Africa operating segment continued to increase efficiency by centralizing advertising, innovation and development, and purchasing. The Company leveraged its scale through Coca-Cola Popstars, the African version of American
Idol, which airs in six countries. In 2003, Coca-Cola Popstars received an award for “Best Sponsorship of Music” from Business & Arts South Africa, a joint initiative between the government and the business sector focused on stimulating the arts industry in that country.
Helping build and maintain healthy communities is an important part of our business. Our Company supports a number of charitable and community initiatives, in both human and financial terms. In 2003, The Coca-Cola Africa Foundation continued to focus
on healthcare, education, the environment and poverty. It supported orphanages in South Africa, purchased schoolbooks in Ivory Coast and sponsored the construction of classrooms in Ghana and Benin. The Foundation also helped establish a children’s cancer hospital in Egypt and delivered
potable water to impoverished areas of South Africa. Following the earthquake in Algeria and flooding in Mozambique, it provided disaster relief to those communities in need. Among many other initiatives in 2003, the Foundation also provided famine relief in Zimbabwe.
As part of its health benefits package, the Africa strategic business unit offers employees, spouses and dependents HIV/AIDS prevention and treatment, including access to antiretroviral drugs. In 2002, the Foundation began to provide funding for the program to our African bottling partners, as needed.
Approximately two-thirds of bottler employees had completed prevention and awareness programs by the end of 2003. |
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