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With more than half of the world’s population and more than 40 countries, Asia is a constantly evolving region with unique opportunities and challenges. Our 2003 results reflected this diversity as well as the region’s ever-changing environment.
Net operating revenues in our Asia strategic business unit were $5.1 billion in 2003, with unit case volume increasing 4 percent in 2003 compared with 2002. Results were particularly strong in China, India and Thailand where core carbonated
soft drinks—particularly single-serve packages— performed well, and noncarbonated beverages, such as Qoo, continued to accelerate. Results in Japan and Philippines were less than expected.
With an extended economic slump and an unusually cold and wet summer, Japan was particularly challenging for the beverage industry in 2003. In this environment, the Company’s focus on long-term results led to
a strong re-launch of our green tea brand Marocha 120, along with Diet Coke with Lemon and Canada Dry. Additionally, following the September launch of the new GEORGIA marketing campaign, sales of the highly profitable small GEORGIA coffee cans posted strong increases. Volume grew
8 percent in the fourth quarter, compared with 4 percent and 3 percent growth in the third and second quarters, respectively. In October, the new advertising campaign was voted number one by CM Data Bank, an independent research company specializing in marketing campaign evaluation.
In September, Coca-Cola Japan announced the formation of the Coca-Cola National Beverage Company. This initiative is the first phase of an integrated supply chain management process that is intended to centralize procurement, production and logistics
operations for The Coca-Cola Company and all 14 of its bottling partners in Japan.
In China, the Company successfully responded to the Severe Acute Respiratory Syndrome (SARS) outbreak, restoring pre-SARS sales momentum by quickly adapting national sales and marketing programs. For the year, our Company’s sixth-largest volume
country worldwide recorded double-digit profit growth as well as double-digit carbonated soft-drink and noncarbonated beverage volume growth. Coca-Cola branded products were particularly strong, with the “Seize the Feeling” marketing campaign, new graphics and packaging innovation contributing
to 13 percent volume growth and record sales in 2003. The noncarbonated beverage segment also continued to gain volume. Qoo, a juice drink originally introduced in Japan in 1999, experienced unit case volume growth of more than 70 percent in China in 2003. Qoo unit case volume in China is now higher
than in any other country.
Australia reinforced its leadership position in carbonated soft-drink marketing and innovation in 2003 with the “You Know You Want It” marketing campaign for brand Coca-Cola. Cherry Coke and diet Coke with Vanilla were launched in 2003,
on the heels of the successful 2002 introduction of Vanilla Coke. In November, more than 3 billion fans tuned in for the quadrennial Rugby World Cup Tournament held in Australia. Coca-Cola Australia made the most of this opportunity with its unique “Thrill Seeker” promotion, which used
satellite and digital technology to award consumers cars, cash and Rugby World Cup match tickets.
Thailand recorded another outstanding year in 2003, with double-digit volume growth and sales driven by exceptional marketing and product innovation, including the Coca-Cola “Zah Doan Sa” (“Creative Spirit”) campaign and
the rollout of the 15-ounce “Pi Big” (“Big Brother”) returnable package. Unit case volume growth of 14 percent in 2003 was the highest growth rate for trademark Coca-Cola beverages in Thailand in 10 years. Also, Vanilla Coke made its
southeast Asia debut in Thailand in 2003, along with Fanta Blueberry Splash. |
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