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In 2003, the Latin America operating segment adapted to the region’s changing economic and marketplace needs, re-affirming our commitment to the communities we serve. The success of this strategy was demonstrated by the unit’s overall results.
In a very challenging economic and political climate, net operating revenues for Latin America were $2.0 billion, reflecting negative foreign currency trends for the year. However, our Latin America business experienced strong growth in 2003 with
unit case volume increasing 4 percent versus 2002. By consistently investing in the region’s 41 countries, and by continuing to focus on strategy, execution and the introduction of new packages and pricing models, we believe the Company is
well-positioned to benefit as the region regains stability.
In Mexico, home to the highest per capita consumption of Company products, total unit
case volume grew 10 percent in 2003 and carbonated soft-drink volume increased 3 percent. Double-digit volume growth in flavored carbonated soft drinks was driven by brand extensions and package initiatives surrounding Fanta, Sprite, Lift and Fresca. Trademark
Coca-Cola growth was supported primarily by the “Real” marketing platform as well as effective channel management and the continuing expansion of the 2.5-liter refillable package. In 2004, we plan to pursue further growth of brand Coca-Cola by executing agreed-upon strategies together
with our bottling partners and customers. We also plan to continue our immediate consumption package and channel efforts on Ciel, the leading water brand in personal packages.
In Brazil, the Company had strong double-digit earnings growth in 2003 as it worked closely with its bottling partners to offer new packages, in both refillable and one-way presentations. This allowed the system to provide greater choice to consumers and
to tailor customer options based on channel strategies to drive revenue and profit growth. Unit case volume declined 6 percent during the year as a result of both weak economic conditions and the greater focus on balancing volume growth with margin expansion. Among other plans for 2004, we intend
to focus on the Coca-Cola, Fanta and Kuat brands through innovative marketing and packaging options as we seek to achieve healthy volume and profit growth.
After the country’s economic crisis and a double-digit volume decrease in 2002, unit case volume in Argentina grew 13 percent in 2003, allowing the Company and our bottling partners to increase market investments
and value-building initiatives. We focused on the needs of consumers and customers by enriching our marketing with local insights, and by offering new packages and brands and re-positioning existing ones. We differentiated our media message and innovated in non-traditional marketing by working with
the local entertainment sector. We implemented revenue growth strategies across every business function. As a result, we witnessed strong recuperation in Argentina in 2003, with brand Coca-Cola reaching record-high consumer preference and consumption.
In Chile, carbonated soft-drink volume growth of 7 percent contributed to total unit case volume growth of 6 percent in 2003 compared with 2002. Through effective market segmentation, new package introductions and successful consumer promotions,
the Coca-Cola system reinforced its leadership, gaining both volume and retail dollar share. |
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