 |
|
|
|
|
 |
People often assume that The Coca-Cola Company bottles and distributes its own beverages. For the most part, we do not. Rather, our primary business consists of manufacturing and selling beverage concentrates and syrups—as well as some finished beverages—to bottling
and canning operations, distributors, fountain wholesalers and some fountain retailers.
Our concentrates and syrups are generally sold to bottling partners, which are authorized by our Company to manufacture, distribute and sell our branded products. This business system—The Coca-Cola Company and our bottling partners—is
referred to as “the Coca-Cola system,” or just “the system.” The Coca-Cola system is not a single entity from a legal or a management point of view.
The Coca-Cola Company’s relationship with its bottling partners is a unique source of strength. For the Company to be successful, it is imperative for our bottling partners to be successful. It is a century-old alliance, and a key strength
that empowers the execution of our business strategies. We work together with our bottling partners to ensure our concentrates and syrups lead to finished beverages that are produced and distributed to our consumers around the globe with unmatched quality and service.
We have three types of bottling relationships. The corresponding number represents the percentage of worldwide unit case volume that each type of bottler produced and distributed in 2003: |
|
 |
|
The remaining approximately 10 percent of our worldwide unit case volume in 2003 was produced and distributed by our fountain operations plus our juice, juice drink, sports drink and other finished beverage operations.
Our relationship with bottling partners we do not own or control is one of collaboration and mutual support. These businesses have independent managements, policies and governance structures. Some are publicly traded companies with independent share-owner
structures. Some are involved in businesses outside the nonalcoholic beverage sector. We do not control the policies and programs of these bottling partners, but we do have mutual self-interests and therefore work together to find common ground and take common action in many areas.
The Coca-Cola system includes our Company and more than 300 bottling partners. Our significant investees that we account for by the equity method are: |
|
 |
Our ownership interest in Coca-Cola Enterprises was approximately 37 percent as of December 31, 2003. Coca-Cola Enterprises is the world’s largest bottler of the Company’s beverage products. In 2003, net sales of concentrates and syrups by the Company to Coca-Cola
Enterprises were approximately $4.7 billion. Coca-Cola Enterprises estimates that the territories in which it markets beverage products to retailers (which include portions of 46 states and the District of Columbia in the United States, Belgium, Canada, continental France, Great Britain, Luxembourg,
Monaco and the Netherlands) contain approximately 79 percent of the population of the United States, 100 percent of the population of Belgium, 98 percent of the population of Canada and 100 percent of the populations of continental France, Great Britain, Luxembourg, Monaco and the Netherlands.
Excluding products in fountain form, in 2003, approximately 62 percent of the unit case volume of Coca-Cola Enterprises was Coca-Cola trademark beverages, approximately 32 percent of its unit case volume was other Company trademark beverages, and
approximately 6 percent of its unit case volume was beverage products of other companies. Coca-Cola Enterprises’ net operating revenues were approximately $17.3 billion in 2003. |
|
|
|
|
|
