2004 Results
The North America operating segment is the largest contributor to our Company’s total unit case volume. During 2004, we implemented a structure and strategy to support accelerated marketing, more robust innovation and stronger alignment with our bottling partners to achieve balanced revenue growth across all channels in 2005 and beyond.

Unit case volume was flat for the year versus 2003, as a 1 percent decline in unit case volume in our Retail Division offset unit case volume growth of 2 percent in our Foodservice and Hospitality Division. Our financial results in North America were impacted during 2004 by unfavorable trends in the bottle and can business due to soft retail traffic, higher retail prices and lower-than-expected results from the introduction of Coca-Cola C2.

Overall unit case volume for our diet and light carbonated soft drinks was up 6 percent, led by the successful introduction of diet Coke with lime.

Under the Minute Maid brand, we launched several new products, including Minute Maid Premium Kids Plus and Minute Maid Premium light orange juice beverage, along with our expansion of Minute Maid Premium Heart Wise.

2004 Highlights
Foodservice and Hospitality: Unit case volume increased 2 percent as an improvement in overall restaurant traffic and the success of several customer programs drove results.

Juices: Unit case volume for warehouse-delivered juices in the United States was up 3 percent due in part to the benefits of brand innovation.

Hydration and Sports Drinks: Unit case volume for POWERADE increased 20 percent for the year on top of a 21 percent increase in 2003. Dasani had unit case volume growth of 10 percent.