The Coca-Cola Company :: 2005 Annual Review

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2005 Annual Report on
Form 10-K

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LATIN AMERICA

The Latin America Group had one of its most successful years in 2005, with unit case volume growth of 6 percent. Carbonated soft drinks grew 5 percent, helped by 43 product launches and 435 new packages, including rebranded zero-calorie versions of our core brands. With the strongest carbonated soft-drink portfolio of brands in the industry, we continued to increase unit case volume in all categories. We also capitalized on the strength of our water brands to launch new products in the category, including flavor and functional extensions. The acceleration of our revenue growth strategy with our bottling partners and customers has delivered solid results and profitability.

In Mexico, Coca-Cola brand equity was strengthened through the "Toma lo Bueno" ("Drink What's Good") campaign, and immediate consumption increased in part due to innovation in personal packaging. Brazil accelerated its steady growth in carbonated soft drinks, and the recent acquisition of Sucos Mais accelerated our growth in the juice and juice drinks category. Growth in Argentina was mainly driven by enhancing connections between Trademark Coca-Cola and teenagers, as well as by the launch of Cepita juice and juice drink extensions.


Working with our Brazilian partners, the Company has launched a program to reduce greenhouse gas emissions by using alternative fuels. Our bottling partner in São Paulo has a fleet of approximately 140 trucks running on 5 percent biodiesel (made from castor beans and soybeans). 2005 Unit Case Volume: Mexico = 46%, Brazil = 23%, Latin Center Division = 14%, Argentina = 8%, Chile = 5%, Other = 4%
Annual Per Capita Consumption of Company Products (U.S. 8 fluid ounces of a finished beverage): 1985 = 95, 1995 = 154, 2005 = 224; 2005 Approximate Population: 554 million spacioLeve advertisement
Net Operating Revenues (in millions): 2003 = $2,042, 2004 = $2,123, 2005 = $2,527 Operating Income (in millions): 2003 = $970, 2004 = $1,069, 2005 = $1,207
Coca-Cola Mexico and our 13 bottling partners in Mexico formed Compañía de Servicios de Bebidas Refrescantes, S.A. de C.V. (Salesko) to more effectively market and distribute our noncarbonated products.


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