Remarks at the Rotary Club of Atlanta

Muhtar Kent, Chairman and Chief Executive Officer, The Coca-Cola Company
Atlanta, Georgia
September 14, 2009

As prepared for delivery

Thank you, Clyde, and good afternoon, everyone.

What a great pleasure it is to be here today and in the company of so many good friends and colleagues who are helping shape a better and more prosperous Atlanta and indeed a better world through Rotary.

When I think about the incredible leaders from our community who have graced this podium over the last 96 years -- people like Ivan Allen, William Hartsfield, Andrew Young, Jimmy Carter, Maynard Jackson, Sam Massell, Mayor Franklin, and our incredible Legend Award recipient, Mr. Truett Cathy -- I feel truly humbled.

Mr. Cathy, let me just also say, it's an honor, sir, to be on the same dais with you today. Your vision, your values, your commitment to our community and the remarkable company you created have left a lasting mark on all of us.

Today, I'm also proud to represent a long legacy of Coca-Cola leaders who have addressed the Atlanta Rotary.

This tradition goes back to Asa Candler and includes such leaders in our business as Robert Woodruff, Paul Austin, Roberto Goizueta, Don Keough, and Neville Isdell. All of whom I have had the pleasure and fortune to know and work with during my 31-year career with Coca-Cola.

So, thank you for the kind invitation to be here and to keep this wonderful connection alive.

In the past several months, I've had the opportunity to give speeches all around the world... to all kinds of audiences... and in many different venues. The one constant from this experience is that the person who introduces me usually will get up and say some pleasant words about me and The Coca-Cola Company.

I guess in Clyde's case, he had no choice! Good job, Clyde.

I'd like to turn the table for a moment and express my personal feelings about all of you who participate in Rotary.

Today, it's all too easy to get cynical and frustrated about the state of the world. Times are hard for most people and most businesses and organizations. Depending on which economist or pundit you listen to, it could still be a while before things return to any semblance of normal -- a new normal.

In this environment, the ideals and principles of Rotary have never been more important. The work you do to provide humanitarian service -- support our communities... promote strong ethics... help in the education of the next generations… and build goodwill and peace in the world -- is absolutely critical to the sustainability of our businesses and communities.

I must also tell you that your reputation here at the Atlanta Rotary spans the world. Earlier this spring, I was honored and had the privilege to speak at a Rotary International luncheon in Istanbul with 3,000 participants. It was a great group. Very similar to this one. Top leaders from business, government, education and the civic sectors.

During the meeting, several Rotarians commented to me that the Atlanta Rotary was one of the model chapters they looked to for inspiration and guidance. For instance, they are impressed that you have taken such a leadership position on water -- an area of great concern in Turkey and all of Central Asia. Also an area of tremendous focus for the Coca-Cola system around the world.

I actually relayed that experience in a letter I wrote recently to John Kenny, the President of Rotary International in support of Atlanta as host for the 2017 International Rotary Convention.

As you know, we are one of six finalist cities being considered for that important event. I told John that Coca-Cola will do everything possible to help ensure the success of the convention should they have the wisdom to choose Atlanta. Several people here today are working hard every day to make this happen and I applaud your efforts.

I also mention this story because it raises a bigger point about Atlanta and what I want to talk about today. Looking to the future. Preparing for the future. Investing in the future.

Let me now share some thoughts with you about the world we at Coca-Cola see developing just beyond the horizon. And more importantly, what we think this means for Atlanta and for everyone who calls this great community home.

To put this discussion in context, I'd like to go back in time for a moment. Back to almost a year ago. It was September 24, 2008, to be exact. On this day, September 24, 2008, we convened a meeting in Boca Raton, Florida, among the senior leaders of The Coca-Cola Company and our bottling partners around the world. It was the first time we had gathered as a global system since Roberto Goizueta brought everyone together in 1997.

The point of the meeting was to begin crafting a shared vision for the future of the Coca-Cola system. We saw a world coming together that was going to require everything we could muster as a system.

Today, the importance of our company and our global partners working together, hand-in-hand, aligned in spirit and intent, cannot be overstated.

I know you had a chance to hear from John Brock from Coca-Cola Enterprises a few weeks ago. I am delighted about that because I think you'll see that we're on the same page in so many important regards. And not just with CCE but with all of our trusted and dynamic bottling partners around the world.

As you probably remember, the last week of September 2008 was one of the most chaotic in memory. The world's financial markets were beginning to unravel on word that some of Wall Street's largest investment companies were in dire straits. A federal bailout plan was being hotly debated and even the tone of the historic U.S. presidential campaign had shifted on its axis.

It was in this backdrop that we looked to the future -- a future that transcended the financial crisis and one that had been set in motion long before the meltdown on Wall Street.

Today, we see several massive global trends emerging that are shaping not only our business but the fundamental nature of all businesses and, for that matter, all societies. We see a world that -- despite the current economic mess -- will be defined by at least a billion new people entering the middle class over the next decade.

While America will remain a powerhouse, we see a world of not just one or two or three economic superpowers but multiple nations radiating newfound influence from points around the world. Russia, China, India and Brazil, of course, but also Indonesia, Thailand, Turkey, Nigeria, Mexico, Chile and Poland to name just a few emerging powers.

We see a world growing more urban and more mobile by the day. In fact, urban migration is posing one of the greatest economic, political and social shifts the world has ever seen.

Two years ago, you might remember, a group of researchers at the University of Georgia determined that for the first time in history the world had turned majority urban.

The shift from agrarian to urban is here and that trend, of course, will never turn back. Today, the world's cities are growing by 65 million people each year, and that will continue for at least the next decade. That's the equivalent of adding a metro Atlanta to the planet every 30 days for at least the next 10 years.

Think about that for a moment.

As population and consumer demand grows, we see a world defined by constant scarcity of energy, food and other natural resources. We see a world of longer life spans as advances in medicine and biotechnology come to fruition. I'm told average life expectancy will likely increase by 5 years by 2020.

At the same time, many parts of the world will experience a surge in youth populations. And almost everywhere, we will no doubt see greater government intervention into commercial and economic affairs.

Collectively, these economic, demographic and political shifts are creating what we call the New Equilibrium, or the "new normal."

It's a world of great dichotomy. Opportunity and promise on one hand... and incredible challenge on the other.

In every market -- from the wealthiest to the poorest -- we are seeing a massive resetting of priorities, values and expectations among people.

In the long-term, I personally believe this is a good thing for us and our world. The implications will be profound.

For our business at Coca-Cola, the flight path ahead will take us through some incredibly turbulent skies. Cost pressures... environmental pressures... global talent pressures and new competitive pressures will be a constant reality for all of us.

At the same time, we believe the upside is significant for our business and our beverages, which we consider an affordable luxury. More consumers... with more wealth... leading on-the-go urban lifestyles that are conducive to greater demand for ready to drink beverages.

We like these trends. In fact, our $ 650-billion dollar industry is expected to grow to $1 trillion dollars in revenues by the year 2020. That's a growth rate that will far outpace other consumer packaged goods, including cosmetics, alcoholic beverages, and household care.

There's plenty of runway ahead of us.

But to be successful on this journey, we must have a clear vision -- one that encompasses our entire system.

The end-result of that Global System Meeting last September and several discussions with our people since then was the creation of our Our 2020 Vision and Roadmap for Winning Together. We outlined our vision across six critical categories -- areas we call profit, people, portfolio, partners, planet and productivity. We laid out some challenging goals across each of these Ps, including:

• setting aggressive targets for our volume and revenue...
• ensuring that we are attracting the best and brightest talent...
• and continuing and enhancing our leadership across a range of sustainability issues like water, packaging, climate protection and energy conservation.

The vision we've crafted is designed for growth and action. It's not lofty... it's not complicated... it's real... it's actionable and it's guided by goals that will stretch us and grow us for the better.

In many ways, it's similar to the strategies laid out by the Mayor which call for "actions over planning" and "reaching beyond our own four walls." In fact, I hope our next mayor embraces a similar bias for action.

There are some other important parallels to our 2020 Vision and the vision of our hometown.

We're both driven to attract the best and brightest people... build strong communities and healthy environments... maximize our investments and resources... and win on a rapidly changing world stage.

I've spent the better part of my career -- well over the last 30 years -- traveling the world and working in great cities. In just the last two weeks...

I've met with President Calderon in Mexico City, where we announced $5 billion-dollars' worth of investments in Mexico over the next five years. I've toured our new innovation incubator in Tel Aviv. I've met with our team in Ho Chi Minh City to announce a new $200 million-dollar investment in Vietnam. I've visited with our bottling partners and government officials in Bangkok. And I've listened to customers and employees in Moscow.

Each of these cities and their respective nations are in various stages of development -- but all of them are on the move and investing in the future.

I can tell you there is absolutely no reason why Atlanta can't become what it envisions. History tells us so and my heart and head tell me so. In fact, I believe our city and region are at a tipping point of sorts.

Just as the Civil Rights Era ushered in a new era for Atlanta... Just as the Olympic Games changed the world's perception of our community... I believe the growing awareness and linkage between sustainability, the environment and our quality of life are ushering in a new era of possibility.

Mayor Franklin certainly sees it with her Sustainable Atlanta Initiative.

Atlanta has an opportunity to become a truly world-class sustainable community. A growing and vibrant metropolitan area that is defined by smart growth... quality transportation infrastructure... innovative and forward-thinking businesses... world-class educators and students... a thriving and diverse creative class... fiercely protected natural resources and sustainable environments... and the best quality of life in America.

The greatest cities in the world are moving in this direction -- and so too I believe Atlanta has an incredible opportunity to take the lead in this regard -- not only in America but globally.

Our quality of life here in Atlanta is truly remarkable and truly worth protecting. Defne and I are reminded of it every day as we marvel at the magnificent trees in our neighborhood and the outstanding cultural and entertainment activities that abound within a few minutes' drive from our home.

But I also know that -- just like The Coca-Cola Company -- Atlanta can't get to the future in a vacuum. We have to work together -- business, government, education, the arts and civic programs -- all pointing and moving in the same direction. A shared vision based on mutually assured success.

For us at Coca-Cola, a strong, vibrant and sustainable Atlanta is essential to achieving our 2020 Vision. We need the intellectual capital, the creative capital and the innovative spirit and support of our great hometown now more than ever. And it's why we will continue to be engaged -- enthusiastically -- in every aspect of public life in this city.

In this regard, last week I was privileged to attend a breakfast with the presidents of Clark Atlanta University, Morehouse College, the Morehouse School of Medicine, Spelman College and the Robert Woodruff Library to show our support for their academic missions.

Through a contribution of $7.2 million dollars, we're investing in future generations who will pass through these campuses... continue their education... and benefit from having Dr. King's papers within arm's reach. We see this as an investment in our future... in our 2020 Vision.

We're also pleased to continue our work in supporting the National Center for Civil and Human Rights. We recently loaned one of our executives, Haven Riviere, to serve as Chief Operating and Development Officer for the Center.

You might recall that Haven along with Jackson Kelly -- who is also here today -- were responsible for managing the development of the new World of Coca-Cola, also over in Pemberton Place.

Between the Georgia Aquarium, the World of Coca-Cola and the National Center for Civil and Human Rights -- Pemberton Place is dramatically transforming the face and texture of downtown Atlanta.

And it's a model for urban revitalization that is being watched around the world. More importantly, it's a model for how we can create success together across a number of efforts in the coming years.

Truly... the only path forward is together.

For inspiration we only have to look to those great community and business leaders I mentioned earlier. Indeed, here in Atlanta, we are all standing on the shoulders of true giants. Giants who understood the power of collaboration and unity.

This hits close to the heart of everyone in the Coca-Cola family. For over 123 years, the men and women of The Coca-Cola Company have built on the legacy of those who came before them.

In doing so they've created the word's most recognized and valued brand. Today, Coca-Cola is the second-most universally recognized term on the planet. Only the word "okay" is recognized by more people around the world.

A brand, of course, is more than a logo, a design, or a slogan. Much more. It has a heartbeat, a soul and a psyche. It is the very core, the very essence, of an organization.

If a good brand is a promise, then a great brand is a promise kept.

The strength... the resolve... and the sustainability of the Coca-Cola brand is directly related to the social license earned from billions of consumers and millions of communities around the world.

It's a journey that begins and ends right here in our wonderful hometown. It's an honor and a responsibility we don't take lightly... nor one that we will ever take for granted.

Once again, on behalf of every one of our 1 million Coca-Cola system associates around the planet in 206 countries thank you for inviting me here and thank you for your time and attention this afternoon.