September 2019

COCA-COLA COMPANY
Established in 1886 and headquartered in Atlanta, Georgia, US, Coca-Cola is the world’s largest
nonalcoholic beverage company that engages in the manufacturing, marketing and sale of
nonalcoholic beverages worldwide, operating in more than 200 countries and markets more than
4,000 beverage products. These products include sparkling beverages and a range of still beverages,
such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and
coffees, sports drinks, dairy and energy drinks. The Company's segments include Europe, Middle East
and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. Coca-Cola
has a revenue of $32.8B, and 62,600 employees. The company is listed in the New York Stock Exchange
(NYSE). As of December 31, 2018, our Company had ~62,600 employees, of which ~11,400 were
located in the US. The Company believes that its relations with its employees are generally satisfactory.
The F&B sector is expected to
grow at a CAGR of 9.9%, resulting Product Description
in a market volume of
bExhit4a:BevgsrndopPLl
US$116,353m by 2023.

Source: Coca-cola company website

The company owns or licenses and markets more than 500 nonalcoholic beverage brands grouped into
the following category clusters: sparkling soft drinks; water, enhanced water and sports drinks; juice,
dairy and plant-based beverages; tea and coffee; and energy drinks. It owns and markets four of the
world’s top five nonalcoholic sparkling soft drink brands including Coca-Cola, Diet Coke, Fanta and
Sprite. Coca-Cola has 15 companies in its portfolio including the the world’s most valuable beverage
brands, such as AdeS soy-based beverages, Ayataka green tea, Dasani waters, Del Valle juices and
The F&B sector is expected to nectars, Fanta, Georgia coffee, Gold Peak teas and coffees, Honest Tea, innocent smoothies and juices,
grow at a CAGR of 9.9%, resulting Minute Maid juices, Powerade sports drinks, Simply juices, smartwater, Sprite, vitaminwater and ZICO
in a market volume of coconut water1. The company is constantly transforming its portfolio, from reducing sugar in drinks to
US$116,353m by 2023. bringing innovative new products to market in order to reduce environmental impact by replenishing
water and promoting recycling.

The Company markets, manufactures and sells beverage concentrates, which are referred to as
beverage bases, and syrups, including fountain syrups (concentrate business or concentrate
operations), and finished sparkling and still beverages (finished product business or finished product
operations). The Company makes its beverage products available to consumers across the world
through its network of Company-owned or -controlled bottling and distribution operations, as well as
bottling partners, distributors, wholesalers and retailers.

1 https://www.coca-colacompany.com/our-company/infographic-coca-cola-at-a-glance
2
Uses
In its concentrate operations, the Company sells concentrates and syrups to authorized bottling and
canning operations (bottlers or its bottling partners). Its bottling partners either combine the
concentrates with sweeteners (depending on the product), still water and/or sparkling water, or
combine the syrups with sparkling water to produce finished beverages. The finished beverages are
packaged in authorized containers, such as cans and refillable and non-refillable glass and plastic
bottles, and are then sold to retailers directly or, through wholesalers or other bottlers. Outside the
United States, the Company also sells concentrates for fountain beverages to its bottling partners.

The Company's finished product operations consist of Company-owned or -controlled bottling, sales
and distribution operations, including Coca-Cola Refreshments (CCR) bottling and associated supply
chain operations in the United States and Canada, and are included in its Bottling Investments
operating segment. In addition, in the United States, the Company manufactures fountain syrups and
sells them to fountain retailers, such as restaurants and convenience stores using fountain syrups to
produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling
partners reselling the fountain syrups to fountain retailers. These fountain syrup sales are included in
its North America operating segment. Its finished product operations include selling of sparkling
beverages and a range of still beverages, such as juices and juice drinks, energy and sports drinks,
ready-to-drink teas and coffees, and certain water products, to retailers or to distributors, wholesalers
and bottling partners distributing them to retailers.

The Company and certain of its bottlers distribute certain brands of Monster Beverage Corporation
(Monster), primarily Monster Energy, in designated territories in the United States, Canada and other
international territories. The Company produces and/or distributes certain third-party brands,
including brands owned by Dr Pepper Snapple Group, Inc., which it produces and distributes in
designated territories in the United States and Canada. It has a joint venture with Nestle S.A. named
Beverage Partners Worldwide (BPW), which markets and distributes Nestea products in Europe and
Canada. It holds interest in certain territories to brands produced and distributed by Aujan Industries
Company J.S.C. (Aujan), including Rani, a juice brand, and Barbican, a flavored malt beverage brand.

The Company competes with PepsiCo, Inc., Nestle S.A., Dr Pepper Snapple Group, Inc., Groupe
Danone, Mondelez International, Inc., The Kraft Heinz Company, Suntory Beverage & Food Limited and
Unilever2.

More than 10,000 soft drinks from Coca-Cola are consumed every second of every day on average.

Raw Materials
Although water is a main ingredient in substantially all of its products, the principal raw materials used
by the company are nutritive and non-nutritive sweeteners. In the US, the principal nutritive
sweetener is high fructose corn syrup (HFCS), which is nutritionally equivalent to sugar. HFCS is
available from numerous domestic sources and has historically been subject to fluctuations in its
market price. The principal nutritive sweetener used by the company outside the US is sucrose, i.e.,
table sugar. In the US, it purchases HFCS with the assistance of Coca-Cola Bottlers’ Sales & Services
Company LLC (CCBSS). CCBSS is a limited liability company that is owned by authorized Coca-Cola
bottlers doing business in the US. Among other things, CCBSS provides procurement services to the
company and its bottling partners for the purchase of various goods and services in the US, including
HFCS.

2 https://in.reuters.com/finance/stocks/company-profile/KO.N
3
The principal non-nutritive sweeteners we use in our business are aspartame, acesulfame potassium,
sucralose, saccharin, cyclamate and steviol glycosides. Generally, these raw materials are readily
available from numerous sources. We purchase sucralose, which we consider a critical raw material,
from suppliers in the United States and China. Our Company generally has not experienced major
difficulties in obtaining its requirements for non-nutritive sweeteners, and we do not anticipate such
difficulties in the future.

Juice and juice concentrate from various fruits, particularly orange juice and orange juice concentrate,
are the principal raw materials for our juice and juice drink products. We source our orange juice and
orange juice concentrate primarily from Florida and the Southern Hemisphere (particularly Brazil). We
work closely with Cutrale Citrus Juices U.S.A., Inc., our primary supplier of orange juice from Florida
and Brazil, to ensure an adequate supply of orange juice and orange juice concentrate that meets our
Company’s standards. However, the citrus industry is impacted by greening disease and the variability
of weather conditions. In particular, freezing weather or hurricanes in central Florida may result in
shortages and higher prices for orange juice and orange juice concentrate throughout the industry. In
addition, greening disease is reducing the number of trees and increasing grower costs and prices.

Our Company-owned or consolidated bottling operations and our finished product business also
purchase various other raw materials including, but not limited to, polyethylene terephthalate (“PET”)
resin, preforms and bottles; glass and aluminum bottles; aluminum and steel cans; plastic closures;
aseptic fiber packaging; labels; cartons; cases; postmix packaging; and carbon dioxide. We generally
purchase these raw materials from multiple suppliers and historically have not experienced significant
shortages.

Our Company primarily manufactures and sells concentrates, beverage bases and syrups to bottling
operations, which then produce a wide array of Coca-Cola beverages.

Distribution Network
The company makes its branded beverage products available to many consumers across the world
through its network of independent bottling partners, distributors, wholesalers and retailers as well as
Company-owned or -controlled bottling and distribution operations — the world’s largest beverage
distribution system. The company has more than 300 bottling partners worldwide, who in addition to
manufacturing the final branded beverages, also handle merchandising and distribution and work
closely with customers—grocery stores, restaurants, street vendors, convenience stores, movie
theaters and amusement parks, among many others—to bring our beverages to consumers at a rate of
1.9 billion servings a day.

Offices and Buildings/ Headquarters

The company’s worldwide headquarters (HQ) is located on a 35-acre office complex in Atlanta,
Georgia. The complex includes our 621,000 square foot headquarters building and an 870,000 square
foot building in which its North America group’s main offices are located. The complex also includes
several other buildings, including a 264,000 square foot Coca-Cola Plaza building, technical and
engineering facilities and a reception center. It also owns an office and retail building at 711 Fifth
Avenue in New York, US. These properties, except for the North America group’s main offices, are
included in Corporate. The North America group’s main offices are included in the North America
operating segment.

We own or lease additional facilities, real estate and office space throughout the world which we use
for administrative, manufacturing,

4
processing, packaging, storage, warehousing, distribution and retail operations. These properties are
generally included in the geographic operating segment in which they are located.

The following table summarizes our principal production, distribution and storage facilities by
operating segment and Corporate.
bExhit5:Productin,DsaSelFg
Principal Beverage
Principal Concentrate Distribution and Storage
Manufacturing/Bottlin
Regions and/or Syrup Plants Warehouses
g Plants
Owned Leased Owned Leased Owned Leased
Europe, Middle East & Africa 6 — — — 1
Latin America 5 — — — 2 6
North America 11 — 9 1 41
Asia Pacific 6 — — — 2 9
Bottling Investments — — 45 5 64 69
Corporate 3 — — — 7
Total 31 — 54 — 68 133
Source: Coca-cola company website

In February 2010, Coca-Cola bought out the remaining interests in Coca-Cola Enterprises, the
main contracted bottler, giving the Coca-Cola Company control over 90% of the North American
volume.21

The North American business segment consists of the company’s operations in the United States,
Canada, Puerto Rico, the Virgin Islands, and the Cayman Islands. The segment operates three business
units: sparkling beverages, still beverages, and emerging brands. The North American business
segment owns and operates nine still beverage production facilities, 10 principal beverage concentrate
and/or syrup manufacturing plants, and four bottled water facilities; leases one bottled water facility;
and owns a facility that manufactures juice concentrates.

Recent Developments/News and Media Relations

The company is actively engaged in several social media platforms strengthening its relationship
and engaement with customers around the world.
bExhit5:NewsandMRtiol
Dates Headlines Aim Links

Source: Coca-cola company website

5

The F&B sector is expected to
grow at a CAGR of 9.9%, resulting
in a market volume of
US$116,353m by 2023.
Rising health awareness continues
to become more pronounced
backed by consumer preferences
towards Healthier products
GLOBAL F&B INDUSTRY
Overview of the sector
The food and beverage (F&B) industry globally has experienced a significant growth over the past
few years, driven by strong developments and innovations, which have further enhanced and
strengthened consumption and spending. Changing consumer food habits, lifestyle changes, global
travel, and the ongoing trend of healthy foods are offering plentiful opportunities to the food and
beverage industry. The launch of cost-effective and energy efficient equipment have modernized
processes in the food and beverage industry. Also, the economic growth in emerging economies has
emerged as a boon to the food and beverage industry. According to the data from Statista, revenue
in the F&B sector amounts to US$79,763m in 2019 and is expected to grow at a CAGR of 9.9%,
resulting in a market volume of US$116,353m by 2023. Meanwhile, the User penetration is 20.8% in
2019 and is expected to hit 28.8% by 2023 3. The segments in the food and beverages market include
alcoholic – beverages, non alcoholic – beverages, pet food, tobacco, grain products, meat, poultry
and seafood, fruit and vegetable canning, pickling, and drying, frozen food, and dairy.
Market drivers and trends
Rising health awareness is not a new trend, but its impact continues to become more pronounced as
it shifts today’s consumer preferences towards a high nutritional value, and, as a result, driving
consumption of healthier variants such as reduced fat food products. The packaged food industry is
witnessing a marked growth in free-from products and organic food adoption. The future will see a
re-invention of healthbased claims and marketing strategies, with emphasis shifting from
functionality and similar benefits to clean ingredients, clear packaging and “clean” labels. Other key
consumer and industry trends, along with their relative impact levels on a global scale, are detailed
in the heat map below.
bExheit1yCo:KnsumrAdIT
Source: Gulffood
3 https://www.statista.com/outlook/253/100/food-beverages/worldwide
6

The Beverage industry is expected
to grow at a CAGR of 9.9%,
resulting in a market volume of
US$116,353m by 2023.
GLOBAL BEVERAGE INDUSTRY
The beverage industry in India, excluding alcoholic beverages, is worth about $16 billion. Tea and
coffee are the most popular beverages, followed by soft drinks (carbonated drinks and juices), health
drinks, milk-based drinks, flavoured drinks, and energy drinks. Half of the tea and coffee consumed in
the country is sold unpacked. On the other hand, the alcohol beverages market is estimated to be
worth about $35 billion, with whiskey, beer, and wine as the most popular drinks. With constantly
changing consumer demands and preferences, evolving purchase patterns and rapid changes in
lifestyles, the global soft drink market is changing and growing with rapid speed, while the world’s
largest soft drink companies are dominating the global market. Indeed, new products are launched at a
frequent rate and sometimes entire new and unique category of soft drink emerges and grabs the
popularity.
The global nonalcoholic beverage market size was valued at USD 967.3 billion in 2016. The market is
anticipated to grow at an estimated CAGR of 5.8% from 2017 to 2025 owing to factors such as rising
disposable income, population growth, and changing lifestyle. Increasing concerns regarding obesity
and health awareness are expected to trigger the growth of functional beverage and bottled water
product segment, while at the same time limit the demand for carbonated drinks.
The nonalcoholic beverage industry is regulated by various international and national regulatory
authorities across the globe. Companies in this industry heavily use resources such as water and
electricity, which are considered to be scarce.
Government policies along with the rising societal awareness toward environment & energy
conservation have resulted in more stringent emission and environment protection policies. The Clean
Water Act, The Clean Air Act, and The Resource Conservation and Recovery Act are several
comprehensive regulatory frameworks in food and beverage market that are intended for environment
and energy conservation.
Growing concern toward obesity and other health problems is reshaping the global nonalcoholic
beverage industry. The demand for functional beverages, such as relaxation drinks, energy drinks, and
ready to drink coffees and teas, is gaining popularity owing to their low-calorie contents.
Growing consumption of energy drinks due to hectic schedule, urbanization, and rising health
concerns are expected to drive market growth. According to the data published by Department of
Economic and Social Affairs, U.S., in 2012, approximately 1.5 million people of the world population
were added to the urban population every week. Roughly 60% of the global population will reside in
urban areas by 2022, which is projected to drive the industry growth.
Growing population and disposable income along with rising number of value-oriented smart
consumers are developing the overall industry. Increasing consumption of takeaway products due to
busy lifestyle coupled with rapid urbanization is expanding the market. Asia Pacific followed by Middle
East & Africa are anticipated to register a significant growth over the forecast period owing to the
presence of emerging economies, high disposable income, and various untapped markets
7
 Market Size and Structure
bExheit2yCo:KnsumrAdIT

Source: Gulffood, Euromonitor International analysis from Passport

Rising Demographic shifts

Driven by the rise in population, demand for F&B is set to see further growth over the forecast period.
The unprecedented shift from rural to urban living is a major population change impacting global
The F&B sector is expected to consumption habits. The demographic group, likely below the age of 30, is the fastest growing and
grow at a CAGR of 9.9%, resulting largest contributor to value sales growth of F&B with their increasing purchasing power and affinity
in a market volume of towards Westernised convenient and easy-to-prepare food and beverages, particularly across the sub-
US$116,353m by 2023. Saharan Africa, Asia Pacific or Latin America regions. On the other hand, growing middle class
consumers with rising income, specifically in emerging markets like China, are creating their own ripple
in consumption trends by encouraging premiumisation, i.e. driving demand for highquality packaged
food that includes organic and locally produced products.

Additionally, with GDP growing at a faster rate than total population with a CAGR of 2.8%
between 2018-2030, overall consumer spending on F&B is set to rise in value from 8.5% to 8.9%
of GDP by 2030, coinciding with consumer trends such as more convenience-seeking lifestyles.

bExheit3yCo:KnsumrAdIT

Source: Gulffood, Euromonitor International analysis from Passport

8
9
Coca-Cola Company
One Coca-Cola Plaza,
Atlanta, Georgia, 30313-2420,
USA
Tel: + 14046762121
Fax: + 14046766792
Email:
Website: http://www.coca-colacompany.com

Disclaimer:
This report is prepared by Al Masah Capital Management Limited (“AMCML”). AMCML is a company incorporated under the
DIFC Companies Law and is regulated by the Dubai Financial Services Authority (“DFSA”). The information contained in this
report does not constitute an offer to sell securities or the solicitation of an offer to buy, or recommendation for investment
in, any securities in any jurisdiction. The information in this report is not intended as financial advice and is only intended for
professionals with appropriate investment knowledge and ones that AMCML is satisfied meet the regulatory criteria to be
classified as a ‘Professional Client’ as defined under the Rules & Regulations of the appropriate financial authority. Moreover,
none of the report is intended as a prospectus within the meaning of the applicable laws of any jurisdiction and none of the
report is directed to any person in any country in which the distribution of such report is unlawful. This report provides
general information only. The information and opinions in the report constitute a judgment as at the date indicated and are
subject to change without notice. The information may therefore not be accurate or current. The information and opinions
contained in this report have been compiled or arrived at from sources believed to be reliable in good faith, but no
representation or warranty, express, or implied, is made by AMCML, as to their accuracy, completeness or correctness and
AMCML does also not warrant that the information is up to date. Moreover, you should be aware of the fact that
investments in undertakings, securities or other financial instruments involve risks. Past results do not guarantee future
performance. We accept no liability for any loss arising from the use of material presented in this report. This document has
not been reviewed by, approved by or filed with the DFSA. This report or any portion hereof may not be reprinted, sold or
redistributed without our prior written consent.

Copyright © 2015 Al Masah Capital Management Limited

10