MANAGEMENT:

The hierarchy of Coca Cola Company is as follows.

Chairman
Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

MARKET SHARE:
SHARE
Being the biggest company in the soft drink industry, Coca Cola enjoys the
largest market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE:

The following table can show the worldwide operating segments.

(Table)

Unit case growth Non- All commercial

alcoholic Beverages
drink
10 year 5-year compound 2001 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Company Compan Compan
y y y share y share y per
capita
Income
6% 5% 5% 5% 4% 4% 18% 9% 70
This shows that the market of the company is geographically vast and it is
controlling it with great success. In 2002, the company grew their carbonated
soft-drink business by nearly 250 million unit cases and generated record
volumes. Because carbonated soft drinks are the largest growth segment within
the nonalcoholic ready-to-drink beverage category measured by volume, that is
why they are focusing more on this and they are continually increasing the pace
because they know that accelerating this pace is crucial to their future success.
Thus they are increasing their market day by day. The operation income earned
by Coca Cola Company can be illustrated by the following pie chart.

(Figure)

This strategy has worked a lot and it has helped them to become the World’s
leading Soft Drink Company. The global unit sale of the Coca Cola Company is
increasing from the last ten years. The data of the global unit sale of the Coca
Cola Company can be represented by following chart.

(Figure)

12
10
8
6
unit sale in billions
4
2
0
1971 1981 1991 2002
So there is positive growth in the market of the Coca Cola Company. There is a
worldwide volume increase by 4% with strong international growth of 5%. This is
only due to the innovative marketing programmers, which has deepened the
relationship of the customers and Coca Cola. The financial health and success of
their bottling partners is a critical component of The Coca-Cola Company's ability
to build and deliver leading brands.
In 2002, the company had worked with their bottlers to turn good intentions into
reality by improving the system economics. The results in 2002 reflect this
steadily improving and mutually constructive relationship between the Company
and their bottling partners. The main reason behind this relationship is to
continue realizing shared opportunities for growth, with closer coordination of
operations including customer relationships, logistics and production.

MARKET SHARE BY AREA:

Coca Cola is the world-renowned soft drink and the company is currently
operating through out the world. The world wide total is about 17.8 billion.
The operation review according to the segments is as follows.

Operation Review

(2002 worldwide unit case volume by operating segment)

NORTH LATIN EUROPE & ASIA AFRICA

AMERICA AMERICA MIDDLE EAST

30% 25% 22% 17% 6%

NORTH AMERICA

LATIN AMERICA

EUROPE & MIDDLE

EAST
ASIA

AFRICA

So the volume is least in the Africa and most in the North America. The data
about the market share of this company area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and
from this data; we can find out that the customers of Coca Cola are increasing
which is shown by the company’s per capita income. Unit case equals 24 eight-
ounce servings. The column, which shows the non-alcoholic beverages consist of
 commercially, sold beverages, as estimated by the Company based on available
industry sources. The country column is derived from

The Company's unit case volume while the industry column includes
nonalcoholic ready-to-drink beverages only, as estimated by the Company based
on available industry sources.

(Table)

Country Unit case growth Non- All commercial

alcoholi Beverages
c
Drinks
10 year 5-year compound 2002 annual 2002 2002
compound annual annual growth growth
growth
Compan Industry Compan Industry Compan Industry Compan Compan Company
y y y y share y share per capita
Income
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
German 1 2 (1) 1 (6) 1 14 7 193
y
Great 8 2 11 2 8 3 17 6 193
Britain
Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34

In Asian population, which is the satisfied customer of Coca Cola, is

approximately 3.2 billion and the average consumer enjoys close to two servings
of our products each month. Through an intense focus on Coca-Cola, innovation
and new beverages, the company has achieved volume growth of 10 percent in
2002. With developing economies and

populations, this region has strong long-term potential, and the company is
building an exciting family of beverage brands in addition to expanding the
popularity of our core brands, led by Coca-Cola. In China, for example, sales of
Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can
be shown by the following pie chart.

(Figure)

So the company is emphasizing more in this area and is trying to develop a

strategy, which can increase the growth of the consumption of Coca Cola by the
people of Asia. Among the countries of Asia, Japan has the highest percentage,
which is about 29%. Among others, Pakistan, India and Bangladesh are those
countries where the average consumption is increasing day by day.
FINANCIAL REPORT:
This company is financially very strong. It is due to the strong finances, the
company is still surviving the ups and down of the business world. The financial
report of Coca Cola Company of the year 2001 and 2000 along with the
percentage change is as follows.

(Table)

Year Ended December 31,

(In millions except per share data, ratios and growth rates)

2002 2001 Percentage

change

Net operating revenues 20,092 19,889 1%

Operating income 5,352 3,691 45%
Net income 3,969 2,177 82%
Net income per share (basic) 1.601 0.882 82%
Net income per share (diluted) 1.601 0.882 82%
Net cash provided by operating activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%
Dividends paid (1,791) (1,685) 6%
Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
Return on capital 26.6% 16.2% -
Return on common equity 38.5% 23.1% -
Unit case sales (in billions)
International operations 12.5 11.9 5%
North America operations 5.3 5.2 2%
Worldwide 17.8 17.1 4%

2002 basic and diluted net income per share includes a non-cash gain of $.02
per share after taxes, which was recognized on the issuance of stock by Coca-
Cola Enterprises Inc., one of the equity investors of this company.

2002 basic and diluted net income per share includes the following charges:
• $.24 per share after income taxes related to an organizational
Realignment.
• $.19 per share after income taxes related to the Company's portion of
charges recorded by the investors of the company.
• $.16 per share after income taxes related to the impairment of certain
bottling, manufacturing and intangible assets.
 • $.05 per share after income taxes related to the settlement terms of a
discrimination lawsuit.
• $.01 per share after income taxes related to incremental marketing
expenses in Central Europe.

These charges are partially offset by a gain of $.05 per share after income taxes
related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company
S.A. and $.04 per share after income taxes related to benefits from a tax rate
reduction in Germany and from favorable tax planning strategies.

DIVIDEND AND CASH INVESTMENT PLAN:

The Dividend and Cash Investment Plan permits shareowners of record to
reinvest dividends from Company stock in shares of The Coca-Cola Company.
The Plan provides a convenient, economical and systematic method of acquiring
additional shares of our common stock. All shareowners of record are eligible to
participate. Shareowners also may purchase Company stock through voluntary
cash investments of up to $125,000 per year.
At year-end, 76 percent of the Company's shareowners of record were
participants in the Plan. In 2002, shareowners invested $36 million in dividends
and $31 million in cash in the Plan.
COMPANY STATISTICS:
The statistics of this company is impressive. Since it is operating through out the
world that is why the number of employees and the bottling equipments is
highest among the other bottling companies. There is a constant increase in
every aspect when we compare the statistics of 2001 and the statistics of 2002.
This is because; Coca Cola Company is increasing its volume day by day. The
expansion of this company, which shows the success of Coca Cola brands,
results in the percentage change in the statistics of the two years. The statistics
is as follows.

(Table)

2002ª 2001

Equivalent cases 4.2 billion 3.8 billion

Bottle and cans 87% 87%
Fountain 13% 13%
Employees 72,000 67,000
Vehicles 54,000 52,000
Cold drink equipments 2.4 million 2.3 million
Facilities
Production only 25 25
Distribution 385 361
Combination 53 50
Total 463 436
Percent of North America population coverage 80% 72%
Number of States of Operation 46 46
Bottle and can equivalent case package distribution
Cans 44% 45%
Non-refillable bottles 52% 51%
Refillable bottles 4% 4%
Capital structure
Net debt to total capital ratio 63% 59%
EBITDA interest coverage 3 3
Weighted average cost of debt 6.3% 6.8%
Key Statistics
Constant territory bottle and can volume 3% ½%
growth
Bottle and can net revenues per case change Flat 2%
Bottle and can cost of sales per physical case 1 ½%
change
Reported EBITDA (in billions) $1.95 $2.39
Reported EBITDA change (18)% 9%
Capital expenditures( in billions) $0.97 $1.18
 %-age of net operating revenues 6% 8%
Coverage of North American Can/bottle volume 83% 74%

EBITDA is the Earnings before interest, taxes, depreciation, and

amortization, and other non-operating items.

• Net Debt is the Long-term debt plus current portion of long-term

debt less cash and marketable securities.
• Equivalent Case or Unit Case is the physical case and fountain
gallons converted to a standard unit of measure defined as 24
eight-ounce servings or 192 ounces per equivalent case sold by
Coca-Cola Enterprises.

PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use
through out the world. This company not only deals in the carbonated drinks but
also other drinks. While launching its product, the marketing team considers the
culture of the country.

Major brands of coca cola

• Coke
• Sprite
• Fanta
• Diet coke
• Coke classic
The over all volume of this company is as follows.
(Figure)

The commitment of the company is to devote resources to water only in markets

where it expects profitable growth. This strategy has paid dividends. The
company has successfully applied it’s approach to brands in several key
markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in
Russia and Kinley in India. Backed by a strong network of bottling partners
through out the United States, Dasani became the nation's fastest-growing water
brand. In Eurasia, the entire Turkuaz brand team worked together to launch
Turkey's first purified water brand. This year, Coca-Cola Company also
successfully energized a major piece of its beverage strategy—water. By the end
of 2001, it’s bottled water volume exceeded 570 million unit cases, making it the
second biggest contributor to the growth of the company after carbonated soft
drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved
sales of over 100 million unit cases for the year.

In 2001and 2002, the company has also made good progress in coffees and
teas. Beverage Partners Worldwide, the renewed and strengthened marketing
partnership with Nestlé S.A., began operations in 2001. This partnership
combines Nestlé's knowledge in life science, research and development with the
expertise of Coca Cola Company in brand building and distribution.

At the same time, the company grew Georgia coffee in Japan by 3 percent
through award-winning marketing in a category that was flat for the year. Also in
Japan—where The Coca-Cola Company is the leader in the total tea category,
the second-largest category in the non-alcoholic ready-to-drink segment—it
launched Marocha Green Tea. With sales of 46 million unit cases for the year,
Marocha Green Tea is the fastest-growing product in the fastest-growing
category: green tea. The popularity of Marocha is also recognized by the industry
with a leading trade journal naming Marocha the most popular new food and
beverage product of the year.

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