Beverage Forum Presentation

19
John Farrell Vice President, Strategic Planning A World of Opportunity

Transcript of Beverage Forum Presentation

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John FarrellVice President, Strategic Planning

A World of Opportunity

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Today’s Discussion

1. The Coca-Cola Company

• How we’re positioned for the future, today

• 2020 Vision

2. Industry Leadership in the Decade Ahead

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Diversified Portfolio

200+ Countries

300+ Franchise Bottling Partners

500+ Brands

7 MM Coolers

20 MM Customer Outlets

2

2009 KO Volume

*Based on 2009 KO Volume for Key 22 countries

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Bring innovations to market faster

2020 Vision: A Holistic Business Agenda…

Maximize Company and bottler long-term cash flow

Develop and deploy the world’s most innovative and effective marketing

Win with Coca-Cola

Align our franchise structure to create unsurpassed value for customers

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Global leadership in sustainable water use

Industry leadership in package, energy and climate protection

Create competitive advantage by fulfilling our Live Positively commitments

Marketplace (beverage benefits and active, healthy living)

…and Sustainability Agenda

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2020 Vision: Being Implemented Energetically Today

Equipment of the Future

Freestyle

Plant Bottle

vitaminwaterzero

Tea Equipment

Natural Sweetener

Global Juice

Platform

FantaMoo Moo

Mini can

iLOHAS

Coca-Cola FIFA activation

Sprite Tea Minute Maid Pulpy Super Milky

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More Than Double System Revenue While Increasing Margins

$95 Bn

$200 Bn

$105 Bn

15%

KO System Revenue KO System Operating Margin

2008 2020 2008 2020

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Volatility / Double-DipDelayed Recovery

Impact of Recession Varies by Geography

China

India

Brazil

Japan

Europe

USA

Russia

Ukraine

Reset Rapid Recovery

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Diversified Portfolio Gives Us Flexibility

Markets

Actions

SuccessMetrics

EuropeUSA

Segment Offerings

Share of Value

RussiaUkraine

Maximize Flexibility

Balanced Volume and Value Share

ChinaIndiaBrazil

Invest for Accelerated Growth

Per Capita Consumption

Margin Expansion

RapidRecovery

Volatility/Double-Dip

Reset DelayedRecovery

Japan

Drive ProfitableGrowthvia Innovation & Productivity

System Profits

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-3%

0%

3%

6%

Long-Term Global Growth Prospects are Extremely Positive

Source: United Nations National Income Accounts Database/IHS Global Insight.

Annual GrowthEstimated

Annual Growth

3.2% 3.4%

Global Real GDP Growth (%)

1996 2000 2004 2008 2012 2016 2020

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$20 Trillion GDP Growth by 2020

2008 2020

$50

$70

Global Real GDP ($T)

21%

39%

21%

3%

16%

USA

Europe

Rest of World

Japan

China, India, Latin America

Country / Region% of Incremental

Global GDP Growth

Source: United Nations National Income Database/HIS Global Insight.

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+0.9 Bn+0.9 Bn +1.0 Bn

1 Billion New Consumers Entering the Economy by 2020

Source: Division of the Department of Economic and Social Affairs of the United Nations Secretariat; World Bank World Development Indicators

6.7 Bn 7.6 Bn

Urbanization GrowthWorld Population Middle Class Growth

3.3 Bn 4.2 Bn 1.2 Bn 2.2 Bn

2008 2020 2008 2020 2008 2020

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Resulting in an Increase in NARTD Consumption

NARTD Industry

Per Capita Servings

United StatesSpain

Mexico

Japan

IndiaChina

Brazil

GermanyItaly

United Kingdom

France

Per Capita Personal Expenditure

Source: TCCC Internal Analysis; United Nations National Income Accounts Database; HIS Global Insight

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An Incredible Opportunity in NARTD Beverages

90 Bn Cases

145 Bn Cases

$500 BnIncremental Growth

$600 Bn

$1,100 Bn

Industry Volume Industry Value

2008 2020 2008 2020

55 Bn CasesIncremental Growth

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6.3%

6.5%

5.2%

7.3%

Beer and Spirits

Personal Care

Packaged Foods

NARTD

Forecasted 2009-2014 Global Growth in Consumer Spending (CAGR)

1. Global refers to EuroMonitor 80 country universe.

2. NARTD = Nonalcoholic ready-to-drink beverages; numbers exclude dairy.

3. Numbers for NARTD and Beer & Spirits represent off-trade (i.e. retail) sales only. Beer & Spirits includes beer; cider; RTD high-strength premixes; wine and spirits.

4. All data is nominal and is currency neutral.

Source: EuroMonitor (May 2010)

The Best Business in the World Today... and in the Future

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Industry Leadership in the Decade Ahead

Connecting with all Consumers

Integrating Business and Social Agendas

Bringing Innovations to Market Faster

Aligning Organization Structures to Create Unsurpassed Value for Customers

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Questions?

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US Macro Trends are Extremely Favorable

2008-2020 Population CAGR

2008-2020 Incremental

Population (M)

2020 Teen Population (M)

2020 Personal Expenditure Per Capita

($000’s)

Nigeria 2.0% India 176 India 173 United States $ 32 Philippines 1.6% China 77 China 118 Great Britain $ 23 India 1.2% Nigeria 38 United States 31 Canada $ 22 Colombia 1.1% United States 31 Nigeria 31 Australia $ 21 Turkey 1.0% Brazil 23 Brazil 25 Japan $ 19 Brazil 1.0% Philippines 17 Philippines 15 France $ 19 Australia 0.9% Mexico 11 Mexico 14 Germany $ 19 Mexico 0.9% Turkey 9 Russia 10 Italy $ 18 Argentina 0.9% Colombia 6 Turkey 9 Russia $ 16 United States 0.9% Argentina 4 Japan 8 Spain $ 15 Chile 0.9% Thailand 3 South Africa 7 Argentina $ 14 Canada 0.8% Canada 3 Thailand 6 Chile $ 13 China 0.7% Great Britain 3 Colombia 6 South Africa $ 13 Great Britain 0.7% France 3 France 6 Turkey $ 12 Thailand 0.4% Australia 2 Germany 5 Mexico $ 10 South Africa 0.4% South Africa 2 Great Britain 5 Brazil $ 8 France 0.4% Chile 2 Argentina 5 Thailand $ 8 Spain 0.3% Spain 2 Italy 4 China $ 7 Italy -0.1% Italy - Spain 3 Colombia $ 7 Germany -0.1% Germany (1) Canada 3 Philippines $ 5 Japan -0.2% Japan (3) Australia 2 India $ 4 Russia -0.6% Russia (9) Chile 2 Nigeria $ 1

Source: IHS Global Insight. Note: For TCCC's Top 22 markets only