Beverage Forum Presentation
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Transcript of Beverage Forum Presentation
John FarrellVice President, Strategic Planning
A World of Opportunity
1
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
2
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
3
4
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
5
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
6
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
7
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
8
Volatility / Double-DipDelayed Recovery
Impact of Recession Varies by Geography
China
India
Brazil
Japan
Europe
USA
Russia
Ukraine
Reset Rapid Recovery
9
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
10
-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
11
$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.
12
+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
13
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
14
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
15
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
16
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
Questions?
18
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