Morgan Stanley Global Consumer & Retail...

Morgan Stanley Global Consumer & Retail Conference

The Coca-Cola CompanySandy Douglas, President – Coca-Cola North America

November 15, 20161

Classified – CONFIDENTIAL

This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words

“believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-

looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present

expectations or projections. These risks include, but are not limited to, obesity concerns; water scarcity and poor quality; evolving consumer preferences; increased competition and

capabilities in the marketplace; product safety and quality concerns; perceived negative health consequences of certain ingredients, such as non-nutritive sweeteners and biotechnology-

derived substances, and of other substances present in our beverage products or packaging materials; an inability to be successful in our innovation activities; increased demand for food

products and decreased agricultural productivity; changes in the retail landscape or the loss of key retail or foodservice customers; an inability to expand operations in emerging and

developing markets; fluctuations in foreign currency exchange rates; interest rate increases; an inability to maintain good relationships with our bottling partners; a deterioration in our

bottling partners' financial condition; increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters; increased or new indirect taxes in the United

States or in one or more other major markets; increased cost, disruption of supply or shortage of energy or fuels; increased cost, disruption of supply or shortage of ingredients, other raw

materials or packaging materials; changes in laws and regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on

the marketing or sale of our products; an inability to protect our information systems against service interruption, misappropriation of data or breaches of security; unfavorable general

economic conditions in the United States; unfavorable economic and political conditions in international markets; litigation or legal proceedings; failure to adequately protect, or disputes

relating to, trademarks, formulae and other intellectual property rights; adverse weather conditions; climate change; damage to our brand image and corporate reputation from negative

publicity, even if unwarranted, related to product safety or quality, human and workplace rights, obesity or other issues; changes in, or failure to comply with, the laws and regulations

applicable to our products or our business operations; changes in accounting standards; an inability to achieve our overall long-term growth objectives; deterioration of global credit

market conditions; default by or failure of one or more of our counterparty financial institutions; an inability to timely implement our previously announced actions to reinvigorate growth, or

to realize the economic benefits we anticipate from these actions; failure to realize a significant portion of the anticipated benefits of our strategic relationship with Monster Beverage

Corporation; an inability to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages or labor unrest; future

impairment charges; multi-employer plan withdrawal liabilities in the future; an inability to successfully integrate and manage our Company-owned or -controlled bottling operations; an

inability to successfully manage our refranchising activities; an inability to successfully manage the possible negative consequences of our productivity initiatives; an inability to attract or

retain a highly skilled workforce; global or regional catastrophic events; and other risks discussed in our Company’s filings with the Securities and Exchange Commission (SEC), including

our Annual Report on Form 10-K for the year ended December 31, 2015, and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You

should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Coca-Cola Company undertakes no obligation to publicly update or

revise any forward-looking statements.

The following presentation may include certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the

Company's website at www.coca-colacompany.com (in the “Investors” section) which reconciles our results as reported under Generally Accepted Accounting Principles and the non-

GAAP financial measures included in the following presentation.

Forward-Looking Statements

Reconciliation to U.S. GAAP Financial Information

2


Coca-Cola North America Core Strategy

3

Key

Metrics

Brand

Clusters

Advantaged

Routes to

Market

World Class

Key Account

Management

Teams

Team,

Vision and

Strategy1

4

2

5

3

INCIDENCE REVENUE TRANSACTIONS

MARGIN GROWTH VALUE SHARE

SPARKLING PREMIUM STILLS FARM TO TABLE ENERGY(outsourced)

DSD CHILLED FOODSERVICE

NATIONAL RETAIL SALES FOODSERVICE & ON PREMISE


+1pt

We Have Achieved Consistent Outperformance in a Strong

Industry

4

Coca-Cola North America (CCNA) Revenue

vs. U.S. Retail Value Growth

Key

Metrics5

Sources: KO reported data

Nielsen; total US CPG Retail Value includes all beverage and non-beverage categories

Nielsen Supers/Drug/CR/Kmart/Target; note: not structurally adjusted (includes Monster)

2 2 2

1

2%

3% 3%

2014 – 2015 CAGR

Consistent Market Share Gains

2006 2011 2016

YTD

Sparkling

Stills

Total25%

37%

24%

36%

22%

27%

38%

15%

17%

CCNA

Revenue

NARTD

Retail

Value2

1%

3%

2%

Sept YTD 2016

1

3

1

+2pts

+7pts

Value Share Growth Over 5 and 10-Year Periods

Total U.S.

CPG

Retail

Value2

Total U.S.

CPG

Retail

Value2

NARTD

Retail

Value2

CCNA

Revenue1

1

2

3


We Are Executing a Refreshment Oriented Price / Package

Architecture Across Our Sparkling Portfolio

5

Nielsen All Measured Channels | Total Sparkling

Sept YTD 2016

$ /

Oc

cas

ion

$0.20

$1.57

$0.41

$0.83

$1.18

$0.51 $0.46$0.17

$0.32

7.5 oz8.5 oz1.25L 6 pk

500 mL

12 oz12 oz 8 pk

12 oz

2L8 oz

10% 12% 15%

2011 2013 2016 YTD-3%-3%

9%

2015

-3%

11%

2016 YTD2014

9%

2013

-3%

12%

Value Growth (Two-Year Stacked Rate) % of Value

Transaction

All OtherTransaction

Core

Transaction Core

4Brand

Clusters


Two Key Brands Driving Significant Growth in Sparkling

6Source: Nielsen AMC Retail Value; 2015 Full Year; 2016 through Q3 w/e 10/1/16; Trademark data

Two of the Top Three SSD Contributors to Retail $ Value Growth

+3%

+$36MM

2016 YTD

+18%

+$57MM

2016 YTD

+5%

+$79MM

2015

+12%

+$44MM

2015

4Brand

Clusters


Valuable Brands Supported by Strong Marketing

7

4Brand

Clusters


● Contributed >2/3 of our Retail Value creation1

● Accounts for >40% of our Retail Value2

● Shift of 3% of portfolio Retail Value since 2013

Our Still Brands Represent a Growing Share of Our Retail

Portfolio

8

$0.7B

$0.3BSparkling

Stills

Stills PortfolioKO U.S. Retail Value Creation

2013 – 2016 YTD

Sources: Nielsen AMC Retail Value; 2013 - 2016 YTD through Q3-16 (excludes Monster)

Nielsen AMC Retail Value; 2016 YTD through Q3-16 (excludes Monster)

$1B

Retail Value

Growth

4Brand

Clusters

1

2


Portfolio Expansion Fueled by Our Venturing & Emerging

Brands Group

9

4Brand

Clusters


We Have Transitioned or Signed Agreements for Territories

Representing ~65% of U.S. Bottle/Can Volume

10

Status and Performance Update

● On track to complete refranchising by 2017

● Successfully implemented evolved Customer Governance, IT and National Product Supply structures

● Majority of transitioned territories have improved volume growth post-transition

For Discussion Purposes Only & Subject to Change.

Territory Boundaries are Approximate/Illustrative.

All Transactions subject to both parties reaching Definitive Agreement.

Total U.S. Bottler Delivered Business (BDB) for Coca-Cola brands, Bottle/Can distribution only (Excludes Food Service). Volume in Eq Cases.

3

Advantaged

Routes to

Market

Coca-Cola Refreshments Territories

Independent Bottlers (Legacy Territories)

CCR Transitioned Territories

CCR Territories under DA/LOI

U.S. bottle/can volume


U.S. ADVANTAGECore Channel Composite Rank

KANTAR Power RankingComposite Rank

Our Customer Service Rankings Are the Highest in Years

11

Retailer Survey Rankings

7 7 7 86

4 2

2010 2011 2012 2013 2014 2015 2016

11

5 4 25

2 1

2010 2011 2012 2013 2014 2015 2016

● Ranked No. 1 by U.S. Advantage for the

1st time

● Consistent year over year improvement

within the Kantar Power Rankings

2

World Class

Key Account

Management

Teams

Sources: KANTAR Retail Power Ranking Study

U.S. ADVANTAGE Report


Coca-Cola North America Strategy

CREATE

CustomerValue

BUILD

StrongValuableBrands

DRIVE

CapabilityTO SUSTAIN

AND REPEAT

1

Team,

Vision and

Strategy

12

Q&A

13

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