Coke Introduction Summary

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Company Background and Business Summary
The Coca-Cola company is the world's leading manufacturer, distributor and marketer of
non-alcoholic beverage concentrates and syrups and, to a lesser degree, finished beverages which it sells to bottling and canning operations and authorized wholesalers. Coca-Cola produces more than 230 beverage brands and markets four of the world's top five soft drink brands, including Coke, diet Coke, Fanta, and Sprite. Coca-Cola's finished beverage products bearing the Coca-Cola Company's trademarks are sold in over 200 countries. In 2000, 72% of Coca-Cola's Operating Income was generated outside the United States. Coca-Cola also maintains ownership interest in many bottling and canning operations. Fundamental to Coke's investment and long-term growth strategy are its marketing expertise,
brands and bottling system. To support its brands and increase consumer awareness of its products, Coke makes significant investments in sales and marketing (hovering around $7B or
35% of sales and 77% of total SG&A for the last two years with a $300M marketing increase
in 2000). To develop its brand strategy Coke's global marketing force heavily invests in product and packaging research, developing targeted consumer advertisements and promotions and soliciting customer feedback. Coca-Cola also leverages its relationships with bottlers and local vendors, to create and implement local marketing campaigns. A strong force behind Coke's global success is its ownership interest in and partnering with bottling and canning operations world-wide (bottling ownership assets are 28% of Total Assets). The company maintains business relationships with three types of bottlers (percentage depicts worldwide unit case volume sales breakdown by bottling partners): • Independently owned bottlers, in which the Company has no ownership interest (25%)
• Anchor bottlers, in which the Company has invested and has a non-controlling ownership interest (59%)
• Bottlers in...
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