Milling & Baking News Corporate Profiles - October 2011 - (Page 76)

Company Overview The Coca-Cola Co. China figures heavily into 2020 Vision ount China as a cornerstone of the 2020 Vision plans of The CocaCola Co., Atlanta, especially after the company in 2011 announced more investment in the country. The 2020 Vision includes doubling system revenues and more than doubling servings by 2020 while also being a global leader in sustainable water use, packaging, energy and climate protection. The Coca-Cola Co. and its Chinese bottling partners will invest an additional $4 billion in China over the next three years, starting in 2012, Coca-Cola said Aug. 18. By the end of 2011, Coca-Cola and the bottling partners Swire Beverages Ltd. and COFCO Coca-Cola Beverage Co. Ltd. already will have invested more than $3 billion in China over the past three years (20092011). The additional $4 billion will bring total investment to $7 billion between 2009 and 2014. “China is one of our most important growth markets in the world as we work to achieve our 2020 Vision goal of doubling system revenues and servings this decade,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co., during a visit to Shanghai. “The new investment is part of our long-term commitment to invest C in innovation, partnerships and a portfolio that will enable us to grow our business in a sustainable and responsible way.” Sales in China topped 1 billion unit cases through the first six months of 2011. Five years ago Coca-Cola sales topped 1 billion unit cases in China for the full year for the first time ever. Consumption of Coca-Cola products in China in 2011 represents about 7% of the company’s global volume. Worldwide unit case volume geographic mix in 2010 was divided among Latin America (28%), North America (22%), Pacific (18%), Eurasia and Africa (16%) and Europe (16%). The Coca-Cola Co. had fiscalyear 2010 net income of $11,809 million, up from $6,824 million in the previous year. The earnings climb continued in fiscal 2011. Net income attributable to shareowners of The Coca Cola Co. was $4,697 million, or $2.02 per share, for the six months ended July 1, which was up 18% from $3,983 million, or $1.71 per share, in the same time period of the previous year. “We completed the second quarter of 2011, and the sixth quarter of our 2020 Vision, by delivering results ahead of our longterm growth targets,” Mr. Kent said July 19 when second-quarter results were reported. “Importantly, we are delivering these strong Muhtar Kent results at a time when global macroeconomic conditions are at best mixed.” The increase in earnings came while Coca-Cola dealt with rising commodity prices. “As for commodities, we still expect these to have an unfavorable impact of approximately $700 million on our full-year results, in line with the same full-year forecast we shared last quarter,” said Gary Fayard, executive vice-president and chief financial officer of The Coca-Cola Co., in a July 19 earnings conference call. “As communicated earlier, we are implementing retail price increases with our customers, and we’re also pulling forward cost-saving initiatives to help offset some of these commodity costs.” CP F ast acts The Coca-Cola Co. and its Chinese bottling partners will invest an additional $4 billion in China over the next three years. Net income rose 18% over the ﬁrst six months of the ﬁscal year. Commodity costs brought about retail price increases. 76 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

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Milling & Baking News Corporate Profiles - October 2011