Dear Fellow Shareowners,
Over the course of a challenging yet ultimately rewarding year, I was reminded, again and again, that there are so many reasons to believe in this wonderful business of refreshing the world with
In fact, by year-end 2013, the extraordinary men and women of The
In addition, we gained value share, increased purchase transactions and achieved sound profit results in line with our long-term growth targets. And we ended the year with full confidence in our 2020 Vision to double
Along the way, our people achieved many other successes in 2013. Here are some highlights across the 6 Ps of our 2020 Vision: Profit, People, Portfolio, Partners, Planet and Productivity.
1. Profit. Despite macroeconomic headwinds, we delivered sound financial results in line with our long-term profit targets and gained global value share in total nonalcoholic ready-to-drink beverages as well as global volume and value share in core sparkling and still beverages.
Worldwide, we increased volume 2 percent, with brand
2. People. One of the best things about my job is working alongside my outstanding
Our people were honored for many marketing, creative and leadership innovations in 2013. The
3. Portfolio. We strengthened our brand portfolio, ending 2013 with 17 billion-dollar brands led by
Building on our strategy of offering a
4. Partners. Since 2010, The
In 2013, we worked very closely with our top marketing partners, connecting with millions of sports fans through the global FIFA World Cup Trophy Tour and the Sochi Olympic Torch Relay across Russia.
And in early 2014, we announced a strategic, long-term partnership with Keurig Green Mountain that will soon allow people to make and enjoy refreshing, ice-cold
5. Planet. Knowing our business can only be as strong and vibrant as the communities we proudly serve, we organized our sustainability efforts around the “Three Ws” of Women, Water and Well-Being.
Women. We gained real traction during 2013 in our 5by20 initiative—
Water. In support of our commitment to achieve water neutrality by 2020, we formed a global partnership with DEKA R&D, IBM, McCann Health, Qualcomm, UPS and others to build community water purification kiosks called EKOCENTERs in 20 countries by the end of 2015.
Well-Being. We announced four global well-being commitments to give us new momentum in helping to be part of the solution to obesity. Together with our bottling partners, we’re increasing the availability of low- and no-calorie drinks, providing clear calorie information, marketing responsibly and inspiring more people to get moving and stay fit.
6. Productivity. Adding to an ongoing productivity program we began in 2012, we designed an expansion of this effort to drive an incremental $1 billion in productivity between 2014 and 2016. This additional productivity will be reinvested in growth-fueling brand marketing, primarily in increased media spending.
Meanwhile, we remain committed to helping strengthen and streamline our bottling system. In 2013, we sold 51 percent of our Philippine bottling operations to
As we continue to pursue the goals of our 2020 Vision, we’re more convinced than ever of the growth potential of this industry and this Company. Between now and 2020, the global retail value of sparkling beverages is expected to grow by more than $100 billion—accounting for about a third of industry growth.
Meanwhile, 50 percent of the world’s people haven’t enjoyed a refreshing, ice-cold
As always, thank you for your investment in The
Even as we achieved many successes in 2013, we’re not satisfied. We remain as constructively discontent as ever. We believe we can and will do better as we progress toward achieving our 2020 Vision—becoming better at generating sustainable growth, better at delivering value to our customers and consumers, and better at creating value for shareowners like you and other stakeholders. With your support, I’m convinced we can accomplish all of the above and more.
Very best wishes,
Chairman of the Board of Directors
and Chief Executive Officer
April 1, 2014