Coca-Cola Logo
Letter to Shareowners
Our Mission:
To refresh the world…
Inspire moments of optimism and happiness…
Create value and make a difference.

Muhtar Kent, Chairmain of the Borad of Directors and Chief Executive Officer

Muhtar Kent
Chairman of the Board of Directors
and Chief Executive Officer
billion unit cases worldwide
billion returned to shareowners

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 Coca-Cola and all of our 3,500 other products.

In fact, by year-end 2013, the extraordinary men and women of The Coca-Cola Company and our global bottling system had set an impressive array of new records for our business:

  • Record daily servings of our beverages of 1.9 billion
  • Record number of 17 billion-dollar brands
  • Record number of 24 million customers visited each week
  • Record volume of 28.2 billion unit cases, including record volume for brand Coca-Cola of nearly 11 billion unit cases

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 Coca-Cola system revenue during this decade.

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.

The Coca-Cola Company generated $10.5 billion in cash from operations and returned $8.5 billion in value to shareowners like you through dividends and net share repurchases. In early 2014, we increased our dividend for the 52nd consecutive year.

Worldwide, we increased volume 2 percent, with brand Coca-Cola alone adding nearly 100 million cases. Sprite and Fanta each grew 2 percent, together adding more than 80 million cases. Our still beverages, meanwhile, grew 5 percent—or more than 300 million cases. Ready-to-drink tea volume expanded by a robust 11 percent, while juices and juice drinks grew 5 percent.

2. People. One of the best things about my job is working alongside my outstanding Coca-Cola colleagues. In 2013, I visited our people in more than 30 nations, from Argentina to Liberia, Finland to Japan. I was very pleased to help open the first Coca-Cola plant in Myanmar (or Burma), our 43rd bottling facility in China and a new Cappy Pulpy line in Romania.

Our people were honored for many marketing, creative and leadership innovations in 2013. The Coca-Cola Company was named 2013 Creative Marketer of the Year at Cannes Lions, and our exceptional marketing team won 20 other awards at the event. In addition, we were humbled to win the inaugural Brand Icon Award at the 2013 CLIOs and be saluted by Catalyst for advancing opportunities for women.

3. Portfolio. We strengthened our brand portfolio, ending 2013 with 17 billion-dollar brands led by Coca-Cola. In fact, brand Coca-Cola alone was a billion-dollar brand in 19 countries. And we have a strong pipeline of future megabrands, with 20 other brands now generating more than $500 million in annual retail sales.

Building on our strategy of offering a Coca-Cola for every lifestyle and occasion, we brought Caffeine-Free Coke Zero to the U.S. Meanwhile, in Argentina and Chile, we launched Coca-Cola Life, an exciting new lower-calorie Coca-Cola naturally sweetened with cane sugar and stevia.

4. Partners. Since 2010, The Coca-Cola Company and our bottling partners have invested more than $50 billion in our business, adding 3 million coolers and 4 million customer outlets during that time.

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 Coca-Cola beverages at home.

billion-dollar brands

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—Coca-Cola’s commitment to enable the empowerment of 5 million women entrepreneurs by 2020. By year-end, we had reached more than 550,000 women since the program began as we pilot, scale and replicate the best ideas.

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 Coca-Cola FEMSA. Other bottling partners merged to form unified organizations serving parts of Brazil, greater Tokyo and the Iberian Peninsula. And we made progress toward building a 21st Century Beverage Partnership Model in the U.S.

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 Coca-Cola in the past month and 25 percent haven’t had one in the past year. Which tells me we have the most exciting days of our journey ahead of us.

As always, thank you for your investment in The Coca-Cola Company. Day in and day out, we’re honored to advance our mission to refresh the world, inspire moments of optimism and happiness, create value and make a difference.

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,

Muhtar Kent
Chairman of the Board of Directors
and Chief Executive Officer
April 1, 2014

1 See Reconciliation of GAAP and Non-GAAP Financial Measures.

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