2017 Annual Review

The Coca‑Cola Company
beverages for life

Letter to Shareowners

“AS WE GROW, WE CREATE MORE VALUE FOR OUR PARTNERS.”

Letter to Shareowners

“WE CONTINUE TO BUILD UPON OUR ICONIC BRANDS.”

2017 Highlights

LIFTED AND SHIFTED BRANDS
We scaled glacéau smartwater®, ZICO® coconut water and Appletiser® into new markets. The expansion of our Venturing & Emerging Brands (VEB) model to Europe has shown early signs of success.
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ACCELERATED COCA-COLA ZERO SUGAR GROWTH GLOBALLY
We introduced a new formula for Coca-Cola Zero Sugar™ in 20 markets, including the United States, helping deliver double-digit revenue growth for the brand globally.
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Acquired AdeS Plant‑Based Beverages
In Latin America, along with our bottling partners, we acquired AdeS®, the leading soy-based beverage brand in the region. The brand is now being rolled out across key markets in Europe.
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Topo Chico®, a premium sparkling mineral water, and Barrilitos Aguas Frescas™, a flavored, non‑carbonated water beverage, were announced as part of the Company’s portfolio in the United States. Both add to our growing list of low- and no-sugar drinks.
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INTRODUCED TOPO CHICO AND BARRILITOS

2017 Highlights

SUPPORTED GLOBAL DISASTER RELIEF
The Coca-Cola Company and The Coca-Cola Foundation contributed more than $10 million to support global disaster relief and recovery efforts. Through the Employee Disaster Relief Fund, associates also made financial contributions to support fellow associates.
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INCENTIVIZED BEHAVIOR THAT DRIVES GROWTH
We aligned our pay and incentives to support our growth strategy. These changes help foster a high-performance culture with a sharper focus on driving long-term growth. We encourage our associates to be curious, inclusive, and empowered, and to embrace a test-and-learn mentality.
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INCREASED SAFE WATER ACCESS
In Latin America, we announced an innovative water, sanitation and hygiene partnership to provide more sustainable access to water for more than 200,000 people in Latin America by 2021. This work supports our continued efforts to replenish at least 100 percent of the water we use globally.
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SHARED OUR GROWTH VISION WITH INVESTORS
We welcomed more than 100 investors to our global headquarters for Investor Day to hear from senior leadership about our vision for growth and to see a glimpse into our innovation pipeline and beverage portfolio.
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Sustainability & Social Impact

WORLD WITHOUT WASTE
In 2017, we developed our World Without Waste strategy, with a goal of collecting a bottle or can for every one we sell by 2030. Our holistic plan focuses on the entire packaging lifecycle—from how packaging is designed and made to how it’s recycled and repurposed.
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SUSTAINABLE DEVELOPMENT GOALS
The United Nations Sustainable Development Goals are an important framework for addressing challenges facing our world. Our Company is aligned and contributing toward all 17 goals, with a strong focus on women, water and partnerships.
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Beyond the Bottle
We advanced our Coca-Cola Freestyle® microchipped refillable cup initiative, a technology that helps reduce packaging footprints while providing more of our total beverage portfolio. It’s one way we’re innovating in the beverage delivery space to help shape a better world.
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Together with our bottling partners, fruit suppliers and processors, we have committed to invest more than $1.7 billion over the next five years to support sustainable agriculture. This work also enables the economic empowerment of female farmers through our 5by20 program.
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INVESTING IN The Fruits of India
We Are reimagining what’s possible

How We Are Evolving

OUR WAY FORWARD
We are evolving our business strategy to give people more of the beverages they want—including low- and no-sugar options across a wide array of categories—in more packages sold in more locations.
See the progress we have made on this journey in 2017.
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Refranchising

REFRESHED OPERATIONS
We completed major refranchising milestones. This strengthens our system and returns us to a capital-light organization, which will deliver value to shareowners, customers and consumers. We completed the refranchising of the remainder of our United States bottling system along with Company-owned bottling operations in China. And we facilitated the creation of a strong, new bottling partner to serve most of Japan.
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Digitizing the Enterprise

A Click’s Reach of Desire
As technology and e-commerce continue to evolve, we adapt and partner in new ways with our customers. Our consumer-centric approach applies not only to our products but also to every channel, occasion and changing behavior – from ordering takeout online to the digitization of the in-store and restaurant experience. We are reconstructing our business in the virtual world by investing in digital platforms, building foundational infrastructure to support our leaner operating environment and working to improve the employee experience.
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WE ARE REFRESHING OUR CULTURE

Cultural Transformation

Moving Forward Faster
We know sustainable and profitable growth comes from a relentless focus on our customers and consumers. We must be more agile, embrace adaptive innovation and persistently focus on the work that matters most. We are becoming more nimble in order to deliver innovation faster.
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Tapping into the Passion of Our People

2017 GLOBAL INNOVATION AWARD WINNERS
Curious, empowered, inclusive and pushing progress over perfection—we celebrate the innovative successes, experiments and failures guided by these Coca-Cola leaders and their teams. Projects they led challenge the status quo, build capabilities and help drive our long‑term growth.
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Our Business Is Growing

Our Business

WorldMap

SELECT MAP FOR REGIONAL OPERATING SUMMARIES

Operating Groups
The Coca‑Cola Company structure includes four geographic operating groups: Europe, Middle East & Africa; Latin America; North America and Asia Pacific. In 2017, the Company delivered broad-based organic revenue (non-GAAP) growth across all operating groups.
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Lift and Shift

Our Brands Travel
When we see our innovative brands experience success in one part of the world, we try them in other places. For example, two favorites in the United States, Honest Tea® and glacéau smartwater, traveled to international markets in 2017. Sometimes, we lift and shift the exact same brand. Other times, we reimagine and localize a brand to meet consumer preferences. These are just some of the many ways we are accelerating growth in our consumer-centric portfolio.
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The Discipline of Growth

Play to win
We believe maximizing growth requires discipline. For us, this involves building quality leadership against three distinct disciplines: Disruptive Explorers, Patient Challengers and Purposeful Leaders. By segmenting our brands across these disciplines and focusing on the brands’ strengths, we can drive mutual benefits for our business and our consumers.
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