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CONTENTS

S.No. Topic

1. Chapter 1: Introduction.......................................
2. Chapter 2: The Coca Cola Company..................
3. Histroy Of Bottling.............................................
4. Manifesto for Growth..........................................
5. Chapter 3: Product...............................................
6. Chapter 4: Employees..........................................
7. Chapter 5: Performance Graph.............................
8. SWOT analysis..........................................................

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CHAPTER 1: INTRODUCTION

Coca-Cola, the product that has given the world its best-
known taste was born in Atlanta, Georgia, on May 8, 1886.
Coca-Cola Company is the world’s leading manufacturer,
marketer and distributor of non-alcoholic beverage
concentrates and syrups, used to produce nearly 400 beverage
brands. It sells beverage concentrates and syrups to bottling
and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products
comprises of bottled and canned soft drinks as well as
concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets
sports drinks, tea and coffee. The Coca-Cola Company began
building its global network in the 1920s. Now operating in
more than 200 countries and producing nearly 400 brands,

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the Coca-Cola system has successfully applied a simple
formula on a global scale: “Provide a moment of refreshment
for a small amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise


the most sophisticated and pervasive production and
distribution system in the world. More than anything, that
system is dedicated to people working long and hard to sell
the products manufactured by the Company. This unique
worldwide system has made The Coca-Cola Company the
world’s premier soft-drink enterprise. From Boston to
Beijing, from Montreal to Moscow, Coca-Cola, more than any
other consumer product, has brought pleasure to thirsty
consumers around the globe. For more than 115 years, Coca-
Cola has created a special moment of pleasure for hundreds
of millions of people every day.

The Company aims at increasing shareowner value over time.


It accomplishes this by working with its business partners to
deliver satisfaction and value to consumers through a
worldwide system of superior brands and services, thus
increasing brand equity on a global basis. They aim at
managing their business well with people who are strongly

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committed to the Company values and culture and providing
an appropriately controlled environment, to meet business
goals and objectives. The associates of this Company jointly
take responsibility to ensure compliance with the framework
of policies and protect the Company’s assets and resources
whilst limiting business risks.

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CHAPTER 2: THE COCA-COLA
COMPANY

2.1: HISTORY

Coca-Cola was first introduced by John Syth Pemberton, a


pharmacist, in the year 1886 in Atlanta, Georgia when he
concocted caramel-colored syrup in a three-legged brass
kettle in his backyard. He first “distributed” the product by
carrying it in a jug down the street to Jacob’s Pharmacy and
customers bought the drink for five cents at the soda fountain.
Carbonated water was teamed with the new syrup, whether
by accident or otherwise, producing a drink that was
proclaimed “delicious and refreshing”, a theme that continues
to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M.


Robinson, suggested the name and penned “Coca-Cola” in the
unique flowing script that is famous worldwide even today.
He suggested that “the two Cs would look well in
advertising.” The first newspaper ad for Coca-Cola soon
appeared in The Atlanta Journal, inviting thirsty citizens to
try “the new and popular soda fountain drink.” Hand-painted

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oil cloth signs reading “Coca-Cola” appeared on store
awnings, with the suggestions “Drink” added to inform
passersby that the new beverage was for soda fountain
refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per


day. The first year, Dr. Pemberton sold 25 gallons of syrup,
shipped in bright red wooden kegs. Red has been a distinctive
color associated with the soft drink ever since. For his efforts,
Dr. Pemberton grossed $50 and spent $73.96 on advertising.
Dr. Pemberton never realized the potential of the beverage he
created. He gradually sold portions of his business to various
partners and, just prior to his death in 1888, sold his
remaining interest in Coca-Cola to Asa G. Candler, an
entrepreneur from Atlanta. By the year 1891, Mr. Candler
proceeded to buy additional rights and acquire complete
ownership and control of the Coca-Cola business. Within four
years, his merchandising flair had helped expand
consumption of Coca-Cola to every state and territory after
which he liquidated his pharmaceutical business and focused
his full attention on the soft drink. With his brother, John S.
Candler, John Pemberton’s former partner Frank Robinson
and two other associates, Mr. Candler formed a Georgia

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corporation named the Coca-Cola Company. The trademark
“Coca-Cola,” used in the marketplace since 1886, was
registered in the United States Patent Office on January 31,
1893.

The business continued to grow, and in 1894, the first syrup


manufacturing plant outside Atlanta was opened in Dallas,
Texas. Others were opened in Chicago, Illinois, and Los
Angeles, California, the following year. In 1895, three years
after The Coca-Cola Company’s incorporation, Mr. Candler
announced in his annual report to share owners that “Coca-
Cola is now drunk in every state and territory in the United
States.”

As demand for Coca-Cola increased, the Company quickly


outgrew its facilities. A new building erected in 1898 was the
first headquarters building devoted exclusively to the
production of syrup and the management of the business. In
the year 1919, the Coca-Cola Company was sold to a group of
investors for $25 million. Robert W. Woodruff became the
President of the Company in the year 1923 and his more than
sixty years of leadership took the business to unsurpassed

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heights of commercial success, making Coca-Cola one of the
most recognized and valued brands around the world.

2.2: HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886


selling for five cents a glass. Early growth was impressive, but
it was only when a strong bottling system developed that
Coca-Cola became the world-famous brand it is today.

YEAR WISE HISTORY OF BOTTLING:

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the


new fountain beverage called Coca-Cola impressed the store's
owner, Joseph A. Biedenharn. He began bottling Coca-Cola to
sell, using a common glass bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the
Company. Candler thanked him but took no action. One of

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his nephews already had urged that Coca-Cola be bottled, but
Candler focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed


they could build a business around bottling Coca-Cola. In a
meeting with Candler, Benjamin F. Thomas and Joseph B.
Whitehead obtained exclusive rights to bottle Coca-Cola
across most of the United States for a sum of one dollar. A
third Chattanooga lawyer, John T. Lupton, soon joined their
venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories


and sold bottling rights to local entrepreneurs. Their efforts
were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400
Coca-Cola bottling plants were operating, most of them
family-owned businesses. Some were open only during hot-
weather months when demand was high.
Year 1916: Birth of the Contour Bottle

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Bottlers worried that Coca-Cola's straight-sided bottle was
easily confused with imitators. A group representing the
Company and bottlers asked glass manufacturers to offer
ideas for a distinctive bottle. A design from the Root Glass
Company of Terre Haute, Indiana won enthusiastic approval.
The Contour Bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office. Today, it
is one of the most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers


were operating in the U.S. Their ideas and zeal fueled steady
growth. Six-bottle cartons were a huge hit starting in 1923. A
few years later, open-top metal coolers became the
forerunners of automated vending machines. By the end of
the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and


chairman of the Board, the Company began a major push to

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establish bottling operations outside the U.S. Plants were
opened in France, Guatemala, Honduras, Mexico, Belgium,
Italy and South Africa. By the time World War II began,
Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the


world to supply the troops. This followed an urgent request
for bottling equipment and materials from General
Eisenhower's base in North Africa. Many of these war-time
plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of
the Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola


package size and type-the traditional 6.5 ounce Contour
Bottle, or larger servings including 10, 12 and 26 ounce
versions. Cans were also introduced, becoming generally
available in 1960.

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In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the


1960s. Mr. Pibb and Mello Yello were added in the 1970s. The
1980s brought diet Coke and Cherry Coke, followed by
PowerAde and Fruitopia in the 1990s. Today scores of other
brands are offered to meet consumer preferences in local
markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail


customers of The Coca-Cola Company merged and evolved
into international mega chains. Such customers required a
new approach. In response, many small and medium-size
bottlers consolidated to better serve giant international
customers. The Company encouraged and invested in a
number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in
working with global retailers.

In the 1990s: New and growing markets

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Political and economic changes opened vast markets that were
closed or underdeveloped for decades. After the fall of the
Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. As the century closed, more than $1.5 billion
was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply


planted in local communities. This heritage serves the
Company well today as consumers seek brands that honor
local identity and the distinctiveness of local markets. As was
true a century ago, strong locally based relationships between
Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.

2.3: MANIFESTO FOR GROWTH

2.3.1: VALUES:

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Coca-Cola is guided by shared values that both the employees
as individuals and the Company will live by; the values being:

• LEADERSHIP: The courage to shape a better future

• PASSION: Committed in heart and mind

• INTEGRITY: Be real

• ACCOUNTABILITY: If it is to be, it’s up to me

• COLLABORATION: Leverage collective genius

• INNOVATION: Seek, imagine, create, delight

• QUALITY: What we do, we do well

2.3.2: MISSION

• To Refresh the World... In body, mind, and spirit

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• To Inspire Moments of Optimism... Through our brands
and our actions

• To Create Value and Make a Difference... Everywhere


we engage.

2.3.3: VISION FOR SUSTAINABLE GROWTH

• PROFIT: Maximizing return to shareowners while


being mindful of our overall responsibilities.

• PEOPLE: Being a great place to work where people are


inspired to be the best they can be.

• PORTFOLIO: Bringing to the world a portfolio of


beverage brands that anticipate and satisfy peoples’
Desires and needs.

• PARTNERS: Nurturing a winning network of partners


and building mutual loyalty.

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• PLANET: Being a responsible global citizen that makes
a difference.

FIGURE 2: VISION FOR SUSTAINABLE GROWTH

CHAPTER 3: PRODUCT

The Coca-Cola Company offers a wide range of products to


the customers including beverages, fruit juices and bottled

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mineral water. The Company is always looking to innovate
and come up with, either complete new products or new ways
to bottle or pack the existing drinks. The Coca-Cola Company
has a wide range of products out of which the following
products are marketed by HCCBPL:

• In the Cola Section:

• In the Lemon section:

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• In the Orange section:

• In the Juice section:

• In the Soda Water and Bottled Mineral Water section:

• In the Tonic Water section:

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3.1: PACKAGING DETAILS

• Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml


can, 200 ml and 300 ml returnable glass bottles; 500+100
ml free, 1.5 litre and 2 litre PET bottles

• Diet Coke: 330 ml can and 500 ml PET bottle

• Maaza: 200 ml and 250 ml Returnable Glass Bottle;


500+100 ml free and 1litre+200 ml free PET bottles and
the newly introduced 200 ml Tetra Pack

• Minute Maid Pulpy Orange: 400 ml and 1 litre PET


bottles

• Schweppes Soda Water: 300 ml returnable glass bottles,


500+100 ml free PET bottles

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• Schweppes Mineral Water: 750 ml PET bottles

• Schweppes Tonic Water: 330 ml can

• Kinley Soda Water: 300 ml returnable glass bottles,


500+100 ml free and 1.5 litre PET bottles.

Chapter 4: Employees

As of December 31, 2006 and 2005, the Company had


approximately 71,000 and 55,000 employees, of which 13,600
and 9,800, were employed by entities that we have
consolidated under the Financial Accounting Standards
Board Interpretation No. 46 (revised December 2003),
‘‘Consolidation of Variable Interest Entities’’
(‘‘Interpretation No. 46(R)’’). At the end of 2006 and 2005,
the Company had approximately 12,200 and 10,400
employees, respectively, located in the United States, of which
approximately 1,200 and none, respectively, were employed
by entities that we have consolidated under Interpretation No.
46(R). The increase in the number of employees in 2006 was

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primarily due to the acquisitions and the consolidation of
certain bottling operations, mainly in China and the United
States.

The Company, through its divisions and subsidiaries, has


entered into numerous collective bargaining agreements. We
currently expect that we will be able to renegotiate such
agreements on satisfactory terms when they expire. The
Company believes that its relations with its employees are
generally satisfactory.

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Chapter 5: Performance Graph

Performance Graph

Comparison of Five-Year Cumulative Total Return


Among

The Coca-Cola Company, the Peer Group Index and the S&P
500 Index

Total Return

Stock Price Plus Reinvested Dividends

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The total return assumes that dividends were reinvested
quarterly and is based on a $100 investment on December 31,
2001.

The Peer Group Index is a self-constructed peer group of


companies included in the Food, Beverage and Tobacco
Groups of companies as published in The Wall Street
Journal, from which the Company has been excluded.

The Peer Group Index consists of the following companies:


Altria Group, Inc., Anheuser-Busch Companies, Inc., Archer-
Daniels-Midland Company, Brown-Forman Corporation,
Bunge Limited, Campbell Soup Company, Loews
Corporation (Carolina Group tracking stock), Chiquita
Brands International, Inc., Coca-Cola Enterprises Inc.,
ConAgra Foods, Inc., Constellation Brands, Inc., Corn

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Products International, Inc., Dean Foods Company, Del
Monte Foods Company, Flowers Foods, Inc., General Mills,
Inc., Hansen Natural Corporation, Herbalife Ltd., H.J. Heinz
Company, Hormel Foods Corporation, Kellogg Company,
Kraft Foods Inc., Lancaster Colony Corporation, Martek
Biosciences Corporation, McCormick & Company,

Incorporated, Molson Coors Brewing Company, NBTY, Inc.,


Nu Skin Enterprises, Inc., Nutrisystem, Inc.,

PepsiAmericas, Inc., PepsiCo, Inc., Ralcorp Holdings, Inc.,


Reynolds American Inc., Sara Lee Corporation,

Smithfield Foods, Inc., The Hain Celestial Group, Inc., The


Hershey Company, The J.M. Smucker Company,

The Pepsi Bottling Group, Inc., Tootsie Roll Industries, Inc.,


TreeHouse Foods, Inc., Tyson Foods, Inc.,

Universal Corporation, UST Inc., Weight Watchers


International, Inc. and Wm. Wrigley Jr. Company. The Wall

Street Journal periodically changes the companies reported as


a part of the Food, Beverage and Tobacco Groups

of companies. This year, the Groups include Hansen Natural


Corporation, Herbalife Ltd., Nu Skin

Enterprises, Inc. and Nutrisystem, Inc., which were not


included in the Groups last year. Dreyer’s Grand Ice

Cream Holdings, Inc., which was included in the Groups last


year, is not included in the Groups this year.

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SWOT Analysis:-

Strengths:
1} World’s leading brand
2} Large scale of operations
3} Robust revenue growth in three segments

Weakness:-
1} Negative publicity
2} Sluggish performance in North America
3} Decline in cash from operating activities

Opportunities:-
1} Acquisitions
2} Growing bottled water market
3} Growing Hispanic population in US

Threats:-
1} Intense competition
2} Dependence on bottling partners
3} Sluggish growth of carbonated beverages

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