Reenergized Execution

In Europ and North America we are moving forward with key initiatives - including Boost Zones and SMO - to enable our employees to suceed.

Superior marketplace execution has long been a cornerstone of our operating philosophy. Today, it is more important than ever as we meet the changing needs of our customers and consumers. In both Europe and North America, we are moving forward with key initiatives to enable our employees to succeed.

Our Right Execution Daily initiative in North America focuses on making certain we deliver the right product in the right place with the right package and messaging. Through Selling and Merchandising Optimization (SMO), we are improving profitability by aligning cases on display with customer demand, reducing inventories, and driving improved customer satisfaction.

We also are rapidly moving forward with the implementation of Boost Zones in North America. A concept pioneered in Europe, these zones enhance the connection between consumers and our brands, help customers grow their business, and provide a positive return on investment. We will double the number of North American Boost Zones to more than 100 by the end of 2010.

Europe now has more than 300 zones and will add 70 more in 2010. Other European initiatives include targeted market execution, which is improving our ability to meet specific customer needs by creating tailored plans for each sales outlet. We also will continue to create world-class in-market execution of such initiatives as the 2010 World Cup and the 2012 Olympics in London.

1. Strong execution is aiding recruitment and creating incremental sales. In Europe, execution and line extensions helped drive water growth of more than 15 percent in 2009.

2. A balanced brand portfolio of still and sparkling beverages is essential to meeting customer needs and strong execution.

3. Selling & Merchandising Optimization (SMO) is improving profitability by aligning cases on display with customer demand, reducing inventories, and driving improved customer satisfaction.