As we work to become the world’s best beverage sales and customer service company, we continue to make improvements in the ways we produce and distribute our products. In fact, improved effectiveness and efficiency is essential to our ability to drive improving long-term profitability.

Coca-Cola Supply, for example, is increasing North American supply chain synergy through enhanced logistical capabilities, improved freight handling, and coordinated customer solutions. We also are optimizing the performance of our warehouse operations, in part through a hub and spoke concept that improves handling of lower-volume brands and packages. Through our Fountain Harmony project, we are working with The Coca-Cola Company to better align fountain and bottle/can businesses in key U.S. markets.

Europe also has several key initiatives to drive improvement. In Great Britain, we are implementing a new route-to-market approach that includes three complementary service models. This will increase direct store delivery to certain customers and enhance overall customer service. We are also working to enhance productivity plant by plant and continuing to optimize functions such as information technology and finance.

Importantly, throughout our system we are realizing significant benefits from our Ownership Cost Management, or OCM, initiative. OCM reaches each individual employee and is changing behaviors in ways that lead to meaningful cost savings.

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