United States
Operating Initiatives Drive Improving ResuitsOur people found ways to win in a difficult, challenging operating environment. They successfully increased margins by executing our price/package architecture initiative, generated substantial cost savings through our Ownership Cost Management program, and successfully implemented key effectiveness and efficiency initiatives.
Going forward, we continue to develop our brand and package portfolio. In 2010, we will complete the rollout of the 2-liter contour package and build on the variety of can and PET configurations we now offer, including popular 99-cent single-serve packages. This strategy is central to our ongoing effort to increase consumer trial, improve margins, and position ourselves for long-term profit growth. We will also continue the successful incidence pricing model approach with The Coca-Cola Company.
In still beverages, the new vitaminwater zero, with new flavors and enhanced vitamin content, will strengthen the brand. We also will build on the solid success of FUZE, and expand our presence in teas with Peace Tea. In addition, we have a strong 2010 marketing calendar anchored by two major worldwide events – the World Cup and the 2010 Winter Olympics.
We will serve our customers better through improvements to our go-to-market model. Our Selling and Merchandising Optimization program is aiding profitability, store by store and customer by customer, by lowering inventory, reducing out of stocks, and aligning sales and supply chain activities.
Supply chain integration, another key element, is moving forward through Coca-Cola Supply, created to maximize the total effectiveness of the Coca-Cola system in North America. In addition, we will more than double the number of Boost Zones in place.
These marketing and operating initiatives, combined with a more moderate 2010 pricing environment, will contribute to continued overall improvement in North America in 2010 and beyond.
Europe | North America
Executive Vice President and
President North American Group
Europe
Red, Black, and Silver Help Deliver Consistent Profit GrowthThis growth will continue to be built on a solid combination of sparkling and still brand expansion. Leading the way are our core Red, Black, and Silver brands, which grew more than seven percent in 2009. In addition, we expect growth in energy with the addition of Monster to our Burn, Nalu, and Relentless brands, and in water with Schweppes Abbey Well and Chaudfontaine.
We will also build on opportunities created through a marketplace presence for the 2010 World Cup. This is a strong advantage in Europe, and we will utilize advertising, on-package visual identity, and in-store promotional opportunities. We also are beginning to see benefits from our involvement with the 2012 Olympics in London. There is signifcant local and international interest in these games, and we are working with The Coca-Cola Company to maximize the full value of this marketing property.
Much like North America, we will also aim to meet particular needs of both our customers and consumers with, for example, initiatives such as bespoke packaging, tailoring our approach in some cases store by store. This effort will improve inventory management, reduce out of stocks, and drive better promotional productivity. Europe also will continue to add Boost Zones – a
concept it pioneered – with more than 70 additional zones planned.
Each of these efforts will combine to again create solid revenue and profit growth in Europe, even as we work to mitigate the potential risks of more serious economic headwinds. Overall, we are confident that we have the brand and operating plans in place to capture the value from the opportunities that lie ahead in Europe.
