the coca cola report
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The Coca-Cola Company
The Coca-Cola Company
Type
Public (NYSE: KO)
Dow Jones Industrial Average
Component
Industry Beverage
Founded 1892
Headquarters Atlanta, Georgia, U.S.
Area served Worldwide
Key peopleMuhtar Kent
(Chairman and CEO)[1]
Products
Coca-Cola
CarbonatedSoft Drinks
Water
OtherNon-alcoholic beverages
[2]
Revenue US$31.0 Billion (FY 2009)[3]
Operating income US$8.23 Billion (FY 2009)[3]
Net income US$5.82 Billion (FY 2009)[3]
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billion the latest figure in2010shows that now theyserve1.6 billiondrinks
everyday). Of these, beveragesbearing the trademark " Coca-Cola" or"Coke"
accounted forapproximately 78%of theCompany's total gallonsales.
Alsoaccording to the2007 Annual Report, Coca -Colahadgallonsalesdistributedasfollows:
y 4 % in the nited States
y 7% in exico,India, Brazil, apanand the P eople's RepublicofChina
y 20%spread throughout therest of theworld, wag1styl
In2010 it wasannounced that Coca -Colahadbecome the first brand to top 1billion
inannual K grocerysales .
Corporate Governance
HE LTH ND WELLNESS DVISO Y COUNCIL (HWAC)
At Coca-Cola we believe that Industry has a role to play in helping the Indian
consumers lead healthier lives. Coca-Cola is committed to develop and launch a
portfolio of health & wellness products that enable the Indian consumer to lead
healthier lives. he Health & ellness AdvisoryCouncil H& AC)shares thisbelief
andwill guideandassist Coca-Cola in India to:
Identify & highlight theevolvingnutritional needsof IndianConsumers
Suggest viablehealth & wellnesssolutions forbeverageapplica tions Asdesiredby
theconsumers
Support consumereducationprograms that promotehealthy & active lifestyle
codeofbusinessconductoreaffirmourcommitment toethical behaviourasanorganizationandas
individuals, we issuedarevisedCodeof BusinessConduct in2002 toevery
employeeworldwide. hiscodecontinues toserveasaguide toouractions,
advancingandprotectingourcorevaluesof Honesty, Integrity, iversity, Quality,
Respect, Responsibilityand Accountability.
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AdvisoryCouncil forEnvironment & Sustainability (ACES)
Inaddition to India Advisory Board, Coca -Cola Indiahasset upan AdvisoryCouncil
forEnvironment & Sustainability ACES) tohelpandguide thecompany topreserve,
protect andenhance theenvironment. he ACES shall alsoensure that thecompany
uses itsresourcesandcapabilities toprovideactive leadershiponenvironment
relatedmattersrelevant to itsbusiness.
Environmentpolicy
eat Coca-Cola Indiaare in thebusinessofbeverages that refreshpeople. ewill
carryout ouroperations inways that Protect, Preserveand Enhance the
Environment wework in. OuractivitiesareguidedbyCo ca-ColaeKOsystem, which
providesa framework to transform thisprinciple inactions.
Towardsthisobjective, itshall endeavorto:
1. Establish, maintain and operate facilities to comply with all applicable
Environmental Safetyand Health laws, Statutesand Consents.
2. Formulating sound environmental objectives and targets and integrate a
continuousprocessreview inall essential elementsofcorporatemanagement.
. Conservation of natural resources specifically in water, energy and Fuel by
continually improving itsusageandreducingwastage.
4. orkingascatalyst toenhancecollectionofpost consumer PE bottles through
awarenessprogramsandsynergizingrelevant agencies forgettingbetterpricing
to theconsumer.
5. Seek Co-operation with Public, Private and overnmental Organizations in
identifyingsolutions torelevant environmental issues.
6. Advertising initiatives are to be critically evaluated while advertising in Eco -
sensitive areas. o not put advertisement on Historical onuments, Religious,
Political Bui ldings & Structuresandotherspeciallyprotectedandsensitiveareas.
7. singcoolingequipment withenvironmentally friendly technologies.
8. anaging fleet operations in a manner to minimize environmental impacts by
ensuringgoodmaintenance, improving & t racking fuel efficiencyandeffectively
managingwastes.
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9. Ensuring Procurement policies that consider the environmental impact of
packaging materials and all direct and indirect process aids used within the
operation.
10. Ensuringall operations implement eKO anagement Systemand requirements
under ISO14001before ecember2004.
hispolicyhasbeencommunicated toall associatesofCoca -Cola India toensure
complianceandshall bemadeavailable topublicand interestedpartiesondemand.
Humanri htsstatementandworkplaceri htspolicy
Humanri htsstatement
hereputationof heCoca-ColaCompany isbuilt on trust andrespect. Ouremployeesand thosewhodobusinesswithusaround theworldknowweare
committed toearning theirtrust withaset ofvalues that represent thehighest
standardsofquality, integrity, excellence, compliancewith the lawandrespect for
theuniquecustomsandcultures in thecommunitieswhereweoperate.
OurCompanyhasalwaysendeavored toconduct businessresponsiblyandethically.
erespect international humanrightsprinciplesaimedat promot ingandprotecting
humanrights, including the nited ations eclarationof Human Rightsand theInternational LaborOrganization's eclarationon Fundamental Principlesand Rights
at ork, andweactivelyparticipate in the nited ations lobal Compact.
Ouracknowledgment of these international principles isconsistent withour
dedication toenriching theworkplace, preserving theenvironment, strengthening the
communitieswhereweoperateandengagingwithourstakeholders topursue
progress toward thesegoals.
Inourworkplacesand thecommunities inwhichweoperate, webelieve that a
seriouscommitment tohumanrights is fundamental to thewayweconduct our
business. e treat ouremployeeswithdignity, fairnessandrespect, andweare
guidedbyoursharedvaluesof integrity, collaborationandaccountability.
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Ourcommitment is formalizedandmanifested throughvariouspolicies includingour
orkplace Rights Policy, ourCodeof BusinessConduct andourenvironmental
governanceandmanagement system s. hile thesepoliciesapply to heCoca-Cola
Companyandall of theentities that it ownsor inwhich it holdsamajority interest,
theCompany iscommitted toworkingwithandencouragingourindependent bottling
partners touphold thevaluesandpracti ces that thesepoliciesdrive.
heCoca-ColaCompanyand itsbottlingpartnersjointlyunderstand that the true
measureofawell-managedbusiness isnot just weatherit is financiallysuccessful,
but how it achieves that success. Asoursystemdoesbusinessaround theworld
touchingsomanydifferent anddistinct local cultures, weknow that itsnot enough to
beprofitable, wemust alsoberesponsible. his isbest achieved inCoca -Colas
uniquebusinesssystemwhen theCompanyandbottlerswork together towardour
sharedgoals.
ehaveexpressed thesesharedgoals inaglobal framework forgoodcorporate
citizenshipand local accountabilitycalledCitizenship @ Coca -Cola. he framework
consistsofacommitment toembraceasharedset ofprinciplesacrossourglobal
systemand isdesigned tomeasureanddrive improvement in fourareasof
operation: workplace, marketplace, communityandenvironment. eexpect the
individual companies that belong tooursystem toaccept theaccountability to liveup
to thiscommitment andapply theseprinciples toevery facet of their local operations.
hroughourSupplier uiding Principles Program, weworkwithourdirect suppliers
toensure that theyuphold lawsandregulations in theworkplaceandconduct their
businessethicallyandresponsibly.
WO PLACE IGHTS POLICY
evalue therelationshipwehavewithouremployees. hesuccessofourbusiness
dependsoneveryemployee inourglobal enterprise. earecommitted to fostering
openand inclusiveworkplaces that arebasedonrecognizedworkplacehuman
rights, whereall employeesarevaluedand inspired tobe thebest theycanbe.
heCoca-ColaCompany's orkplace Rights Policy isguidedby international
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humanrightsstandards, including the niversal eclarationof Hu man Rights, the
International LaborOrganization's eclarationon Fundamental Principlesand Rights
at orkand the nited ations lobal Compact.
he orkplace Rights Policyapplies to heCoca -ColaCompanyandall of the
entities that it ownsorinwhic h it holdsamajority interest. heCompany is
committed toworkingwithandencouragingourindependent bottlingpartners to
uphold theprinciples in this Policyand toadopt similarpolicieswithin their
businesses.
The Policy includesthefollowingcomponents:
Freedomof AssociationandCollective Bargaining
Forced Labor
Child Labor
iscrimination
ork Hoursand ages
Safeand Healthy orkplace
orkplace Security
Communityand StakeholderEngagement
CS Visionand Guidelines
CS VISION O INDIA BUSINESS UNIT
obea trustedpartnercontributing to thesocial, economicandenvironmental
progress
MISSION
osociallyandeconomicallyempowercommunitiesaroundouroperations,
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bycreatingenablingenvironment aroundourplants, forthebetterment of
communities throughsustainableprojects
P EAMBLE
At Coca-Cola, wearecommitted tocontributeourtime, expertiseand
resources tohelpcommunities inpartnershipwith local lea ders.
heseguidelinesshall help ivisionandbottlingunits to identify initiativesand
projects that theycouldundertake in theirrespectiveareasofoperation.
CS GUIDELINES
ewill work towardsattaining themost efficient andoptimumusageof water
Endeavor to achieve et Zero w.r.t. groundwater i.e. to strive to recharge
groundwaterequivalent to thesameused inouroperations.
rive to facilitate equitable access of clean drinking water to communities
aroundourplantsandsupport protectionofwatersheds insuchareas.
Have measurable goals to conserve the environment in collaboration with
local communities.
Endeavortorecycleall oursolidwastesmaterials including PE articles.
Strive to conserve energy and would comply with national and applicable
international standards/practices.
ispose and manage bio solids, as per law of the land and prevailing
regulations, to minimize the impact on the environment and adopt
environmental friendlypractices.
ork for practical sustainable solutions for disposal of bio-solids and other
wastesandhelpspreadawarenessof thesame.
attempt to establish partnership with overnment, Os and communities
andother relevant agencies, to launchand manageprojects incommunities
aroundouroperations.
ork closely with our bottling partners and share resources - technical,
humanand financial - forthesustainabledevelopment of local communities.
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Promote Healthyandactive living/lifestyle inworkplace, inmarketplaceand in
communities.
Incorporateoursocial responsibilityasapart of theCompanysbusinessplan.
Promoteandencourageemployeevolunteerism incommunitywork.
e stand committed towards our associates, their families and the
communitiesaroundouroperations, to improve theirqualityof lifeasawhole
throughhealth, education, andwatermanagement programs.
eshall commit apercentageof thecompanys turnover forCSR initiatives .
Raw Materials
Carbonatedwaterconstitutesup to94%ofasoft drink. Carbondioxideadds that
special sparkleandbite to thebeverageandalsoactsasamildpreservative.
Carbondioxide isanuniquelysuitablegas forsoft drinksbecause it is inert, non -
toxic, andrelatively inexpensiveandeasy to liquefy.
hesecondmain ingredient issugar, whichmakesup 7 -12%ofasoft drink. sed in
eitherdryor liquid form, sugaraddssweetnessandb ody to thebeverage, enhancing
the "mouth-feel," an important component forconsumerenjoyment ofasoft drink.
Sugaralsobalances flavorsandacids.
Sugar-freesoft drinksstemmed fromasugarscarcityduring orld arII. Soft drink
manufacturers turned tohigh-intensitysweeteners, mainlysaccharin, whichwas
phasedout in the1970swhen it wasdeclaredapotential carcinogen. Othersugar
substituteswere introducedmoresuccessfully, notablyaspartame, or utra -Sweet,
whichwaswidelyused throughout the1980sand1990s fordiet soft drinks. Because
somehigh-intensitysweetenersdonot provide thedesiredmouth -feel andaftertaste
ofsugar, theyoftenarecombinedwithsugarandothersweetenersand flavors to
improve thebeverage.
heoverall flavorofasoft drinkdependsonan intricatebalanceofsweetness,
tartness, andacidity pH). Acidsaddasharpness to thebackground tasteand
enhance the thirst-quenchingexperiencebystimulatingsaliva flow. hemost
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commonacid insoft drinks iscitricacid, whichhasa lemony flavor. Acidsalso
reducepH levels, mildlypreserving thebeverage.
Verysmall quantitiesofotheradditivesenhance taste, mouth -feel, aroma, and
appearanceof thebeverage. here isanendlessrangeof flavorings; theymaybenatural, natural identical chemicallysynthesized imitations), orartificial chemically
unrelated tonatural flavors). Emulsionsareadded tosoft drinksprimarily toenhance
"eyeappeal" byservingascloudingagents. Emulsionsaremixturesof liquids tha t
aregenerally incompatible. heyconsist ofwater -basedelements, suchasgums,
pectins, andpreservatives;andoil-based liquids, suchas flavors, colors, and
weighingagents. Saponinsenhance the foamyheadofcertainsoft drinks, likecream
sodaandgingerbeer.
o impede thegrowthofmicroorganismsandprevent deterioration, preservatives
areadded tosoft drinks. Anti -oxidants, suchas BHA andascorbicacid, maintain
colorand flavor. Beginning in the1980s, soft drinkmanufacturersopted fornatur al
additives inresponse to increasinghealthconcernsof thepublic.
Impurities in thewaterareremoved throughaprocessofcoagulation, filtration, and
chlorination. Coagulation involvesmixing floc into thewatertoabsorbsuspended
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particles. hewateris thenpoured throughasand filtertoremove fineparticlesof
Roc. osterilize thewater, small amountsofchlorineareadded to thewaterand
filteredout.
The Manufacturing Process
ost soft drinksaremadeat local bottlingan dcanningcompanies. Brandname
franchisecompaniesgrant licenses tobottlers tomix thesoft drinks instrict
accordance to theirsecret formulasand theirrequiredmanufacturingprocedures.
Clarifyingthewater
1 hequalityofwateriscrucial to the successofasoft drink. Impurities, suchas
suspendedparticles, organicmatter, andbacteria, maydegrade tasteandcolor.
heyaregenerallyremoved through the traditional processofaseriesof
coagulation, filtration, andchlorination. Coagulation i nvolvesmixingagelatinous
precipitate, orfloc ferricsulphateoraluminumsulphate), into thewater. he floc
absorbssuspendedparticles, making them largerandmoreeasily trappedby
filters. uring theclarificationprocess, alkalinitymust beadjus tedwithan
additionof lime toreach thedesiredpH level.
iltering,sterilizing,anddechlorinatingthewater
2 heclarifiedwaterispoured throughasand filtertoremove fineparticlesof
floc. hewaterpasses througha layerofsandandcourser bedsofgravel to
capture theparticles.
Sterilization isnecessary todestroybacteriaandorganiccompounds that might
spoil thewater's tasteorcolor. hewaterispumped intoastorage tankand is
dosedwithasmall amount of freechlorine. hechl orinatedwaterremains in the
storage
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tank forabout twohoursuntil thereaction iscomplete.
4 ext, anactivatedcarbon filterdechlorinates thewaterandremovesresidual
organicmatter, much like thesand filter. A vacuumpumpde -aerates thewater
before it passes intoadosingstation.
Mixingthe ingredients
5 hedissolvedsugarand flavorconcentratesarepumped into thedosingstation
inapredeterminedsequenceaccording to theircompatibility. he ingredientsare
conveyed intobatch tankswhere theyarecarefullymixed; toomuchagitationcan
causeunwantedaeration. hesyrupmaybesterilizedwhile in the tanks, using
ultraviolet radiationorflashpasteurization, which involvesquicklyheatingand
cooling themixture. Fruit basedsyrupsgenerallymust bepasteurized.
6 hewaterandsyruparecarefullycombinedbysophisticatedmachines, called
proportioners, whichregulate the flowratesandratiosof the liquids. hevessels
arepressurizedwithcarbondioxide toprevent aerationof the mixture.
Carbonatingthebeverage
7 Carbonation isgenerallyadded to the finishedproduct, though it maybemixed
into thewaterat anearlierstage. he temperatureof the liquidmust becarefully
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controlledsincecarbondioxidesolubility increasesas the liquid temperature
decreases. anycarbonatorsareequippedwith theirowncoolingsystems. he
amount ofcarbondioxidepressureuseddependson the typeofsoft drink. For
instance, fruit drinksrequire farlesscarbonation thanmixerdrinks, suchas
tonics, whicharemeant tobedilutedwithotherliquids. hebeverage isslightly
over-pressuredwithcarbondioxide to facilitate themovement intostorage tanks
andultimately to the fillermachin e.
Fillingandpackaging
8 he finishedproduct is transferred intobottlesorcansat extremelyhigh flow
rates. hecontainersare immediatelysealedwithpressure -resistant closures,
eithertinplateorsteel crownswithcorrugatededges, twist offs , orpull tabs.
9 Becausesoft drinksaregenerallycooledduring themanufacturingprocess,
theymust bebrought toroom temperaturebefore labeling toprevent
condensation fromruining the labels. his isusuallyachievedbyspraying the
containerswithwarmwateranddrying them. Labelsare thenaffixed tobottles to
provide informationabout thebrand, ingredients, shelf life, andsafeuseof the
product. ost labelsaremadeofpaper thoughsomearemadeofaplastic film.
Cansaregenerallypre-printedwithproduct informationbefore the fillingstage.
10 Finally, containersarepacked intocartonsortrayswhichare thenshipped in
largerpalletsorcrates todistributors.
QualityControl
Soft drinkmanufacturersadhere tostrict waterqualitystandards forallowable
dissolvedsolids, alkalinity, chlorides, sulfates, iron, andaluminum. ot only is it in
the interest ofpublichealth, but cleanwateralso facilitates theproductionprocessandmaintainsconsistency in flavor, color, andbody. icrobiological andother
testingoccurregularly. he ational Soft rink Associationandotheragenciesset
standards forregulating thequalityofsugarandotheringredients. Ifsoft drinksare
producedwith low-qualitysugar, particles in thebeveragewill spoil it, creating floc.
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Toprevent suchspoilage, sugarmust becarefullyhandled indry, sanitized
environments.
It iscrucial forsoft drinkmanufacturers to inspect rawmaterialsbefore theyar e
mixedwithotheringredients, becausepreservativesmaynot kill all bacteria. Alltanks, pumps, andcontainersare thoroughlysterilizedandcontinuouslymonitored.
Cans, madeofaluminumalloyor tin-coated low-carbonsteel, are lacquered
internally toseal themetal andprevent corrosion fromcontact with thebeverage.
Soft drinkmanufacturersalsorecommendspecificstorageconditions toretailers to
insure that thebeveragesdonot spoil. Theshelf lifeofsoft drinks isgenerallyat
least oneyear.
Recycling
The 27 billiondollarsoft drink industrygeneratedabout 110billioncontainerseach
year in theearly1990s. About halfofsoft drinkcontainerswerealuminumcansand
theotherhalf, about 5billion, were PETplasticbottles. early 60%of all soft drink
containers were recycled, the highest rate for any packaging in the nited States.
Environmental concerns continued to lead to improvements and innovations in
packaging technology, including the development of refillable and reusable
containers.