Corporate Overview of Coca-Cola

CORPORATE OVERVIEW

The Coca-Cola Company was founded in 1886, when an Atlanta pharmacist, Dr. John Pemberton, invented the first Coca Cola formula, a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub in a three legged brass kettle in his backyard. Coca-Cola was initially sold in Atlanta's largest pharmacy, Jacob's Pharmacy as a patent medicine allegedly curing myriad diseases including morphine addiction, dyspepsia, neurasthenia, headaches and impotence for five cents a glass.1 Later, the carbonated water was added to the syrup to make the beverage what we know today as Coca-Cola. One of Pemberton's close friends, Frank Robinson named the company; he also penned the famous Coca-Cola logo in unique script.

Background:

Dr. John Pemberton sold a portion of the Coca-Cola Company to Asa Candler, who incorporated it as the Coca Cola Corporation in 1888. After Pemberton's death Candler acquired complete ownership of the Coca-Cola business in 1891 for $2,300 and in 1892, incorporated a second company, The Coca-Cola Company -- the current corporation. Candler opened the first syrup manufacturing plant in 1884. On January 31, 1893, the famous Coca-Cola formula was patented. Candler sold most US bottling rights in 1899 to Benjamin Thomas and John Whitehead for $1. The two designed a regional franchise bottling system that created more than 1,000 bottlers within 20 years. In 1915, Alexander Samuelson and Earl R. Dean of the Root Glass Company created the contour bottle for the Coca-Cola company. "Widely recognized as a pioneering example of package-driven branding, the contour bottle is one of the few packages to ever receive a trademark from the U.S. Patent and Trademark Office, helping to make Coca-Cola one of the most famous brands in the world today."2

After Candler's retirement in 1916, his family later sold the company to Atlanta banker Ernest Woodruff for $25 million in 1919. Coca-Cola went public that year. Ernest offered Coca-Cola to his son, Robert Woodruff. Under Woodruff's leadership, the company achieved unmatched heights of commercial success, making Coca-Cola recognized all over the world. He increased the syrup prices for distributors, while improving efficiency in the manufacturing process and also increased productivity by improving the sales department, emphasizing quality control, and introducing large-scale advertising and promotional campaigns.3 Coke was made available to every state through the soda fountain. Woodruff was succeeded by his protйgй, Roberto Goizueta, in 1981. Today Coca-Cola Company is under the leadership of E. Neville Isdell, Chairman and CEO.

Beginning December 31, 2006, Coca-Cola Company is organized into eight geographic Operating Groups: Africa; East, South Asia and Pacific Rim; European Union; Latin America; North America; North Asia, Eurasia and Middle East; Bottling Investments, and Corporate. It acquired a controlling interest in Kerry Beverages Limited in 2006.

Acquisitions or Divestitures:

The following are key acquisitions or divestitures of Coca Cola:

* 1982 - purchased Columbia Pictures

* 1986 - Consolidated the US bottling operations it owned into Coca-Cola Enterprises and sold 51% of the new company to the public.

* 1989 - earned a $1 billion profit when it sold Columbia Pictures to Sony

* 1995 - bought Barq's Root Beer

* 2001 - acquired Mad River Traders (teas, juices, sodas) and Odwalla (juices and smoothies) To strengthen its portfolio in the fast-growing noncarbonated drinks segment. The company also bought a 35% in bottler Coca-Cola Philippines from Coca-Cola Amatil, the remaining interest was owned by San Miguel Corporation.

* 2005 - bought the remaining percentage of the Philippine bottler; also bought Danone's 49% share in their North American bottled-water venture for about $100 million.

* 2006 - acquired Apollinaris GmbH, a German premium source water brand (''Apollinaris''). There was a joint acquisition of Fonti del Vulture S.r.l., also known as Traficante, an Italian mineral water company, with Coca-Cola HBC; The company and Coca-Cola FEMSA entered into an agreement to jointly acquire Jugos del Valle, S.A.B. de C.V., the second largest producer of packaged juices, nectars and fruit flavored beverages in Mexico and the largest producer of such products in Brazil.

Financial Performance:

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