FORM 10-Q
FORM 10-Q
FORM 10-Q
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inventory practices, the number of selling days in a reporting period, supply point changes, timing of price increases, new product introductions and changes<br />
in product mix can impact unit case volume and concentrate sales volume and can create differences between unit case volume and concentrate sales volume<br />
growth rates. In addition to the items mentioned above, the impact of unit case volume from certain joint ventures in which the Company has an equity<br />
interest, but to which the Company does not sell concentrates or syrups, may give rise to differences between unit case volume and concentrate sales volume<br />
growth rates.<br />
Information about our volume growth worldwide and by operating segment for the three months ended March 29, 2013, is as follows:<br />
Unit Cases 1,2,3<br />
Percent Change<br />
2013 versus 2012<br />
First Quarter<br />
Concentrate<br />
Sales 4<br />
Worldwide 4% 2%<br />
Eurasia & Africa 15% <strong>10</strong>%<br />
Europe — (2)<br />
Latin America 4 2<br />
North America 1 (2)<br />
Pacific 3 4<br />
Bottling Investments (6) N/A<br />
1 Bottling Investments operating segment data reflects unit case volume growth for consolidated bottlers only.<br />
2 Geographic segment data reflects unit case volume growth for all bottlers in the applicable geographic areas, both consolidated and unconsolidated.<br />
3 Unit case volume percent change is based on average daily sales. Unit case volume growth based on average daily sales is computed by comparing the average daily sales in each<br />
of the corresponding periods. Average daily sales are the unit cases sold during the period divided by the number of days in the period.<br />
4 Concentrate sales volume represents the actual amount of concentrates, syrups, beverage bases and powders sold by, or used in finished beverages sold by, the Company to<br />
its bottling partners or other customers and is not based on average daily sales. Each of our interim reporting periods, other than the fourth interim reporting period, ends on<br />
the Friday closest to the last day of the corresponding quarterly calendar period. As a result, the first quarter of 2013 had two fewer days when compared to the first quarter<br />
of 2012, and the fourth quarter of 2013 will have one additional day compared to the fourth quarter of 2012. In addition, due to 2012 being a leap year, our full year 2013<br />
results will have one less day compared to full year 2012.<br />
Unit Case Volume<br />
Although a significant portion of our Company's revenues is not based directly on unit case volume, we believe unit case volume is a measure of the<br />
underlying strength of the Coca-Cola system because it measures trends at the consumer level.<br />
Three Months Ended March 29, 2013, versus Three Months Ended March 30, 2012<br />
In Eurasia and Africa, unit case volume increased 15 percent, which consisted of 12 percent growth in sparkling beverages and 26 percent growth in still<br />
beverages. The group's sparkling beverage growth was led by 12 percent growth in brand Coca-Cola, <strong>10</strong> percent growth in Trademark Fanta and 15 percent<br />
growth in Trademark Sprite. Growth in still beverages was primarily due to juices and juice drinks and included a 15 percentage point benefit attributable to<br />
acquired volume, primarily related to our Aujan partnership. Russia reported unit case volume growth of 8 percent, which included growth of 15 percent in<br />
both brand Coca-Cola and Trademark Fanta as well as growth of 7 percent in Trademark Sprite. Still beverage growth in Russia included growth of 13<br />
percent and 27 percent in our juice brands Dobriy and Rich, respectively. Unit case volume growth in Russia was favorably impacted by the beginning of<br />
marketing activities related to the Sochi 2014 Winter Olympics and Torch Relay. Eurasia and Africa also benefited from unit case volume growth of 30 percent<br />
in the Company's Middle East and North Africa business unit, including a 13 percentage point benefit attributable to acquired volume, primarily related to our<br />
Aujan partnership.<br />
Unit case volume in Europe was even, despite poor weather, especially in March, competitive pricing and ongoing weakness in consumer confidence and<br />
spending across the region. Sparkling beverage growth in Europe was positive during the quarter, but rounded to even, and still beverages declined 3 percent.<br />
Germany reported unit case volume growth of 3 percent, driven by strong integrated marketing campaigns, solid execution in the marketplace and customer<br />
distribution gains. Europe also benefited from 4 percent unit case volume growth in Great Britain, led by growth in sparkling beverages, including growth of<br />
3 percent in brand Coca-Cola. The favorable impact of growth in Germany and Great Britain was offset by volume declines in<br />
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