| 3 | REFRESH THE WORLD.MAKE A DIFFERENCE. |
Our Company
The Coca-Cola Company (the “Company”) is a total beverage company with products sold in more than 200 countries and territories. Our Company’s purpose is to refresh the world and make a difference. Our brands include:
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| SPARKLING SOFT DRINKSCoca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Fresca, Schweppes*, Sprite and Thums Up | | | JUICE, VALUE-ADDED DAIRY AND PLANT-BASED BEVERAGESAdeS, Del Valle, fairlife, innocent, Minute Maid, Minute Maid Pulpy and Simply |
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| WATER, SPORTS, COFFEE AND TEAAquarius, Ayataka, BODYARMOR, Ciel, Costa, Dasani, doğadan, FUZE TEA, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, I LOHAS, Powerade and Topo Chico | | | EMERGINGAbsolut & Sprite, Jack Daniel’s & Coca-Cola, Lemon-Dou, Schweppes Premium Drinks, Simply Spiked** and Topo Chico Hard Seltzer** |
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| *Schweppes is owned by the Company in certain countries outside the United States.**In the United States and Canada, the Company authorizes third parties to use certain Topo Chico Hard Seltzer and Simply Spiked trademarks and related intellectual property in the production, distribution, marketing and sale of Topo Chico Hard Seltzer and Simply Spiked, as applicable. | | | LEARN MORE ABOUT OUR COMPANY | | |
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| | | You can learn more about the Company by visiting our website, www.coca-colacompany .com. We also encourage you to read our latest Form 10-K, available at www.coca-colacompany.com/annual-meeting-of-shareowners.The Company’s principal executive offices are located at One Coca-Cola Plaza, Atlanta, Georgia 30313. | |
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The Coca-Cola System
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| We make our branded beverage products available to consumers throughout the world through our network of independent bottling partners, distributors, wholesalers and retailers as well as our consolidated bottling and distribution operations. Consumers enjoy finished beverage products bearing trademarks owned by or licensed to us at a rate of 2.2 billion servings per day. | | SYSTEM PARTNERS | |
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| | ~200 | | ~950 | |
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| | Bottling Partners | | Production Facilities | |
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| | ~31M | | 2.2BN | |
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| | Customer Retail Outlets | | Servings a Day | |
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2023 Financial Highlights
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| REVENUE GROWTH · · OPERATING INCOMEGROWTH · · EARNINGS PER SHARE GROWTH · · CASH FLOW · · DIVIDENDSPAID |
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| 6% | 12% | | 4% | 16% | | 13% | 8% | | $11.6 BN | $9.7 BN | | $8.0 BN |
| Reported Net Operating Revenues vs. 2022 | Organic Revenues vs. 2022 (Non-GAAP) | | Reported Operating Income vs. 2022 | Comparable Currency Neutral Operating Income vs. 2022 (Non-GAAP) | | Reported Earnings Per Share (“EPS”) vs. 2022 | Comparable EPS vs. 2022 (Non-GAAP) | | Cash Flow from Operations | Free CashFlow (Non-GAAP) | | Returned to Shareowners |
Organic revenues is a non-GAAP financial measure that excludes or has otherwise been adjusted for the impact of acquisitions, divestitures and structural changes, as applicable, and the impact of fluctuations in foreign currency exchange rates. Comparable currency neutral operating income is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability and the impact of fluctuations in foreign currency exchange rates. Comparable EPS is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. Free cash flow is a non-GAAP financial measure that represents net cash provided by operating activities less purchases of property, plant and equipment. SeeAnnex C onpage131 for reconciliations of non-GAAP financial measures to our results as reported under generally accepted accounting principles in the United States (“GAAP”).
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| The Coca-Cola Company | ● 4 ● | 2024 Proxy Statement |
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Our Strategy
We are a networked global organization that combines the benefits of scale with deep local intimacy required to win in the marketplace. We deliver results through many different operating environments by continuously improving our world-class marketing and innovation, revenue growth management and integrated execution with our franchise bottling partners.
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| Stewarded PortfolioInvesting to capture every consumption occasion | | Stepped-Up StrategyInvesting in key enablers to spin our flywheels faster | | Strengthened OrganizationInvesting in our networked organization to support future growth |
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2023 Business Highlights
In 2023, we achieved our near-term goals while positioning our business for the long term. Despite a challenging external backdrop, we grew volume in every quarter and delivered strong EPS growth for the year. We achieved this by winning on a local level, maintaining flexibility on a global level and reinvesting to build our capabilities for the long term. We remain committed to driving growth across our business and delivering on our purpose to refresh the world and make a difference.
Highlights from 2023 include the following:
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| DRIVING QUALITY LEADERSHIPACROSS OUR PORTFOLIO | IMPROVING EXECUTION ACROSS ALLELEMENTS OF OUR STRATEGY | BUILDING ASTRENGTHENED ORGANIZATION |
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| Coca-Cola Trademark gained both volume and value share, and we grew Coca-Cola Zero Sugar unit case volume by 5%. According to Kantar, Coca-Cola brand value increased $8 billion and is now the 10th most valuable brand in the world, up seven spots from 2022.Sparkling Flavors, which consists of brands such as Sprite, Fanta and Schweppes and regional brands such as Thums Up, gained overall volume and value share. According to Morning Consult, Sprite was named as the #1 beverage brand for Gen Z drinkers in the U.S.Juice, Value-Added Dairy and Plant-Based Beverages gained volume and value share. We grew fairlife volume by double digits year-over-year.Water, Sports, Coffee and Tea benefitted from strong performance in brands such as Fuze Tea, Topo Chico and Ciel.We continued our test-and-learn approach in alcohol ready-to-drink beverages. Jack Daniel’s & Coca-Cola was available in 14 markets globally at the end of 2023. | We activated Studio X, the digital ecosystem that integrates marketing disciplines and standardizes data and technology. Our digital mix has increased from less than 30% in 2019 to approximately 60% of our total media spend in 2023. We were named one of the Top 10 most innovative companies in augmented and virtual reality by Fast Company.We invested in innovation to improve our products, packaging and equipment. This includes investing to drive taste superiority across our total beverage portfolio. With respect to our packaging, we’re improving performance while reducing plastic usage. Over 40 markets have at least one product sold in 100% recycled polyethylene terephthalate (“rPET”) packaging, excluding cap and label.We applied our revenue growth management and execution capabilities to deliver 2% volume growth despite inflationary pressures. By offering a total beverage portfolio in the right packages and at the right price points, we're driving category expansion. | We continue to make progress on our refranchising journey. In 2023, we completed the refranchising of Company-owned bottling operations in Vietnam, sold our stakes in the bottlers in Pakistan and Indonesia, and signed an agreement to sell our bottling operations in the Philippines. Along with eight of our bottling partners, we created a first-of-its-kind sustainability-focused venture capital fund. Helping to reduce the Coca-Cola system’s carbon footprint is a top priority for this fund, so it will initially prioritize the following areas: packaging, heating and cooling, facility decarbonization, distribution and supply chain.We enhanced our learning and related technologies to support our employees’ career growth. Our 2023 Culture & Engagement Survey results underscore the strong levels of employee pride and growth opportunities, with a strong number of respondents saying they are proud to work at The Coca-Cola Company and see good opportunities to learn and grow in their roles. |
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| The Coca-Cola Company | ● 5 ● | 2024 Proxy Statement |
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Human Capital
Our people and our culture are critical business priorities, and we strive to be a global employer of choice that attracts and retains high-performing talent with the passion, skills and mindsets to drive us on our purpose to refresh the world and make a difference. We are committed to building an equitable and inclusive culture that inspires and supports the growth of our employees, serves our communities and shapes a strong and more sustainable business.
2023 NOTABLE WORKPLACE ACCOLADES
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| Ranked 15th in Fortune’s annual ranking of the World’s Most Admired Companies | | Recognized as 2023 Top Employer of Choice by American Opportunity Index | | Included in the 2023 Bloomberg Gender-Equality Index | | Earned a 100% score on the Human Rights Campaign’s Corporate Equality Index for the 17th consecutive year |
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| | Ranked in Forbes’ annual World’s Top Companies for Women | | Received the CEO Excellence in Gender Equity and Diversity Award by the Women Business Collaborative | | Ranked in the 90th percentile in the Disability Equality Index for Best Places to Work by Disability:IN | |
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OUR HUMAN CAPITAL PILLARS
| | LEADERSHIP, TALENT AND DEVELOPMENT | |
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| | | Our strategy is anchored in helping all employees grow and thrive within, and beyond, the Coca-Cola system. We are prioritizing development, increasing transparency and introducing more flexibility and choice to help employees achieve their career aspirations and to build a more agile, productive and empowered workforce. We focus on hiring and developing capable and diverse talent that reflects the markets we serve, along with investing in inspirational leadership, providing learning opportunities and building capabilities that equip our global workforce with the skills they need, all of which enhance and improve engagement and retention. We support all employees as leaders to be role models, to set the agenda for themselves and their teams, and to help people develop and grow – creating an environment for everyone to thrive. |
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| · DIVERSITY, EQUITY AND INCLUSION · · · |
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| | The Coca-Cola Company is for everyone. We believe that a diverse, equitable and inclusive workplace that reflects the markets we serve is a strategic business priority that is critical to the Company’s continued growth and success. We aim to create access to equal opportunities for our employees, become more inclusive and create a culture where all our people thrive. We embrace differences in backgrounds. We encourage authenticity, curiosity and accountability. We enable the conditions for learning, challenge, progress and growth. |
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| · Our global diversity, equity and inclusion strategy is centered around three long-term ambitions. We continue to pursue and operationalize initiatives consistent with these ambitions that align with our business strategy. · · |
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| | | | Aspire to develop a workforce that reflects the markets we serve | Enable an inclusive culture where all employees thrive | Advance equity and access within our business, communities and the marketplace | | | | |
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| The Coca-Cola Company | ● 6 ● | 2024 Proxy Statement |
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| | HUMAN RIGHTS | |
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| | | Respect for human rights is a fundamental value of our Company. We strive to align our policies and practices with the UN Guiding Principles on Business and Human Rights across our value chain. We aim to meaningfully improve the lives we touch around the world. |
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| | Culture and Engagement | |
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| | | Each employee, leader and function across our Company contributes to our growth culture, which is grounded in our Company’s purpose. Our leaders are the stewards of culture change. We focus on four key growth behaviors – being curious, empowered, inclusive and agile – and we value how we work as much as what we achieve. Through our behaviors, actions and outcomes, we embody and shape the culture of the Company. We believe our culture enables our Company’s business strategy and shapes employee experiences. |
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| | Business Integrity | |
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| | | Our Code of Business Conduct for employees and Code of Business Conduct for suppliers are both grounded in our commitment to do the right thing. They serve as the foundation of our approach to ethics and compliance, and our anti-corruption compliance program is focused on conducting business in a fair, ethical and legal manner. |
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| | Our people and culture agendas are key priorities of the Board of Directors (the “Board”). Through the Talent and Compensation Committee, the Board provides oversight of the Company’s policies and strategies relating to talent, leadership and culture, including diversity, equity and inclusion. See page 35 for information regarding the Board’s oversight of human capital. |
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| The Coca-Cola Company | ● 7 ● | 2024 Proxy Statement |
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Sustainability
Our purpose is to refresh the world and make a difference. We are a total beverage company with ambitious sustainability goals that aim to drive business growth and create a better shared future. We use the strengths of our business to invest in solutions that help our operations, our value chain and local communities adapt to change and build long-term success.
We report progress in the following sustainability areas: water stewardship; portfolio; circular economy of packaging; climate; sustainable agriculture; and people and communities, which includes human and workplace rights and diversity, equity and inclusion. Through internal and external stakeholder engagement, we have identified the highest-priority issues for the Company, allowing us to grow our business while mitigating risk. Working collaboratively with our bottling partners and stakeholders at every stage of our value chain, we look to integrate sustainability considerations into our daily actions.
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| water | | PORTFOLIO | | packaging |
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| Water is a priority for the Company because it is essential for individuals, our beverages, our agricultural value chain and the communities we serve. Our ability to grow our business, as well as communities’ capacity to thrive, depends on access to clean water. That’s why our 2030 water strategy focuses on increasing water security. We know local water resources are impacted by changing weather patterns. Our strategy seeks to build greater resilience in the watersheds where scarcity impacts our business, supply chain and communities. | | We are a total beverage company, which includes offering more choices with less sugar, giving consumers portion-control package sizes and providing clear nutrition information. We are listening to consumers, and we understand that people around the world have an increased interest in managing the foods and beverages they consume. Within our portfolio of brands, we are taking action by offering consumers more choices with less added sugar, reducing package sizes to enable portion control and promoting our low- and no-calorie beverages, all while responsibly marketing our products and providing clear nutrition information so our consumers can make informed choices. | | Our vision is to make packaging part of a circular economy, thereby keeping it out of landfills and the environment. Our World Without Waste program focuses on creating a circular economy for our packaging materials, which means designing out waste and ensuring that our packages are reused and recycled. We’re doing this by using more recycled content, developing plant-based materials, lightweighting our packages and expanding our refillable business model, which supports our increased empty bottle collection goal. |
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| climate | | Agriculture | | People & Communities |
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| We look for ways to reduce carbon emissions across the Coca-Cola value chain. We do this by analyzing and prioritizing the sources of greenhouse gas emissions across our value chain and by partnering with stakeholders to drive down emissions. We are making progress toward our science-based reduction target of 25% by 2030 against a 2015 baseline, and our ambition is to achieve net zero emissions by 2050. | | Our goal is to source our priority ingredients sustainably. Our products and some of our packaging are made from a wide variety of agricultural ingredients which we source from around the world. By working with our suppliers to reduce water use and conserve nature, we are increasing the resilience of our supply chain and supporting producers and farm workers. | | We invest to improve people’s lives and create a better shared future for local communities. We are focused on providing access to equal opportunity and fostering belonging both in our workplaces and the local communities we proudly serve. |
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To learn more about the Company’s sustainability efforts, including our comprehensive goals, please view our Business & Sustainability Report on the Company’s website, by visitingwww.coca-colacompany.com/sustainability.
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| | The Board, through the Corporate Governance and Sustainability Committee, oversees the Company’s sustainability strategies and initiatives, including the Company’s short- and long-term goals. See page 35 for information regarding the Board’s oversight of sustainability matters. |
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| The Coca-Cola Company | ● 8 ● | 2024 Proxy Statement |
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