Ko 2020 China
-
Upload
neil-kimberley -
Category
Business
-
view
1.608 -
download
0
Transcript of Ko 2020 China
China – The Commercial Opportunity
of the 21st CenturyDoug JacksonPresident, China Business Unit
China Is Once Again Rising To Global
Prominence
China is expected to overtake
Japan as the second
largest global
economy in 2010
– Goldman Sachs
GDP has been
the largest on
the planet for
9 of last10
centuries
The Past
The Future
Source: quote from NBC during Olympics broadcast
Astonishing Facts
• Largest internet user base of 350 MM
• 710 MM cell phone users
• 5.5 MM university graduates in 2008
• 300 cities with population > 1 MM
China’s Socioeconomic Trends Offer
Tremendous Opportunity For Beverage Growth
20202008
China Middle Class Growth
+435 MMChina Urban Growth
+250 MM
Further Urbanization
More Consumers
With More Money
PopulationPopulation
20202008 20202008
30%70%
China GDP Per Capita
+$3,800
Stronger Economy
20202008
USD $
3X10 Bn
unit cases
Leading To Enormous NARTD* Opportunity
30 Bn
unit cases*Excluding bulk water & white milk
Note: Constant 2008 price and currency neutral2008 - 2020
-80
20
120
220
320
420
520
620
-2,000 2,000 6,000 10,000
• In China, NARTD accounts for only
24%of All Commercial Beverages*
• Coca-Cola captures 14% of NARTD, and this
represents only 4% of All Commercial Beverages
We Are Just Getting Started With Enormous
Opportunities That Lie Ahead
PPP Personal Expenditure Per Capita ($US)
Bubble Size: Population
China Personal Expenditure Rising
China
KO
Per
Cap
ita
Philippines
Brazil
South Africa
Chile
Mexico
Thailand
Argentina
China potential:
11 Bn unit cases
Worldwide
Per Capita = 85
China potential:
4.7 Bn unit cases
*All commercial beverages = NARTD, white milk and bulk water, NA NRTD, and total alcohol
We Are Building A Large Profitable Business
KO Total Volume
2002 - 2008 CAGR +19%
~29%
~71%
0.0
0.3
0.6
0.9
1.2
1.5
2002 2003 2004 2005 2006 2007 2008
Still CAGR +35%
Sparkling CAGR +15%
Billion Unit Cases NARTD Leader
3rd Largest KO Market
New Products –~1/4 Volume Growth
KO Global #1
KO Global #225 Consecutive Quarters
Of Double-Digit Growth
…With Innovation, Investment, Relentless Execution
And Strong Management Team
+0.7
Pts
+0.7
Pts
+0.9
Pts
We Are Winning…
2008 Volume Growth
19%
KO Total
30%
Still
15%
Sparkling
2008 Volume Share
14.5%
NARTD*
4.9%
Still*
52.8%
Sparkling
*Excluding White Milk and Bulk Water
…Which Allows Us To Continue To Scale Up And Accelerate Profitability
Established Clear Leadership Advantage
Against Our Nearest Global Competitor…
Major Global
CompetitorKO
2X
Major Global
CompetitorKO
8X
Major Global
CompetitorKO
6X
Major Global
CompetitorKO
1.6X
NARTD Volume Sparkling
Stills* Juice & Juice Drinks
*Stills includes juice, tea, water, coffee and sports drinks
A Profitable System Investing Ahead Of Demand…
8
…To Create Immense Value For Our Company
2020 Strategic Imperatives
Invest Aggressively In Cold Drink Equipment
Drive One Seamless System
Invest In Our Distribution System To Win At The Point Of Sale
Expand Portfolio To Capture Value
1. Expanding Portfolio To Capture ValueInnovation & Portfolio Expansion
Minute Maid
Pulpy
Juice & Juice Drinks Value-Added Dairy
Sparkling
New
Categories
SparklingTea
Dairy
Water
Juice
New Zealand
Milk
(Equivalent protein of 2 glasses of milk)
Minute Maid
Juice
Coconut
PULPY
A FUSION OF SENSATIONAL GOODNESS
1. Minute Maid Pulpy Super Milky
A Winning Proposition
NUTRITION NEVER TASTED SO GOOD
Today 2020
* Defined using Retail Value
1. Leading To SIX Billion Dollar Brands
2. We Will Continue To Invest In Expanding
Our Distribution Footprint…V
ert
ica
l G
row
th
Horizontal Growth
ExecutionEnhancement
RuralPenetration
Western Expansion
Sales Force
ManagedOutlets
Channel
Picture of
Success
Distribution Partners
…to WIN at the
Point-of-Sale
4.7 MM
Outlets
3. And Invest In Cold Drink Equipment
To Drive Product Availability
Capturing Strategic “Real Estate” In Retail Outlets
Modern Trade
(2/3 door)
6X
General Trade
(1/2 door)
CVS Convenient Store On Premise
4. Our Partners Are Committed To Our 2020 Vision
And Operating Seamlessly To Drive Efficiency
COFCO Bottling Investments Group
Global Innovation
Center
Still
BeveragesCustomer
Management
National
Procurement
Consortium
Coca-Cola
University
One Seamless System
Sichuan
Qinghai
Yunnan
Tibet
Xinjiang
Gansu
Shaanxi
Ningxia
Inner Mongolia
Heilongjiang
Jilin
Liaoning
HebeiTianjin
Beijing
Henan
ShanxiShandong
Jiangsu
Anhui Shanghai
Zhejiang
Fujian
Jiangxi
Guangdong
Hunan
Guizhou
Chongqing
Hubei
Guangxi
Hainan
Zhuhai
4. Continue To Invest In Infrastructure
Expansion
Bottling
Plants
2X+
Bottling plant
China mainland only
2020 Strategic Imperatives
Invest Aggressively In Cold Drink Equipment
Drive One Seamless System
Invest In Our Distribution System To Win At The Point Of Sale
Expand Portfolio To Capture Value