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The Coca-Cola Co., Atlanta, announced its 2011 full-year and fourth quarter results highlighted by 5 percent full-year global volume growth. The global volume growth was driven by 5 percent international volume growth and 1 percent organic volume growth in North America. Trademark Coca-Coca was up 3 percent for both the full year and fourth quarter, leading its growth, the company said.
The company’s full-year and fourth quarter volume grew across every geographic operating group with a 3 percent global volume increase during the fourth quarter, it reported. Fourth quarter growth was driven by 4 percent international volume growth and 1 percent growth in North America.
Full-year reported net revenues grew 33 percent and comparable currency neutral net revenues grew 29 percent, reflecting the acquisition of Coca-Cola Enterprises (CCE) in the fourth quarter of 2010. Fourth quarter reported net revenues grew 5 percent and comparable currency neutral net revenues increased 6 percent, which is in line with the company’s long-term growth target.
"In a world looking for hope, optimism and renewal, Coca-Cola is privileged to be refreshing a thirsty world,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co., in a statement. “Our solid performance reflects the continued investments we have made over time and in every economic condition to strengthen the health of our brands, starting with brand Coca-Cola, the very oxygen of our business. With our well-aligned global bottling system, world-class brands, strong financial discipline and a clear roadmap for growth, we are confident that we will achieve our long-term growth targets and continue to deliver increasing shareowner value. We truly believe we are just getting started and that our best and brightest days lie ahead.”
Excluding new cross-licensed brands in North America, primarily Dr Pepper brands, the Coca-Cola Co.’s worldwide volume grew 4 percent for the full year, which is at the high end of its long-term growth target, according to the company. Solid growth was delivered in key developed markets such as North America, Japan and Germany with double-digit growth in key emerging markets, including India and China, the company said.
Sparkling beverages continued to provide global volume and value share growth during the time periods, according to the company. Growth was driven by The Coca-Cola Co.’s continued focus on and investment in its brands, starting with trademark Coca-Cola. Trademark Coca-Cola volume grew 3 percent in both the full year and the quarter, with strong growth in the fourth quarter in a number of markets around the world, including 33 percent in Thailand, 15 percent in India, 13 percent in China, 12 percent in Argentina, 9 percent in Germany, 8 percent in Russia, 4 percent in both Mexico and France, and 3 percent in Japan.
Worldwide sparkling beverage volume grew 2 percent in the quarter, with international sparkling beverage volume up 3 percent as the company continues to focus on innovative, globally scaled marketing campaigns. For the full year, worldwide sparkling beverage volume grew 4 percent, with new cross-licensed brands in North America, primarily Dr Pepper brands, contributing to 1 percent of the growth, the company said.
Still beverage volume worldwide grew 8 percent for the full year and 6 percent in the quarter, led by growth across The Coca-Cola Co.’s portfolio, including ready-to-drink teas, juices and juice drinks, energy drinks and water brands. International still beverage volume grew 10 percent for the full year and 7 percent in the quarter, and North America still beverage volume grew 4 percent for the full year and 3 percent in the quarter, the company said.
In the fourth quarter, The Coca-Cola Co.’s global still beverage volume share increased and successfully maintained value share as consumers continue to experience macroeconomic volatility, the company said. Global brand Minute Maid Pulpy continues to expand globally, with 20 percent volume growth in 2011. Energy drinks volume grew 19 percent in the quarter with broad distribution of the company’s Burn energy brand, which now is available in nearly 80 countries.
The company’s water volume grew 7 percent in the quarter as the company continues to focus on innovative and sustainable immediate consumption packaging such as the PlantBottle in North America, which is driving new customer listings, and the I LOHAS/Ecoflex lightweight crushable bottle for water brands in Asia and Latin America.
The company’s full-year reported operating income grew 20 percent and comparable currency neutral operating income increased 12 percent. Fourth quarter reported operating income grew 69 percent and comparable currency neutral operating income increased 14 percent, which is ahead of the company’s long-term growth target.
The Coca-Cola Co.’s four-year productivity program was successfully completed with annualized savings of more than $500 million, exceeding its original target between $400 and $500 million. The company also launched a new “Productivity and Reinvestment” program with aimed incremental annualized savings of $550 to $650 million by the end of 2015 as a natural outgrowth of the company’s 2020 vision to design and implement the most effective and efficient business system.