UNIVERSITY OF LAGOS

FACULTY OF BUSINESS ADMINISTRATION

DEPARTMENT OF ACTUARIAL SCIENCE

A Group Case Analysis Project COCA-COLA COMPANY

Compiled by

GROUP 4

Names
Towobola Gbolahan 130202068
Ogbu Daniel 130202024
Yekini Ahmed 130202018
Adeniyi Adeola 130202029
Olaifa funke 130202041
Jegede Sarah 140202518
Oshodi Suliyat 140202509
Obichukwu Justin 130202005
Amaere Stanley 130202056
Azeez Saheed Alamu 130202088

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 TABLE OF CONTENT
EXECUTIVE SUMMARY ......................................................................................... 3
INTRODUCTION ..................................................................................................... 4
SWOT ANALYSIS ................................................................................................... 5
STRENGTHS ........................................................................................................................ 5
WEAKNESSES .................................................................................................................... 5
OPPORTUNITIES ................................................................................................................ 6
THREATS ............................................................................................................................. 7
PORTER 5 FORCES MODEL .................................................................................... 8
Strong Threat of Substitutes .................................................................................................. 9
Moderate Bargaining Power of Buyers ................................................................................. 9
Strong Competitive Rivalry .................................................................................................. 9
FINANCIAL ANALYSIS ........................................................................................ 10
Discussion of Income Statement ......................................................................................... 10
Discussion of Balance Sheet ............................................................................................... 11
Discussion of Cash Flow ..................................................................................................... 13
Discussion of Financial Ratio ............................................................................................. 14
Conclusion........................................................................................................................... 14
STATEMENT OF PROBLEMS ................................................................................ 15
Health Awareness Trend ..................................................................................................... 15
Increased competition from PepsiCo .................................................................................. 16
SITUATION ANALYSIS ........................................................................................ 16
ALTERNATIVE AND EVALUATION ..................................................................... 17
Product Diversification ....................................................................................................... 17
Health and Wellness Trend ................................................................................................. 18
Product Marketing ............................................................................................................... 18
RECOMMENDATIONS .......................................................................................... 19
APPENDIX ............................................................................................................ 20

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 EXECUTIVE SUMMARY

This case study performs a strategic analysis of The Coca-Cola Company, a

leader in the beverage industry. Coca-Cola, the world's leading soft drink
maker, operates in more than 200 countries and owns or licenses 400 brands of
non-alcoholic beverages. Since Coca-Cola operates in more than 200 countries,
more emphasis is given to the Canadian/North American region in this analysis.
The company faces challenges in today's marketplace because of market driven
changes, regulatory changes and socio-economic changes. An external analysis
of the soft drink industry is performed to understand the impact of environment.
An internal analysis of Coca-Cola is performed to understand the internal
capabilities.
The conclusion of this case study emphasizes that the company needs to reduce
its dependence on carbonated beverage and diversify its product portfolio into
the noncarbonated sector to remain competitive. It is argued that the best way
to become a total beverage company is through addressing the key issues
identified in this research and eventually moving towards a learning
organization.

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 INTRODUCTION

The Coca-Cola Company (Coca-Cola), the world’s leading soft drink maker,

operates in more than 200 countries and sells 400 brands of non-alcoholic

beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is

a globally recognised successful company. The Coca-Cola story began in May

of 1886 and continues for more than a century through the times of war and

peace, prosperity and depression and economic boom and bust. As late as the

1990's, Coca-Cola was one of the most respected companies in the world, a

master of brand -building and known as a very successful management team.

Since 1998, the company has been struggling with issues identified in this

analysis. Observers wonder if Coca-Cola has lost its fizz and if the real thing

could ever revive. The purpose of this paper is to assess the current situation of

Coca-Cola and the industry, evaluate the existing resources, suggest a strategy

and provide strategic recommendations. A specific strategy will help to match

strength and distinctive competence in such a way that Coca-Cola enjoys a

competitive advantage over immediate rivals in the industry.

Objectives of the Study

i. To show the swot analysis and porter five forces model of coca-cola

company

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 ii. To identify the statement of the problems and also carry out the situation

analysis of the firm

iii. To proffer solution to the problem the firm is facing and make

recommendation.

SWOT ANALYSIS

STRENGTHS
Brand Awareness: The Coca-Cola Company is one of the most widely

recognized brands across the globe. Its signature logo, classic red & white

colors, and world-famous jingle resonate with consumers of all ages. There are

two key players in this sector of the beverage business, one being Coca-Cola,

while the other remains PepsiCo, Inc.(PEP ).

Robust Distribution Network: Coca-Cola makes its products available to

individuals in more than 200 countries through the world’s largest distribution

network. Its ability to utilize company-owned/-controlled distributors, as well as

independent bottlers, wholesalers, and retailers has no parallel. This system

enables KO to closely manage costs, rapidly introduce new items into the

marketplace, and saturate various geographic locations.

WEAKNESSES
Water Management: Water is a main ingredient in substantially all of the

company’s products. It is vital to the production of the agricultural ingredients

on which the business relies and is needed in KO’s core manufacturing

processes. Also, this resource is critical to the prosperity of the communities

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Coca-Cola serves. Water is a limited resource in many parts of the world, facing

unprecedented challenges from overexploitation, as well as rising demand for

food and other consumer and industrial products whose manufacturing

processes require water.

Foreign Currency Fluctuation: Its consolidated financial statements are

presented in U.S. dollars; Coca-Cola must translate revenues, income and

expenses, as well as assets and liabilities, into U.S. dollars at exchange rates in

effect during or at the end of each reporting period. Therefore, increases or

decreases in the value of the U.S. dollar against other major currencies affect its

net operating revenues, operating income, and the value of balance sheet items

denominated in foreign currencies.

OPPORTUNITIES
Diversification: The Company has been hard at work utilizing its ample war

chest to build a presence in rapidly-growing beverage categories. Currently, it

owns 16% of Keurig Green Mountain and is developing a fresh Keurig Kold

device that is set to debut this fall. Keurig, famous for pod-based, hot drinks

intends to feature Coke-branded products for its upcoming platform. In addition,

Coca-Cola recently finalized its purchase of a 17% stake in Monster Beverage.

The deal provides the company with access to a popular energy drink growth

segment. Looking ahead, KO will probably aim to forge increased relationships

with coffee, energy, and health drink businesses.

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Extended Reach: The population continues to increase at a steady clip, in order

to capitalize on this fact and consumers’ shift toward healthier living. Coca-

Cola has focused on bolstering a variety of its business lines. Areas such as

India and China have ramped up demand for the company’s latest juice and

coffee offerings. We believe Coca-Cola remains dedicated to differentiating its

portfolio and delivering emerging markets with various beverage staples over

the long term.

THREATS
Nutritious Selections: It’s been no secret that soft drink providers have

suffered some of late. A cultural shift toward natural and organic products has

led many to opt for nutritional waters, smoothies, and various healthy beverage

options. Thus, core soda offerings that include high amounts of sugar, or diet

items with artificial sweeteners, have fallen out of favor with buyers. Further,

many health professionals have called for the elimination of foods and

beverages containing lofty amounts of sugar, since these products place

individuals at an elevated risk of becoming obese, developing diabetes, and

suffering from heart disease.

Indirect Competition: Although companies such as Starbucks (SBUX ) and

Dunkin’ Brands Group (DNKN ) do not compete directly with Coca-Cola, these

businesses do place a dent in the company’s market share. The chains offer

customers healthier alternatives, unique choices, and customer loyalty rewards

that are not easily matched by Coca-Cola. Industry data suggest potential

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customers will continue to be pulled away from basic drink selections in favour

of customizable options that carry a greater nutritional benefit.

PORTER 5 FORCES MODEL

This section is to analyse the external threats to the Coca-Cola by using Porter’s

Five Forces Model. Porter suggests five forces that determine industry

profitability: competitive rival sellers within the industry, new entrants to the

industry, substitute products, suppliers, and buyers. The set of factors directly

influences a firm and its competitive actions and competitive responses. The

weaker the forces, the greater the opportunity for superior performance by firms

within the industry.

Low Threat of New Entrants

Threat of new entrants is low in the soft drink industry. To enter the industry, it

requires high fixed costs for production, warehouses, trucks, labour and

marketing activities. As there are limited bottlers, new entrants may need to

build their bottling plants. It requires large amount of capital, this makes it

extremely difficult for an entrant to compete with the incumbents and gain any

visibility. Coke and Pepsi have a long history of heavy advertising. This makes

them dominate with their strong brand name and loyal customers all over the

world. Therefore, the threat of new entrants is relatively low to Coca-Cola.

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Strong Threat of Substitutes
There are many kinds of substitutes for Coca-Cola products. They are bottled

water, sports drinks, coffee and tea. As consumers concern more about health,

bottled water and sport drinks are increasingly popular. In the markets, there is

an increase of numbers and varieties of water and sports drinks that appeal to

different consumers’ tastes. Those are advertised as healthier drinks.

Low Threat of Suppliers

Major suppliers to Coca-Cola are commodity ingredients suppliers and bottlers.

The bargaining power of commodity ingredients suppliers is low. Most of the

raw materials needed to produce concentrate are basic commodities like color,

flavor, caffeine or additives, sugar etc. As the producers of these products are

generally providing the same products, they have lower power over the pricing

hence the suppliers in this industry are weak.

Moderate Bargaining Power of Buyers

The buyers of Coca-Cola and other soft drinks are mainly large grocers,

convenience stores, supermarkets, and restaurants. The soft drink companies

distribute the beverages to them for resale to the consumer. The bargaining

power of the buyers is strong. Besides, with the decreased demand for unhealthy

soft drinks of consumers, buyers can have a larger bargaining power on the

price of soft drink.

Strong Competitive Rivalry

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The competitive pressure from rival sellers is the greatest challenging faced by

Coca-Cola. PepsiCo is the main competitor for Coca-Cola and these two brands

have been in a power struggle for more than a century. Although Coca-Cola

owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and

Sprite), PepsiCo dominated North America with sales of US$22billion, while

Coca-Cola only had about US$7billion, However, Coca-Cola has higher sales in

the global market than PepsiCo. Brand name loyalty is another competitive

pressure.

FINANCIAL ANALYSIS

The objective of this section is to assess the company’s financial health. The

income statement, balance sheet and cash flow statement were analysed for the

last five years (2011- 2016).

Discussion of Income Statement

Figure 1.1 shows Coca cola’s income statement from 2012-2016. Coca cola’s

revenue has being on the decline from $48,017million in 2012 to

$41,863million in 2016, this decline was caused by various situation and its also

projected to reduce over the next five years due to the decline in demand for

carbonated drink. Most impressively, the company has been able to reduce the

percentage of sales devoted to cost of goods sold from 36.31% to 38.88% which

is a key factor that led bottom-line growth

Figure 1.1
COCA-COLA CO (KO) CashFlowFlag
INCOME STATEMENT
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Fiscal year ends in December. USD in millions
except per share data. 2012-12 2013-12 2014-12 2015-12 2016-12
Revenue 48017 46854 45998 44294 41863
Cost of revenue 19053 18421 17889 17482 16465
Gross profit 28964 28433 28109 26812 25398
Operating expenses
Sales, General and administrative 17738 17310 17218 10237 9439
Other operating expenses 447 895 1183 7847 7333
Total operating expenses 18185 18205 18401 18084 16772
Operating income 10779 10228 9708 8728 8626
Interest Expense 397 463 483 856 733
Other income (expense) 1427 1712 100 1733 243
Income before taxes 11809 11477 9325 9605 8136
Provision for income taxes 2723 2851 2201 2239 1586
Net income from continuing operations 9086 8626 7124 7366 6550
Other -67 -42 -26 -15 -23
Net income 9019 8584 7098 7351 6527
Net income available to common shareholders 9019 8584 7098 7351 6527
Earnings per share
Basic 2 1.94 1.62 1.69 1.51
Diluted 1.97 1.9 1.6 1.67 1.49
Weighted average shares outstanding
Basic 4504 4434 4387 4352 4317
Diluted 4584 4509 4450 4405 4367
EBITDA 14188 13917 11784 12431 10656

Discussion of Balance Sheet

From figure 1.2, it has shown that debt as a percentage of total capital has

decreased over the last fiscal year to 0. It is still in line with the beverage

industry norms. Current assets are enough to satisfy current obligation.

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Figure 1.2
COCA-COLA CO (KO) CashFlowFlag BALANCE SHEET
Fiscal year ends in December. USD in millions except per
share data. 2012-12 2013-12 2014-12 2015-12 2016-12
Assets
Current assets
Cash
Cash and cash equivalents 8442 10414 8958 7309 8555
Short-term investments 8109 9854 12717 12591 13646
Total cash 16551 20268 21675 19900 22201
Receivables 4759 4873 4466 3941 3856
Inventories 3264 3277 3100 2902 2675
Prepaid expenses 2781 2886 3066 2752 2481
Other current assets 2973 679 3900 2797
Total current assets 30328 31304 32986 33395 34010
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 23486 25032 25258 22354 21256
Accumulated Depreciation -9010 -10065 -10625 -9783 -10621
Net property, plant and equipment 14476 14967 14633 12571 10635
Equity and other investments 10448 11512 13625 15788 17249
Goodwill 12255 12312 12100 11289 10629
Intangible assets 15082 15299 14272 12843 10499
Other long-term assets 3585 4661 4407 4207 4248
Total non-current assets 55846 58751 59037 56698 53260
Total assets 86174 90055 92023 90093 87270
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 17874 17925 22682 15806 16025
Accounts payable 1969 1933 2089 2795 2682
Deferred income taxes 692
Taxes payable 471 309 400 331 307
Accrued liabilities 6711 7644 7145 6865 6116
Other current liabilities 796 58 1133 710
Total current liabilities 27821 27811 32374 26930 26532
Non-current liabilities
Long-term debt 14736 19154 19063 28407 29684
Deferred taxes liabilities 4981 6152 5636 4691 3753
Minority interest 378 267 241 210 158
Other long-term liabilities 5468 3498 4389 4301 4081
Total non-current liabilities 25563 29071 29329 37609 37676
Total liabilities 53384 56882 61703 64539 64208
Stockholders' equity
Common stock 1760 1760 1760 1760 1760
Additional paid-in capital 11379 12276 13154 14016 14993
Retained earnings 58045 61660 63408 65018 65502
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Treasury stock -35009 -39091 -42225 -45066 -47988
Accumulated other comprehensive income -3385 -3432 -5777 -10174 -11205
Total stockholders' equity 32790 33173 30320 25554 23062
Total liabilities and stockholders' equity 86174 90055 92023 90093 87270

Discussion of Cash Flow

Figure 1.3 shows the cash flow statement from to 2012 to 2016. In 2016, cash

reserve at Coca-Cola increased to $8,555million compared to $7,309million in

2015. One of the fundamental strengths of Coca-Cola is the ability to generate

from operating activity, however cash flow from operating activity decreased to

$8,796million in 2016 compared to $10,528million, mainly due to increased

expense in marketing and innovation activities.

Figure1.3

COCA-COLA CO (KO)
Statement of CASH FLOW
Fiscal year ends in December. USD in millions except per
share data. 2012-12 2013-12 2014-12 2015-12 2016-12
Cash Flows From Operating Activities
Net income 9086 8626 7124 7366 6550
Depreciation & amortization 1982 1977 1976 1970 1787
Deferred income taxes 632 648 -40 73 -856
Stock based compensation 259 227 209 236 258
Accounts receivable -33 28 -253 -212 -28
Inventory -286 -105 35 -250 -142
Prepaid expenses -29 -163 194 123 283
Accrued liabilities 770 22 151 -306 750
Other working capital -1502 -714 -566 488 -1084
Other non-cash items -234 -4 1785 1040 1278
Net cash provided by operating activities 10645 10542 10615 10528 8796
Cash Flows From Investing Activities
Investments in property, plant, and equipment -2780 -2550 -2406 -2553 -2262
Property, plant, and equipment reductions 143 111 223 85 150
Acquisitions, net 2189 519 -241 -1926 197
Purchases of investments -16391 -14782 -17800 -15831 -15499
Sales/Maturities of investments 5622 12791 12986 14079 16624
Other investing activities -187 -303 -268 -40 -209
Net cash used for investing activities -11404 -4214 -7506 -6186 -999
Cash Flows From Financing Activities

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Debt issued 42791 43425 41674 40434 27281
Debt repayment -38573 -38714 -36962 -37738 -25615
Common stock issued 1489 1328 1532 1245 1434
Common stock repurchased -4559 -4832 -4162 -3564 -3681
Dividend paid -4595 -4969 -5350 -5741 -6043
Other financing activities 100 17 -363 251 79
Net cash provided by (used for) financing activities -3347 -3745 -3631 -5113 -6545
Effect of exchange rate changes -255 -611 -934 -878 -6
Net change in cash -4361 1972 -1456 -1649 1246
Cash at beginning of period 12803 8442 10414 8958 7309
Cash at end of period 8442 10414 8958 7309 8555
Free Cash Flow
Operating cash flow 10645 10542 10615 10528 8796
Capital expenditure -2780 -2550 -2406 -2553 -2262
Free cash flow 7865 7992 8209 7975 6534

Discussion of Financial Ratio

The company is working well in the generation of profits, as it has shown a very

high percentage of gross margins. The profit of the company is very high and

shows that the company is good in pricing strategy and in controlling its

operation cost. Assets turnover ratio is very low which means sales generated

per dollar of assets are low but the company was doing well in inventory

turnover.

Conclusion
The financial analysis of coca cola may conclude that the company is in a very

strong financial position. However, at a global level, stagnation in carbonate

will affect volume growth for cocacola

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 STATEMENT OF PROBLEMS

Health Awareness Trend

A major weakness that The Coca-Cola Company is facing right now is its lack

of beverages that meet the need of health conscious consumers. A few years

ago, Coca-Cola tried branding into healthy beverages, “In January 2004, Coca-

Cola, in association with Coca-Cola Enterprises (CCE), introduced the Dasani

brand of bottled water in the UK. By March 2004, Coca-Cola recalled the

product owing to the discovery of excess levels of bromate in the product,

which could cause side effects including cancer in human beings. This resulted

in recall expenses of US$32 million for the company in the year.” (ProQuest)

Trying to brand itself as a healthy option is really difficult for Coca-Cola.

Because of most of its products being known as junk and unhealthy, the healthy

beverage market has proven difficult to be penetrated by Coca-Cola.

Health and wellness continues to be a major trend across the global beverage

market. A study in the medical journal The Lancet in 2001 showed that daily

serving sweetened soft drink increases the risk of becoming obese. Although

diet soft drinks is soft drinks as a healthier substitute, but a 2004 study

discouraged obese children to take diet soft drinks since they have no nutritive

value. Most soft drink consumers are slowly shifting their consumption to

products that are healthier or have fewer negative side-effects.

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Increased competition from PepsiCo
For more than a century, Coca-Cola and PepsiCo have battled in cola war.

However, as PepsiCo diversifies it product mix to food, especially healthy food,

it overtook Coca-Cola in terms of its market capitalization in December 2006.

Coca-Cola feel slight behind at US$97.9 billion to PepsiCo’s US$98.4 billion.

The non-alcoholic beverage segment of the commercial beverage industry is

highly competitive. Other significant competitors include, Nestlé, DPSG,

Groupe Danone, Kraft, Suntory and Unilever. In certain markets, the

competition also includes major beer companies that also distribute non-

alcoholic beverages.

SITUATION ANALYSIS

The obesity controversy is one of the most important issues shaping the soft

drink industry's future. This is an issue to which the company was slow to react.

It did not do a good job in understanding consumer needs. Added to this, health

concerns vary enormously between social and occupational groups. It has taken

consequential effect on the operating revenue due to decline in demand for

carbonated products; PepsiCo on the other hand read the situation went into

market diversification

For more than a century, Coca Cola and PepsiCo vied for "throat share "of the

world's beverage market. The most intense battles in the so-called cola war were

fought over the $90billion CSD industry in the United States (Yoffie and Slind

2006). Even though PepsiCo is an archrival of Coca Cola few people realise that
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PepsiCo is one of the largest and most diverse food companies in the world,

with annual revenues worth more than $60million and soft drinks only account

for a quarter of this sum. With its key umbrella brands of Tropicana, Quaker,

Frito-Lay and Gatorade sitting alongside Pepsi itself, the company is a global

marketing machine managing 17 brands that each generates $1 billion or more

in annual sales. In conclusion, competition from PepsiCo will remain a threat

for Coca-Cola for years to come

ALTERNATIVE AND EVALUATION

There are various solution can be proffered for the problems of The Coca Cola

Company. With careful analysis we have highlighted three major solutions and

in this section it would be analysed in detail. The solution includes the

following

 Product Diversification

 Health and Wellness trend

 Product Marketing

Product Diversification
If Coca-Cola focuses only on the carbonated soft drink sector competitively, it

will weaken or make Coca-Cola lose the market leader in beverage industry.

Coca-Cola can focus more on bottled water, noncarbonated drinks, and

especially energy drinks. In 2010, energy drinks shot up by almost 50%. In

2016, energy drinks still had 10% growth. Energy drinks and healthy drinks will

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be major beverage needs of new generations of young consumers and health

conscious consumers.

Health and Wellness Trend

PepsiCo is moving forward with commitment to provide industry leadership in

the health and wellness arena. For example, one of the key initiatives is

PepsiCo's smart spot product support as a national sponsor of the YMCA

activates America on the move. PepsiCo launched the Smart Spot symbol, the

first of its kind designation that makes it easier for consumers to identify

PepsiCo's products that can contribute to a healthy life style. It would be

advised for Coca cola to create an innovative health and wellness trend.

Product Marketing
We analyse if the company invest more in marketing and innovation of their

product could help improve the declining sales of the company.

Currently the company has a standard marketing and promotion structure,

therefore proposing this as a solution would make the company incur money

expense and no gain.

A perfect example is cash flow from operating activity decreased to

$8796million in 2016 compared to $10528million, mainly due to increased

expense in marketing and innovation activities.

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 RECOMMENDATIONS

Coke will always be the leading brand of cola until the end of time. But the

value of that cola category is to set plummet over the next 10 years. It's no good

being a big fish in an ever smaller pond. Coca-Cola needs to diversify to other

segment of the economy. The business environment is changing and people are

taking measures to ensure that they are not obese.

Carbonated beverages are one of the major reasons for fat intake and Coca-Cola

is the largest manufacturer of carbonated beverages. PepsiCo is in a much

stronger position versus Coca-Cola because it derives less than half its global

profit from soda beverages, compared to 75% of revenues at Coca-Cola.

The company needs to maintain coke sales as much as possible and manage the

decline as well as they can while urgently looking to diversify and acquire new

brands that are fit for the 21st century.

Within the products in PepsiCo, only 37% of products are beverages. CocaCola

should focus on beverages business and related businesses, e.g. bottling, sugar

plantation or even tin can and glass recycling business. Nowadays,

environmental change is rapid. Coca-Cola should be sensitive of any new trend

and position itself as a unique brand in order to keep its competitive advantage.

Finally Coca-Cola should provide industry leadership in the health and wellness

area. It should produce different kinds of products for different segments of the

market. In baby boomers’ market, Coca-Cola should focus on marketing tea and

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 water beverage which contain less sodium and sugar. In younger generation

market, besides sport drink and energy drink, Coca-Cola can produce organic

beverages for younger people.

APPENDIX
Performance Graph
Comparison of Five-Year Cumulative Total Return Among
The Coca-Cola Company, the Peer Group Index and the S&P 500 Index
Total Return
Stock Price Plus Reinvested Dividends

Year Ended December 31, 2016 2015 2014

(In millions except per share data)

EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

NUMBER OF COMMON SHARES OUTSTANDING

Balance at beginning of year 4,324 4,366 4,402

Treasury stock issued to employees related to stock compensation plans 50 44 62

Purchases of stock for treasury (86) (86) (98)

Balance at end of year 4,288 4,324 4,366

COMMON STOCK $ 1,760 $ 1,760 $ 1,760

CAPITAL SURPLUS

Balance at beginning of year 14,016 13,154 12,276

Stock issued to employees related to stock compensation plans 589 532 526

Tax benefit (charge) from stock compensation plans 130 94 169

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 Stock-based compensation expense 258 236 209

Other activities — — (26)

Balance at end of year 14,993 14,016 13,154

REINVESTED EARNINGS

Balance at beginning of year 65,018 63,408 61,660

Net income attributable to shareowners of The Coca-Cola Company 6,527 7,351 7,098

Dividends (per share — $1.40, $1.32 and $1.22 in 2016, 2015 and 2014, respectively) (6,043) (5,741) (5,350)

Balance at end of year 65,502 65,018 63,408

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Balance at beginning of year (10,174) (5,777) (3,432)

Net other comprehensive income (loss) (1,031) (4,397) (2,345)

Balance at end of year (11,205) (10,174) (5,777)

TREASURY STOCK

Balance at beginning of year (45,066) (42,225) (39,091)

Treasury stock issued to employees related to stock compensation plans 811 696 891

Purchases of stock for treasury (3,733) (3,537) (4,025)

Balance at end of year (47,988) (45,066) (42,225)

TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF

THE COCA-COLA COMPANY $ 23,062 $ 25,554 $ 30,320

EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS

Balance at beginning of year $ 210 $ 241 $ 267

Net income attributable to noncontrolling interests 23 15 26

Net foreign currency translation adjustment (13) (18) (5)

Dividends paid to noncontrolling interests (25) (31) (25)

Contributions by noncontrolling interests 1 — —

Business combinations — (3) (22)

Deconsolidation of certain entities (34) — —

Other activities (4) 6 —

TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS $ 158 $ 210 $ 241

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