The leader in the beverage industry

The Coca-Cola Company is the leader in the beverage industry. It is ranked as the number one supplier of sparkling drinks, juices and juice beverages, and ready-to-drink coffees.

It presently provides approximately 1,200 no- and low-calorie goods internationally, with almost 200 no- and low-calorie goods introduced in 2016 .Its primary products are about 500 nonalcoholic beverage brands, gathered in the following category groups: sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks . In most of Coca-Cola’s beverages, water is the key component. Apart from water, other raw ingredients used in this industry are nutritious and non-nutritious sweeteners. In the U.S., the main nutritious sweetener is high fructose corn syrup (“HFCS”), that is equal to sugar from the nutrition aspect.

In other states (outside the USA), the prime nutritive sweetener utilized in this business is sucrose, that is table sugar, that is as well offered from many sources and has factually been a focus to instabilities in its marketplace value. In the category of the main non-nutritive sweeteners are included aspartame, acesulfame potassium, sucralose, saccharin, cyclamate and, steviol glycosides. These ingredients are obtained from different suppliers. To produce juice and juice beverages the main components that are used are juice and juice essence from several fruits. Moreover, to get to the final goods, several additional raw resources are used together with, but not restricted to polyethylene terephthalate (“PET”) resin, preforms and bottles. Other materials used for bottles and cans are glass and aluminum; aluminum and steel cans; plastic ends; aseptic fiber wrapping; labels; cartons; cases; postmix packaging; and carbon dioxide. The above components are usually acquired from numerous suppliers and factually have not encountered substantial deficiencies over the years. According to the Consolidated Statements of Income, sales at the end of the year 2017 are $ 35,410 million. This amount is lower compared to previous years. The decrease in sales is due to public awareness of side effects that cause sparkling soft juices to our health. Currently, Coca-Cola possesses 32 Main Essence and/or Syrup Plants, 44 Main Drink Industrial/Bottling Plants,36 Delivery and Storing Warehouses. Total assets at the end of 2017 and 2016, as shown in the balance sheet, are $ 87,896 million and $87,270 million correspondingly. The number of employees went from 100,300 in 2016 to 61,800 in 2017. At the end of the years 2016, 2,900 employees were hired by consolidated variable interest entities (“VIEs”). Meanwhile, at the end of 2017, there was no personnel hired by consolidated VIEs.

The company’s worldwide headquarters is situated on a 35-acre office compound in Atlanta, Georgia. This company is closely associated with its bottling partners for a considerable portion of its business. If Coca-Cola wouldn’t have a good relationship with its bottling partners, the business could experience difficulties. When it comes to competitors, PepsiCo, Inc. (“PepsiCo”), is one of its main competitors. In Item 1 of the Form 10-K is included information about the business. It’s given a general description of the company, its operating segments, products, and brands etc. Whereas in Item 1A is given information about risk factors and company financial condition or results of operations that could affect this company in the future. The information found in Item 1and 1A is useful because it includes some of Audit planning steps. These steps take into consideration the business and industry of a certain company. Also, an evaluation of the firm’s business risk is done and is acquired information that estimates fraud risks .

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