are making across our business, we know greater opportunities still exist. We remain constructively discontent. 

We are confident, though, that our strategies and structures are coming together. Our business-planning process this past year has been as robust as any we have witnessed in our careers. If 2007 was “the year of winning again,” then 2008 will be the year “we execute to peak performance.” 

THE ROAD AHEAD 

To reach our peak performance in 2008, we will focus on five strategic priorities: 

First, we will continue to grow our leadership in sparkling beverages, the core of our business today and tomorrow. We know there is tremendous opportunity to grow

our sparkling beverages in both developed and emerging markets. 

Second, we will drive even faster growth in our still beverage portfolio by adding new functional benefits, developing affordable formulations, pursuing relevant bolt-on acquisitions and seeking margin enhancements. Juice and juice drinks, sports drinks, water, coffees, teas and emerging categories offer exciting opportunities for future growth around the world. 

Third, we will continue to generate and take advantage of the balanced growth we have achieved across our portfolio and the markets we serve. In the world’s emerging economies, our business is buoyed by growing urbanization, rising middle-class consumers and the corresponding conversion to ready-to-drink beverages that meet new lifestyle needs. In North America, our flagship market, we will continue to focus on renewing the health of our business. 

Fourth, we will accelerate the rich innovation pipeline of ingredients, sweeteners, packaging and equipment that generate profit and value for our system. We will continue to advance structural and organizational initiatives designed to expedite the time it takes to move ideas to the market. 

And fifth, we will strengthen Coca-Cola system capabilities. This begins with further enhancing our core capabilities of consumer marketing, commercial leadership and franchise leadership—all designed to connect more deeply with consumers and our more than 20 million customer outlets. 

Productivity is another system enabler that can further our growth. Part of the savings gained from our supply chain, marketing and operating efficiencies can be reinvested

to help drive top-line growth and sustain results. 

Winning changes everything—winning today, and the confidence of winning tomorrow. 

Everything we do will be aligned with our vision of creating greater value for our shareowners, bottling partners, customers and consumers by shaping positive and unforgettable experiences at every point of contact with our Company, the Coca-Cola system and our brands. 

Ultimately, our commitment is to reward the faith you put in us by creating stronger and lasting performance. 



MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview 

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help the reader understand The Coca- Cola Company, our operations and our present business environment. MD&A is provided as a supplement