A Message From dots

Muhtar Kent & John Brock

Muhtar Kent and John Brock
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For the past 18 months, The Coca-Cola Company has been diligently working with our bottling partners around the world to develop our 2020 Vision, our roadmap for winning together. At the heart of our 2020 Vision is a deep commitment to best serve our consumers and customers everywhere.

In this spirit, The Coca-Cola Company and Coca-Cola Enterprises are jointly announcing decisive actions to strategically advance our partnership. These actions support our 2020 Vision, and will strengthen our franchise model and drive long-term shareholder value for both companies.

The Coca-Cola Company, in a substantially cashless transaction, will acquire CCE’s entire North American business, which consists of approximately 75 percent of U.S. bottler-delivered volume and almost 100 percent of Canadian bottler-delivered volume.

The Coca-Cola Company has also agreed in principle to sell its Norway and Sweden bottling operations to CCE, and to give CCE the right to acquire The Coca-Cola Company’s 83 percent stake in the German bottling operations 18 to 36 months after close for fair value.

At closing, The Coca-Cola Company will rename the sales and operational elements of CCE’s North American businesses Coca-Cola Refreshments USA, Inc. (CCR-USA) and Coca-Cola Refreshments Canada, Ltd. (CCRC). Following the close, The Coca-Cola Company will fold in the vast majority of its U.S. and Canada businesses into CCR-USA and CCRC, respectively.

In the U.S., CCR-USA will be organized as a unified operating entity with distinct capabilities, including supply chain and logistics and sales and customer service operations. In Canada, CCRC will be a single dedicated production, marketing, sales and distribution organization. And in Europe, a new entity, which retains the name CCE, will hold CCE’s European businesses, including the Norway and Sweden businesses which CCE has agreed in principle to acquire. CCE’s current public shareowners will hold 100 percent of this new entity.

This dynamic evolution will create an unparalleled combination of businesses for The Coca-Cola Company, which will serve as a passport for winning in North America, the world’s largest nonalcoholic ready-to-drink profit pool. CCE will remain the preeminent Western European bottler, with an improved growth profile and enhanced revenue, margins and EPS growth prospects.

Today’s moves are a step change in the execution of our long-term growth strategy and represent a significant strengthening of our franchise system, which we continue to believe is the best way to win in the marketplace. We enter this new decade with a bold 2020 Vision, an aligned and strengthened system, and a global talent pool of extraordinary people who have the deep skills, passion and commitment to transform our companies and our industry.

We will construct a well-developed integration plan, which includes new strategies to better address the external sources that will shape our business today and well into the future. In addition, we have a high degree of confidence in our ability to direct and execute this important initiative. We will announce leadership appointments as we continue to develop the integration plan.

We’re excited about this evolution and what it means for the future of our respective businesses. We hope you are too.

Sincerely,

MK Signature

Muhtar Kent

JB Signature

John Brock

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