The Coca-Cola Company helped McDonald's to execute a three-pronged strategy for orange juice raw material pricing that delivered $4 million in savings. We also aligned to a two-year apple juice contract that will ensure competitive and predictable pricing for McDonald's restaurants in the U.S.

More juicy savings on behalf of McDonald's include:

• Linking McDonald's supply chain to The Coca-Cola Company's largest co-op of orange growers in Florida for more cost savings.
• Converting several juice lanes to intermodal logistics, which netted annual system savings of $240,000.

Close

McDonald's sells more Sparkling beverages than all other beverages combined, including three of the top five Sparkling brands: Coca-Cola, Diet Coke and Sprite. To make sure consumers in each local market have the Sparkling and other beverages they prefer, we invested significant resources in a Brand Optimization initiative for McDonald's restaurants.

We provided the data and insights that helped restaurants in each geography vote for the blend of core and regional beverage brands that best reflect their local market demographics. Voting is now complete and by the end of 2011, all U.S. McDonald's restaurants will be dispensing their chosen brand sets in a conversion that has so far proven to be extremely smooth.

Close

You saw it displayed at last year's worldwide convention in Orlando. Now, Coca-Cola Freestyle^® is up and running in three McDonald's restaurants in Atlanta, GA, two in Southern California and one in Dallas, TX. Proof of concept testing with McDonald's has provided direction relative to the benefits as well as the opportunities for Freestyle within McDonald's. Coca-Cola and McDonald's are working together on testing Freestyle in several restaurants in the NY market to better understand the impact of Freestyle on restaurant economics, operations, supply chain and McDonald's consumers.

Freestyle^® delivers a greater beverage variety in strategically important categories for McDonald's growth agenda, including low-calorie, non-carbonated and kid-friendly drinks. With 125 brand choices for consumers and easier maintenance for managers and crew, Freestyle^® is a win for everyone. We'll continue to monitor results from the test location to gauge Freestyle^®'s applicability to the broader McDonald's system.

Close

Coca-Cola Zero^® is attracting young consumers to restaurants across the U.S., following its high-profile entrance in Chicago, IL, and Atlanta, GA. Right now, Coke Zero is being tested in 800 restaurants in the East and Central Divisions.

Coca-Cola Zero offers teens and young adults real Coca-Cola taste with zero calories.

• 21 million U.S. consumers – 40% trial among males ages 18-34
• 19 consecutive quarters of double-digit growth in the U.S. General Market

Impressive volume results through September 2010 in the U.S. General Market:

• Total +17%
• Retail +13%
• Food Service +34%

Close

Promoting Coca-Cola glassware is clearly a strong business driver for the Coca-Cola-McDonald's partnership. In 2011, McDonald's customers will have the chance once again to get a FREE 16 oz. Genuine Coca-Cola Contour Glass whenever they buy an Extra Value Meal at participating McDonald's restaurants.

The Glassware program will run for four weeks in three promotional windows during July, September and November features four exciting new colors. This promotion has been a success for the U.S. system and we look forward to continuing it.

• 2009 Glassware Promotion Drove Sales
• Large EVM sales lift +112%
• Guest count +1%
• Sales +3%
• Average check +2%

Close

The “Any Size for $1” Beverage Value program continues to be a proven performer for the McDonald's system, with restaurants across the U.S. seeing an increase in guest count transactions, sales and operating profit. This program truly leverages the unique relationship between McDonald's and Coca-Cola and its value to consumers is evident every day.

More than 7,500 restaurants executed Beverage Value with Soft Drinks in 2010, and 67% maintained the program to year-end. Results for Any Size or Large Size were:

• Beverage units increased 4.5% to 6.6%
• GCs increased 3.9% to 4.3%
• Sales increased 2.0% to 2.6%
• Gross margin increased 1.3% to 1.7%

Close

Expanding our role with McDonald's, we're excited to be one of three suppliers providing the beverage base for popular McCafé Smoothies in the U.S. This is a completely new category for the Coca-Cola-McDonald's partnership and the first time we've collaborated within McDonald's Menu Management, New Products and Supply Chain.

Working at top speed, we stretched the Coke system to ramp up Smoothie base manufacturing in record time. Next, we took our collaboration further by offering packaging expertise and sharing proprietary technology to enhance a dispensed packaging solution for all Smoothie base suppliers. Our efforts increased speed to market for McDonald's Smoothie products.

Close

At The Coca-Cola Company, we care deeply about Ronald McDonald House Charities (RMHC) and we have put our commitment into practice in many significant ways over the years. Last fall, we celebrated the opening of the 300th Ronald McDonald House with our friends from McDonald's and RMHC. The new Ronald McDonald House will serve 700 additional families per year whose children are receiving medical care. This event highlighted our 32-year partnership with RMHC.

Along with donating funds and volunteering time in Ronald McDonald Houses, we also support a unique vending program with RMHC. Each year, we donate more than four million cans of products for vending machines in 300 houses around the world. Beverages purchased from those vending machines generate thousands of dollars in revenue for each House.

Close

What if we could produce a package partially made from plant-based material that is 100% recyclable like conventional PET bottles? We've done it with our PlantBottle™ packaging, the first recyclable PET plastic beverage bottle composed of up to 30% plant-based material.

PlantBottle™ packaging helps reduce dependence on non-renewable petroleum resources while turning waste into a resource. And, it's the recipient of the prestigious DuPont Award for Packaging Innovation. In 2010, all U.S. McDonald's restaurants offered the Dasani PlantBottle™ packaging. We expect to use five billion PlantBottle™ packages in 2011.

Close

111 recycled PET bottles. That's what went into making one of the world's most recognized and resilient chairs, the 111 Navy Chair, which debuted at McDonald's restaurants in Orlando, FL.

This innovative chair was born from a Coca-Cola partnership with Emeco and successfully launched through the vision of McDonald's U.S. Owner-Operator Frank Chalfont who owns six Orlando restaurants. He was the trailblazer responsible for 40 McDonald's around the world adopting the 111 Navy Chair as part of their décor.

“We continue to receive positive comments about Emeco's recycled material 111 Navy Chair,” said Frank. “Utilizing a ‘green’ chair was an important consideration as we re-introduced our restaurants to the market with a contemporary building exterior and interior.”

Close

The results are in from The Coca-Cola Company's satisfaction survey of McDonald's Owner-Operators. We asked you how you think we're doing as a partner and you said you're highly satisfied with our partnership, and opportunities exist for us to improve.

Specific results of the survey include:

• Favorable perceptions of The McDonald's Division (TMD) have substantially increased since the last survey, with 89% of Owner-Operators perceiving TMD as having "Best in Class" performance.
• Scores indicate high satisfaction with The Coca-Cola Company as a marketing partner.
• In general BDLs and McOMs are highly rated.
• Service issues still exist in QMP, operational satisfaction and response time. We have clearly heard your concerns and we are focused on improving these areas.

Close