Central Missouri State University
Discussion Topics
• History of Coca-Cola • Development of Coca-Cola
Enterprises• Products of Coca-Cola• Benefit Administration Overview• Development of OneSource• Benefits Overview• 401(k) Plan Review
Did you know...• One of every three soft drinks consumed in the United States bears
the Coca-Cola trademark, and about half of all colas consumed carry the Coke name
• During 1886, sales of Coca-Cola averaged nine drinks per day (total, not per person). Most recently, sales of Coca-Cola products were more than 411 million drinks per day (total, not per person)
• If all of the Coca-Cola ever produced was in normal bottles placed end-to-end, they would wrap the earth 4,712 times.
• If the Coca-Cola vending machines in the US were stacked one on top of another, the pile would be over 450 miles high.
• The slogan "Good to the Last Drop" was first used by the Coca-Cola Company in 1908. It later became the slogan for Maxwell House coffee.
• Coca-Cola is available in more than 185 countries and asked for in more than 80 languages.
• CCE produces 3.2 billion cases of Coke products each year.
Important People
in
Coca-Cola’s History
John Pemberton
Frank Robinson
Benjamin Thomas & Joseph
Whitehead
Designers
Important Dates
• 1886- John Pemberton created Coca-Cola Syrup
• 1888- Coca-Cola Company purchased for $2,300 by Asa Candler
• 1901- First bottling franchise formed• 1915- Contour bottle developed• 1919- The Coca-Cola Company was sold for
$25MM• 1921- Over 1,000 bottling plants now in
existence• 1959- 12 ounce can introduced• 1960’s TAB, Fresca and Sprite introduced• 1970’s Bulk syrup tanks introduced
Important Dates
• 1982- Diet Coke introduced• 1983- New caffeine free versions introduced• 1985- Introduction of the new Coke- Months
later, Coca-Cola Classic was RE-introduced• Late 1980’s - Number of independent
Coca-Cola franchise ownerships in the U.S. down to 180
• Late 1980’s - Minute Maid Soda introduced • 1994 - Nationwide introduction of POWERADE• Late 1990’s - Fewer than 120 Coca-Cola
bottlers exist in the U.S.
The Development of
History of CCE
• 1970- Bottling franchise ownership began to consolidate
• 1986- Lupton franchises and BCI Holding Corporation’s bottling holdings merged to form Coca-Cola Enterprises
History of CCE• November 21, 1986- Coca-Cola
Enterprises offered stock to the public under the NYSE symbol “CCE”
History of CCE• 1991- CCE merged with Johnston
Coca-Cola
History of CCE• 1993- CCE Expanded into the Netherlands, and
smaller sales centers
• 1996- CCE made more acquisitions in the Southeast and Midwest U.S., Belgium, and France. CCE began acquisitions in England, Scotland, and Wales
History of CCE
• 1997- CCE acquired Coke New York, Coke Southwest, and Canadian territories
• 2001- CCE acquired the Herb Group Coca-Cola Bottling Company
History of CCE
Division
AtlantaCanadaCentral StatesDesert MountainEast TexasEastern Great LakesFloridaGulf StatesLakeshoreMid-AmericaMid-AtlanticMidwestNew EnglandNew YorkNorth TexasNorthern CaliforniaNorthwestSouthern CaliforniaSouthern StatesSouthwest TexasTri-State
CCE North American Divisions
CCE Facilities
Cross DockDouble BottomModified Cross DockPlantWet Warehouse
North American Facilities
Major Products of The Coca-Cola Company distributed by CCE in North America
Top Five BrandsCoca-Cola classicdiet Coke Spritecaffeine free diet CokeDasani
Barq's root beer and other flavorscaffeine free Coca-Cola classic Cherry Coke C2Dannon Waterdiet Cherry Coke diet Coke with lemondiet Coke with Limediet Vanilla CokeEvian FantaFrescaFruitopia
Products of Coca-Cola
A&W Canada DryDr Pepper
Dr Pepper - Red Fusiondiet Dr Pepper
EASMendotaNestea
Cool From Nestea diet Nestea
Odwalla Schweppes Seagrams
Simply Orange
Products of Other Companies
Distributed by CCE in North AmericaHi-C fruit drinks
KMXMad RiverManzana MiaMello YelloMinute Maid juices and juice drinksMinute Maid Lemonade and Fruit PunchMinute Maid and diet Minute Maid soft drinks Pibb X-traPOWERadeRed FlashSprite Remix TABVanilla CokeSprite Zero
The Coca-Cola The Coca-Cola CompanyCompany
•Manufacture concentrate•Develop advertising•Provide market support
• Combine concentrate with sweetener and carbonated water• Purchase packaging materials• Produce quality product in can/bottle• Establish wholesale pricing• Lend marketing support to retailer
• Distribute and merchandise the product
• Establish retail pricing - advertised specials• Partners in promotional programs• Develop and manage consumer focused marketing strategies
• Allocate retail shelf and display space
• Purchase and enjoy the product!
RetailerRetailer(Customer(Customer
))
ConsumerConsumer
Benefits Administration
Overview
Benefits Administration
• Benefits Overview– CCE spends in excess of $350M annually to
provide health and welfare and disability benefits to its employees.
• Prior to January 1, 2004– Decentralized administration, 20 plus divisions /
400 plus sales locations– Approximately 168 FTEs deliver decentralized
benefits services– No integration of disability leaves (WC, STD, LTD)
to manage cost– Non-bargaining employees benefits administered
electronically– Bargaining and Retiree benefits administered
manually (i.e. paper enrollments, no data feeds to carriers)
Benefits Administration
• Recommendation– Consolidate Benefits Administration, create
Service Center– Develop Benefits Administration System
for all employees– Outsource STD, LTD and FML
Administration – Create Knowledge Base of Benefit Plans– Project provides 10 year cash flow having
a net present value of $20 million and an Internal Rate of Return of 90%
OneSource Service Center
Overview
OneSource Service Center From the Beginning
• OneSource opened for business on January 2, 2004
• We opened with:– 1 Service Center Manager– 1 Supervisor– 1 Training & Communication Specialist – 1 Administrative Assistant– 8 Case Managers (Tier 2)– 19 Customer Service Representatives
(Tier 1)
OneSource Service Center Types of Requests
• New Hire/Newly Eligible Elections• Annual Enrollment/Contract Negotiations• Family Status Changes• Educational Assistance Requests and
Reimbursements• Adoption Assistance• Pension Requests• Medigap Reimbursements• Life Insurance Claims• Payroll Deduction Questions• Employee Web Assistance• Eligibility Issues• Plan Inquiries
OneSource Service Center January ~ August Metrics
• Total Calls Answered 84,334• % Answered w/in 30 Sec 71%• Average Call Time 390
seconds• % handled at First Point
85.10%• Total Employees who have
used the web at least once 23,100• Total Fulfillment Processed 24,000
Types of Employee Benefits
Overview
Benefits Overview• Core Benefits (Company Paid)
– Life Insurance
– Long-term Disability (LTD)
• Pre-Tax Benefits (Optional)– Medical, Vision and Prescription
Drug
– Dental
• After-Tax Benefits (Optional):– Supplemental Life Insurance
– Dependent Life Insurance
– Employee Assistance Program (EAP)– Manage Your Health (wellness program)
– Healthcare Reimbursement Account
– Dependent Care Reimbursement Account
– Supplemental LTD Insurance
– Supplemental AD&D Insurance
Health Programs
Online Resources
Health Publications
The Manage Your Health Components
NextSteps® Health
Coaching
NextSteps® Health
Coaching
CCEOneSource.comCCEOneSource.com
Specialty Health
Management
Specialty Health
Management
Health Assessment
Health Assessment
NurseLine/ Health Info
Library
NurseLine/ Health Info
LibraryTaking Care Newsletter
Taking Care Newsletter
MatriaCares.com/CCEMatriaCares.com/CCE
Live Nurse Chat
Live Nurse Chat
Coca-Cola Enterprises
ManageYour
Health
healthforums.comhealthforums.com
Taking CareReference
Book
Taking CareReference
Book
Other Employee Programs
• Defined Benefit Pension Plan • Defined Contribution Plan• Deferred Compensation Plan• Retiree Medical • Retiree Life• Educational Assistance• Adoption Assistance• Employee Stock Purchase Plan• Vacation• Paid Holidays• Personal Leaves• Sick Pay
401(k) Plan Overview
Matched Employee Savings
and Investment Plan (MESIP)
MESIP
• Company Matching Contributions
• Save automatically
• Pay less taxes now
• Tax-deferred advantage
• Portability
MESIP
• Saving on pre-tax basis, – Earnings grow tax-sheltered
• Contributions can be either pre-tax or after-tax– Up to 30% pre-taxed
• Pre-tax contributions are limited to a maximum of $14,000 in 2005.
– Up to 10% after-tax
What will it cost? IT ISN’T CHEAP
2003
Cup of coffee $1.25
Postage stamp $0.37
Gallon of gas $1.40
Movie ticket $8.50
Mid-priced car $25,800
Mid-priced home $171,667Sources: Specialty Coffee Association of America; U.S. Postal Service; WEXIndex®; National Association of Theatre Owners; National Automotive Dealers Association; American Housing Survey. Data reflect prices from these sources as of 2003.
Assumes a 3% rate of inflation.
1973
$0.10
$0.08
$0.40
$1.65
$10,346
$27,159
2033
$3.03
$0.90
$3.40
$20.63
$62,623
$416,681
DIFFERENCEINVEST 4%
BEFORE-TAXINVEST 3%
BEFORE-TAX
The result depends on your tax bracket and how much you save in your Plan account. In the example above, the example assumes the standard withholding for a single filer in the 25% tax bracket making $30,000 per year in 2004. Exemptions, itemized deductions, and state taxes are not reflected in this example.
It costs less than you might think
• Bottom line: You will be investing $6.00 more each week, but it will only cost you $4.00
Weekly gross income $577 $577 $0
Before-tax investment $17 $23 $6
Weekly take-home pay $438 $434 -$4
Annual retirement savings $900 $1,200 $300
* Before-tax savings assumes a hypothetical investment of $150 a month invested before-tax with annual returns of 8% compounded monthly with earnings reinvested. After-tax savings assumes a $150 investment taxed at a 25% federal rate for a hypothetical investment of $112.50 per month after-tax with annual returns of 8% compounded monthly with earnings reinvested. Capital gains, exemptions, deductions, and local taxes are not reflected. After-tax returns are subject to a capital gains tax, which was reduced in 2003 and would make the investment return for the taxable investment more favorable. Investors should consider the personal investment horizon and income tax brackets, both current and anticipated when making an investment decision, these may further impact the results of the comparison. The return is shown for illustrative purposes only and is not intended to predict the return of any investment in your plan, which will fluctuate. Regular investing does not ensure a profit or protect against loss in declining markets. Withdrawals are subject to income tax, and those made before age 59½ may be subject to an additional 10% tax.
Tax-deferred advantage
$18,436$51,980
$167,665
$392,738
$113,008
$224,043
$66,265
$20,581
10 years 20 years 30 years 40 years
After-tax saving
Before-tax saving
Fund styles*
* Styles are ranked according to market and credit risk. Market risk measures how sensitive a fund may be to economic and market changes. Market risk is generally higher for funds that invest heavily in stocks. Credit risk measures how susceptible a fund’s income holdings may be to the nonpayment of principal or interest by the issuer. Because blend funds have the flexibility to invest in both growth and value stocks in varying proportions, at any given time they may have a higher or lower risk/reward profile than value funds or growth funds.
Higher risk/higher potential
reward
Lower risk/lower potential
reward
GROWTHGROWTH
BLENDBLEND
INCOMEINCOME
CAPITAL PRESERVATIONCAPITAL PRESERVATION
VALUEVALUE
Your fund choices
Choose from three tiers of funds
Current prospectuses or offering statements for your new fund options were sent to you in a previous mailing. Review them carefully before making any investment decisions.
TIER 1 LifePath portfolios Single-fund
solutions to asset allocation
TIER 2 Core funds Your Plan’s
basic fund lineup
TIER 3 Sector funds Additional
specialized funds
LifePath portfolio lineup
LifePath portfolios are designed to be used as a single-fund solution to asset allocation
Higher risk/longer targeted investment period
Lower risk/shorter targeted investment period
Barclays LifePath 2040
Barclays LifePath 2030
Barclays LifePath 2020
Barclays LifePath 2010
Barclays LifePath Retirement Fund
Coca-Cola Enterprises Stock Fund (nondiversified fund)
50/50 Fund (nondiversified fund)
Putnam OTC & Emerging Growth Fund
MSIF Small Company Growth Portfolio
Putnam Capital Opportunities Fund
Putnam Vista Fund
INVESCO Energy Fund (sector fund)
Putnam International Capital Opportunities Fund
Putnam Mid Cap Value Fund
Putnam Research Fund
Janus Adviser Worldwide Fund
Putnam Investors Fund
MSIF Equity Growth Portfolio
American Century International Growth Fund
Tier 2 and Tier 3 fund lineupYour six sector funds typically concentrate their investments in one region or industry and involve more risk than funds that invest broadly
Higher risk/higher potential reward
(continued on following slide)
Putnam International Equity Fund
Putnam S&P 500 Index Fund
Putnam International Growth and Income Fund
Templeton Growth Fund, Inc.
Barclay’s Global Investors MSCI World Equity Index Fund ex-US
STI Classic Small Cap Value Equity Fund
The Putnam Fund for Growth and Income
Putnam Health Sciences Trust (sector fund)
Van Kampen Utility Fund (sector fund)
Oppenheimer Quest Global Value Fund, Inc.
MSIF U.S. Real Estate Portfolio (sector fund)
Putnam Asset Allocation: Balanced Portfolio
PIMCO High Yield Fund (sector fund)
Putnam Bond Index Fund
PRIMCO Stable Value Fund
Tier 2 and Tier 3 fund lineup
Lower risk/lower potential reward
(continued)
Questions