A MESSAGE FROM M. DOUGLAS IVESTER


   
 
 
Now and always: That, in three words, is how we view this business.
That dual vision, simultaneously nearsighted and farsighted, is only natural for a Company with our history and our future. And I cant think of another year when it was more useful or more appropriate.
Last year, as our stock slid from its July high, pundits were quick to pronounce us and other multinational companies passé. Exposed to the worlds economic woes, we were deemed to be – get this – too global.
We are, in fact, global. We do operate in nearly 200 countries. It was a strength last year, and it still is. Weve worked very hard to become one of the few companies that can reach literally billions of consumers. Were reaching more of them every day. And in case anyone wonders, were not about to turn back now.
We take the label global as a compliment. I say that because the worldwide position of leadership that makes us subject to global economic turbulence – and make no mistake, 1998 was a turbulent year – only boosts our confidence for the future.
The economic conditions we saw in a number of markets in 1998 – such as Japan, Germany, Thailand and Brazil – certainly dampened our short-term results. But they remind us why we manage this business with a view to the long term. Global economic worries are new to some companies, but in a sense, we have seen this movie before. In 113 years, there is scarcely a place where we have not weathered economic storms.
Our unparalleled business system was built by decades of investment, commitment and faith. Businesses fixated on the short term could have easily shunned the United States in the 1930s, Europe in the 40s, Latin America in the 70s, Africa in the 80s. This Company did not, and our success today demonstrates the virtues of taking the long view. It is ingrained in our culture: This Company has invested and grown during world wars, hyperinflation and depression. In 113 years, volume has declined only 12 times, the last time 44 years ago.
For us, always is more than an advertising slogan; its a business plan. As we manage through the day-to-day concerns of our business, we work to stay mindful of the long term.
Certainly, we are subject to the ebb and flow of the worlds economies – and we have seen quite a bit of ebb in the past year. We know firsthand what happened as economies from Asia to Russia to Latin America ran into trouble. It had a dramatic cumulative impact, even on a Company that sells a simple moment of refreshment for mere pocket change.
 
 

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