At this time, I'd like to welcome everyone to The Coca-Cola Company's Fourth Quarter Earnings Results Conference Call. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be on listen-only mode until the formal question-and-answer portion of the call. I would like to remind everyone that the purpose of this conference is to talk with investors, and therefore, questions from the media will not be addressed. Media participants should contact Coca-Cola's Media Relations Department if they have any questions. I would now like to introduce Mr. Tim Leveridge, Vice President and Investor Relations Officer. Mr. Leveridge, you may now begin.

Good morning and thank you for joining us today. I'm here with James Quincey, our Chief Executive Officer; Kathy Waller, our Chief Financial Officer; and John Murphy, our incoming Chief Financial Officer. Before we begin, I would like to remind you that this conference call may contain forward-looking statements, including statements concerning long-term earnings objectives, and should be considered in conjunction with cautionary statements contained in our earnings release and in the company's most recent periodic SEC report. As a reminder, we will be hosting a separate modeling call at 10:30 AM this morning to review our 2019 outlook in greater detail and allow sufficient time to address questions pertaining to guidance. We posted schedules under the Financial Reports and Information tab in the Investor Section of our company website. These schedules reconcile certain non-GAAP financial measures, which may be referred to by our senior executives during this morning's discussion, to results as reported under generally accepted accounting principles. Finally, during today's call, when our senior executives refer to comparable performance, they are referring to comparable performance from continuing operations. Following prepared remarks this morning, we will turn the call over for your questions. Please limit yourself to one question. If you have more than one, please ask your most pressing question first and then reenter the queue. Let me now hand the call over to James.

Thanks, Tim, and good morning, everyone. 2018 we concluded another quarter of solid operating performance capping off a successful year. The nonalcoholic beverage industry was stronger in 2018 as emerging and developing markets accelerated from the prior year while the developed world held hits volume trajectory on top of stronger pricing. Our business performed well across all key dimensions in 2018 as we leveraged our transformation as a total beverage company. Most notably, we gained global value share and those share gains were broad based. We held or grew value share across each of our geographic segments. Organic revenue grew 5% versus our goal of 4% driven by strength across all operating segments. Underlying operating income grew 11% versus our goal of 8% to 9% as we built momentum through the year while accelerating the capture of productivity savings. This resulted in an approximate 170 basis point expansion in the underlying operating margin. And comparable EPS grew 9% in line with our guidance of 8% to 10% despite absorbing $600 million in stronger currency and structural headwinds than we anticipated at the beginning of the year. Our results reflect actions taken over the past several years to transform our business for long-term success. Execution is getting better. We set ourselves up for the future with an energized bottling system that is bringing a renewed focus on execution around the world and in particular several key markets including North America where we have completed our refranchising activities. Pricing power is improving. We are delivering accelerated top line growth as we continue to implement revenue growth management initiatives in markets around the world and marketing is becoming sharper. We are focusing on innovation that leverages brand edge and retro building, with increased efforts to digitally connect with consumers. And we have begun…

Thank you, James and good morning everyone. During my time as CFO, I've met personally with many people who are on the call this morning, from analysts who follow our industry to investors in our company and many of our associates and partners that I know are listening this morning. I thank each and every one of you and many others for your help, whether it was in the form of guidance, support, plotting or accounting. Each encounter helped me to be a better CFO and a better representative of this company that I love. Effective March 15, I retire after 30 plus years at the Coca-Cola Company. From the very beginning with my start in accounting research I've had amazing opportunities to learn and grow and eventually become a leader in the company. I am very proud to have been a part of this company and this system. Coca-Cola is about experiences and making lives better for everyone who touches our system, from the smallest shop or kiosk owner to the largest customer, those who simply enjoy drinking our products. It has been my privilege to be a part of this extraordinary business and it would be my pleasure to watch Coca-Cola continue to grow and evolve under the leadership of James, Brian, John and the rest of the leadership team. Along with the hard work and support of the 700,000 people who are taking this symptoms into the future. And with that, I will hand this call over to the future. I'll let John take it from here.

Thank you, Kathy. You've been a great partner over the years and you leave behind a tremendous legacy. My congratulations to you on our retirement and my appreciation as well for your many contributions over the years to the company and especially to many people in the company. Now I look forward to partnering with James and Brian to drive the business going forward, and before I begin, let me just take a moment to talk about my key priorities going into this role. Number one, will be rise, healthy top line growth leveraging our expanding portfolio. Number two will be to improve margins in all our operating segments. Number three will be to optimize our balance sheet and allocate capital in a disciplined manner to our highest return activities. Number four, will be to drive a culture of agility and productivity across the enterprise. And number five will be to develop our people and build the capabilities that we need in the company going forward. Ultimately, I will be looking to push our enterprise to find opportunities to sustainably maximize free cash flow and returns. Turning to our financial performance, as James said, 2018 was a good year. We delivered 9% comparable EPS growth due to momentum in the underlying business, accelerated productivity, and a favorable tax rate. Our press release covered our fourth quarter results in detail so I will focus on our 2019 guidance. At our high level we expect 4% organic revenue growth, double-digit comparable currency neutral operating income growth, comparable EPS to range from plus 1% to minus 1%, and free cash flow of at least $6 billion. Now, let me touch on the key considerations and assumptions embedded in our outlook. We expect global growth to be slightly lower than in 2018 with continued…

Thank you. [Operator Instructions] Our first question comes from Bryan Spillane with Bank of America. Your line is now open.

Hey, good morning everyone.

Good morning, Bryan.

And Kathy, just to get in one more time, just congratulations on a great career and wish you all the best as you move on.

Thank you, Bryan.

So I guess James, just my one question is really around EPS guidance this year being flat and I think previously we've talked before about kind of a commitment to dollar EPS growth. So I guess one is that's still sort of a commitment going forward, but more importantly maybe could you maybe talk about some of the considerations? I understand the currency headwinds being a big part of it this year, but just what other trade-offs you might have made in terms of what you are choosing to invest this year versus maybe dropping more to the bottom line?

Sure, good morning Bryan. Firstly, the whole idea of the in a way the three-legged stool is still absolutely valid and important and just to recap what I meant by that. This is a business that predominantly wins all those, but our focus is on wining in the local marketplaces. We focus on getting the consumers and growing customer value in each and every country and so there is very much a focus on getting that to work and I think over the last few years you've seen accelerated performance of us able to drive the industry grow and capture share within that and that's a starting point of value creation for the Coke company to work on that and making sure the operating margins of how we do that are all the same or better, such that we turn that revenue growth into profit growth at the local level. And then as you said we have in more recent years had a more intense focus on making sure that sum of the parts is more than just the sum of the parts and the lever is necessary to turn that into U.S. dollar EPS earnings after a number of years where currency had eroded that and the EPS had effectively declined. That's still our going in objective. The guidance is where we stand today, it's a really strong operating plan for 2019. I think we are being cautious about the macroeconomics and how that's going to be a little softer than 2018, but a strong plan behind the marketing, the execution and innovation. And absolutely we are reflecting here in our guidance where currency and interest rates and tax sit today which are the three in a way non-controllable factors. There is a long way to the end of the year and they could change markedly. But our focus will remain and our mission will remain to end the year with positive EPS growth. We would be disappointed if it wasn’t positive. But we wanted to share with you where things stand today and we will focus on pulling the levers that we can pull to get to the result that we want.

Thank you. And our next question comes from Lauren Lieberman with Barclays. Your line is now open.

Great, thank you, good morning.

Good morning, Lauren.

Hey, I was hoping you guys could talk a little bit about North America this quarter. So the flat organic sales growth looks pretty different than what we'd seen in the Nielsen data. So I think a big question would be kind of what drove that gap and if you could give us any updates specific to North America outlook I think everyone is worried about is you had a resurgence set of competitors, is that driving an impact or even how you're planning for that as you look into 2019? Thanks.

Sure, yes, we were a little softer in the fourth quarter in North America and I think part of that is we took the medium price increase going into the – or in the middle of the summer and it took a while for it to flow all the way through to the consumers. That's a really – I think it was more fully in the marketplace by the end of the summer and obviously then coming into the fourth quarter. So I think you saw a little of the effect of the price increase more actually in the fourth quarter than in the third quarter when the system was taking it and I think that kind of combined with a little bit of consumer outlook malaise in that period of time, so a little softening of the volume. But then it started to pick up and so we started the year well, this year in terms of North America volume and price mix was also continued to be positive through the back of the year. I know it's only comes through as 2% in the fourth quarter for North America. There remain - this carries with it some of the oddities of which business system was growing because the juice business which is finished goods business where we were rightsizing the packaging and seeing volumes go down, obviously finished goods versus the sparkling which is concentrate and it has that mechanical effect that the faster the sparkling business grows the more it actually affects mix in a negative way, but that does not affect profits and it does not affect the marketplace. So there's a little bit of mix and the freight and all the noise, but let's draw a line because the good news is 2018 has ended. The freight accounting issue is disappeared for 2019. The marketplace pricing is clear and positive going into 2019 and the businesses started with a foot forward and so we are confident we have the right strategy for North America and that we will see the benefits of that strategy flowing more simply and more clearly through the results in 2019.

Thank you. And our next question comes from Judy Hong with Goldman Sachs. Your line is now open.

Thank you, good morning.

Good morning, Judy.

Good morning.

And Kathy, again congratulations from my end as well. I guess James, just your comment about good start to the year, was that specific to North America as you alluded to the prior question? And then as you kind of think about the comment about increased volatility in the global macro environment maybe you can talk a little bit about some of the key markets where, some of that concerns persist and how much is that sort of factored into that 4% organic revenue guidance? Thanks.

Sure, my comment about good start to the year was both about North America and globally. We have started the year only six weeks. It's a long year, but the – what is good is it started off well in terms of volume and therefore we see ourselves start the year with a good balance of volume growth and price mix that is very consistent with having a balanced contribution to driving the top line guidance and as I said, North America is good. We have seen to have had a good Chinese New Year. You never quite really know until the end of February, but it seems like it has been a strong Chine New Year. Brazil is looking a little better. Mexico seemed to have started well given some cold weather at the back end of last year. You heard about the European outlook today this morning. So we think we started well, a long year to go, great plans. Also that will need managing no doubt and the volatility, so we baked in what we know today. Clearly there are places where weakness is apparent. Argentina went down quite strongly in the fourth quarter and that's likely to continue in the first half of this year. Turkey, very similarly, some parts of the Middle East. We've baked in what we see and what we believe is likely to be the softening of the global macro outlook and in the countries which are more apparent. Clearly the visibility is more apparent in the first half of the year than the second half. Hopefully the world will turn a little and the second half will improve and that will certainly help us reap even more benefits from our strong plan. But that's kind of where we stand today.

Thank you. And our next question comes from Ali Dibadj with Bernstein. Your line is now open.

Hey guys.

Good morning.

Good morning.

I think you may have missed the memo on lowering 2019 expectations. So we are all kind of thinking Pepsi would do that tomorrow and not Coke today. And so I'm a little confused about the drivers of it and if we start with top line, you're saying approximately 4%. Not too long ago you insist on quarter 6% being the right number. Then you have a big gap from that to 10% to 11% OI which seems aggressive, so a big improvement there. And then I'm still confused about the move from 10% to 11% OI to flat EPS, even with FX at I guess, I think it was 6 to 7, that does not jive as what we're seeing from a currency level today, so you are assuming things are getting worse. I see the taxes change that you're describing I don’t really know why. So I know you've tried to explain in bits and pieces but there are a lot of moving parts and I want to understand the moving parts. I don't want to wait until 10:30. I don’t think any many of us do, so to at least understand the drivers of why we're getting so disappointed her both on top line and on the EPS? Thanks.

Sure. Well I think at the highest level the story is a simple story. We started off last year, well obviously we had the long term growth model of 4% to 6% on the top line. We've been delivering within that range for the last six quarters. We are being prudent in our outlook for 2019 given the multiple reductions in global economic growth outlook for 2019 and our own experience in some of the emerging and developing markets. I think 4 is a prudent number. We have a strong plan that's backed up by the marketing, the innovation and the execution. So I think we're going to be in great shape on growing, continuing to grow the top line and I think that number will end up being at the higher end of consumer products companies in terms of revenue growth for 2019 in the same way the number for 2018 was at the high end of consumer products companies. You're seeing then the benefits of a lot of our actions over the last number of years in terms of productivity, in terms of our focus on smaller packages, and revenue growth, and innovation, and premiumization of our portfolio such that we are getting operating leverage. Operating leverage is not just driven by productivity, but by better work on the portfolio, and you see that flowing through obviously with some of the tailwinds from the acquisitions and the divestitures. A small piece, so that we're getting excellent leverage from our revenue growth into our operating income growth at the 10% to 11%. Obviously the currency is where it is. That is currencies as they stand today we're not making a forecast as to what the currencies will be by the end of the year. There is a piece of…

Thank you. And our next question comes from Dara Mohsenian with Morgan Stanley. Your line is now open.

Hi guys.

Hi, Dara.

So I just wanted to quickly clarify your answer to Bryan's question earlier. I understand that 2019 underlying profit outlook is solid ex-items if in fact you deliver it. But I think you had intimated before that you were really looking to drive earnings growth even in the face of FX pressures. So obviously we've talked about 2019 guidance already, but as we think about the earnings trajectory post 2019 is it more in line with the long term algorithm that you guys have outlined plus or minus currency or do you still think there's some levers that you can pull over time that even if FX continues to be unfavorable, you can hit your earnings growth targets? I don't know if that will count as my question or not, but first maybe clarify that and if I can ask another and you're ready to be generous, go ahead if not move to the next person. Thanks.

Okay, I think it sort of seems all wrapped up in one burst of the same idea. We are committed to growing the earnings of the company. I mean, in simple terms, the earnings of the company are the fuel to pay the dividends of the company and drive the stock price and reinvest back in the business. So without dollar increased earnings of EPS it is not going to be a growth company and therefore we reaffirmed the long term growth model at some of our previous investor presentations, the 4 to 6 on revenue and the growth in EPS. Yes, there'll be years where currency will weigh on it more heavily. We certainly have the aspiration that there will be no negative years. We have said we will not do things that are irrational just to get a positive EPS, but we will focus on trying to pull levers to get there. But as you look out into the future, we absolutely expect to keep focusing on coming back to the long term growth mode. Now, to the question well what happens if the dollar always gets stronger? Well, then that simply put assuming that there still is a global trading system that will export inflation to the other parts of the world. And therefore, if we enter some very long extended period of dollar strengthening then we will logically expect to see higher pricing in other parts of the world that will compensate for some prolonged ongoing strengthening of the dollar. So either way we want to get back to our long term growth model in dollars realized for the shareholders.

Thank you. And our next question comes from Steve Powers with Deutsche Bank. Your line is now open.

Thank you very much. Kathy, thank you from me as well, and best wishes for the future and John, my congratulations again on the new role. James, for USA good job and I'm actually my gift to you is I am going to ask Kathy and/or John a question, related to the to the free cash flow guidance for next year. It implies another year of about two thirds conversion of net income to free cash flow which is below the company's 90% plus target. So I'm assuming there's still a good number of structural costs flowing through with respect to refranchising and the recent acquisitions, but can you help us get underneath those dynamics at all and paint a picture of what it will take to get back to that or get to that 90% plus conversion ratio on a consistent basis and can we can we look to 2020 to be that year of inflection?

So let me start, for 2019 while your cash from operations is expected to increase at least 10% it's going to be largely offset by increased CapEx from a free cash flow standpoint and that's increased CapEx is primarily due to three factors. One is the acquisition of costs and some CapEx related to investing for the future there. Secondly, with BIG [ph] taking on the Philippines and then thirdly, we have a couple of strategic initiatives in the digital arena and in our concentrate business to invest in 2019. As we go forward, we do have a clear line of sight to get to the 90% to 95%. One area of focus is going to be to drive greater efficiencies in working capital productivity. Secondly, it would be to reduce the cash flow impact from the timing of payments of onetime items related to restructuring and re-franchising. And then finally, we would love to see some of our upfront CapEx investments scaling back. So whether it's 2020 or 2021, I think it's too early to say, but clearly the focus is to have that number back to the 95%, so I think we have a very clear line of sight as to how to get there.

Thank you. And our next question comes from Bonnie Herzog with Wells Fargo. Your line is now open.

Thank you. Good morning everyone. I wanted to circle back to your top line guidance which James you did mention is prudent. So I guess, I was hoping you could drill down a little further and give us a sense as to how fast you expect your different category questions to grow over the next year and then maybe where you see potential for faster growth? I guess I'm just trying to understand how we should think about your sparkling cluster growth for instance versus some of the other clusters like tea and coffee, especially everything that you've done last year and then possibly touch on your juice and dairy? Thanks.

Sure. I think that, well firstly, before I jump into the clusters, I think that some of the prudence is being derived from developing and emerging markets, whether it - that be some of the ones like Argentina or Turkey, aforementioned Middle East and some parts of Africa as well. So I think the prudence on the softening is more geographic based than it is cluster based. Having said that, I think we are expecting to see in 2019 continued growth of the sparkling category. We've clearly aimed going into the future to see a strategy that is more price mix than volume in the developed markets and more perhaps volume centered in the developing emerging, so as we look out into 2019 I expect the sparkling business to continue to grow and I think we'll see a little more price mix than volume given some of the things that are happening in the developing markets. As we move through some of the other categories, I mean clearly coffee is going to grow much faster because of the incorporation of posture and as we start to realize that synergy plans. But that's not driving obviously the 4% organic which is like for like so it doesn't include the acquisition in that sense. In terms of tea, we're expecting to do better in tea in 2019 than we did in 2018. 2018 has the kind of base effect of pulling out of the beverage partners worldwide joint venture which where we counted volume but we didn't count revenue, and then obviously that sort of made it very hard to cycle the volume in 2018 but made it easier to get the revenue. As we go into 2019 we expect to see continued growth in tea in Fuse and leverage Gold Peak…

Thank you. And our next question comes from Laurent Grandet with Guggenheim. Your line is now open.

Yes, good morning James, Kathy, and welcome John. Kathy, I mean congrats on your extremely successful carry out Coke proscenium [ph]. I'd like to thank you for helping me head back into the Coke system a few years ago. Really a question about Costa, you mentioned at the time of the acquisition that Costa would be a slightly accretive to earnings in first full year, in the current context of the UK economic and political situation and a potential hung Brexit looming, did that change? And if you can update us more on the Costa integration and the expansion plan and specifically we'd like to understand if you are planning to refranchise this still 51% fully owned stores? Thank you very much.

Sure, look on the Costa thing obviously we managed, the team did a great job in closing the acquisition well ahead of schedule in January rather than April and we're now in the phase of the transition period of really connecting, it in a systems sense and also being able to finally sit down with management and bring together that kind of base underlying growth plan with our views on synergies and acceleration. That's a process that's going to take a little bit of time to work through to really validate all those synergy plans. Once we got to the end of that process of course we'll be able to come out and be more specific about how we see the cost being rolled out against our coffee strategy of driving coffee against the pillars using the stores that we have as the experience, serving as a provider of a total beverage portfolio in foodservice, whether it's beans or machines or the vending, selling the coffee at the at home and of course the potential for ready-to-drink. So that's the strategy remains clear. We're putting more flesh and detail on the bones of the plans as it rolls out. And then of course you know Brexit will be Brexit. I'm not sure anyone knows how it's going to end at this stage. We clearly have contingency plans for this business and for our other businesses in the UK and in the European environment. It's something that will be have to manage through, but it will be, whatever it is going to be, it is likely to only be a short term disruption effect if indeed it ends up in that scenario and we will manage through it.

Thank you. And our next question comes from Kevin Grundy with Jefferies. Your line is now open.

Thanks. Good morning everyone.

Good morning, Kevin.

I wanted to come back to advertising and marketing levels in the 2019 outlook and what's embedded in your guidance because as was alluded to earlier in the call, the market widely expects higher investment from Pepsi, this year likely directed at North America Beverages and we'll find out less than 24 hours whether that's true or not. So can you talk about advertising and marketing levels for fiscal ‘19? Does that look similar as a percent of sales, higher as a percent of sales, many companies in CPG will guide on that. So I'm not sure if you can comment on it. And then number two to that, have you left adequate cushion in your guidance should you need to react to higher levels of investment spending? Thank you.

Sure. Look we grew advertising spend in 2018. We expect to grow our advertising spend in 2019. Of course, we continue to work on how to drive productivity in our non-working marketing investments and to leverage our scale with our advertising partners and with our property. So we're going to continue to invest in advertising. I think it's also worth saying that we are being even more disciplined as we look through the framework of leader, challenger and explorer. Obviously is our leader brands which are the brands that make best use of TV commercial, advertising spend. As we drive the challenges and the explorer brands, there in some other parts of the marketing mix that often become a more predominant element of making them work. And then, if our competitors are going to increase investment, you know what it is going to increase the growth of the categories. Ultimately, if there are more competitors investing, it drives more market growth. We believe that we have strong brands and strong plans. And I think net-net it's going to be overall beneficial to the industry.

Thank you. And our next question comes from Andrea Teixeira with J.P. Morgan. Your line is now open.

Hello. Hi. So thank you and good morning. Kathy, I wanted again to thank you for your leadership and legacy and all the best to you and John in the new role. So thank you. So I was hoping if you could revisit the 2020 operating margin expansion targets that you outlined at CAGNY last year of 34% plus. I realize there have been a number of key changes in accounting and acquisitions and FX is there, but with the guidance that you have now implying operating margins now year-on-year in 2019 and the noise like the puts and takes, but how should we think about the reinvestments and other moving pieces that relates to the 2020 target?

Yes, so the 34% target that was outlined is one that was outlined I think at the time to provide guidance to the refranchising process and today we are on track to get to that 34% over the next couple of years. We've had some margin expansion over the last couple of years and there's implied margin expansion in our 2019 numbers. However, given the fact that we have new businesses coming into the mix, I would like to really focus on improving margins across all of our different business segments as we go into 2019, 2020. Maintaining the underlying objective outlined in the 34% margin target, but being a lot more focused on making sure that our core business, our Global Ventures business and our BIG business are delivering margin expansion as they develop their respective portfolios and businesses.

Thank you. And our next question comes from Robert Ottenstein with Evercore ISI. Your line is now open.

Great, thank you very much. Over the last year, year and a half or so, you've been more assertive on taking price and driving that in North America and then in Europe and we see some of the results. But I was wondering if you could kind of stand back and give us an assessment of what you've learned from that change in tactics or strategy if you will. And in terms of your brand equity and need to perhaps tweak investment in certain areas, your bottler execution in terms of executing on those price increases and then obviously kind of the general customer demand suggests you know kind of big picture what you've learned from the price initiatives over the last year or so? Thank you.

Sure, Robert. Look, I think the simple conclusion is the following. If we just think we can depend on headline rate increases in the absence of other everything else then we're very likely to see high elasticity. And therefore what we've learned and I guess relearned is that it's really important that pricing become part of our strategy. A strategy that starts with the right brands, the investment behind the brands to build equity with the consumers and then to provide the consumers the innovation not just in the brands and the product, but also in the packaging that allows pricing to be taken sometimes with the headline price, sometimes through mix. And there's the sum of all those pieces backed up by good execution that creates the willingness of the customer to go with the plan because it creates more value for the customers in their stores often the beverage industry then grows faster than the average, and so the learning and the relearning it's the complex task of pulling all the pieces together that earns you the opportunity to drive price mix, perhaps ahead of where we had been. And I think that's something that we and the bottling partners have dedicated ourselves to even more over the last number of years, I think it's showing through in some of the headline numbers that you see and we absolutely are going to stick to strategy.

Thank you. And our next question comes from Carlos Laboy with HSBC. Your line is now open.

Yes, good morning.

Good morning.

Good morning.

James, your Brazil business looked unbelievable last week. Lots of innovation and new SKUs, but how do you see beer in Brazil and the importance of keeping these Coke bottlers competitive on beer? And while on the subject of M&A if you could just give us a quick update on the refranchising process in general and the urgency to see through the sale of the remaining properties?

Sure. Well thank you for the feedback on the Brazil business. I'm sure the Brazil team will be pleased with that. They have had a number of years trying very hard to adapt and update the business and bring the affordability and the innovation in line with the marketplace. And I think with the improvements in the macro conditions in Brazil that business is starting to do a lot better and it's a multi-channel business and they distribute the beer only in some of those channels. So that's a work in progress as the relationship with Heineken is a question. And I think as we see the refranchising business or the refranchising strategy, we've largely refranchised the world. We're down to just a small percentage of the volume. It's been very successful whether it was North America, the creation of bottlers like European Partners or the Japan bottler. And so we think that has been very successful. Clearly, we're still working on our beverages Africa, in terms of refranchising started it has obviously been slower than anyone would have liked. I think some of that has been process and macros related. We're still working on that one. And that leaves us obviously with the Southeast Asian set of bottlers. Obviously, we'll be thinking about what's the right strategic direction for that part of the world. But the ongoing, you know curation of refranchising is not refranchising for the sake of franchising. It's in the service of creating a stronger and more energized bottling system that is aligned set of partners with the company to drive our collective business with more growth and with better margins into the future and that takes different forms and places and of course we allocate capital within the process whether it's owning bottlers or having stakes in bottlers. We drive that process with the objective of using capital as and when necessary, sometimes yes, sometimes no, to get the most energized bottling system out there and bringing new partners in. That's an ongoing management as we curate our remaining bottling operations and some of our other investments in bottlers.

Ladies and gentlemen thank you for participating in today's conference. This does conclude today's program and you may all disconnect. Everyone have a wonderful day.