January 26, 2001

The Coca-Cola Company and The Procter & Gamble Company announced a stand-alone enterprise focused on developing and marketing innovative juices, juice-based beverages and snacks on a global basis.

The new company combines best-in-class capabilities -- Coca-Cola's worldwide distribution, merchandising and customer marketing prowess and P&G's renowned research and development capabilities -- and a range of great brands, including Minute Maid, Sunny Delight and Pringles.

The Coca-Cola Company and P&G will each own 50 percent of the new company, which will be named later. From the start, the new company will have annual sales of more than $4 billion. Don Short, a 24-year Coca-Cola veteran, has been named CEO of the new company. A management team will be named soon.

The combination is expected to be non-dilutive to both companies in the first year of operation and accretive in the second year and beyond. Additional sales revenue and cost synergies are expected to offset transition costs.

In a joint statement, Doug Daft, chairman and CEO of The Coca-Cola Company, and A.G. Lafley, president and chief executive of P&G, said: "This new company will focus all of its resources on becoming the global leader in innovative snacks and nutritional beverages. It multiplies our respective strengths, creating something better than either of our companies could do alone -- it's the perfect combination."

The Coca-Cola Company brings the following brands into this new enterprise: Minute Maid, Hi-C, Five-Alive, Fruitopia, Cappy, Kapo, Sonfil and Qoo.

The new company will have 15 manufacturing facilities and about 6,000 employees. It will manufacture, distribute and market brands in the $50 billion global snacks category and the $34 billion global juice and juice-drinks category.

The companies expect sales of the LLC to grow from just over $4 billion to $5 billion within two years.

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