The Coca-Cola Companys (KO) primary source of revenue is the concentrate it supplies to its many bottlers. Since the variable costs of producing concentrate are low, KOs revenue and profit growth are enhanced by increased volume. The KO system has consolidated its bottling operations into a small number of anchor bottlers, which operate in different geographical regions. The largest of these bottlers is Coca-Cola Enterprises (CCE), which dominates the U.S. as well as several European markets (see Exhibit 1 for profit-margin trends for KO and its leading bottlers, 1983-1998)