COCA COLA CO (KO) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that COCA COLA CO surfaced in its latest filing.

• High inflation rates in certain markets throughout 2025, which may continue in 2026.2025
• Disruption to operations in 2025 due to international conflicts.2025
• Impact of product boycotts resulting from political activism on demand.
• U.S. trade sanctions affecting sales to bottlers in countries designated as state sponsors of terrorism.
• Delisting of branded products by retailers in various countries in reaction to U.S. trade sanctions or other governmental actions.
• Expansion into alcohol business through a wholly owned, indirect, firewalled subsidiary using third-party manufacturers and distributors, and through authorizing alcohol-licensed third parties to use trademarks on alcohol beverages.
• For the year ended December 31, 2025, one bottler accounted for 10% of net operating revenues, reflected in EMEA and Asia Pacific operating segments.2025-12-31
• IRS seeks to increase U.S. taxable income for tax years 2007 through 2009 by an amount creating potential additional tax liability of approximately $3.3 billion plus interest. U.S. Tax Court opinions on November 18, 2020 and November 8, 2023 predominantly sided with the IRS regarding blocked-income regulations and Brazilian legal restrictions.
• OECD Pillar Two global minimum tax of 15% effective for fiscal years starting on or after December 31, 2023, with EU directive and country enactments effective January 1, 2024 or 2025. Potential side-by-side framework largely exempting U.S.-headquartered companies, introduced in January 2026 guidance, pending adoption.2026-01
• In 2025, derived $28.8 billion of net operating revenues from operations outside the United States.2025