Coke stands by its support for China games

Revenue rose to $7.38 billion from $6.10 billion a year earlier.

Worldwide unit case volume was up 6 percent for the first quarter, helped by acquisitions, and international unit case volume was up 7 percent.

The company saw strong unit case volume growth in China, India, Brazil, Turkey, Russia, Eastern Europe and the Philippines. Volume was flat in its key North America unit.

Coca-Cola has had problems executing its strategy in its home market in the past, and for several years it has seen weaker results in North America as compared to several other countries.

Executives suggested the main impact on the unit in the first quarter was the slowing U.S. economy. They noted that the foodservice segment was hard hit.

At Coke's annual meeting, Isdell was interrupted several times by shareholders who questioned the company's business practices in India and Colombia. The company has been accused of depleting water resources in India and not protecting workers in Colombia. Coke has denied the allegations.

Isdell said Coca-Cola has supported independent inquiries on the issues and those inquiries have shown no evidence to support the allegations.

Outside the hotel where Coke's annual meeting was being held, protesters represented groups called Corporate Accountability International, Reporters Without Borders and the Zionists Organization of America.

CAI is challenging Coke's marketing of Dasani bottled water, saying it's no better than tap water and is less regulated than tap water but sold at thousands of times the price.

Reporters Without Borders is asking Coke to sign a "declaration of responsibility" as a sponsor of the 2008 Beijing Olympic Games.

"China is a big market to them," said Clothilde Lecoz, 25, from Paris. "We want them to be aware that there are some problems."

CAI offered taste tests to passers-by, pitting Dasani against tap water. A group of students from the University of Delaware helped conduct the taste tests, wearing waitress uniforms and holding platters with plastic cups of water.

At the meeting, shareholders approved the election of 14 directors, Ernst & Young LLP's appointment as Coca-Cola's independent auditors and a stock option plan.

They rejected three shareholder proposals, including one that sought to allow shareholders an advisory vote on the compensation of several senior executives. Isdell received total compensation valued at $21.6 million in 2007, a more than 3 percent increase from the year before. President and Chief Operating Officer Muhtar Kent has been named to succeed Isdell as CEO on July 1. Isdell will remain as chairman until Coke's annual meeting in April 2009.

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