Professional Documents
Culture Documents
Contents
1. Executive summary............................................................................................3
2. About Coca-Cola Company..................................................................................4
2.1. Brands in Coca-Colas portfolio.......................................................................5
2.1.1. Non-carbonated Soft Drinks .....................................................................6
3. New opportunities for Coca-Colas brands................................................................8
4. Conclusion.....................................................................................................11
Literature..........................................................................................................12
1. Executive summary
The Coca-Cola Company is the worlds largest manufacturer, distributor, and marketer of nonalcoholic beverage concentrates and syrups. Based in Atlanta, Georgia, Coca-Cola sells
concentrated forms of its beverages to bottlers who then produce, package, and sell the finished
products to retailers. The Coca-Cola Company operates in over 200 countries and sells more than
400 different brands that produce over 3000 different products, including the famous Coca-Cola
and Sprite lines of soft drinks.
Everyone has heard of Coca-Cola, and you would be hard pressed to find somebody who was
unable to recognize the iconic white lettering against the bright red background of this global
brand. Various sources cite Coca-Cola as a billion dollar brand and that is not surprising, when
one considers it was rated by Interbrand as one of the most valuable brands in 2015, based on a
brand value amounting to 78.42 billion U.S. dollars.
The Coca-Cola Company is a global key player in the beverage industry. The firm comprises the
corporate division, headquartered in Atlanta, GA, and about 300 bottling partners worldwide.
According to its most recent annual report from 2015, Coca-Cola's net operating revenue
amounted to 44.29 billion U.S. dollars. Bringing in 49.2 percent of the global revenue in
2015 was the North America segment, making it the company's flagship market.
In the U.S., the Coca-Cola Company held a market share in the soft drink segment with 42.3
percent in 2014. The companys leading four brands in the U.S. market are Coca-Cola, Diet
Coke, Sprite, and Fanta. The Coca-Cola Classic brand itself, held a market share of 17.6
percent in the United States in 2014.
Coca-Cola
International
2008
Sales
Boost
Annual
Review
Coca-Cola's
Results
changing tastes with new, non-CSD product launches and acquisitions such as that of Glaceau 3.
Strong international growth has also more than offset a weak domestic market.
Coke's Chief Executive Officer, stated that the company has the option to increase its stake to 25
percent but cannot exceed that percentage in the next four years.4
Glaceau VitaminWater
4
ATHAVALEY, ANJALI (August 15, 2014). "Coca-Cola pays $2.2 billion for major
stake in Monster Beverage". Reuters.
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Nestea
Sokenbicha
Odwalla
As per capita income increases in Eurasia, Africa, and the rest of the developing world, CocaCola stands to gain.
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Rising personal income throughout the world gives consumers more disposable income to
purchase non-essential items like Coca-Cola.
Coca-Cola is enjoyed on a per capita basis much more in some countries than in others. This
gives Coca-Cola the opportunity to focus on countries with low levels of per capita
consumption as the market is less saturated.
About 50% of teens and young adults have not enjoyed a Coca-Cola in the last 30 days. CocaCola still has a long growth runway ahead.
Here are two facts that show Coca-Colas growth potential:
Coca-Cola sells just 3.5% the amount of beverages in India as it does in the US on a per
capita basis.
China only consumes about 10% the amount of Coca-Cola products as a US citizen does
on a per capita basis.
These 2 countries alone are each about 4 times the size of the United States.
Keep in mind, Coca-Cola is much more than just a soda company. The company currently has
20 brands with more than $1 billion in annual sales. Of these 20 brands, 14 are non-carbonated.
If Coca-Cola can increase its per capita beverage consumption in these emerging markets, it will
greatly expand revenues. In both developed and emerging markets, consumption of still (noncarbonated) beverages are rising.
International still beverage growth will drive Coca-Colas growth for the future.
The company has 14 still brands that do over $1 billion per year in sales. Coca-Cola has grown
still volume 5% over the last 12 months. This is on top of 8% international still volume growth
in the previous year.
The company has excelled in still beverages over the last several years. Coca-Cola has captured
about 1/3 of global juice growth since launching its global juice center in 2007. The company has
a more than 2 to 1 lead on its nearest competitor in still beverages. Coca-Cola is focused on
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expanding its tea portfolio. The companys Fuze Tea brand recently joined the $1 billion a year
in sales brand club.
In addition to the companys 20 $1 billion brands, Coca-Cola has around 20 up and coming
brands that do between $500 million and $1 billion per year in sales. Of these brands, over half
are still beverages. Coca-Cola is looking to partnerships with innovative companies to bolster
its strong brand portfolio.
Coca-Cola is also expanding by partnering with businesses in key categories. The company
partnered with Keurig to offer branded sparkling and still beverages on the companys cold
beverage dispenser.
In addition, Coca-Cola will release a hot Keurig Honest Tea product in the near future. The
companys partnership with Keurig opens up a new growth market for Coca-Cola.
Coca-Cola also partnered with Monster in a deal that transfers energy brands between the two
companies and gives Monster access to Coca-Colas extensive distribution network. The move
gives Coca-Cola a stake in Monster and its world class energy soda brand. Coca-Cola has had
limited success in the energy category, and the move is a capital efficient way for Coca-Cola to
better position itself to gain from the quickly growing energy beverage industry.
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4. Conclusion
Coca-Cola is the gold standard in non-alcoholic beverage companies. Coca-Cola has significant
growth potential ahead in developing markets, especially India and China. The companys long
dividend streak makes it a Dividend Aristocrat and a Dividend King.
As consumer preferences slowly shift from sparkling to still beverages, Coca-Cola has
positioned itself as the dominant still beverage company in the world. Coca-Colas repositioning
is part of broader efforts to evolve in a challenging operating environment. The company is
shifting its focus from volume to value, leveraging premium and affordable packaging options to
drive transactions and revenue rather than cases. Coca-Cola also has implemented a new One
Brand strategy and marketing campaign, uniting Coca-Cola, Coca-Cola Light/Diet Coca-Cola,
Coca-Cola Zero and Coca-Cola Life under the same iconography and heading of the flagship
beverage to increase sales of the lower-calorie variants.
In the still beverages category, the company is taking steps to capture share such as building a
fit-for-purpose juice supply chain. Since 2010, Coke has captured one-third of the juice and
juice drink category value growth, driven by its four billion-dollar juice brands. The company
will also continue to invest in the profitable premium bottled water category through brands like
smartwater, which became a billion-dollar brand in 2015.
Going forward, Coke will do more to experiment with new products and ideas.
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Literature
1. Coca-Cola 2008 Annual Review, http://www.thecocacolacompany.com/investors/pdfs/2008_annual_review/2008_annual_review.pdf
2. International Sales Boost Coca-Cola's Results,
http://online.wsj.com/article/SB122405368590635855.html?mod=wsjcrmain
3. Coke set to buy Glaceau for $4.2 bln, http://www.reuters.com/article/consumerproductsSP/idUSN2543044720070525
4. Soft Drinks, By: The Coca-Cola Company, http://www.coca-colacompany.com/brands/softdrinks/
5. Statistics and facts on the Coca-Cola Company, http://www.statista.com/topics/1392/cocacola-company/
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