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Products: The Coca Cola Co (KO)

North America(North America)
Europe, Middle East and Africa(Europe, Middle East and Africa)
Latin America(Latin America)
Asia Pacific(Asia Pacific)
Bottling Investments, Corporate(Bottling Investments, Corporate)

North America

What is being offered?

This includes revenues attained from its North American business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, Dasani, Simply, Gold Peak, and Glacéau Smartwater.

Who is buying?

All soft drink customers in North America are potential end buyers. Normally, the company sells the concentrate to its bottlers who then sell it to retail customers by adding water and the fizz. The company positions its brand in a way to specifically target a few customer segments.

Competitors

Within the industry, the main competition comes from PepsiCo, Dr Pepper Snapple, and Nestle, among others.

Increasingly, as with most other soft drinks, these products have to compete with fruit juices, energy drinks, and other healthier drinks. Some of these non-carbonated drinks are serious competitors and command impressive market shares within their market segments, with Red Bull, being a prime example.

What do customers care about?

  1. Brand Image - Since soft drinks do not fulfill any basic need but are positioned as a lifestyle choice, marketing becomes critical. The way a customer perceives a brand to be can make or mar a brand.
  2. Easy Availability - Since most of the beverage consumption occurs at an impulse, it is critical for a product to be available easily.
  3. Taste, Look & Flavor - Though these are secondary attributes, they do matter when a customer makes a choice between two very similar products. This is the reason that the look and feel of the same brand differ across countries as companies seek to customize the feel of the drink to local tastes.
  4. Price - Most soft drinks are priced in a similar range, hence any soft drink that is priced higher can get pushed out of the market.
  5. Impact on Health - The water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee drinks are generally considered healthier than carbonated soft drinks and a number of customers choose their drinks based on what they perceive to be the healthiest option.

Coca-Cola's Top Selling Points

  1. Size and Reach - Coca-Cola operates in virtually every country, its wide reach means that it can sell its products at more locations than most other brands (even PepsiCo is hard-pressed to match Coca-Cola in terms of reach).
  2. Marketing muscle- Coca-Cola spends over $4 billion on marketing around the world. the company's advertising expenditure as a percent of sales is much higher when compared to PepsiCo and Dr Pepper Snapple..
  3. Established Brands - Coca-Cola has been marketing its products for more than a century. As a result, most of its flagship brands are well entrenched in the consumer psyche.

North America Revenues

This includes revenues attained from its North American business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, Dasani, Simply, Gold Peak, and Glacéau Smartwater.

Coca-Cola has been reporting strong revenue growth from the region as a result of volume growth, strong price and product mix, and due to acquisitions.

Chart: North America Revenues

Europe, Middle East and Africa

What is being offered?

This includes revenues attained from its EMEA business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, and Schweppes.

Who is buying?

All soft drink customers in North America are potential end buyers. Normally, the company sells the concentrate to its bottlers who then sell it to retail customers by adding water and the fizz. The company positions its brand in a way to specifically target a few customer segments.

Competitors

Within the industry, the main competition comes from PepsiCo, Dr Pepper Snapple, and Nestle, among others.

Increasingly, as with most other soft drinks, these products have to compete with fruit juices, energy drinks, and other healthier drinks. Some of these non-carbonated drinks are serious competitors and command impressive market shares within their market segments, with Red Bull, being a prime example.

What do customers care about?

  1. Brand Image - Since soft drinks do not fulfill any basic need but are positioned as a lifestyle choice, marketing becomes critical. The way a customer perceives a brand to be can make or mar a brand.
  2. Easy Availability - Since most of the beverage consumption occurs at an impulse, it is critical for a product to be available easily.
  3. Taste, Look & Flavor - Though these are secondary attributes, they do matter when a customer makes a choice between two very similar products. This is the reason that the look and feel of the same brand differ across countries as companies seek to customize the feel of the drink to local tastes.
  4. Price - Most soft drinks are priced in a similar range, hence any soft drink that is priced higher can get pushed out of the market.
  5. Impact on Health - The water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee drinks are generally considered healthier than carbonated soft drinks and a number of customers choose their drinks based on what they perceive to be the healthiest option.

Coca-Cola's Top Selling Points

  1. Size and Reach - Coca-Cola operates in virtually every country, its wide reach means that it can sell its products at more locations than most other brands (even PepsiCo is hard-pressed to match Coca-Cola in terms of reach).
  2. Marketing muscle- Coca-Cola spends over $4 billion on marketing around the world. the company's advertising expenditure as a percent of sales is much higher when compared to PepsiCo and Dr Pepper Snapple..
  3. Established Brands - Coca-Cola has been marketing its products for more than a century. As a result, most of its flagship brands are well entrenched in the consumer psyche.

Europe, Middle East and Africa Revenues

This includes revenues attained from its EMEA business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, and Schweppes.

After a substantial decline in revenues in FY 2015, primarily as a result of currency fluctuations, the revenues from this segment have been undergoing a rise. The metric fell almost 9% in 2015, from $7.57 billion in 2014 to $6.97 billion. Thereafter, it has increased to $7.01 billion in 2016 and $7.37 billion in 2017, benefiting from volume growth and a favorable price mix.

Chart: Europe, Middle East and Africa Revenues

Latin America

What is being offered?

This includes revenues attained from its Latin American business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, Del Valle, Schweppes, and FUZE TEA.

Who is buying?

All soft drink customers in Latin America are potential end buyers. Normally, the company sells the concentrate to its bottlers who then sell it to retail customers by adding water and the fizz. The company positions its brand in a way to specifically target a few customer segments.

Competitors

Within the industry, the main competition comes from PepsiCo, Dr Pepper Snapple, and Nestle, among others.

Increasingly, as with most other soft drinks, these products have to compete with fruit juices, energy drinks, and other healthier drinks. Some of these non-carbonated drinks are serious competitors and command impressive market shares within their market segments, with Red Bull, being a prime example.

What do customers care about?

  1. Brand Image - Since soft drinks do not fulfill any basic need but are positioned as a lifestyle choice, marketing becomes critical. The way a customer perceives a brand to be can make or mar a brand.
  2. Easy Availability - Since most of the beverage consumption occurs at an impulse, it is critical for a product to be available easily.
  3. Taste, Look & Flavor - Though these are secondary attributes, they do matter when a customer makes a choice between two very similar products. This is the reason that the look and feel of the same brand differ across countries as companies seek to customize the feel of the drink to local tastes.
  4. Price - Most soft drinks are priced in a similar range, hence any soft drink that is priced higher can get pushed out of the market.
  5. Impact on Health - The water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee drinks are generally considered healthier than carbonated soft drinks and a number of customers choose their drinks based on what they perceive to be the healthiest option.

Coca-Cola's Top Selling Points

  1. Size and Reach - Coca-Cola operates in virtually every country, its wide reach means that it can sell its products at more locations than most other brands (even PepsiCo is hard-pressed to match Coca-Cola in terms of reach).
  2. Marketing muscle- Coca-Cola spends over $4 billion on marketing around the world. the company's advertising expenditure as a percent of sales is much higher when compared to PepsiCo and Dr Pepper Snapple..
  3. Established Brands - Coca-Cola has been marketing its products for more than a century. As a result, most of its flagship brands are well entrenched in the consumer psyche.

Latin America Revenues

This includes revenues attained from its Latin American business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, Del Valle, Schweppes, and FUZE TEA.

Latin American revenues remained pressured in 2015 and 2016 as a result of a strong dollar against currencies such as Brazilian real, Argentine peso, and Mexican peso. The metric fell from $4.6 billion in 2014 to $3.8 billion in 2016. In 2017, this trend reversed, with the revenues growing over 5% to almost $4 billion as a result of a strong price and product mix.

Chart: Latin America Revenues

Asia Pacific

What is being offered?

This includes revenues attained from its Asia Pacific business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, Dasani, Schweppes, Minute Maid Pulpy, Georgia, FUZE TEA, Ice Dew, I LOHAS, and Ayataka.

Who is buying?

All soft drink customers in Asia Pacific are potential end buyers. Normally, the company sells the concentrate to its bottlers who then sell it to retail customers by adding water and the fizz. The company positions its brand in a way to specifically target a few customer segments.

Competitors

Within the industry, the main competition comes from PepsiCo, Dr Pepper Snapple, and Nestle, among others.

Increasingly, as with most other soft drinks, these products have to compete with fruit juices, energy drinks, and other healthier drinks. Some of these non-carbonated drinks are serious competitors and command impressive market shares within their market segments, with Red Bull, being a prime example.

What do customers care about?

  1. Brand Image - Since soft drinks do not fulfill any basic need but are positioned as a lifestyle choice, marketing becomes critical. The way a customer perceives a brand to be can make or mar a brand.
  2. Easy Availability - Since most of the beverage consumption occurs at an impulse, it is critical for a product to be available easily.
  3. Taste, Look & Flavor - Though these are secondary attributes, they do matter when a customer makes a choice between two very similar products. This is the reason that the look and feel of the same brand differ across countries as companies seek to customize the feel of the drink to local tastes.
  4. Price - Most soft drinks are priced in a similar range, hence any soft drink that is priced higher can get pushed out of the market.
  5. Impact on Health - The water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee drinks are generally considered healthier than carbonated soft drinks and a number of customers choose their drinks based on what they perceive to be the healthiest option.

Coca-Cola's Top Selling Points

  1. Size and Reach - Coca-Cola operates in virtually every country, its wide reach means that it can sell its products at more locations than most other brands (even PepsiCo is hard-pressed to match Coca-Cola in terms of reach).
  2. Marketing muscle- Coca-Cola spends over $4 billion on marketing around the world. the company's advertising expenditure as a percent of sales is much higher when compared to PepsiCo and Dr Pepper Snapple..
  3. Established Brands - Coca-Cola has been marketing its products for more than a century. As a result, most of its flagship brands are well entrenched in the consumer psyche.

Asia Pacific Revenues

This includes revenues attained from its Asia Pacific business through the sale of a variety of beverages such as sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. Its brands include Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Sprite, Minute Maid, Powerade, Dasani, Schweppes, Minute Maid Pulpy, Georgia, FUZE TEA, Ice Dew, I LOHAS, and Ayataka.

Coca-Cola's fortunes in the region have been pretty up and down in the last few years. After undergoing a decline an almost 12% in revenues in 2015 to $4.7 billion, due to unfavorable currency fluctuations and a negative price mix, the metric improved in 2016, driven by higher volumes. Currency fluctuations again had a negative impact on 2017 revenues, partially offset by volume growth, when the metric fell 0.4% to almost $4.8 billion.

Chart: Asia Pacific Revenues

Bottling Investments, Corporate

What is being offered?

In Coca-Cola's finished product operations, the company typically generates net operating revenues by selling sparkling soft drinks and a variety of other non-alcoholic beverages, including water, enhanced water, and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. These finished product operations consist primarily of its Company-owned or -controlled bottling, sales and distribution operations which are included in the Bottling Investments operating segment.

Who is buying?

These products are sold to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers.

Competitors

Within the industry, the main competition comes from PepsiCo, Dr Pepper Snapple, and Nestle, among others.

Increasingly, as with most other soft drinks, these products have to compete with fruit juices, energy drinks, and other healthier drinks. Some of these non-carbonated drinks are serious competitors and command impressive market shares within their market segments, with Red Bull, being a prime example.

What do customers care about?

  1. Brand Image - Since soft drinks do not fulfill any basic need but are positioned as a lifestyle choice, marketing becomes critical. The way a customer perceives a brand to be can make or mar a brand.
  2. Easy Availability - Since most of the beverage consumption occurs at an impulse, it is critical for a product to be available easily.
  3. Taste, Look & Flavor - Though these are secondary attributes, they do matter when a customer makes a choice between two very similar products. This is the reason that the look and feel of the same brand differ across countries as companies seek to customize the feel of the drink to local tastes.
  4. Price - Most soft drinks are priced in a similar range, hence any soft drink that is priced higher can get pushed out of the market.
  5. Impact on Health - The water, enhanced water and sports drinks, juice, dairy and plant-based beverages, tea and coffee drinks are generally considered healthier than carbonated soft drinks and a number of customers choose their drinks based on what they perceive to be the healthiest option.

Coca-Cola's Top Selling Points

  1. Size and Reach - Coca-Cola operates in virtually every country, its wide reach means that it can sell its products at more locations than most other brands (even PepsiCo is hard-pressed to match Coca-Cola in terms of reach).
  2. Marketing muscle- Coca-Cola spends over $4 billion on marketing around the world. the company's advertising expenditure as a percent of sales is much higher when compared to PepsiCo and Dr Pepper Snapple..
  3. Established Brands - Coca-Cola has been marketing its products for more than a century. As a result, most of its flagship brands are well entrenched in the consumer psyche.

Bottling Investments, Corporate

In Coca-Cola's finished product operations, the company typically generates net operating revenues by selling sparkling soft drinks and a variety of other non-alcoholic beverages, including water, enhanced water, and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. These finished product operations consist primarily of its Company-owned or -controlled bottling, sales and distribution operations which are included in the Bottling Investments operating segment.

Revenues from Coca-Cola's bottling operations have declined significantly as the company is in the process of refranchising its bottling operations. The metric has fallen from $23.6 billion in 2014 to $10.7 billion in 2017.

Chart: Bottling Investments, Corporate