The Coca-Cola Company

The Coca-Cola Company

The Coca-Cola Company (TCCC) accomplished substantial growth throughout 2007-2011, with sales estimated rising from $28.8 billion to $46.5 billion, a rise of over 61%. The business has a reported goal to double in size between 2010 and 2020.

The power base of TCCC is built on the strength of its carbonates, which constitutes nearly three-quarters of its revenues. Secondary categories of bottled water and fruit/vegetable juices are essential. Coca-Cola is the company’s flagship brand, accounting for more than one-third of its revenue from sales, according to Euromonitor International. Sprite, Diet Coke and Fanta are all vitally relevant brands. TCCC has an efficient route distribution, which generates two-thirds of its sales revenue outside its North American and Western European industries.

For TCCC to reach its financial goal for 2020, the organization is working to protect its role in important markets and accelerate the growth of non-carbonates in developed and emerging markets. Carbonates produced 71 percent of the total volume sales of TCCC off-trade in 2011.

However, this percentage has fallen in recent years, down from nearly 77% in 2006, as TCCC has sought to grow its non-carbonates coverage in the wake of challenging carbonates market conditions in some regions, and the ongoing health and wellness trend affecting the soft drinks sector globally.

The Coca-Cola brand has been dominant in its category for some time, and it is under no threat. However, in some markets, most significantly the US, the group is set to shrink. Consequently, the brand should look for growth in developing markets such as Brazil.