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Friday, April 11, 2014

Sales Sink Soda , Coke Onward

 Sales Sink Soda , Coke Onward

ASATUNEWS - Over the past 13 years, citizens of the United States ( U.S. ) is increasingly rarely drank Coke . Now , sales of Diet Coke actually falling . Globally , sales growth slowed soda , amid concerns about sugar intake and obesity .

This trend spread throughout the soft drink industry . Still, Coca - Cola into the hardest hit . Because 75 % of the total volume of the company 's global sales come from carbonated soft drinks ..

" Bubbly sugar water is not the future of the world . It's an existential problem , " said Tom Pirko , industry consultants Bevmark LLC .

Some industry observers suggest Coca - Cola reduce cola advertising budget . Instead , they asked the company to diversify more aggressively through acquisitions . Sales of non - soda , juice products include Minute Maid , Dasani mineral water , and sports drink Powerade , rose 5 % last year by volume .

However , the strategy does not yet exist in the barn Coke . The Atlanta -based company actually plans to double the bet on the brand Coca - Cola . Strengthen the company's advertising , including introducing new products . They use young singer Taylor Swift as a decoy .


Sales of Coca - Cola and Diet Coke in the U.S. continued to decline since 2007 .
Chief Executive Muhtar Kent has confirmed this strategy last year , when the volume of soda Coke in the U.S. fell 2 % . He regarded it as an anomalous condition . Sale of soda can be recovered , even in the U.S. . Especially , he said , if the product carries brands such as Coke .

" Coca - Cola remains [ brand of ] magic . We need to work harder to deepen the romance of this brand in every corner of the world , " said Kent in front of investors on Fabruari . Again and again he called Coke as " oxygen " and " blood " of the company .

For starters , he plans to increase global advertising budget of $ 1 billion in the next three years. The company spent $ 3.3 billion on advertising last year . From the budget increase , a large number will be used to support the soda products , including Sprite and Fanta . Coke states sponsor their work as the Brazilian World Cup will be the biggest marketing campaign in its history .

Coke defends this strategy by saying their global beverage volume rose 2 % last year . Revenue rose 3 % , in the context of currency neutral , despite the adverse economic conditions . Coke states continue to capture market share in the U.S. and the world from its competitors , PepsiCo Inc. , and a number of manufacturers of sodas and other non -carbonated . Past investments in core brands , including Coke , consistently brings positive results , the company said .

Meanwhile John Faucher , JP observer of drink products Morgan, judge Coke should be more aggressively to diversify through acquisitions . Coke has become the world's largest juice company . However , there are still opportunities in the market for Coke tea , coffee , and dairy products . "Interest rates are now low . They also had sacks of cash , "said Faucher .

Cash and short-term investments totaled $ 17.12 billion Coke at the end of December , up from $ 13.46 billion a year earlier .

Coke has 11 non - soda brand . Each pocketed retail sales value of more than $ 1 billion . The distribution network has been no match for Coke . They operate in every country , except Cuba and North Korea . In Eurasia and Africa , Coke sales volumes rose 7 % last year . | WSJ

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