Due Diligence Report
The Coca-Cola Company
Professor: John Kocikowski
Keller Graduate School of Management
Table of Contents
Industry Overview 3
Corporate Overview 5
Organization and General Corporate Issues 6
The industry of beverages is located under the heading of Consumer Goods. This industry can be segmented into carbonates, fruit juice, bottled water, functional drinks, concentrates, RTD (ready to drink) tea, and RTD (ready to drink) coffee. The soft drink industry is a global marketing phenomenon. In essence, it is simply a blended water drink with sweeteners, flavors and additives. The success in advertising and marketing this product lies in convincing billions of consumers to drink these instead of straight water or other less expensive alternatives. The brand recognition of this industry is extraordinarily high. In 2002, world sales exceeded US $193 billion. In contrast, fruit sales were just US $69 billion. Global consumption is currently in excess of 327 billion liters. Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Cadbury Schweppes follows a close third. Coca-Cola has approximately half of the world market share and sells 4 out of the top 5 soft drink brands in the world. Here is the market share by volume of US non-alcoholic beverage for 2010.
Coke always held the bigger market share in this area than any of its competitors. US consumption of carbonated soft drinks has steadily declined in the past decade but Coca-Cola has vows to not only continue to focus on selling soft drinks globally, but rebuild Coke sakes in the US market as well. Global sales of soft drinks exceed 327 billion liters and are valued at more than US $393 billion annually combined. North America, Europe and Japan are the most mature markets for global soft drinks. Coco-Cola and PepsiCo Inc. have significant control over the global soft drinks market...