COCA-COLA COMPANY

Coca-Cola Company

Coca-Cola Company

The organization

Coca-Cola is the global leader in terms of manufacturing, marketing and distribution of soft drinks. It owns or licenses and markets more than five hundred non-alcoholic beverage brands; mainly fizzy drinks but also various still beverages such as enhanced waters, waters, juice drinks & juices, coffees& ready-to-drink teas , and sports & energy drinks. As of 2011, about, 80 percent of Coca-Cola's international unit case volume and 60% of company value sales stem from outside the US.

Coca-Cola was founded in 1885, when pharmacist John Smith Pemberton developed the recipe for the drink of the same name as a remedy for ulcers and rheumatism. The drink's name was, however, given by his bookkeeper, in indication to two central ingredients: kola nuts and Coca leaves (later cleaned of narcotics) . (Thomas, 2010)

Coca-Cola's original formulation remained unchanged until 1985, when the company's Chief Executive Officer decided to alter the recipe in the face of falling market share, due to competition from Pepsi. The change did not, however, prove to be popular, and the company reverted to the original formula, which was successfully reintroduced as Coca-Cola Classic. The Coca-Cola brand now easily outperforms the Pepsi brand in cola carbonates. In an effort to expand, Coca-Cola has attempted some large-scale deals, which did not, however, always work out for the company as planned. A 1999 deal to acquire brands from Cadbury Schweppes was limited to areas outside the US, Canada and much of Europe, due to antitrust concerns. In 2000, Coca-Cola nearly bid for Quaker Oats and its Gatorade sports drink, but that division was eventually acquired by rival PepsiCo Inc. In 2001, the company announced a major distribution venture with Procter & Gamble, but this never materialised.

Successful acquisitions over the years include Barq's Root Beer (1995), Mad River Traders (2001), Odwalla juices (2001), and Seagram's mixers (2002). In more recent years, the company has shown a greater push towards non-carbonates brands. In 2005, it bought out Groupe Danone's stake in the North American bottled water joint venture it had set up to distribute brands like Dannon and Sparkletts. In 2006, Coca-Cola purchased functional beverage maker Fuze Beverage, and renegotiated its distribution agreement with Nestlé to allow for the further development of RTD tea and coffee brands. In 2007, it purchased the VitaminWater line of functional waters. In 2011, Coca-Cola completed its acquisition of Honest Tea. (Isdell, 2011)

Coca-Cola was the top US soft drinks manufacturer in terms of both volume and value in 2011. The company's fortunes are tied to its leading position in carbonates, where falling sales of its flagship Coca-Cola brand were responsible for its steady decline over the review period. The company has shifted its focus to the consumer's desire for health and wellness products to stem this decline. Coca-Cola's low-calorie products are successful despite the decline in overall carbonates; in 2011, Coke Zero continued to experience yet another year of double-digit growth since its release in 2005. The company also entered a partnership with Truvia, a ...