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Company Snapshot : Coca-Cola

  • Jul 14th, 2017
Coca-Cola

1.About the company:

  • The Coca-Cola Company is the world's largest beverage company.
  • It is registered under the name of ‘KO’ in NYSE.
  • The company markets more than 500 nonalcoholic beverage brands and more than 3,800 beverage choices at more than 200 countries round the world, which includes sparkling beverages and a variety of still beverages such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy, and energy drinks.
  • Coca-Cola owns and markets four of the world's top five non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta, and Sprite.
  • Coca-Cola holds the world's largest beverage distribution system, through the network of Company-owned or -controlled bottling and distribution operations, bottling partners, distributors, wholesalers, and retailers.
  • Company’s portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. These billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, Vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak.
  • On an average day, more than 1.9 Billion beverages are served to consumers.
  • Coca-Cola ranks among the world's top 10 private employers with more than 700,000 system associates including their bottling partners.
  • The Coca-Cola company sold 29.3 billion, 29.2 billion and 28.6 billion unit cases of our products in 2016, 2015 and 2014, respectively.

2.History:

Confederate Colonel John Pemberton, who was wounded in the American Civil War and became addicted to morphine, began a quest to find a substitute for the problematic drug. The prototype Coca-Cola recipe was formulated at Pemberton's Eagle Drug and Chemical House, a drugstore in Columbus, Georgia, originally as a coca wine.

  • 1885- Spanish drink called "Kola Coca" was presented at a contest in Philadelphia.

Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson.

  • 1886- It was initially sold as a patent medicine for five cents which helped in curing many diseases, including morphine addiction, indigestion, nerve disorders, headaches, and impotence. This year is also termed as Coca-Cola’s introduction to the market.
  • 1888- Three versions of Coca-Cola, sold by three separate businesses were in the market. A co-partnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy, and E.H. Bloodworth.
  • 1891- The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company by Joseph A. Biedenharn.
  • 1915- Hoble Skirt Design was adopted for bottles that were similar to the present bottle designs.
  • 1919- On September 12, 1919, the Coca-Cola Co. was purchased by a group of investors for $25 million and reincorporated. The company publicly put on sale 500,000 shares of the company for $40 a share.
  • 1953- The patent for 1885’s Spanish drink was bought by Coca-Cola.
  • 1955- Cans of Coke appeared first.
  • 1986- The Coca-Cola Company merged with two of their bottling operators (owned by JTL Corporation and BCI Holding Corporation) to form Coca-Cola Enterprises Inc. (CCE).
  • 1991- Coca-Cola Enterprises merged with the Johnston Coca-Cola Bottling Group, Inc.

3.Founded - On May 8, 1886; 131 years ago

4.Headquarters - Atlanta, Georgia, United States

5.Founder - John Pemberton, Marketer- Asa Griggs Candler

6.Chief Executive Officer - James Quincey

7.Brands under Coca-Cola

Brands under Coca-Cola

 

10.Coca-Cola India:

  • Started its operations in India in 1993.

Coca-Cola India

  • The Company along with its bottling partners has a strong network of over 2.6 million retail outlets. 
  • The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry into India. The company will be investing another USD 5 Billion till the year 2020. The Coca-Cola company in India directly employs over 25,000 people, including those on contract. The system has created indirect employment for more than 1,50,000 people in related industries through its vast procurement, supply, and distribution system.
  • In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrates and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers.

The Coca Cola System In India

  • Coca-Cola India Private Limited sells concentrates and beverage bases to authorized bottlers, that are authorized to use these to produce the portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India. 

10.1 Headquarter- Gurgaon, India

10.2 Brands under Coca-Cola India

VIO Almond Delight Minute Maid Guava Fuze Tea Peach Coca-Cola Georgia Gold
VIO Kesar Treat Minute Maid Mango Kinley Water Diet Coke Sprite Zero
Maaza Minute Maid Mixed Fruit Schweppes Ginger Ale Coca-Cola Zero Fanta
Minute Maid Pulpy Orange Fanta Green Mango Schweppes Soda Water Thums Up Limca
Minute Maid Nimbu Fresh Fuze Tea Lemon Schweppes Tonic Water Sprite Kinley Soda

10.3 Leadershp Team

Leadershp Team

 

11. Coca-Cola Global last 3 years of Financial Highlights:

Year

Net Profit (Consolidated)

Net Revenue

2016

$6550 Million

$41.86 Billion

2015

$7366 Million

$44.29 Billion

2014

$7124 Million

$46 Billion

11.1 Asian Market:

  • Unit case volume in Asia Pacific increased by 2 percent. Sparkling beverage volume was even, which included 2 percent growth in Trademark Coca-Cola offset by a 4 percent decline in Trademark Sprite. The group's still beverage volume increased 5 percent, reflecting growth in packaged water, teas and coffee, partially offset by a decline in juices and juice drinks. The group's unit case volume reflected an increase of 6 percent in the ASEAN business unit and an increase of 3 percent in both the India & South West Asia and Japan business units. The growth in these business units was partially offset by a unit case volume decline of 1 percent in the Greater China & Korea business unit.
  • India holds 33% of total Asian market sales.
  • Operating income in Asia Pacific for the years ended December 31, 2016 and 2015 was $2,224 million and $2,189 million, respectively. Operating income for the segment reflects an increase in concentrate sales partially offset by the unfavorable impact of acquisitions and divestitures.

 

12.Net sales by Geographic Reason 2016

Net sales by Geographic Reason 2016

 

13.Major Acquisitions:

  • Monster Beverages

Coca-Cola only owns 16.7% of the Monster Beverage Corporation. It took the stake in Monster in 2015 for approximately $2.15 billion.

  • FUZE Beverages

Coca-Cola purchased FUZE in 2007, and the company had sales of $95 million in 2006.

  • Vitamin Water

Coca-Cola pursued Glaceau, the makers of Vitamin Water, and secured the acquisition in 2007 for $4.2 billion.

  • Minute Maid Brands

In 1960, Coca-Cola acquired Minute Maid in its first-ever venture outside of the carbonated beverage category.

  • Bottlers Investment Group

The group was created in 2006 to purchase and invest in struggling bottlers. Once profitable, the goal was to resell the bottlers to a suitable buyer. The group originally began with struggling bottlers in seven countries. Today, the group manages bottling operations in 19 markets that represent more than 25% of the total system volume.

14.Divestitures:

  • Keurig Green Mountain, Inc.

In March 2016, a JAB Holding Company led investors group acquired Keurig for $92 per share. The Company received proceeds of $2,380 million and gained $18 million, related to the disposal of the companies shares in Keurig in line item other income.

  • Coca-Cola Beverages Africa Proprietary Limited

In October 2016, Anheuser-Busch InBev ("ABI") acquired SABMiller plc, including its controlling interest in CCBA. In December 2016, the Company and ABI reached an agreement regarding the transition of ABI's stake in CCBA for an equity value of $3,150 million, after customary adjustments. The Company has also agreed in principle to acquire ABI's interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras.

  • During 2016, proceeds from disposals of businesses, equity method investments and non-marketable securities totaled $1,035 million, primarily related to proceeds from the re-franchising of certain bottling territories in North America.
  • During 2015, proceeds from disposals of businesses, equity method investments and non-marketable securities totaled $565 million, which included proceeds from the re-franchising of certain bottling territories in North America, and proceeds from the sale of a 10 percent interest in a Brazilian bottling partner which was the result of  majority of the owners exercising their right to acquire additional shares from the company.
  • During 2014, proceeds from disposal of businesses, equity method investments and non-marketable securities totaled $148 million, which primarily represented the proceeds from the re-franchising of certain bottling territories in North America.

15.Awards:

15.1 Global

  • 2017, Fortune World’s most admired company- Rank 16
  • 2017, Fortune 500 Company- Rank 62
  • 2017, Fortune Global 500 Company- Rank 206
  • 2017, Forbes  World's Most Valuable Brands- Rank 5 

15.2 India

  • Hindustan Coca-Cola Beverages Pvt. Ltd. has been awarded the Golden Peacock Award 2015 under the Occupational Health & Safety category. This award is in recognition of the company’s exemplary work at its bottling plant at Chittoor.
  • As publishers of the Limca Book of Records, People of the Year (POY) 2016; the Coca-Cola Company launched the first Braille edition of Limca Book of Records,  for physically disabled people. The company has even signed a petition in presence of Narayana Murthy, CEO- Infosys to make sign language one of the official languages of India and to tutor introductory sign language lessons to 10,000 people.

16.News:

16.1 Global

16.2 India


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