Coca Cola: the impact in

people’s lifes and international

economy

Zaharia Alexandra
And
Tudorache Denisa
IM- 616
• The Coca-Cola system is a global business that operates on a local level in
every community around the world.
• The Coke story begins in 1886, Atlanta, Georgia USA. John Pemberton, a
chemist, seeks a remedy for his addiction to morphine. He begins to
experiment with kola nut and cola wine additives. He gets it right and brews
the first batch of Cocoa – Cola in his backyard. After selling his new product at
the Jacob’s Pharmacy soda fountain, it becomes an instant hit. He later sells
the business.
• Coke is arguably most associated with one thing - AMERICA, which proves to
be the home economy of this soda giant.Having been invented by an American
chemist, in an American city of an American state for the American people,
Coke has established its home economy USA style.
• Coca-Cola revenues have declined over the last three years, mainly
due to loss of revenue from extensive refranchising (sale or
conversion of company-owned stores to existing or new franchisees)
of its bottling operations.
• However, with most of the refranchising already done, total revenue
is expected to increase in 2019 and 2020, led by higher demand for
energy and sports drinks across geographies, along with benefits from
major acquisitions.
• Performance In Key Operating Markets
• 1) EMEA (Europe, Middle-East and Africa)
• Segment revenue has continuously increased from 2016 to 2018 and we expect this trend to continue going forward.
• Higher revenue is primarily to be driven by volume growth, led by sparkling soft drinks and Fuze Tea, coupled with strong
pricing in a majority of the key markets.
• 2) Latin America
• After increasing in 2017, revenue remained almost flat in 2018 due to volume decline in Argentina and Mexico.
• Going forward, we expect revenue to increase due to strong performance in the non-carbonated drinks category, along
with energy and sports drinks, partially offset by currency headwinds.
• 3) North America
• Revenues have maintained an increasing trend till 2018 and are expected to grow further over the next two years led by
the impact of new package initiatives executed in the market, and strong pricing mix within the sparkling soft drink
portfolio.
• 4) Asia-Pacific
• Segment revenue growth is expected to be driven by a healthy increase in volume sold, partially offset by subdued
pricing.
• Demand is likely to be driven primarily by China and other emerging market economies.