For Every Dollar of Coca-Cola You Buy a Quarter Goes to Profit
What’s interesting about Coca-Cola is that for every dollar paid, nearly a quarter goes to profit
The Origin of Coca-Cola
- Originated in Atlanta, USA
- May 8, 1886
- Dr. John Stith Pemberton – pharmacist
Unit Case Volume 2022
2022 % of revenue (green color is % of profit)
2,800+ products available in 200+ countries
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Costa Coffee
- A British multinational coffeehouse chain founded by Italian brothers Sergio and Bruno Costa in London in 1971
- They moved to England from Italy to bring high-quality coffee to the British public
- In 1978, they opened their first store to showcase their coffee to the public
- In 1995, Costa was acquired by Whitbread, a British hospitality company that helped Cost expand in the UK and internationally
The old factory was in South London
In January 2019, Whitbread sold Costa Coffee to The Coca-Cola Company
- The company now has nearly 4,000 Costa coffee shops and over 14,000 Costa Express self-serve coffee bars worldwide
- Costa’s portfolio also includes ready-to-drink and at-home coffee solutions
Coca-Cola – US – Founded 1892
Cons. Staples sector, 86,200 employees, US$33bn revenue
Main segments/products
- Coca-Cola carbonated beverages
- Sprite lemon-lime soda
- Fanta fruit-flavored soft drinks
Its competitive advantage
Competitive advantage through iconic brand recognition, extensive global distribution network, and diverse portfolio of beverages.
How it achieved its competitive advantage
Achieved by strategic marketing, brand management, investing in bottling partners, and continuous product innovation to meet evolving consumer preferences.
Why Coca-Cola is successful
- Sponsorship
- The Olympics’ longest-running sponsors since 1928
- Advertising campaigns
- The largest advertising budget of any beverage company
- Dominating in non-alcoholic beverages
- Tops soft drink ranking
- Most consumed soda in the world
- 44% market share of global sales in the non-alcoholic beverage industry
The most valuable soft drink brand in the world by far, Diet Coke ranks 9th
- The Coca-Cola brand value is estimated to be US$98bn in 2023
- Including Diet Coke, it’s US$106bn
- No.3 Pepsi (including Diets) is estimated to be worth US$19bn
Quarterly results
- KO reported 3Q23 recurring EPS of US$0.81, which was +17.3% YoY and -3.2% QoQ
- The 9M23 result was 79.0% of our full-year forecast
Valuation
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