Milling & Baking News Corporate Profiles - November 2013 - (Page 84)

Company Overview Coca-Cola Co. Focus stays on strength of brands T he Coca-Cola Co., Atlanta, drew strength in its global brands while experiencing a tough start to 2013. Muhtar Kent, chairman and chief executive officer, spoke about the issues in a July 16 earnings conference call. "Our focus on achieving our 2020 vision is unwavering with current dynamics leading us to believe that our performance will be better in the back half of the year," he said. "Why? Quite simply a few important reasons. "First, our global brands are stronger than ever, and we will continue to invest in them to capture long-term volume and value share. Second, we have an unparalleled global business system focused on delivering our 2020 Vision, and third, we have great confidence in our plans, and we will sharpen our focus to ensure our resources are directed to those strategic priorities that will drive our business, and certain key markets will return to growth." Coca-Cola ranked as the top soft drink brand globally, according to BrandZ in a report conducted by Millward Brown Optimor. Diet Coke came in second. Sprite and Fanta, two other Coca-Cola brands, were eighth and ninth, respectively. According to New York-based Interbrand, Coca-Cola had a brand value of $79.2 billion in 2013, up 2% from the previous year. However, Coca-Cola fell to No. 3 from No. 1 in global brand rankings. No. 1 Apple and No. 2 Google eclipsed the soft drink brand in 2013. The Coca-Cola Co. reported disappointing financial results midway through 2013. For the six months ended June 28, Coca-Cola had net income attributable to shareowners of $4.4 billion, or 98c per share, which was down 9% from the same time period of the previous year. In North America, six-month operating income was $1.1 billion, down 11%. In Europe, six-month operating income was $1.5 billion, down 5%. In Europe, Coca-Cola agreed to buy the majority of the founders' remaining shares for Innocent. Since Coca-Cola's initial investment four years ago, sales have doubled for Innocent, now the No. 1 smoothie brand in Europe. "We have been expanding our pricing and packaging portfolio in Europe to be able to increase our recruitment Chief executive officer - and build frequency in sparkling beverages," said Ahmet Bozer, executive vice-president of the Coca-Cola Co. and president of Coca-Cola International, on Sept. 4 at a Barclays Backto-School Conference in Boston. "And we have also been strategically choosing stills categories to participate. "One of the greatest examples of that is the innocent brand, which we acquired a portion of in 2008. And I can tell you that that is the fastestgrowing chilled juice brand in Europe." Latin America had six-month operating income of $1.5 billion, up 4%. In Argentina, Coca-Cola rolled out CocaCola Life, which is sweetened with sugar and stevia. In Pacific, six-month operating income was $1.4 billion, down 2%. The company focused on growth in China. "We are participating in two great categories in China, and we are the leaders, which is sparkling and juices," Mr. Kent said. "Those categories we have grown in, and they are adding tremendous value to our portfolio and to our business in China." Eurasia and Africa had six-month operating income of $614 million, up 9%. CP Top brands - Coca-Cola Sprite Dasani vitaminwater 2012 net operating revenues - Muhtar Kent 84 \ November 2013 $48 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013