Milling & Baking News Corporate Profiles - 2019 - 66

COMPANY OVERVIEW

Coca-Cola Co.
Portfolio expands in coffee, energy drinks
he Coca-Cola Co., Atlanta, continues to
seek growth through expansion in different
categories like energy and coffee.
Coca-Cola initially introduced Coca-Cola Zero
Sugar soft drinks in international markets before
launching the product in the United States. Now,
the beverage company is following a similar
strategy with energy drinks.
Coca-Cola Energy, a recent portfolio addition,
was available in more than 25 global markets
by the end of the third quarter of fiscal 2019. A
"2.0 version" will launch in the United States in
2020, said James R.B. Quincey, chief executive
officer of Coca-Cola, in an Oct. 18 earnings call
to discuss third-quarter results. The flavor profile
will move closer to Coca-Cola Classic, he said.
"The energy category in the U.S. is much more
developed than many of the other markets, and
therefore we are clearly taking an approach of
trying to bring new consumers into the category
rather than competing for the current ones," Mr.
Quincey said. "And we believe that, based on our
experiences in the launch markets and our research in the U.S., that doing so with a formula
closer to Coke will be more effective."
A legal issue with Coca-Cola Energy was
resolved in July. An arbitration tribunal of the
American Arbitration Association ruled the

introduction of Coca-Cola Energy is allowed under the terms of a contract between Coca-Cola
and Monster Beverage Corp., Corona, Calif. The
tribunal ruled the energy drink falls within an
exception to a non-compete provision relating
to beverages marketed or positioned under the
Coca-Cola brand.
To expand in coffee, the Coca-Cola Co. in
January completed the acquisition of Costa Ltd.
from Whitbread P.L.C. for $4.9 billion. Costa has
operations in more than 30 countries.
Mr. Quincey said Coca-Cola will focus Costa
on three segments: the express vending machine, beans and machines for food service customers, and ready-to-drink products. Coca-Cola
launched the first-ever Costa Coffee ready-todrink chilled product in Great Britain during the
second quarter.
In soft drinks, Coca-Cola Zero Sugar experienced double-digit volume growth in the third
quarter ended Sept. 27. Trademark Coca-Cola

grew in retail value by 6% through the first
three quarters of the fiscal year due to innovation and price/pack architecture, according to
the company.
"While consumer behavior is rapidly evolving, we continue to find new ways to connect
with consumers through our leader brands," Mr.
Quincey said.
In bottled water, packaging plans for the
Dasani brand relate to recycling.
"In the U.S., we're working on a number
of packaging plans with Dasani, including removing the equivalent of 1 billion virgin P.E.T.
(polyethylene terephthalate) plastic bottles from
the supply chain over the next five years," Mr.
Quincey said. "Dasani will introduce a lineup of
recyclable, reusable and package-free options,
including aluminum packages and expansion
of PureFill water dispensers, which leverage our
Coca-Cola Freestyle technology."
Through the first nine months of fiscal 2019,
Coca-Cola companywide posted net income of
$6,878 million, or $1.61 per share on the common stock, which was up 23% from $5,564
million, or $1.31 per share, in the same time
of the previous year. Nine-month net operating
revenues of $28,198 million were up 6% from
$26,494 million. CP

Chief executive officer -
James R.B. Quincey

Coca-Cola net income

Coca-Cola operating revenues

Coca-Cola share price

per share
$57

$6,527

2016

66 \ November 2019

$1,248

2017

$6,434

2018

in millions

$53
$49

$41,863

$35,410

$31,856
$45

2016

2017

2018

$41
Oct.
2018

Dec.

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Milling & Baking News Corporate Profiles - 2019

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