Coca Cola Demand Analysis
7.0 COCA COLA GLOBAL VOLUME GROWTH
Industry
Worldwide soda volume was down by 1% during the first quarter of 2014 for Coca-Cola. The shift in the Easter holiday from the first quarter in 2013 to the second quarter in 2014 was partially responsible for the decline, but the fact remains that carbonated drinks sales have been under considerable pressure, particularly in big markets such as the U.S. Regular Coca-Cola sales have been steadily declining in the U.S. in recent years due to concerns over calories and other health factors, and Diet Coke is also facing considerable criticism regarding artificial sweeteners such as aspartame.
Opportunities
Even if Coca-Cola faces considerable challenges in adapting to changing consumer habits, that doesn´t mean the soft drinks giant is without growth opportunities. On the contrary, international expansion and product innovation are two promising growth drivers for Coca-Cola in the years ahead. China was a particularly strong market for the company during the first quarter of 2014: Beverage volume grew by an impressive 12% from the prior year, while overall sparkling drinks volume expanded by 6% and brand Coke grew by 3%. Marketing investments during the Winter Olympics in Sochi produced solid results in Russia, where volume of sparkling beverages grew by 7% during the quarter and brand Coca-Cola volume increased by 9%. This was the 17th consecutive quarter of growth for the Coke brand in Russia. Volume in Brazil increased by 4% during the quarter, and management is optimistic about performance there as Coca-Cola is putting a lot of marketing muscle behind this summer 's soccer World Cup in the country
In addition, still beverage brands account for approximately one-quarter of the company 's total global volume. Coca-Cola owns 11 brands in the noncarbonated category that generate more than $1 billion in global sales annually; these include widely recognized names such as Minute Maid, Powerade, and Dasani. Still beverage
Industry
Worldwide soda volume was down by 1% during the first quarter of 2014 for Coca-Cola. The shift in the Easter holiday from the first quarter in 2013 to the second quarter in 2014 was partially responsible for the decline, but the fact remains that carbonated drinks sales have been under considerable pressure, particularly in big markets such as the U.S. Regular Coca-Cola sales have been steadily declining in the U.S. in recent years due to concerns over calories and other health factors, and Diet Coke is also facing considerable criticism regarding artificial sweeteners such as aspartame.
Opportunities
Even if Coca-Cola faces considerable challenges in adapting to changing consumer habits, that doesn´t mean the soft drinks giant is without growth opportunities. On the contrary, international expansion and product innovation are two promising growth drivers for Coca-Cola in the years ahead. China was a particularly strong market for the company during the first quarter of 2014: Beverage volume grew by an impressive 12% from the prior year, while overall sparkling drinks volume expanded by 6% and brand Coke grew by 3%. Marketing investments during the Winter Olympics in Sochi produced solid results in Russia, where volume of sparkling beverages grew by 7% during the quarter and brand Coca-Cola volume increased by 9%. This was the 17th consecutive quarter of growth for the Coke brand in Russia. Volume in Brazil increased by 4% during the quarter, and management is optimistic about performance there as Coca-Cola is putting a lot of marketing muscle behind this summer 's soccer World Cup in the country
In addition, still beverage brands account for approximately one-quarter of the company 's total global volume. Coca-Cola owns 11 brands in the noncarbonated category that generate more than $1 billion in global sales annually; these include widely recognized names such as Minute Maid, Powerade, and Dasani. Still beverage