While consumer tastes seem to be shifting away from soda and toward healthier beverages, Coca-Cola Co.'s CEO Muhtar Kent believes the company's best course of action is simply selling more cola. The company's plans include earmarking an additional $1 billion for advertising spending through 2016, and overhauling its U.S. distribution network with hopes of returning the company to high single-digit growth in 2016, reported The Wall Street Journal.
The company's devotion to the soda market, where 70% of its sales come from, is also reflected in its acquisition strategy. Rather than buy out smaller companies wholesale, Coke has been pursuing significant but minority stakes in growing companies such as Keurig and Monster, using its existing resources to slowly and carefully expand into areas such as coffee and energy drinks.
Part of the reason for this slow expansion is belief in the company's existing portfolio, which includes 20 billion-dollar brands, 14 of which are still beverages, Minute Maid and Dasani. The company still has the right ingredients to "grow rapidly," according to Kent.
Campbell witnessed its best quarterly performance in more than 30 years, according to Consensus Metrix, as the the company worked on making its soups better tasting, more filling, and derived from simpler ingredients. It also added trending varieties, such as bone broth, reported The Wall Street Journal (June 2).read more
With a background in both daily and weekly publications, Bryan has worked as a journalist since freelancing for his hometown paper in high school. He has since written both in print and online for min, The Times of Trenton and North Jersey Media Group, holding positions from stringer to editor. With a background as a news reporter, he has learned to seek out the focus behind the story, digging for the most important information.
There are no comments, yet. Why don't you add one?
10 Mountainview Road
Upper Saddle River, NJ 07458
Food Institute reps are available to answer your questions
BECOME A MEMBER
For close to 90 years, The Food Institute has been the best "single source" for food industry executives, delivering actionable information daily via email updates, weekly through The Food Institute Report and via a comprehensive web research library. Our information gathering method is not just a "keyword search."