Coca-Cola’s (KO) Management trying not to let its can get kicked down the road


Soda consumption levels are not trending in the right direction if you are Coke (KO),  PepsiCo (PEP) or Dr. Pepper Snapple (DPS) — falling to a 30-year low in the United States. Changing taste buds, and consumers desire for healthier alternatives have resulted in flavored waters and juices, not to mention the energy drink and coffee beverage categories, eating into the sugary drink manufacturer’s sales.

At Coke’s management presentation to Barclays Global Consumer Staples Conference, the team presented its strategy for maintaining, if not growing, its business. At the top of its list: tapping into growing international demand ( part of our Rise & Fall of the Middle Class thematic ) and overhauling its ingredients to tap into more natural options ( part of our Foods with Integrity thematic ).

The long-term growth of the beverage industry is being propelled, yes, by globalization, urbanization, the growth of the middle class as much as that gets buffeted in the short term, it is still there as a long-term trend.


Now it is fair to say that the evolution of what we are doing on Coca-Cola and some of the Sparkling beverages is not just about a new campaign or a new graphic identity. It is actually reshaping our Sparkling strategy so that we can sustain growth overtime. It is about responding to the changes in the consumer landscape and the stakeholder landscape in terms of people’s desire whether it be more natural ingredients, whether it be for the desire for less sugar, less calories, more of a treat, we have brought all these pieces together.

Source: The Coca-Cola’s (KO) Management Presents at Barclays Global Consumer Staples Conference (Transcript) | Seeking Alpha

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

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