Coke has 28% US market ( $4.6 billion ) and get $13 billion revenue from the global market of not-from concentrate juices
Juices production is more complicated than bottling soft drinks due to many variables
Coke has a secret methodology to produce orange juices and call it as Black Book. It includes detail data about the myriad flavors to make the juices as well as external factors like weather patterns, expected crop yields and cost pressure.
Coke has 15 brands each generate 1 billion annually. 4 of 15 brands are juices-based drinks: Minute Maid globally, Simply Orange in US, Minute Maid Pulpy in Asia and Del Valle in Latin America
Coke market share is 17% compare to 9% of PepsiCo in 22 markets. Coke market share was grown 0.9% while PepSi Co declined in the same amount.
Cutrale, a global fruit procurer owned by Coca Cola’s Brazilian, processes the juices that go to all Coke’s juice brands. This facility can process one third of orange grown by 400 Florida growers.
80% of output from Cutrale go to China for use by Minute Maid Pulpy
All the processes in Cultrale and Coke’s plants are controlling by computer with Black Book models. 2.
Why Coke does need to build a big plant and complicated model to build the orange juice?
What do you think about the strategy to build the computer based Black Book model? 3.
Knowledge is the most important in the business. Coke cannot build the Black Book model without the knowledge of doing the business. More important, Coke can put the knowledge with the advance technology to be more efficiency in order to create the economics of scale 4.
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