An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO’s sales.  KO’s profits are also vulnerable to the volatile costs for the raw materials used to make drinks - such as the corn syrup used as a sweetener, the aluminum used in cans, and the plastic used in bottles. Furthermore, slowing consumer spending in Coke's large North American market compounds the challenge of increasing costs and a weak economic environment. Finally, Coca-Cola earns approximately 75% of revenue from international sales, exposing it to currency fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD).
Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is growing quickly, the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. The size and variety of KO’s offerings in the CSD category, coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to maintain its share of this important market. KO has also responded to consumers’ changing tastes with new, non-CSD product launches and acquisitions such as that of Glaceau in 2007. Strong international growth has also more than offset a weak domestic market.
On October 4, 2010, the company completed the acquisition of its largest bottler,Coca-Cola Enterprises (CCE) for $12.3 billion. Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, the soft drink market has changed dramatically with consumers buying fewer soft drinks and more non-carbonated beverages, such as Powerade and Dasani water. Under the new deal, Coca-Cola Company took control of the bottler's North America operations, giving the company control over 90% of the total North America volume. In return, Coca-Cola Enterprises took over Coke's bottling operations in Norway and Sweden, becoming a European-focused producer and distributor.
In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit smoothie maker. Last year the company bought an 18% share of the company for more than $45 million, and recent purchases of additional shares increased Coke's stake to 58%.
In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715 million for the continued right to sell their products following the company's acquisition of Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew for an additional 20 years.
In September 2010, Coca-Cola Company purchased the Russian juice company, OAO Nidan Juices for between $250 million and $300 milion. The company was 75% owned by a private equity firm in London and 25% by its Russian founders and controls 14.5%...