Kevin S Dozier
Prof. Juanita Edwards
ACC 557 Financial Accounting
11 Mar 2013
Introduction to Coca-Cola
Coca-Cola Company is an American multinational beverage corporation headquartered in Atlanta Georgia. It is best known for its flagship product Coca-cola. The company offers more than 500 brands in over 200 countries and serves over 1.7 billion servings per day. The company’s stock is listed on the NYSE and it is a part DJIA, S&P index and the Russell 1000 index. The company had revenues of $48.01 billion in the year 2012 and a net income of $9.01 billion. Coca-cola has a total asset base of 86.17 billion and 146200 employees worldwide. Coca-Cola’s current chairman and chief executive is Muhtar Kent. Coca-Cola produces a portfolio of products. Apart from the famous Coke brand, the company produces over 613 beverages ranging from carbonated drinks to non carbonated drinks, sport drinks to water. Coca cola’s main products are; Coke, Fanta, Krest, Minute Maid, Schweppes, PowerAde, Sprite, Stoney and Dasani. These are some of the products offered by Coca cola aimed at different markets geographically and different segments of the market. Sparkling drinks accounted for 68% of Coca-Cola sales in 2011 while still and water beverages accounted for 28% of the sales volumes. The company has over 30 water brands aimed at generating value through the on the go immediate consumption occasion. The company distributes its products through bottlers who operate under franchises although recently Coca Cola has bought some of major bottlers (Coca Cola, 2013). Coca cola targets different markets with different products. Coca-Cola’s main target is the age group between 18 – 34, which accounts from around 40% of the company sales volume in the carbonated drinks market. Other products such as PowerAde are aimed for the sports market. The water brands are mainly targeted to the health conscious consumer who is always on the go. This segment of the market is also catered for, through products such as Minute Maid and Coke Zero with the latter being made from fruit syrup while Coke Zero has low sugar levels. Another Coca Cola target market is the family set up through products such as the one liter and two liter bottled beverages. Another target market is, low income areas where Coca-cola provides the beverages using returnable bottles thus making the prices of the product cheaper. Coca-cola has many different suppliers who offer different services from packaging, information technology services, bottles and package labeling. Coca-cola main suppliers include; Alcan packaging which offers plastic bottle labels, Alcoa plastic caps, and Cannon provides steam boilers, water treatment systems and plastic products. EDS provides information technology services to Coca- cola for its operation in Latin America. Graphic packaging supplies cartons and machinery to package cans, plastic and glass bottles for Coca-cola brands worldwide. Rexam supplies Coke’s aluminum cans while Tate and Lyle provides the sucrose sweetener to the new version of Diet Coke (Polaris Institute, 2005). Introduction to Pepsi Co
PepsiCo is an American multinational food and beverage corporation headquartered in Purchase, New York. PepsiCo was formed after a merger of Pepsi-Cola and Frito-lay Inc., formed in 1965. PepsiCo has since become the largest food and beverage brand with its acquisition of Tropicana and a merger with Quaker oats. In 2011 the company had revenues of $66.504 billion and a net income of $6.462 billion. The company has around 29700 employees worldwide. PepsiCo is also listed on the NYSE and is also a part of the Dow Jones Industrial composite. Pepsi Co’s current chief executive is Indra Krishnamurthy Nooyi who has been at the helm since 2006. PepsiCo offers an array of products which generates approximately $108 billion in cumulative annual retail sales. Here are PepsiCo products which had revenues...
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