Coca-Cola Financial Analysis
Introduction
The Coca-Cola recipe was originally founded and formulated by John Pemberton at the Pemberton’s Eagle Drug and Chemical House. By 1885, the product was registered as a French Wine Coca as a patent medicine. Pemberton claimed Coca-Cola cured morphine addiction, dyspepsia, neurasthenia, headaches and impotence. The carbonated drink began its first sales at Jacob’s Pharmacy in Atlanta, Georgia on May 8, 1886 for 5 cents a glass with its first advertisement in the Atlanta Journal on May 29, 1886. It wasn’t until 1955 when cans of Coke started to make its first appearance (Official Coca-Cola website).
By the 21st century, Coca-Cola is proclaimed to be the world’s largest beverage company sold in more than 200 countries. The company owns and markets four out of the world’s top five beverage brands; Coca-Cola, Diet Coke, Fanta, and Sprite. Coca-Cola’s current business situation is obviously more expansive than the early years, with increased sales, maximized profit, and product expansion into new markets. According to Chief Executive Officer, Muhtar Kent, Coca-Cola’s net income rose six (6) percent to $2.45 billion, or 54 cents a share, from $2.31 billion, or 50 cents a share from a year earlier ( NY Times, 2013). Based on Coca-Cola’s quarterly profit, the company is right on track with their goal in doubling its 2010 revenue. The sales volume of noncarbonated drinks like juices, tea’s, fuze, and bottled water has had double digit percentage growth in comparison to Coke’s actual soda beverage.
A SWOT analysis was conducted for Coca-Cola in 2013, the results were as follows; Strengths: (1) The best global brand in the world in terms of value ($77,839 billion), (2) Coca-Cola holds the largest beverage market share in the world (40%), (3) Coca-Cola’s advertising expenses accounted for more than $3 billion in 2012, increasing firm sales and brand recognition, (4) Coca-Cola serves more than 200 countries and more than 1.7 billion servings a
The Coca-Cola recipe was originally founded and formulated by John Pemberton at the Pemberton’s Eagle Drug and Chemical House. By 1885, the product was registered as a French Wine Coca as a patent medicine. Pemberton claimed Coca-Cola cured morphine addiction, dyspepsia, neurasthenia, headaches and impotence. The carbonated drink began its first sales at Jacob’s Pharmacy in Atlanta, Georgia on May 8, 1886 for 5 cents a glass with its first advertisement in the Atlanta Journal on May 29, 1886. It wasn’t until 1955 when cans of Coke started to make its first appearance (Official Coca-Cola website).
By the 21st century, Coca-Cola is proclaimed to be the world’s largest beverage company sold in more than 200 countries. The company owns and markets four out of the world’s top five beverage brands; Coca-Cola, Diet Coke, Fanta, and Sprite. Coca-Cola’s current business situation is obviously more expansive than the early years, with increased sales, maximized profit, and product expansion into new markets. According to Chief Executive Officer, Muhtar Kent, Coca-Cola’s net income rose six (6) percent to $2.45 billion, or 54 cents a share, from $2.31 billion, or 50 cents a share from a year earlier ( NY Times, 2013). Based on Coca-Cola’s quarterly profit, the company is right on track with their goal in doubling its 2010 revenue. The sales volume of noncarbonated drinks like juices, tea’s, fuze, and bottled water has had double digit percentage growth in comparison to Coke’s actual soda beverage.
A SWOT analysis was conducted for Coca-Cola in 2013, the results were as follows; Strengths: (1) The best global brand in the world in terms of value ($77,839 billion), (2) Coca-Cola holds the largest beverage market share in the world (40%), (3) Coca-Cola’s advertising expenses accounted for more than $3 billion in 2012, increasing firm sales and brand recognition, (4) Coca-Cola serves more than 200 countries and more than 1.7 billion servings a
References: Coca-Cola Co. (KO) | Profitability. (n.d.). Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Ratios/Profitability#Gross-Profit-Margin Coca-Cola’s Net Income Rises Despite a Drop in Revenue. (2013). The New York Times. Retrieved from http://www.nytimes.com/2013/10/16/business/coca-colas-net-income-rises-despite-a-drop-in-revenue.html?ref=cocacolacompany&_r=0 Hargreaves, R. (2013, March 6). Where to Invest; Coke, Pepsi, or Dr. Pepper? Retrieved from http://beta.fool.com/ruperthargreav/2013/03/06/where-invest-coke-pepsi-or-dr-pepper/25814/ The Coca-Cola Company: Heritage and History. Retrieved from http://www.coca-colacompany.com/topics/heritage#TCCC