Emerging markets will be key growth drivers: Coke
The Atlanta-based cola major is now confident that the worst is behind it.
By Javed Sayed, TNN |
ATLANTA: An inward looking culture, lack of focus on customers and innovation, and absence of alignment with bottlers were some of the key reasons for Coca-Cola problems in the early 2000s, says the company’s President and COO, Muhtar Kent.
The Atlanta-based cola major, which has seen its stock price grow 40% in the last couple of years and has witnessed growth in both developed and emerging markets, is now confident that the worst is behind it. “In the last one and a half years, we have grown both in the developed as well as emerging markets. Trademark Coke is growing again, and we are seeing growth both in sparkling as well as still water,’’ says Mr Kent.
Notwithstanding the growth in developed markets, the company clearly sees emerging markets as a key growth driver. “At present, 70% of all beverages are consumed in the developed world while the emerging countries account for 30%. Emerging markets are enjoying unprecedented growth. Over the next 10 years, we expect 700 million people in the emerging markets to join the middle class,” says Mr Kent.
Even as a debate rages over the health benefits of colas and as arch competitor PepsiCo rejigs its portfolio to enhance the nutrition and nourishment aspects of its portfolio, Mr Kent asserts that all the 400 brands in the Coca-Cola stable are based on the health and wellness platform. “Our product portfolio serves the wellness platform. We offer a wide spectrum of choices in the health and wellness platform,’’ he says. The company’s portfolio, in addition to carbonated soft drinks, includes juice, water, tea, sports drinks, sparkling water and energy drinks.
Commenting on the factors that have contributed to his company’s resurgence, Mr Kent said,” We have become better at commercialising our innovation. Our consumer marketing has become better and we have grown through new product launches.” The company’s winning culture, which Mr Kent described as “belief in knowing what we are doing and where we are going” has also helped it in its forward march.
The Atlanta-based cola major, which has seen its stock price grow 40% in the last couple of years and has witnessed growth in both developed and emerging markets, is now confident that the worst is behind it. “In the last one and a half years, we have grown both in the developed as well as emerging markets. Trademark Coke is growing again, and we are seeing growth both in sparkling as well as still water,’’ says Mr Kent.
Notwithstanding the growth in developed markets, the company clearly sees emerging markets as a key growth driver. “At present, 70% of all beverages are consumed in the developed world while the emerging countries account for 30%. Emerging markets are enjoying unprecedented growth. Over the next 10 years, we expect 700 million people in the emerging markets to join the middle class,” says Mr Kent.
Even as a debate rages over the health benefits of colas and as arch competitor PepsiCo rejigs its portfolio to enhance the nutrition and nourishment aspects of its portfolio, Mr Kent asserts that all the 400 brands in the Coca-Cola stable are based on the health and wellness platform. “Our product portfolio serves the wellness platform. We offer a wide spectrum of choices in the health and wellness platform,’’ he says. The company’s portfolio, in addition to carbonated soft drinks, includes juice, water, tea, sports drinks, sparkling water and energy drinks.
Commenting on the factors that have contributed to his company’s resurgence, Mr Kent said,” We have become better at commercialising our innovation. Our consumer marketing has become better and we have grown through new product launches.” The company’s winning culture, which Mr Kent described as “belief in knowing what we are doing and where we are going” has also helped it in its forward march.
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