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CAGE 2012 - Emerging markets to rise to a third for Coca-Cola Co

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Major growth rates in emerging markets will mean these regions will rise to represent a third of the Coca-Cola Co's global business by 2020, a senior company representative has forecast.

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Speaking at the CAGE conference in Central London today (March 21), chief financial officer Gary Fanyard highlighted figures showing emerging markets currently represent 20% of Coca-Cola's sales worldwide, posting 8% growth in 2011. Developed markets account for 43% of sales, while developing markets are 37%.

But, Fanyard told delegates that, by 2020, each market will represent 33% of the business due to “higher growth rates coming out of emerging and developing markets”.  

Fanyard presented details of the company's '2020 Vision', which he called a “roadmap”. This includes targets to grow overall volumes by between 3% and 4% and net revenue by between 5% and 6%.

However, Fanyard admitted: “We have a 2020 Vision that is slightly ahead of our earnings model, so we have to leverage our strengths to continue growing.” 

Part of this strategy will involve growing revenue through diversifying the packaging of its brands. This will follow the model in Mexico, where 31 different types of packaging currently exist for Coca-Cola.

“Consumers want different packaging for different occasions and that's how we're meeting that value equation,” said Fanyard. “I'm not here to say we will make the world look like Mexico, but I'd like it to look like half of Mexico.”

Fanyard also said that, despite its overall maturity, Europe remains a region with “growth potential”. He pointed to major opportunities around the European Football Championships and London Olympics this summer.

Coca Cola operates in 206 countries and has a total of 15 “billion dollar brands” with “several more to come”, he said. 


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