The Coca-Cola Co is set to release its Q4 and full-year results tomorrow (7 February). Below, we take a look at the highs and lows for the company in the three months to the end of December.
- The quarter began with news that the Coca-Cola soft drinks brand remains the world’s most valuable brand in any product category, with a value of US$71.86bn, according to Interbrand. Pepsi-Cola moved up one place on 2010, to 22nd, with a value of $14.59bn.
- In mid-October, Coca-Cola teamed up with Paramount Pictures in the US to launch a Coke Zero campaign to coincide with the release of the fourth Mission: Impossible film. The campaign was called ‘Make it Possible’.
- Also in the month, soft drinks firms expressed concern about France’s plans to introduce a levy on sugar-sweetened drinks. The plan drew fierce opposition from Coca-Cola Enterprises, alongside the the Union of European Soft Drinks Associations. The tax was eventually introduced, as planned, in January.
- At the end of October, Coca-Cola agreed to purchase US bottler Great Plains Coca-Cola Bottling Co for US$360m. Great Plains is the fifth-largest independent Coca-Cola drinks bottler in the US.
- In mid-November, all soft drinks makers were given a lift by the European Commission’s decision to approve stevia sweeteners across the EU. Cargill produces Truvia, a stevia-based sugar substitute, through a partnership with Coca-Cola.
- A few days later, the focus returned to emerging markets. Coca-Cola said it would invest $2bn in India over the next five years. Its main areas of investment will be in consumer marketing and brand building, expansion of distribution and cold drink equipment placement, in addition to the development of manufacturing capacity, the firm said.
- At the end of November, Coca-Cola teamed up with UK singer Natasha Bedingfield to launch a global Christmas campaign. The push, which was an extension of the ongoing ‘Open Happiness’ marketing platform, included the launch of a song – ‘Shake up Christmas’ – recorded in six languages.
- At the start of December, Coca-Cola seemingly pulled back from a plan to sell its namesake cola in white cans throughout the holiday period in the US. It switched the cans back to red after just one month of the scheme, reportedly following consumer complaints.
- Also in December, Coca-Cola moved the secret formula for its namesake brand for the first time in 86 years. The 125-year-old formula was taken from a vault at SunTrust Bank in Atlanta, where it had been housed since 1925, to a repository at the group’s Atlanta museum.
- In mid-December, Coca-Cola announced “multi-million dollar” tie-up deals with biotechnology companies in order to create a bottle that is made entirely from plants, for use across its entire drinks portfolio.
- Towards the end of the quarter, Coca-Cola announced that it would buy 50% of the soft drinks business of Aujan Industries for $980m, as part of the US firm’s long-term investment plan in the Middle East. It will also acquire 49% of the Middle East-based conglomerate’s bottling and distribution unit. The move is part of a bigger strategy to invest $5bn in the region over ten years. Aujan sells drinks brands Rani and Barbican and also holds the regional licence to UK-based Nichols’ Vimto soft drink.
- Following this deal, just-drinks took pause for a brief comparison of Coca-Cola with PepsiCo. Investor unrest at PepsiCo has unsettled the group in recent months, causing the balance of power to swing back to the red corner of soft drinks. In December, Pepsi’s share price had risen by just 2% in five years, while Coke’s was up by almost 44% over the same period.