Coca-Cola: Company of the Future

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The Coca-Cola Company commands a large market share of non-alcoholic beverage with its popular brands like CocaCola, Fanta, PowerAde, and diet coke; making it a model enterprise. In addition, its revenue exceeds 46 billion dollars every fiscal year. This paper is a review of the company’s performance based on its third-quarter 2012 financial earnings. It expounds on the company’s growth strategies and impacts in the North American soft drink market. In addition, it highlights the drivers of profitability during the quarter and their effects on the company’s performance. Furthermore, it discusses the earnings per share for the quarter and the emerging markets in addition to their impact on the company’s future.

The North American Market

The North American market accounted for the largest share of approximately 45% of Coca-Cola sales and revenue. This made North America Coca-Cola’s flagship market because it registered a two percent growth increase for the quarter. In addition, the company recorded an increase in volume and market share in non-alcoholic and ready-to-drink beverages while keeping the price mix at three percent. In the sports drinks category, the company toppled its competitors because of the popularity of PowerAde sports drinks. Moreover, the Juice drinks sector posted a six percent growth with increased volume and value share. The Glaceau brands returned mid-single digits growth and posted increased volume and market share too. Over and above, the water business posted a four percent growth; mainly due to the popularity of Dasani mineral water. Besides, the sparkling beverages were a significant increase from the previous quarter. These statistics show that the company’s commitment to command a larger market share in North America bore fruits regardless of the harsh economic climate (The Coca-Cola Company, 2011).

Drivers of Profitability for the Quarter and the Impacts on Profit

Moreover, the company’s managing committee sets business models to help maximize growth and revenue in the quarter. The first model involves the acquisition of CCE’s North America operations and the upgrading of the bottling section of the company. This step resulted in packaging more drinks so as to meet consumer demands. In addition, the programs unit set up campaigns to help popularize the Coca-Cola brand by partnering with the local communities. For instance, they set out to sensitize communities about obesity; its effects on one’s health, and how to manage it. The company also popularized the brand among teenagers, who constitute the company’s present and future market by promoting the Coca-Cola brand as being “cool”, and encouraging them to participate in leadership programs organized by Coca-Cola. In addition, the company enhanced its social presence across most social and mobile platforms by identifying with the social media community. For example, on Facebook, the Coca-Cola profile has more than thirty-three million likes and fans; making it the brand with the largest following on a social network. Moreover, the company identified with leading world sporting events such as NASCAR, the Olympics, and college football, to popularize their sports drinks. This made PowerAde the beverage of choice among athletes and their fans.

The company also partnered with Ojon; a leading soft drink distributor in the Middle East, to boost sales and growth in the region. Besides, it focused on mass media advertising and commercials during the Olympics and European Champions League. These strategies showed Coca-Cola’s commitment to promoting sports. These efforts bore fruit because the Coca-Cola brand topped the list of InterBrands Best Global rankings; a stamp of approval of its popularity and dominance (The Coca Cola Company, 2012).

The Earnings per Share Based on the Third Quarter 2012 Financial Earnings

Coca-Cola’s impressive growth, as reflected in its earnings per share, was up by two percent at 51 cents a share for the quarter. This was an impressive performance despite the harsh economic climate punctuated with a declining world economy. In addition, the approximate currency neutrals grew by one percent; causing the comparable currency revenue to grow by six percent. The company’s policies, such as buying back shares and reinvesting three billion dollars in the core business areas, showed their determination to grow stronger. The company also planned to cut down on the expenses and maximize profits in order to make the Coca-Cola stock more valuable (Gerard, 2006).

Emerging Markets and Their Future Impact on Earnings per Share

The emerging markets provided an excellent opportunity for the company to expand its volume and revenue base. It invested heavily in the Chinese market, an effort that paid off because this market grew by two percent in volume. The sparkling beverages posted an impressive growth too. Moreover, research showed that the Coca-Cola brand had a strong foothold in China. In Thailand, the company grew by 26% in the quarter while in South Korea, the growth doubled over a four-year period. In Latin America, it posted a five percent increase in volume for the quarter. The Eurasian and African markets posted a solid 11 percent growth. These statistics indicate that the company is on track to achieving its 2020 goals of a solid worldwide presence and increasing revenues (Thomas & Caslione, 2000).


In conclusion, the Coca-Cola brand is a strong brand that continues to lead the non-alcoholic beverage market. With its current leadership and growth strategies, the Coca-Cola Company continues to make significant strides in its target markets, and impact positively on the lives of people; making it undoubtedly a futuristic company.


Gerard, P. (2006). Performance and Reward: Managing executive pay to deliver Shareholder Value. Leicester: Troubador Publishing limited.

The Coca Cola Company. (2011). KQ – Coca Cola North American Tour. Web.

The Coca Cola Company. (2012). KQ – Q3 2012. The Coca Cola Company Earnings Conference Call. Web.

Thomas, A., & Caslione, J. (2000). Growing Your Business in Emerging Markets. Chicago: Green Wood Publishing Group.

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