International Activities of Coca-Cola Company

International Activities of Coca-Cola Company

The Coca-Cola Company is currently the world largest beverage company. Besides Coca-Cola, which is the most recognized worldwide brand, the organization markets other non-alcoholic sparkling brands globally such as Diet Coke, Sprite, and Fanta among other broad range of beverages including light and diet beverages, juices and juice drinks, water, tea, coffee, energy, and sport drinks (CSRwire par.1). The organization operates a global franchise scheme supplying concentrates and syrups to more than 1,200 bottling operators involving both suppliers and local companies in 200 countries (CSRwire par.1). It has a well-organized and extensive worldwide distribution network, making its products ubiquitous. Its approach is based on the belief that the Coca-Cola drinks should attempt to quench the thirst of everybody globally.

The bottling corporations distribute the favorite brands using the most sophisticated distribution networks and technology available. The Coca-Cola Company augments its international networks with stylish marketing programs that seek to guarantee the availability of the company’s brands to everyone seeking refreshment. The bottling system is the most widespread and largest production and distribution link internationally.

Mexico is the largest consumer of Coca-Cola worldwide, with an annual average consumption of 225 liters per person, while the consumption in USA is 200 liters per person (Bale par.2). The fizzy drink is part of Mexican’s essential diet and is available even in places with no water. The Mexican market represents a good business niche for Coca-Cola drinks contributing to about 11% of the company’s global sales (Bale par.2). A number of factors contribute to this extra-ordinary consumption in Mexico. In most places, water is not drinkable hence, the locals resort to fizzy drinks. For the poor and underfed workforce, the caffeine and high sugar content in Coca-Cola that yields quick and available energy source is the only option. Moreover, the hot climate in Mexico makes the inhabitants to be refreshed by cold and appealing colas. Almost two-thirds of Mexicans selling Coke get free-refrigerators to hold Coca-Cola based products (Bale par.2). The company has also been able to manipulate the Mexicans due to the abundance of sugarcane and water. It is one of the multi-national corporations deriving 80% of its sales outside USA, which is the parent country headquarter (CSRwire par.2).

The global soft drinks market is dominated by three organizations: Coca-Cola, PepsiCo, and Cadbury-Schweppes. Coca-Cola dominates the market with 47% of the market share, followed by 21% of PepsiCo, and lastly 8% of Cadbury-Schweppes (CSRwire par.2). Pepsi, which is the product of PepsiCo, is the Coca-Cola Corporation’s chief rival in the soft drinks sector, and always seconds Coke in sales, while occasionally outselling Coca-Cola in certain markets. Other major players apart from PepsiCo and Cadbury-Schweppes include AmBev and Cott in Latin America (CSRwire par.2).

Conclusion

Based on the findings of this paper, the Coca-Cola Company is the largest soft drink industry globally with Coke being its highest selling brand. It is a multi-national company working on a franchise system and operates in 200 countries worldwide. The highest consumer of Coca-Cola drinks is Mexico outweighing USA, which is the parent country headquarter. Desite its obvious business prowess, it still faces competition from other market players such as PepsiCo and Cadbury-Schweppes among others.

 

Works Cited

Bell, Beverly. Cola Wars in Mexico. In These Times. 2006. Web. Available at: <http://www.inthesetimes.com/article/2840/> [Accessed on 17th Feb, 2014].

The Corporate Social Responsibility Newswire (CRSwireb). 2012. Web. Available at: <http://www.csrwire.com/members/12216-coca-cola-company-the> [Accessed on 31st Jan 2014].

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