sip on this
Posted by Dale Buss on May 9, 2013 09:47 AM
Coca-Cola broadened its pledges to provide more calorie information to consumers and to stop advertising to children around the world, but the media was quick to scour the fine print of the company's promises as the beverage leader tries to win over consumers.
CEO Muhtar Kent announced on Wednesday, the brand's 127th anniversary, that the company was taking a four-pronged approach to battling obesity, an issue that it has acknowledged lately in many ways but at the same time has attempted to deflect blame from its iconic sugary sodas.
As part of an initiative it's calling Coming Together, Coca-Cola wants to communicate that it's part of the solution, not the problem. The beverage giant and its local partners will label all packages with calorie details on the front, expand the availability of low- and no-calorie beverages in every market, support more physical activity programs, and stop advertising to children under 12.Continue reading...
sip on this
Posted by Dale Buss on April 16, 2013 04:39 PM
Coca-Cola took one step back a few years ago by acquiring large pieces of its bottling operations. Now the company plans to take two steps forward by handing back big chunks of its bottling system to selected independent bottlers as part of Coke's overall creation of a national bottling and distribution system that will give it far more control over sales, distribution and balancing of its brands.
Specifically, Coke disclosed a rough framework for handing off distribution in certain geographic areas to five established, independent bottlers either through an outright sale, a swap of territory or other arrangements. Closings, after more negotiations, are expected by year-end.
"We are intent to make the necessary changes in the format and architecture of production to achieve ... a coast-to-coast, nationally run production system," Coke CEO Muhtar Kent said on Tuesday's earnings call, according to the Wall Street Journal.
Under the new arrangements, the bottlers will be able to take part in that model by purchasing trucks, coolers and other equipment to distribute the products in their territories, the newspaper said. The national model also will enable Coke to be more responsive to large customers like Walmart because the company can make centralized sales and marketing decisions. PepsiCo similarly concentrated its bottling operations three years ago but Coke has moved first on the next step.Continue reading...
sip on this
Posted by Dale Buss on February 13, 2013 03:23 PM
Coca-Cola just wants to Open Happiness around the world, in keeping with its ongoing marketing theme, including rolling out a Valentine's Day video this week that was shot in New Zealand to thank its multitude of fans. It's just that global consumers haven't been as happy lately to open a Coke.
A slowdown in sales in Europe and China joined essentially stagnant sales in the United States to undermine Coke's fourth-quarter results. Global sales volume rose just three percent even as the beverage giant's earnings rose by 13 percent during the period.
Ongoing struggles in Europe were a main drag, with volume falling by five percent. Even sales in China, another key market, fell by four percent as Chinese consumers increasingly feel crimped. Meanwhile, the U.S., pushing an anemic economic recovery, yielded just a one percent sales gain during the quarter, though CEO Muhtar Kent said on Tuesday's earnings call that the American market "could get better."Continue reading...
Posted by Shirley Brady on September 11, 2012 05:36 PM
"Has Coca Cola ceased to be a mere brand and evolved into a historically important cultural artifact?" That question was tweeted by Duncan Jones, David Bowie's son who is better known these days as an award-winning filmmaker. Jones included a link to a BBC story on this week's historic return of the Coke brand to Myanmar, making its first delivery in more than 60 years.
"The Coca-Cola Company has been a part of the community fabric in countries around the world for decades," stated Muhtar Kent, Chairman and CEO, The Coca-Cola Company. "In every nation and city where we do business, our employees strive to create economic value and build sustainable communities. We are privileged to once again have the opportunity to play a role in building a better future with the people of Myanmar."
In addition to referencing the Coca-Cola brand's position as the #1 brand in Interbrand's 2011 Best Global Brands report, the BBC notes that there are now "only two countries where Coca-Cola is not officially bought or sold - Cuba and North Korea ... due to trade embargoes with the US."
PepsiCo, meanwhile, last month signed its own distribution agreement to distribute Pepsi and its other beverage brands in the former Burma, with CEO Indra Nooyi commenting, "Over time, we believe we can build a strong business in Myanmar and play a positive role in the country's continued development."
Whatever that future holds, Nooyi announced other news today that impacts her company's continued development and her own succession plans: the resignation of PepsiCo president John Compton.
He's being replaced by Geneva-based PepsiCo Europe CEO Zein Abdalla, who is relocating to company HQ in Purchase, NY, and in turn handing over his office and title to Enderson Guimaraes, the current President of PepsiCo's Global Nutrition Group.
sip on this
Posted by Dale Buss on August 1, 2012 10:45 AM
Coca-Cola is busy spreading "Happiness" around the world as an Olympics sponsor, while Pepsi is counting on new cultural relevance through its music-based "Live for Now" campaign and by sponsoring the next Super Bowl halftime show.
But back at the home offices in Atlanta and in Purchase, N.Y., executives of each company are dealing with real-world strains including the increasing opposition of nutrition activists (including New York Mayor Michael Bloomberg), more competition, consumers' fading interest in soft drinks — and with each other. And those factors are contributing to important new dynamics for PepsiCo CEO Indra Nooyi and Coca-Cola CEO Muhtar Kent.
In Atlanta, Coca-Cola has just reorganized its C-suite and expanded the responsibilities of two senior executives, Steve Cahillane and Ahmet Bozer, creating an early horse race to succeed Kent in a few years. The move also is part of a consolidation of executive authority beneath Kent, who has been widely praised for his leadership of the company, boosting profits and swiping market share from PepsiCo since he became CEO in 2008.Continue reading...
brand vs. brand
Posted by Dale Buss on February 13, 2012 06:06 PM
As it implements a global re-set of its Pepsi brand and corporate priorities, PepsiCo is girding for even more pitched battle with a re-energized Coca-Cola. And if only because PepsiCo plans to boost spending on its major brands by at least a half-billion dollars this year, the competition between the two giants should be the sharpest in some time.
PepsiCo CEO Indra Nooyi and the company's board announced strategic investments during their business review last week that are aimed at the major pressure points being applied lately by restive PepsiCo investors and others. In the meantime, Coca-Cola also announced massive overall cost cuts as well as a decision to use the savings of up to $650 million in extra marketing and brand buildling.
The boost in marketing outlays announced by PepsiCo will be devoted to the largest beverage brands, especially struggling Pepsi, as well as snack brands. But many of the agencies that have been serving the brands to date are being swept out in a massive 65% reduction in the number of partners used by the beverages business. And Pepsi will be culling many of the non-performers from its 400-plus global brands.Continue reading...