CHAPTER - 1

Industry profile

The beverage industry (also known as the drink industry) manufactures drinks and ready-to-drink
products. Examples are bottled water, soft drinks, energy drinks, milk products, coffee and tea-
based products, nutritional beverages, and alcohol.
The beverage industry is traditionally a market with specific high demands regarding hygiene
and its related technologies.
Exquisite hygiene is needed to maintain the end product's high-quality standards and shelf life,
whether it is mineral/drinking water, lemonade, fruit juice, beer, wine, or (sparkling) wine.
Beverage production varies mainly depending on the product being made.

The beverage industry consists of two major categories:

o Alcoholic beverage industry: The alcoholic beverage industry includes distilled spirits,
(sparkling) wine, cider, and brewing.

o Non-alcoholic beverage industry: The non-alcoholic beverage industry is comprised of

soft drink (or soft beverage industry) or syrup manufacture; soft drink and water bottling
and canning), fruit juices bottling, canning, and boxing, the coffee industry, and the tea
industry.

Growth potential

The production, distribution, and sale of alcoholic and non-alcoholic beverages generate billions

of dollars in the United States and worldwide every year. We set out to uncover just how

successful the   beverage industry is. After extensive research, our data analysis team concluded:

 The United States’ beverage industry is valued at $146 billion.

 Non-alcoholic drink sales in the   amounted to $414.8 million in 2021.
 On average, adults consume 341.1 drink calories, and   children consume 312.6 drink
calories every day.
 The global beverage market is valued at $1.5 trillion as of 2019.
  Year   Sales
2021 414.8M

2020 $358.6M

2019 $396.5M

2018 $383.6M

2017 $370.1M

2016 $355.5M

2015 $342.6M

2014 $327.3M

2013 $314.4M

Economic factors

 The alcoholic beverage industry has grown by $76,097 million since 2006. The alcoholic
beverage industry grew by more than $76,097 million between 2006 and 2019. Sales
generated $176,723 million in 2006 and $252,820 million in 2019.
 
 The beverage industry is growing at a compound annual growth rate of 1.7%.
The global beverage industry is expected to grow at a CAGR of 1.7% between 2021 and
2026. At this rate, the market will be valued at more than $1.691 billion by the end of
2026.
 
 Beer is the largest segment in the alcoholic beverage market by volume of sales.
Beer is the largest segment in the   alcoholic beverage market, with a volume value of
$109,028 million. It’s estimated that the average   adult consumes 94.38 liters of
alcoholic drinks, a cost of about $748.20, every year.
 Across the nation, beer is the most popular alcoholic beverage.
The beer segment of the beverage industry includes fermented alcoholic beverages made
from malted cereal grains, hops, and water. Such drinks most often have an alcohol
content of roughly 5%.
The largest beer distributors across the United States include Anheuser-Busch InBev,
Heineken, Diageo, Kirin Holdings, Molson Coors, and Pernod Ricard, among others.
 
 Water is the most popular non-alcoholic beverage in the United States.
Water is the most popular non-alcoholic beverage in the  , accounting for 51.2% of the
nation’s total non-alcoholic beverage consumption between 2015 and 2018. Coffee is the
second most popular non-alcoholic beverage, accounting for 14.9% of non-alcoholic
drink consumption.

Competitor analysis

Industry competitors include Red Bull, Tetra Pak, PepsiCo, Keurig Dr Pepper and Soylent. The
Coca-Cola Company ranks 2nd in Product Quality Score on Comparably vs its competitors. See
below how The Coca-Cola Company compares to its competitors with CEO Rankings, Product
& Services, NPS, Pricing, Customer Services, Overall Culture Score, ends’, Gender and
Diversity Scores.
 
 
The global beverage industry is valued at USD 1813 billion for 2022 and the industry is growing

at a CAGR of 4%. It’s value estimations are USD 1885 billion in the year 2023. The beverage

industry will further expand and be valued at USD 1961.24 billion in 2024.
Classifications of the beverage industry

The beverage industry can further be classified into non-alcoholic and alcoholic categories. The

non-alcoholic beverage market includes soft drinks(soda), fruit juices, syrup, caffeinated drinks,

sports drinks, coffee, and tea. While the alcoholic beverage market has categories such as

brewing, distilled spirits, and wines.

 The market size of the Non-alcoholic beverage industry

The global non-alcoholic beverage market size is valued at USD 1337 billion in 2022. The

market is anticipated to grow at an estimated CAGR of 5.5%. It’s value estimations are USD

1885 billion in 2023 and will be valued at USD 1488 billion in 2024.

The largest segment of the non-alcoholic beverage market is soft drinks. The soft drinks market

is estimated to be 201,103 million dollars in 2020. In addition, researchers estimate that the

average revenue per person in the Soft Drinks segment amounts to be US $90 in 2020.

The market size of the non-alcoholic beverage industry in the APAC region

Home for the majority of the consumers, the APAC region will dominate the world’s non-

alcoholic beverage market in the upcoming years. The high consumption in Indian and Chinese
markets drives growth for the non-alcoholic beverage industry in the APAC region. The warm

climate and hotter summer drive sales of non-alcoholic beverages in the APAC region.

Previously, the Carbonated soft drinks (CSD) segment accounted for driving revenue in this

region. However, in recent times the consumption of CSD is expected to decline as young

consumers prefer healthier alternatives such as 100% natural juice, Pulp fruit juice, etc. This

behavior change opens up opportunities for native and DTC brands to penetrate the market.

The market size of Non-alcoholic drinks in the EU Region

The EU beverage industry is estimated to make 608 billion dollars in 2022. The market is

forecasted to grow at a CAGR of 5%. The industry would further expand to a value of 633

billion at the end of 2023. Though alcoholic beverages are the most popular segment in this

region, there is a surge in demand for Zero alcoholic beverages in recent times.

The interest for zero alcohol beverages is predominant in Western Europe compared to the

eastern region. Germany and Spain are the hotspots for the zero alcohol beverage market.

Together these two countries contribute to a 30% share of zero alcohol beverage consumption.

While Poland and Netherlands would be the following emerging markets showing promising

growth rates for the above category.

Overall, the non-alcoholic beverage market in the European region is driven by shifts in

consumer preferences towards healthier alternatives. As a result, this industry is continuously

innovating new products to satisfy the needs of its native consumers.

The market size of non-alcoholic beverages in the US region

US non-alcoholic beverage market size is valued at 225 billion dollars in 2022. The market is

growing at a CAGR of 3.8%. The industry will be valued at 234 billion dollars in 2023 and it is

estimated to be 236 billion dollars in 2024. Carbonated soft drinks (CSD), a popular segment in
this market, have been shrinking in size and revenue in recent years. While the market size for

functional beverages is expected to grow and expand in the upcoming years. This shrink in the

market share soft drink category is compensated by the rise in the market share for the

subcategories such as fresh juices, enhanced water, RTD coffee, probiotic drinks, etc. In

addition, the increase in obesity rates and the impact of a sedentary lifestyle is making young

Americans migrate from CSDs to healthier alternatives.

Industry overview and market size of the alcoholic beverage market in 2022

The global alcoholic beverage market share was valued at USD 1559 billion in 2022. The market

is expected to grow at a CAGR of 2%.

Alcoholic beverage market size and statistics in the APAC region

APAC alcoholic beverage market size is of value USD 11.57 billion dollars in the year 2022 and

the market is estimated to expand at a CAGR of 4.5%. The value of the alcoholic beverage

market is estimated to be USD 12.09 billion dollars in the year 2023 and is expected to reach

USD 12.63 billion dollars in the year 2024.

The increase in the trend of drinking in a social gathering is one of the main factors that is

driving growth for APAC’s alcoholic beverage market. While beer and spirits are mostly

consumed categories, consumption of wine and premium alcoholic beverages is becoming

popular in recent times.  The increase in the per capita income and the influence of western

culture is bringing change in consumption patterns in this region. 

The market size of Non-alcoholic drinks in the EU Region

Europe is the largest alcoholic beverage market in the world. The market is estimated to be worth

363 billion euros at the beginning of 2022 and is expected to grow at a CAGR of 3% in the

upcoming years. 

Our estimates say consumers in Eastern Europe consume more alcohol when compared to those

who are in the western region of Europe. While Germany, France, and Spain hold a major

market share of the market in this region. Lithuania has the highest per capita consumption of

alcohol.  A survey by WHO states that on average a Lithuanian consumes 15.9 liters of pure

alcohol in a year. The upcoming trend in the EU alcoholic beverage market is all about the

increase in usage of natural fruit flavors in ciders and RTDs. Many distilleries are coming up

with new varieties of craft beers and premium organic wines.

US alcoholic beverage market size and statistics of 2022 

The size of the US beverage market is estimated to be USD 237 million dollars in the year 2022. 
The industry is growing at a CAGR of 3.7%. The US alcoholic industry comprises 80% malt-

based beverages and 20% of Spirit-based beverages. Among the malt-based beverages, beer is

the most consumed product while the interest in crafted beers is trending among the Millennials

(the major sect of consumers in this market). With flavors driving consumer interest the local

brewers and DTC brands are capitalizing this opportunity to penetrate the market.

Consumption and growth rate of different alcoholic beverages | 2022 

Global spirits consumption will see a moderate rise of 36.5m cases by 2022, equivalent to a

CAGR of 0.2%. While low-priced spirits will see their share of the global spirits market fall to

just over 50% over the forecast period, premium-and-above spirits will see their share jump from

4.7% to 7.4% during this time, says the  IWSR Forecast Report.

In a positive development for the category, standard and above vodka consumption is forecasted

to grow by 7.4m cases, at a steady CAGR of 1.6%.

US whiskey is forecasted to be one of the fastest-growing spirits categories over the forecast

period, growing with a CAGR of 4.8%.

Mixed drinks, beer, and cider are all projected to make incremental gains throughout the forecast

period, with respective CAGRs of 1.3%, 0.02%, and 1.3% between 2017 and 2022.

While the champagne is also expected to perform solidly with a CAGR of 1.5%, recording

volume growth across all major regions of the world.

2022 trends of the beverage industry

Growth factors of the global beverage market

The global beverage market is driven by consumer demand for premium/super-premium

products. This is mainly due to the increase in the young-adult demographic, coupled with the

increase in the spending power of millennials.

Upcoming trends of the global beverage industry – 2022 & beyond

It is an exciting time to be in the beverage industry. Products such as Kombucha, cold brew

coffee, and hard seltzer which are largely considered as non-existent, are now filling the front

and center of grocery display cases. On the other hand, the news products such as CBD infused

beverages, vegan beverages are in demand as well. Changes in lifestyle and consumption habits

of the new-age consumers are two major reasons driving this change.

 
 

BEVERAGE INDUSTRY FAQ

1. How big is the beverage industry?

In the United States, the beverage industry is valued at $146 billion. The industry
includes both alcoholic and non-alcoholic beverage production and distribution. On
average, alcoholic beverage sales generate roughly $252.82 billion annually across the
nation, while non-alcoholic drink sales bring in an estimated $414,838 million per year.

2. Is the beverage industry growing?

Yes. Current projects predict that the global beverage market will reach a value of more
than $1.691 billion by the end of 2026. At that rate, the industry will grow at a steady
compound annual growth rate of 1.7% over the next five years.
 3. What is the world’s biggest soft drink company?
PepsiCo is the largest soft drink company globally, followed closely by the Coca-Cola
Company and Unilever.
Current statistics show that within the United States, Coca-Cola Zero Sugar is the fastest-
growing soft drink, increasing 11.5% in retail value and 8% in volume in 2019.

4. How competitive is the beverage industry?

The beverage industry is extremely competitive. New entrants have to match the low
pricing, attractive packaging, and flavour standards of consumers. Not to mention that big
players like Coca Cola and Anheuser Busch already control a significant share of non-
alcoholic and alcoholic beverage markets.
Despite heavy competition, many small beverage companies attempt to compete in the
energy, health, and “functional” beverage markets, which have less dominant companies
than the traditional soft drink market. And of course, local craft breweries have become
increasingly popular for younger generations.

5. What is the fastest-growing segment of the beverage industry?

Bottled water is the fastest-growing segment of the beverage industry. It is expected to
grow at an annual compound rate of 7.4% between 2021-2026, much faster than the 1.7%
CAGR the beverage industry is expected to experience over the same period. About 60%
of adults drink each regularly, according to self-reporting.

GOVERNMENT REGULATION
Company Profile

The World's Largest Nonalcoholic

Beverage Company .

The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more
than 200 countries and territories.

Our company’s purpose is to refresh the world and make a difference. Our portfolio of brands
includes Coca-Cola, Sprite, Fanta and other sparkling soft drinks. Our hydration, sports, coffee
and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, Powerade, Costa,
Georgia, Gold Peak, Honest and Ayataka. Our nutrition, juice, dairy and plant-based beverage
brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS.

We’re constantly transforming our portfolio, from reducing sugar in our drinks to bringing
innovative new products to market. We seek to positively impact people’s lives, communities
and the planet through water replenishment, packaging recycling, sustainable sourcing practices
and carbon emissions reductions across our value chain. Together with our bottling partners, we
employ more than 700,000

people, helping bring economic opportunity to local communities worldwide.

 The Coca-Cola Company
American company

The Coca-Cola Company, American corporation founded in 1892 and today engaged
primarily in the manufacture and sale of syrup and concentrate coca - cola , a sweetened
carbonated beverage that is a cultural institution in the United States and a global
symbol of American tastes. The company also produces and sells other and citrus
beverages. With more than 2,800 products available in more than 200 countries, Coca-
Cola is the largest beverage manufacturer and distributor in the world and one of the
largest corporations in the United States. Headquarters are in Atlanta , Georgia

The drink Coca-Cola was originated in 1886 by an Atlanta pharmacist, john s

pemberton (1831–88), at his Pemberton Chemical Company. His bookkeeper, Frank
Robinson, chose the name for the drink and penned it in the flowing script that became
the Coca-Cola trademark. Pemberton originally touted his drink as a tonic for most
common ailments, basing it on cocaine from the coca leaf and caffeine -rich extracts of
the kola nut ; the cocaine was removed from Coca-Cola’s formula in about 1903.
Pemberton sold his syrup to local soda fountains, and, with advertising, the drink
became phenomenally successful. By 1891 another Atlanta pharmacist, Asa Griggs
Candler (1851–1929), had secured complete ownership of the business (for a total cash
outlay of $2,300 and the exchange of some proprietary  rights), and he incorporated the
Coca-Cola Company the following year. The trademark “Coca-Cola” was registered in
the U.S. Patent Office in 1893.

Nature of coca cola carried

The Coca-Cola Company is a company that sells carbonated drinks. It was uncertain to
start for an idea in 1894, brisk sales of the new fountain beverage called Coca-Cola
impressed the store's owner, Joseph A. Biedenharn . He began bottling Coca-Cola to
sell, using a common glass bottle called a Hutchinson. He then sent a case to Asa Griggs
Candler, who owned the company. In 1899, they had the first bottling agreement as they
obtained exclusive rights to bottle coca cola across most of the United States. Between
1900s to 2000s, the company started growing rapidly as their efforts were boosted by
major progress in bottling technology, which improved efficiency and product quality. In
addition, it started to expand internationally that Coca- cola . The Company encouraged
and invested in a number of bottler consolidations to assure that its largest bottling
partners would have capacity to lead the system in working with global merchants
(Investors et al., n.d.).The nature of Coca-Cola Company focuses on needs of their
consumers, customers and franchise partners. Get out into the market and listen, observe
and learn. They work efficiently, remain responsive to change and be accountable for
own actions .
 Mission and vision of coca cola company

Coca-Cola Mission

To refresh the world in mind body and spirit

To inspire moments of optimism and happiness through our brands and actions
To create value and make the difference

Coca-Cola Vision

Our vision is to craft the brands and choice of drinks that people love, to refresh them in the body
in 
Spirit. an done in ways that create a more sustainable business shared futures that make a
The difference in people's lives then communities and our planet.
As clear from its vision there are three core values that we can extract from coca-cola vision

 Create loved brands.

 Done sustainably.
 Better shared future.

Latest awards of coca cola

 Coca-Cola HBC ranked #8 in the definitive diversity & inclusion index 
 coca cola HBC receives 2020 excellence in risk management award from
FERMA
 Coca-Cola HBC receives association for talent development “excellence in
practice award 
 Coca cola HBC information security awarded ISO certification 
 Coca cola HBC wins CIMA employer award 
 Coca cola HBC recognized by executive platforms for sustainable supply chain .

What are the reasons for Coca-Cola's success?

One of the reasons why the Coca Cola brand is so successful is that it has focused on building its
brand, instead of its product. Rather than telling you how delicious Coke is, the coca cola brand
invest in creating an idea of what life with coke is like .
 Department of coca cola and its functions
The main functional areas are Human Resources, Production, and Administration, Finance,
Marketing, R&D. the main functional areas in the coca cola company are HR, Production and
Administration.

Human resource

our HR department covers the whole employee lifecycle, from recruitment and onboarding to
employee relations and payroll. Our shared services team work together to help employees
throughout all stages of their career.

Production department

WE MONITOR OUR PRODUCTION PROCESSES WITH SOPHISTICATED

CONTROL EQUIPMENT AND TESTING PROGRAMMES IN ORDER TO MEET
AND EXCEED OUR CUSTOMERS' AND CONSUMERS' EXPECTATIONS.

Finance department

The finance department of the coca cola is responsible for financial record keeping.
Thisinvolves keeping records of money received and paid out. The financial report wall
isused to produce the annual reports for the share holders. So that they can see the
company performance. The finance department is also responsible for the a mnabeget accounts
for the business like marketing tact. The coke company finance department us also responsible
for making budget of the company and for each department budget like marketing department of
research and development. They will also be involved in the planning process like taking over
or any major decision.

Administration department
This department is essential for keeping the business going. They act as a help support o f
the company, it is not the central purpose the business but every business
organization would need this department. Most businesses rely on this administration to be
organized. They deal with in queries, give messages produced documents, and give
information to any consumers. The complains that this department gives would be
transferred to the complaint that this department will get would be transferred to the research
and development to make the product better or ix the problem the consumer ishaving. These
departments are the most important department of the coca cola company because
they help the company to meet the objectives of the coca cola companywide.
Surviving customer satisfaction and make more profits. As we said thatthe help desk
department will satisfy the customer by providing the information they need and taking the
complains and passing the research and development departmentwho improve the product.

Research and development department

This department has the budget given by the finance department and
t h e i r responsibility is to investigate new products. They work closely with
marketing by looking at the marketing research findings. They have to bring new
products in the market for the change because consumers cannot stick with the same old
product. If necessary then they also have to improve the quality of the products. The coke
company research department has done a lot of research and has recently launched many
new products like Diet coke with lemon, fantail tropical, minute maids, Fantail
raspberry ,fantail blue berry etc.

Packaging department

The packaging department of Coca Cola Company is responsible for packaging of

theduct. They have to make the packaging important so that product meets the eye of
theconsumers. Bringing the new product packages is there responsibility. Its works with
thecompanies bottling partners to produce an attractive combination

Sales department
The sales department of the coca cola company is to coordinate the selling program. They
also have to make their distribution methods etc. also decide how much to sell and much to store
in the ware house and to choose the transporting method which is the most cost efficient and
the quickest way

Product and service profile

The Coca-Cola Company sells the products form of soft drinks include beverage concentrates
and syrups, with major beverage products. Business has more than 300 beverage brands all over
the world with a major to be Coke, Fanta, Lift, Sprite, Fruitopia 100% Fruit Juice, and Powerade.
The Coca-Cola Company Beverages its packages into plastic bottles of sizes 2 liters, 1.25 liters,
600ml and 300ml. these are also available in aluminum cans of 375ml. Coca-Cola is the most
well-known trademark, recognized by 94 percent of the world population. Business was very
successful and has an excellent reputation. The price of Coca-Cola are various according to size,
place, and packaging. Maybe if Coca-Cola sells in the school will have different price if the
Coca-Cola sells in the bazaar or market, or if we compare the price of Coca-Cola in Indonesia
will different in America. (My blog Dewy Irianty, 2011)
As information from Coca-Cola Amatil (CCA) Indonesia (Profile Company, www.Coca-
Colaamatil.co.id, 2011) Coca-Cola Bottling Indonesia (CCBI) is a manufacturer and distributor
of soft-drinks in Indonesia. We manufacture and distribute products licensed from The Coca-
Cola Company. In addition to providing quality products and high standards, we also provide the
best support services, both for our customer (distribution partners) as well as consumers. To
support the best service, the CCBI provides the National Contact Center (NCC), a service center
for customer and consumers throughout Indonesia. NCC serves as a medium for customers and
consumers who need information or any services related to the Company and the products of
Coca-Cola.

Types of services available are:

 Receive and handle complaints of damage from the outlet of Cold Drink Equipment as
well as the Sales Center
 Receive and handle request installation or withdrawal from the outlet of Cold Drink
Equipment and Sales Center
 Answering question about the Cold Drink Equipment Services Coca-Cola

Growth and prospects

What is the growth of Coca-Cola?

Revenues: Net revenues grew 16% to $10.0 billion, resulting in net revenues ahead of 2019,
and organic revenues (non-GAAP) grew 14%. Revenue performance included 8% growth in
concentrate sales and 6% growth in price/mix
 CHAPTER – 2
The Mckinsy 7S framework

STRATEGY - Actions business plans in response to external changes

STRUCTURE - Base of specialization and coordination is primarily influenced by
Organizational Approach, Scale, and Diversity.
SYSTEMS - Formal and informal methods that support the strategy and Building.
STYLE - Involved in two elements as follows:
• Organizational culture: Dominant ideas, attitudes, and standards changing over time, and
the features of corporate life are fairly enduring.
• Management style: How executives do rather than what they do Say; how is it that
business executives invest their time; focuses on.
STAFF - The people/human resource management- processes used to develop managers,
socialization processes, and ways of introducing young recruits to the company.
SKILLS - The distinctive competencies- what the company does best.
SHARED VALUES - Guiding principles, the fundamental ideas on which a company is
centered. Must be plain, typically theoretically described, have great significance inside the
organization, even though outsiders are not permitted to see or Let them understand.
 

Mckinsey’s 7 S framework- Application to Coca-Cola

1 Strategy
As per studies of (Jason, 2020), the corporate strategy of Coca-Cola is listed as follows.
1. Portfolio building – acquisitions of the Chinese Fruit / Veg and Asian Speciality brand to
create a foothold in the Asia Pacific.
2. Riding on HW-Switch safety switches to FVJ.
3. Packaging amended to raise volume per customer.
4. Resource expansion with a concentrated approach "China-India".
5. Taking advantage of cost synergies through its manufacturing and bottling facilities to
ensure quality.
• Marketing strategy – well backed by the overall power of the Coca-Cola brand, each
product range spanning 7 Coca-Cola categories.
• Talent management strategy – Coca-Cola may not have adequately engaged its workers
to reduce the rate of workforce turnover. It will need to tighten up its policies on retention and
growth.
• Development strategy-capitalizing on cost synergies by combining bottling facilities
vertically. Supply chain operations are supported on a global scale with the new tools.
• Market strategy – close partnerships with retailers, proximity strategy for bringing a Coke
brand within reach through the use of vending machines, and maintaining sufficient distribution
coverage by different means.

2 Structure
Coca-Cola – has the Head Office division responsible for providing overall guidance to Coca-
Cola and maintaining the regional structure. Ex Co's President of Coca-Cola, sometimes the
CEO. Other managers are either responsible for the big regions or have significant specialized
companies, e.g. the CFO. Coca-Cola combines centralized and decentralized elements.
Divisions and regions act as product line teams and report to the Chairman of the Division with
each Country Manager.
The various departments are responsible for national (local) decision-taking, national market
analysis, and local advertising production, for example, using languages from the countries
where Coca-Cola works. Regional decision-making is a matter of fact. A big region such as the
Asia Pacific is grouped according to a map with its own marketing structure.

3 Systems
Process Systems: each unit is responsible for splitting these into manageable activities and
providing benchmarks for 6P initiatives. (Profit, People, Portfolio, Partners, Planet, Productivity)
Management day to day systems: administrative steps to be placed at a managerial level along
with daily reviews and reports to provide information about the outcomes. Day to day
management systems, In addition to the advantages and opportunities for meeting targets
alignment.

4 Style
Coke Society – look forward and inspired, reflecting solidarity. “One business- One team. One
team. One love. One love. As one business”, employees are provided with relevant and expedited
learning opportunities for the greater good of Coca-Cola. One team links to job development
partnerships. One Love goes beyond the brand's portfolio to sustainability, community support,
and earth preservation and security.

5 Staff
Benchmarked business strategy of recruitment and retention. Facilitating work pathways.
Systems for performance improvement are best controlled. Given the silo existence of some
employees' roles, activities should be implemented in order to promote creativity and to include
employees. Coca-Cola stock ownership financial incentives encourage workers to support the
company.

6 Skill
Vision 2021 calls for creative approaches to achieve its objective, particularly with regard to
product content (new preferences, healthcare trends), volume and efficiency innovation.
Objectives explain the main activities to be performed by Coca-Cola and what should be done at
each stage.
Strategically, investment dedication in product quality innovation, volume (new packaging with
a minimum of 10% increase in volume) and effectiveness.

7 Shared Vision
Coca-Cola systems revenues for 2010 by 2020 through the production of new beverages,
meeting changing consumer tastes by taking the plan into line with their 6P dream; Profit,
People, Portfolio, Partners, Planet, Productivity.

Conclusion
Coca-Cola has always adjusted its strategy according to McKinsey 7S Framework results.
Concepts, values, and skills are created in the corporate culture of Coca-Cola. Strategic
Management of Coca-Cola has followed an effective mechanism such as Mckinsey’s 7
Framework. That’s why Coca- Cola is still identified as one of the best brands in the world.
CHAPTER – 3

SWOT analysis
The SWOT analysis is used to analyze the internal and external environment of the company.
The internal environment includes the strengths and weaknesses whereas the external
environment is the threats and opportunities .

Strengths –
Strong marketing capabilities (Competition) - Strong distribution network (Competition) -
Customer loyalty (Change in customers tastes) - Beverages' Taste (Change in customers tastes)
Two important strengths of Coca cola are their customer loyalty and Beverages' taste, they have
a strong customer base because of the taste of the drink. Additionally, Coca cola has strong
marketing strategies that include campaigns that attract consumers of all ages, they also have a
strong distribution network across the world, Coca cola is available in most Page | 16 countries
Furthermore, Coca cola has a brand equity, in 2018 they have been amongst the 7 most valuable
brands in the world (Badehausen, 2018)
1. Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity.
Its soft drinks are the most-selling drinks in history.
2. Extended global reach – It is sold in more than 200 countries with 1.9 billion servings per
day of Company products. It has introduced more than 500 new products globally. Some of
these are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola.
Its brands are known to touch every lifestyle and demography.
3. Greatest brand association and customer loyalty – Coca-Cola is considered one of the
US’s most emotionally-connected brands. This valuable brand is associated with the
‘happiness’ and has strong customer loyalty. Customers can easily quickly identify their
particular taste. Finding its substitutes is difficult for them. Moreover, Coca-Cola and Fanta
have huge fan following than other beverage names in the industry.
4. Dominant market share – Out of the Coca-Cola and Pepsi, only two largest manufacturers
of the soft drinks in the beverage segment, Coca-Cola has largest market share. Coke, Sprite,
Diet Coke, Fanta, Limca, and Mazza are the highest growth drivers for the Coca-Cola. 
5. Unparalleled distribution system – Coca-Cola hasmost efficient and most extensive
distribution network in the world. The company has nearly  bottling partners and about 900
bottling plants globally.
6. Acquisitions –Coca-Cola has a long list of strategic and profitable acquisitions
including Costa coffee chain, Fair life (Milk Products), Fuze Tea, AdeS, and many
more. Through these acquisitions, Coca-Cola expanded its ready-to-drink beverage portfolio.
[2]

Weaknesses –
 No healthy products (Introduce new product line – healthy products ) - Negative publicity
(Improve their publicity)
Coca cola have not yet been involved in producing healthy products so this is considered a
weakness for the company. Additionally, there have been many rumors about the negative
effects that can be caused when drinking coke, in 2007 there were rumors about having
pesticides in the coke (Vedwan, 2007) whereas in 2017, they have been criticized for misleading
marketing (Fantozzi, 2017). This has a huge impact on the publicity of the company.
1. Aggressive competition with Pepsi – Pepsi isbiggest rival of Coca-Cola. Had it not
been Pepsi, Coca-Cola would have been the clear in market leader in the beverage.
2. Product diversification – Coca-Cola has low product diversification.and Where Pepsi has
launched many snacks items like the Lays and Kurkure, Coca-Cola is lagging in this
segment. It gives Pepsi leverage over Coca-Cola.
3. Health concerns –Carbonated drinks are one of the major sources of  sugar intake. It results
in two grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of
carbonated beverages. Many health experts have prohibited the use of these soft drinks. It is
a controversial issue for the company. However, Coca-Cola hasn’t devised any health
alternative or solution for this problem yet.
4. Lawsuits – Trust is undermined whenever the company is accused of wrongdoing. Coca
Cola is facing a patent infringement lawsuit for using a dispenser that can recognize users
and customize drinks based on their preferences.

Opportunities –
Introduce new product line – healthy products - Improve their publicity
Coca Cola can introduce new products and diversify their current offerings and overcome their
weakness. As the company already have their brand identity, customers, manufacturing, and
evaluation to support them. It’s possible to find niches that are not used by their competitors to
develop products. They can focus on the healthy snacks/drinks area as people have become more
health conscious nowadays. This will aid in overcoming their weakness which is lack of healthy
products. Referring to their weakness of negative publicity, Coca cola can overcome this news
by creating positive campaigns that aids the environment and the society. These campaigns
spread around the world positively and therefore consumers forget about the negative news and
focus on their social and environmental contributions.
1. Introduce new products and diversify its segments – Coca-Cola has the opportunity to
introduce new offerings in health and food segments just like Pepsi. It can contribute to their
revenue, and they can branch out from carbonated drinks.
2. Increase presence in developing nations – Many regions with hot climate have the highest
consumption for cold drinks. Thus, increasing presence in such emerging markets can be
excellent – Middle Eastern and African countries are a good example.
 3. Bring advanced supply chain system – Coca Cola’s business is entirely dependent upon
logistics and supply chain. Transportation costs and fuel prices are always on the rise. Thus,
coming up with some advanced and improved systems for distribution can be an opportunity.
4. Packaged drinking water – Coca-Cola owns several packaged drinking water brands
like Kinley. There is a great potential for expansion in this segment for Coca-Cola. There is
an opportunity to expand and bring more healthy drinks in the market to avoid people’s
criticism.
5. Expand through Acquisition – Although different sectors offer lucrative opportunities for
growth, quick entry into these markets can be a challenge. Recently, Coca-Cola’s growth was
driven by some of its recent acquisitions like Costa Coffee, Aha sparkling water and it can do
it again. It has the financial resources to acquire startups or SMBs in emerging markets and
exploit the numerous opportunities they present.

Threats –
Competition - Change in customers tastes
Having customer loyalty because of the taste of Coca cola is one of the important factors for
their success but this can be a main threat as well as the customers taste can change and therefore
the demand will fall. Another threat of Coca cola is the competition, having strong marketing
strategies and global distribution networks increases the threat from the competitors as there are
many new entrants and existing competitors tend to try harder in marketing and spreading their
word across the global.
1. Water usage controversy – Coca-Cola has faced many criticisms over its water
management issue. Many social and environmental groups have claimed that the company
has a vast consumption of water in water-scarce regions. Besides, people have alleged that
Coca-Cola is polluting water and mixing pesticides in water to clear contaminants.
2. Pollution Lawsuit – Coke and three other companies are being sued by a California
environmental group for contributing to plastic pollution. In the lawsuit, Coca-Cola is singled
out for misleading the public about the recyclability of its single-use plastic bottles.
3. Direct and indirect competition – Although direct competition from Pepsi is clear in the
market, however, there are many other companies which are indirectly competing with Coca-
Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect
competitors of Coca-Cola which can threaten its market position.
4. Economic Uncertainty – The recent events have negatively affected business operations,
supply and distribution chains, and devastated revenues of many global companies. In
2020, Coca Cola’s revenues declined drastically as restaurants, theaters, and other venues
that contribute about half of its revenue remained closed due to the global crisis.
5. Increasing Health-Consciousness – Consumers are increasingly adopting healthy lifestyles
and avoid products with unhealthy ingredients. The increase in health-consciousness can
reduce Coca Cola’s sales and profits as customers migrate to healthier options offered by
competitors
 CHAPTER 4

Balance sheet of coca cola

Balance sheet(USD) 2020 2021
2020-12-31 2021-12-31
Noncurrent assets 68,056,000,000 71,809,000,000
Long term investments 19,273,000,000 18,416,000,000
Gross pp &e 10,777,000,000
Intangible assets 11,044,000,000 15,250,000,000
Goodwill 17,506,000,000 19,363,000,000
Other noncurrent assets 9,456,000,000 18,780,000,000
Current assets 19,240,000,000 22,545,000,000
Cash 6,795,000,000 9,684,000,000
Short term investments 4,119,000,000 2,941,000,000
Net receivables 3,144,000,000 3,512,000,000
Inventory 3,266,000,000 3,414,000,000
Other current assets 1,916,000,000 2,994,000,000
Total assets 87,296,000,000 94,354,000,000
Equity 19,296,000,000 22,999,000,000
Common stock 1,760,000,000 1,760,000,000
Retained earnings 66,555,000,000 69,094,000,000
Others shareholder equity -49,016,000,000 -47,855,000,000
Noncurrent liabilities 51,411,000,000 49,544,000,000
Long term debt total 40,125,000,000 38,116,000,000
Deferred long term liabilities 1,833,000,000 2,821,000,000
Other noncurrent liabilities 9,453,000,000 8,607,000,000
Current liabilities 14,601,000,000 19,950,000,000
Account payable 3,517,000,000 4,602,000,000
Short term debt 2,668,000,000 4,645,000,000
Other current liabilities 8,416,000,000 10,703,000,000
Total equity and liabilities 85,311,000,000 92,493,000,000
 INCOME STATEMENT OF COCA COLA

Income statement 2020 2021

2020-12-31 2021-12-31

Revenues 33,014,000,000 38,655,000,000

Cost of revenues -13,433,000,000 -15,357,000,000

Gross profit 19,581,000,000 23,298,000,000

Operating expenses and -9,757,000,000 -12,259,000,000

income

Research development - -

Selling general administrative -4,316,000,000 -5,472,000,000

Other operating income 5,441,000,000 7,518,000,000

Operating income 9,824,000,000 10,308,000,000

Income tax expense -1,981,000,000 -2,621,000,000

Other net income from -5,516,000,000 -5,401,000,000

continuing operations

Earnings from continuing 7,768,000,000 9,804,000,000

operations

Other items - -

Net income 7,747,000,000 9,771,000,000

 CASH FLOW STATEMENT OF COCA COLA
Cash flow statement (USD) 2020 2020
2020-12-31 2021-12-31
Cash flow from operating
activities
Net income 7,747,000,000 9,804,000,000
Depreciation and amortization 1,536,000,000 1,452,000,000
Change to account receivable 882,000,000 -225,000,000
Change to inventory 99,000,000 -135,000,000
Change to liabilities -860,000,000 2,843,000,000
Change receivables - -
Other cash from operating 440,000,000 -1,114,000,000
acrtivities
Cash from opeartions 9,844,000,000 12,625,000,000
Cash flow from investing
activities
Capital expenditure -1,177,000,000 -1,367,000,000
Other cash flow from investing -300,000,000 -1,398,000,000
activities
Cash from investing -1,477,000,000 -2,765,000,000
Cash flow from financing
activities
Net borrowings -1,862,000,000 228,000,000
Dividends paid -7,047,000,000 -7,252,000,000
Sale purchase of stock -118,000,000 -111,000,000
Other cash from financing 957,000,000 349,000,000
activities
Cash from financing -8,070,000,000 -6,786,000,000
Change in cash and
equivalents
Change in cash without 297,000,000 3,074,000,000
exchange rate
Exchange rate changes 76,000,000 -159,000,000
Change in cash 373,000,000 2,915,000,000
Cash flow period
Begin period cash flow 6,737,000,000 7,110,000,000
Change in cash 373,000,000 2,915,000,000
End period cash flow 7,110,000,000 10,025,000,000
 CONSOLIDATED BALANCE SHEETS - USD ($) Dec. 31, Dec. 31,
$ in Millions 2021 2020

CURRENT ASSETS
   

Cash and cash equivalents $ 9,684 $ 6,795

Short-term investments 1,242 1,771

Total Cash, Cash Equivalents and Short-Term Investments 10,926 8,566

Marketable securities 1,699 2,348

Trade accounts receivable, less allowances of $516 and $526,

3,512 3,144
respectively

Inventories 3,414 3,266

Prepaid expenses and other current assets 2,994 1,916

Total Current Assets 22,545 19,240

Equity method investments 17,598 19,273

Other investments 818 812

Other noncurrent assets 6,731 6,184

Deferred income tax assets 2,129 2,460

Property, plant and equipment — net 9,920 10,777

Trademarks with indefinite lives 14,465 10,395

Goodwill 19,363 17,506

Other intangible assets 785 649

Total Assets 94,354 87,296

CURRENT LIABILITIES    

Accounts payable and accrued expenses 14,619 11,145

Loans and notes payable 3,307 2,183

Current maturities of long-term debt 1,338 485

Accrued income taxes 686 788

Total Current Liabilities 19,950 14,601

Long-term debt 38,116 40,125

Other noncurrent liabilities 8,607 9,453

Deferred income tax liabilities 2,821 1,833

THE COCA-COLA COMPANY SHAREOWNERS' EQUITY    

Common stock, $0.25 par value; authorized — 11,200 shares; issued —

1,760 1,760
7,040 shares

Capital surplus 18,116 17,601

Reinvested earnings 69,094 66,555

Accumulated other comprehensive income (loss) (14,330) (14,601)

Treasury stock, at cost — 2,715 and 2,738 shares, respectively (51,641) (52,016)

Equity Attributable to Shareowners of The Coca-Cola Company 22,999 19,299

Equity attributable to noncontrolling interests 1,861 1,985

Total Equity 24,860 21,284

Total Liabilities and Equity $ 94,354 $ 87,296

 CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions

Dec. 31, 2021 Dec. 31, 2020

Net Operating Revenues $ 38,655 $ 33,01

Cost of goods sold 15,357 13,43

Gross Profit 23,298 19,58

Selling, general and administrative expenses 12,144 9,73

Other operating charges 846 85

Operating Income 10,308 8,99

Interest income 276 37

Interest expense 1,597 1,43

Equity income (loss) — net 1,438 97

Other income (loss) — net 2,000 84

Income Before Income Taxes 12,425 9,74

Income taxes 2,621 1,98

Consolidated Net Income 9,804 7,76

Less: Net income (loss) attributable to noncontrolling interests 33 2

Net Income Attributable to Shareowners of The Coca-Cola Company $ 9,771 $ 7,74

Basic Net Income Per Share1 $ 2.26 $ 1.8

Diluted Net Income Per Share1 $ 2.25 $ 1.7

Average Shares Outstanding — Basic 4,315 4,29

Effect of dilutive securities 25 2

Average Shares Outstanding — Diluted 4,340 4,32