Dividends and Coca-Cola boosts profits on sales of non-fizzy beverages

If you enjoy marketing one of the best companies to study is Coca-Cola. How did the drink (cynically known as sugary water) come to dominate the world’s beverage industry? It is an interesting story because particularly North American and European customers have been switching to less sugary water alternatives. Coca-Cola has an large offering and thanks to the teas, coffee and vitamin water Coke reported higher sales and profits. According to an article by Sangameswaran S of Reuters, Coke made more money.

As a global giant, Coke has money outside the US and will be bringing back at least $7 billion to pay down debt. Its latest research and development product of Diet Coke Zero Sugar, Diet Coke in flavors of ginger-lime, feisty cherry, blood orange and mango along with Georgia coffee and Glaceau vitamin water were steps in the healthy lifestyle trend.

Net operating revenue fell to $ 7.51 billion from $9.41 billion as it refranchised its bottling operations. It did beat the analysts projection of $7.36 billion. Volumes in North America increased 1% and global volume growth was flat.

Linking to dividend paying stocks, ever since Coke ensure US service men in World War II had a bottle of coke nearby, Coke has been the soft drink of choice for millions of people. However the world changes, tastes slightly changes but attitudes do and Coke has changed with people to continually churn out profits in the drinks business. It is an credit to the continual abilities to grow the brand. The company is worth watching for that alone, and Warren Buffett owns a large share (one wonders does he continue with the cherry coke or moved to the feisty cherry Diet Coke?)

There are more questions than answers, till the next time – to raising questions.

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