The Coca Cola Company bringing a healthier future

Even in the least developed countries there is rarely a person that hasn’t heard of Coca Cola. It is among the most symbolic brands in the world, with more than 500 nonalcoholic brands, including not only carbonated beverages, but also waters, juices, teas, coffees and energy drinks. The company made its UPO on September the fifth, in 1919. Since then it has expanded dramatically, adding to its goodwill brands such as Diet Coke, Fanta and Sprite. The company’s corporate structure is very specific and the main divisions are for the segments Eurasia, Africa, Europe, Latin America, Pacific, North America, Bottling Investments and Corporate. As you can see, they have a separate line of operations for Bottling Investments – a division that is concerned with adding value to the company name and preserving its reputation.
In 2012 the company acquired more than 50% equity in a company named Aujan Industries. In 2013 they also acquired Sacramento Coca-Cola bottling company and after only a month the management announced interest in Fresh Trading Ltd. Last but not least, in November, 2013, the US Company acquired ZICO beverages LLC with a controlling package. This is very important for the financial perspective from which the company can be viewed. Such investments bring a high degree of diversification, but if done too much can also lower company expectations. With operations on such a big scale, the management of Coca-Cola has to balance between new opportunities and spending too much resources for unprofitable projects.
Coca-Cola Co. as the world’s biggest beverage producer recently announced plans to remove from its product vegetable oil – at least for its US segment, by the end of the year. It is an ingredient that has long been a reason for discussions amongst activists and recent global tendencies towards greener image and healthier lifestyle have had their positive influence about this decision.
This has a very important emphasis on the general performance on the Coca Cola stock quotes. Over the past year it decreased its price from $43 to $40 – it is a somewhat small difference, yet keeping in mind the stable performance of the company over the last years, it can be considered a big change. The prices fluctuated a lot, with thresholds between $36 and $42 and overall confidence fell dramatically over last years. With a lot of shares, the EPS ratio of $1.91 isn’t too impressive, yet the 2.98% dividend yield is definitely something that has kept attention to the company.
As it has set up operations in almost all possible markets, the future of the company depends a lot on the world economy. With increases in average salaries, investments in the sphere and overall expansion of the economy, investors believe that there is a brighter future for the US brand. However, it is important to keep in mind that there is severe competition, especially in the face of Pepsi and local market leaders for specific countries. The main goal of the company management is to differentiate itself and achieve a somewhat unique, global image. However, it is a tactic that proved ineffective over the last years and the recent change in the mystic Coca-Cola formula is the best sign for the company being on the verge of taking a new path. For the last quarter KO stock prices have started to increase dramatically and many believe that they will continue to do so, especially if the company introduces the same changes in its beverage formula for the international market.


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