Coca-Cola has been able to weather the economic uncertainties in today’s markets because of the global nature of the company – a good benchmark of a good investment. The company saw a 5 percent increase in case volume in the quarter, including 3 percent growth in carbonated drinks and 10 percent growth in noncarbonated drinks, including juices and bottled water. International sales volume grew 7 percent, with particular strength in countries such as China, Turkey, India, Pakistan and Nigeria. “This is well ahead of expectation and should help allay fears that global macro pressures will cause significant demand deterioration,” Goldman Sachs analyst Judy Hong wrote in a note to investors.
“Our brands and our business were built for times like these,” Chief Executive Muhtar Kent said on a conference call with investors. “We are clearly in uncharted territory in these global markets. I’m confident in our ability to navigate in these challenging times.”
For a large company like Coca-Cola, advertising is everything. The company’s delicious VitaminWater brand grew by double digits, and advertising done during the Beijing Olympics proved successful. Upcoming promotions are tied to the latest James Bond movie to be released in November. Coca-Cola seems to be beating its competitor PepsiCo. PepsiCo announced the layoff of 3,300 jobs and closing some facilities. The two giants have been battling the beverage cola wars since the early 1980’s. It seems that Coca-Cola is edging ahead of the competition, good news for KO stockholders.
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