Tag Archives: Coca-Cola

Nestea to Be Phased Out in US Market

Companies, , , ,

A joint statement issued by Coca-Cola Company and Nestlé announced that they will be

Nestea Iced Tea

refocusing their efforts selling their soft drink known as Nestea, which is now sold as a partnership between the two companies.

By the end of the year 2012, the statement said, the emphasis of their joint venture Beverage Partners Worldwide (BPW) will be in Europe and Canada, where they hope to sell more of their ready-to-drink tea.

Coca-Cola, based in Atlanta, will sign an agreement with Nestlé for the rights to market the Nestea brand in Taiwan and Hong Kong. Everywhere else the BPW Company will be shut-down.

“Both partners believe a concentrated focus on Europe and Canada will accelerate the growth and bolster the market presence of BPW where the joint venture is most effective,” read the statement.

Coke Adds Financial Stability

Companies, Investments, , , ,

Once the Coca Cola advertising slogan was “Coke Adds Life.” For those looking for long term stability Coca Cola adds stability, dividends and profits. First of all, Coke gives a dividend of 3% per year which is certainly better than the current 2% for ten year treasury bonds. Also, the price of Coke stock has been rising over the last 5 years, even though it was brought down temporarily by the market drop in 2009 when it dropped to $40. Since then it has risen to $68 even with the recent market volatility.

Indeed, Coca Cola is a giant company which operates worldwide. Now they are planning to invest $3 billion into the Russian market and $4 billion into the Chinese market. Because the company is so big, I believe that the risk of investing in this company is limited. People have been drinking cola for a hundred years and will continue. Also, we see that the management has the skills to remain profitable. One of Coca Cola’s former executives, Segun Ogunsanya, started as an accountant in Ghana and was developed by the company until he become the manager of the whole area. He recently left the company to become the CEO of an African beverage manufacturer. It just shows that these large companies know how to develop management to ensure their success.

Their 50-day moving average is 68.34 and their 200-day moving average is 67.62. The stock is trading at 68.19 which is good for a down market. The companies trailing P/E is 12.54 which shows that the company is reasonably priced in relation to its earnings.

All stocks should be thoroughly analyzed before being purchased and should not be purchased on hearsay.

Coca-Cola Conquest

Consumerism, , , ,

Coca-Cola just reported a rise in profit of 18 percent, rendering their profit margin to $2.8bn in the second quarter, as compared to last year.  The demand from China for the beverage went up to 24 percent.  Sales of the carbonated beverage also escalated somewhat in Europe.

At the same time however, what might be a tad surprising (and disappointing) to Coca-Cola consumers, is the fact that according to a recent BBC news article, the company is planning on elevating prices on its drinks “to reflect higher costs” it has been incurring.  Fanta and Sprite will also be included in this price change that will result in a 3 to 4 percent addition.

Coca-Cola Growth Targets

More good news for Coca-Cola came in a statement from Muhtar Kent, the company’s Chairman and Chief Executive.  He said that the company’s results were “well ahead of [its] long-term growth targets.”  He added that the company was “delivering these strong results at a time when global macroeconomic conditions are at best mixed.”  This is great news for the company.

US Slowdown

North American sales of Coca-Cola have dropped somewhat, possibly since the predictions for “US consumer demand remains uncertain amid a weak labor market.”  Further, volatility encountered in commodity markets has been seen as a possible reason for the continuation of increasing prices for both packaging and sweeteners.  Coca-Cola thus feels its own pricing must reflect this.

Coke-Changing Colors

Consumerism, ,

Get Ready Canada

In Canada, Coca-Cola is going through a change. It is getting being prepped for summer with its new colored cans.  According to a recent article in Marketing Mag this move began a couple of weeks ago and has the cans being sold with a cool “thermosensitive ink” which reacts when the temperature of the can is “cold enough to drink.”

According to the beverage’s Quebec brand’s marketing manager, Denis Fertlatte, the reason for this new marketing strategy is as follows:  “The summer season is very important for both the soft drink and beer industries. We need to stand out and innovate to grab consumers’ attention and interest. Moreover, summer, with its warm and sunny weather, is the time to focus on the refreshing aspect of our product. So we came up with this new can.”

Coca-Cola Copy Cat?

There has been however, some slight criticism about the move; that this strategy has been used by other beverages already. But Ferlatte argued that even though the same technique was indeed being used he insisted that Coca-Cola Canada was “neither in the same category or targeting the same clientele, so we’re not worried about the comparison.”

This cool idea is to be found on a 335 ml can of coke in which a “white class Coke bottle turns red when the liquid reaches 8 degrees Celsius.”  But get in there fast since these will only be for sale until Labour Day.

 

Coca-Cola Celebrates 125 Years

Consumerism, Economy, , , , , ,

‘Cos Coke Is It

Coca-Cola just made a TV commercial to mark its 125th anniversary. It was so good that it earned itself the UTalkMarketing’s People’s Choice award for this week. Next Sunday will actually be the date that the successful beverage company will be celebrating 125 years in the business.
The new commercial was first aired on April 18. It is very cute, taking its fans on a journey back through time with vintage images from Coca-Cola’s past, along with a song with the infamous phrase, “I’d like to teach the world to sing in perfect harmony.”

Year-Round Global Celebrations for Coca-Cola

Of course, it won’t just be the commercial that will be marking this big anniversary for Coca-Cola. All those involved in the company will get to jump on the party bus too. There will be tons of events through which Coca-Cola will use to thank individuals who have helped it get where it is today. But it will be on May 8 (which was the Founders Day) that the company will be celebrating most since it was on that date in 1886 that the beverage was first on sale in Atlanta, GA.

As well as in America, Coca-Cola operates in 200 countries and there will be lots of celebrations as well as marketing campaigns. For example in the UK, there will be a new TV commercial, as well as “digital Retro Poster Maker and iconic graphics on-pack.” According to the company’s UK market activation director, Zoe Howorth, “Coca-Cola is a timeless icon that has been synonymous with happiness and is still as relevant today as it was when it first began in 1886. May 8th is a very special day as Coca-Cola, one of the world’s most favorite brands, is 125 years old and we want to take this chance to say thank you to our consumers, employees and partners for their continued loyalty.”

Cool Coca-Cola Commercial

The new commercial that has been so successful was made by Wieden and Kennedy. When poll participants were asked, “which of the adverts [featured below] made you want to buy the product or service advertised?” 24 percent said Coca-Cola.
The question remains however, with all of Coca-Cola’s success, does it really need to be spending all this money on more commercials? Maybe not. But there is always the good chance that success breeds success and you need to spend money to make more money so why not?

Walkers Walking Away With aWards

It’s not just Coca-Cola that’s doing well on the UTalkMarketing front. Walkers Extra Crunch got the People’s Choice award in its commercial featuring Lionel Richie and Gary Linekar. Rather than singing his award-winning hit “Say You, Say Me,” he alters the lyrics slightly to read, “Share You, Share Me,” in an attempt to get Mr. Linekar to share his crisps.

The commercial was produced by AMV BBDO with the assistance of OMD for media planning and buying. It came first in the weekly poll held together with OMD Snapshots, receiving 21 percent of the vote on which product/service advertised one would purchase.

So all in all, Coca-Cola and Walkers – two already successful giants – are doing well with their latest marketing initiatives. Not that they needed the help. But it’s nice when one is successful to keep getting more successful and that’s exactly what the snack companies seem to have done.