Investor Relations

Growth Strategy

Innovation

Note: Innovation contribution to unit case volume includes innovation launched in the
past 3 years.

Innovation

At The Coca-Cola Company, innovation continues to be an integral part of our growth strategy. Over the past few years, we have accelerated the pace of our innovation agenda through global success stories such as Coca-Cola Zero Sugar which are creating sustained momentum in the majority of our markets.

The Coca-Cola Company

Accelerating the Pace of Innovation

By adopting a more consumer-centric approach to all aspects of the portfolio, we have unlocked renewed growth in our flagship brand, Coca-Cola®. Around the world, we have introduced several innovative beverages, including Coca-Cola Plus (with fiber), Coca-Cola With Coffee, and Coca-Cola Energy, which have helped drive relevance with the modern consumer.

Lift, Shift & Scale

Our global distribution footprint in over 200 markets allows us to experiment with new beverage solutions around the globe and lift, shift, and scale winning concepts quickly and efficiently into other regions. Whether it ends up being the same solution or that idea reinterpreted under an existing concept elsewhere, our ability to lift and shift the best ideas and the most successful ideas around the world is absolutely critical to our growth agenda. In 2018, over 500 lift/shift/scale launches were executed across multiple key markets and on-trend brands.           


European Markets

Global Markets

Asian Markets

Consumer-centric M&A

At The Coca-Cola Company, we see M&A as an enabler of our growth strategy rather than a strategy in and of itself. When evaluating M&A opportunities we must ensure we strike the right balance between strategic rationale, financial returns, and risk profile.

Costa Limited M&A

On January 3, 2019, we completed the acquisition of Costa Limited from Whitbread PLC. The Costa platform will give us the ability to scale within the $500 billion global hot beverage category and create a world-class global coffee business, allowing us to better serve our customers and strengthen our ready-to-drink portfolio. Our strategy centers around:

  • Use the retail presence strategically to build the brand and experience.
  • Utilize Costa’s coffee supply chain capabilities, including sourcing, vending and distribution, to enhance Coca-Cola’s ability to provide total beverage solutions to customers.
  • Expand the Costa Express system with our foodservice and on-premise partners around the world.
  • And finally, launch the brand in both ready-to-drink and at-home consumption products around the world, complementing our existing portfolio.
  • And finally, launch the brand in both ready-to-drink and at-home consumption products around the world, complementing our existing portfolio.

Revenue Growth Management

We have taken several steps in the ongoing evolution of our revenue growth management (RGM) agenda. RGM is a key commercial capability that answers critical business question of ‘Within the priority categories, where is the revenue? Which pack? Which price tier? Which channel? Which customer? Which competitor?’

It focuses on identifying revenue pools (where to play) and revenue growth strategies (how to win). RGM is a capability with different markets being at different points of the journey and adjusts based on the business objective and changing landscape.  

Digital is beginning to play an integral role in our RGM strategy in order to drive our competitive advantage in making better, more informed decisions faster by translating data into insights into actions. Digital is improving our insights both at the consumer experience level in addition to driving improved execution with our bottlers

RGM is iterative and infinite. Thus we believe we have a long runway ahead of us.


Strategy

Developed Markets

North America Example

North America

Developing & Emerging Markets

Romania Example

Romania

Note: Data based on 2018 performance and internal estimates

Quality Leadership

At The Coca-Cola Company, we believe growth is a discipline that leverages brand strengths in pursuit of leadership positions in order to build a strong portfolio of brands and ultimately accelerating profit margins across all categories in which we play.

CGO Francisco Crespo

Watch Chief Growth Officer Crespo speak about The Coca-Cola Company Growth Strategy at our 2017 Investor Day.

Play  Watch Video

The Path to Quality Leadership

Building sustainable, strong brands requires different strategies of execution in the market based on the brand’s stages of growth. Our goal is to grow our brands from Explorer, to Challenger, to ultimately the Leader in it’s category in a given market, meeting defined success criteria along that journey. On average, brands with Leadership status have margins 1.5 times greater the nearest competitor.

  • Building a Portfolio

Framework For Resource Allocation to Drive Profitable Growth

1. Fund the Portfolio We Want, Not What We Have
2. Fewer, Bigger, Smarter Bets on Explorers & Challengers
3. Invest Optimally in Leaders

Disruptive Explorer

Disruptive Explorer brands have entrepreneurial audacity and the ability to disrupt markets where they are either nonexistent or irrelevant.

Patient Challenger

Patient Challenger brands work to amplify their competitive edges by focusing on consumer segmentation that matters, like behavior, values and lifestyle, and investing in experiential brand building.

Purposeful Leader

Purposeful Leaders are representative of wisdom and courage and have the opportunity to expand growth, capture value, and nurture the competitive edge.

Operationalizing The Leader, Challenger, Explorer Growth Framework

Explorer

<10% Value Share

Success Criteria

+DD% Value Growth

Key Strategies

  • Rethink marketing approaches
  • Kill Zombies, learn as we go
  • Fund new Explorers & push winners to Challengers

% Combos* Meeting Success Criteria

% Combos* Meeting Success Criteria

Challenger

10-30% Value Share

Success Criteria

Gain +1.5pt Value Share

Key Strategies

  • Coordinated marketing & commercial investments
  • Persistent and segmented marketing
  • Fight for share gains

% Combos* Meeting Success Criteria

% Combos* Meeting Success Criteria

Leader

>30% Value Share

Success Criteria

Value Growth > PCE

Key Strategies

  • Optimally funded media plans
  • Align investment with solid execution
  • Redeploy excess funds to drive exponential growth

% Combos* Meeting Success Criteria

% Combos* Meeting Success Criteria

*Combos equal a category & country combination.

Killing Zombies

Killing Zombies

Within the Leader, Challenger, Explorer Framework, we have a process of ongoing curation which analyzes what’s working and what’s not working, so we can identify and eliminate products that are underperforming, also known as “zombies,” to make room for newer products.

Disciplines in Action

Disruptive Explorer

In 2015, POWERADE rose to market leader in Mexico and now owns over 50 percent of the sports drink market in the country. This success was a result of exceptional discipline and persistence, thorough research in optimal pricing and packaging, and an integrated marketing campaign.

Disruptive Explorer

Patient Challenger

Over the past six years, Simply Beverages™ has been successfully closing its value share gap with the competition. This is the result of strategic leveraging of its edge with distinctive packaging, carafe-style bottle, fresh taste, simplicity, and powerful marketing that elicits a close-to-nature feeling.

Patient Challenger

Purposeful Leader

In 2016, we introduced Coca-Cola Zero Sugar™ in an effort to meet the needs of consumers seeking to manage their sugar intake. Featuring a new and improved no-sugar recipe that is similar to the taste of Coca-Cola Original, Coca-Cola Zero Sugar quickly experienced positive retail sales. In one year after the launch, the sales of Coca-Cola Zero Sugar were up 13 percent, almost 20 percent in Germany, 50 percent in Great Britain, and 90 percent in Mexico.

Purposeful Leader