Coke Strategy for Growth "Pop"

Although it may seem like folks are drinking less soft drinks these days, don't expect manufacturers to just fizzle out.

According to a recent report by Reuters in FlexNews, Coca-Cola has announced plans to double its revenue by 2020... an ambitious but not impossible goal, especially for a company that already boasts $100 billion in revenue.

So if Coca-Cola can do $100 billion, why not shoot for $200 billion?

Given the population boom in Asia, Coke foresees growth of its "incremental sales volume by roughly 60% from emerging markets like China and India."

In addition, Coca-Cola is looking to Mexico and South Africa for around 25% of its volume growth.

At present, people in these countries don't consume many soft drinks, however with more exposure and near exponential population growth (exaggeration, but you get the point), increased sales of "thirst quenchers" are in the horizon.

To complete the package, Coca-Cola has additional plans to ensure success including cost saving measures (i.e. formation of a joint company that aims to cut costs in supply chains and consolidating the servicing of restaurants) and new marketing campaigns for developed markets, like the US and Japan.

These campaigns will target:

• females (who typically do the family foodshopping even though it isn't ca. 1955 anymore)
• multicultural teenagers
• adults (via products and packaging that appeal to wine lovers)

And, while we're on the topic of soft drinks, this will greatly impact wholesale food ingredient sales on products like sugars, crystalline fructose, corn syrup and other sweeteners, sodium citrate, and other food chemicals.