KHWAJA MOINUDDIN CHISHTI LANGUAGE

UNIVERSITY, LUCKNOW,

Department of Business Administration

Research Project Report

" A Study of Consumer Perceptions of Coca-Cola’s Sustainability Initiatives”

SUBMITTED TO: SUBMITTED BY :

Prof. Musheer Ahmed Ramsha Mirza

Head-Department of Business Administration MBA 4th sem

KMCLU, Lucknow Roll No-2353151050

STUDENT DECLARATION

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I, Ramsha MIrza, a student of Master of Business Administration (MBA), 4th Semester, at Khwaja
Moinuddin Chishti Language University, hereby declare that the research project report titled " A Study
of Consumer Perceptions of Coca-Cola’s Sustainability Initiatives " submitted in partial fulfillment of
the requirements for the MBA degree is my original work.

This report has been carried out under the guidance of my project supervisor and is based on my
independent research, analysis, and observations. To the best of my knowledge, the content of this
report does not contain any material previously published or written by another person, except where
due acknowledgment has been made in the text through proper citations and references.

I further declare that this report has not been submitted, either in part or in full, to any other institution
or university for the award of any degree or diploma. Any errors or omissions in this report are solely my
responsibility.

Place: Lucknow
Name: Ramsha MIrza
Roll Number/Enrollment Numnber: 2353151050/B-0232

Signature: ___________________________

KHAWAJA MOINUDDIN CHISHTI LANGUAGE

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 UNIVERSITY

LUCKNOW, UTTAR PRADESH

Certificate of Completion

This is to certify that Ramsha MIrza, a student of Master of Business Administration (MBA), 4th
Semester, has successfully completed the Research Project Report titled:

“A Study of Consumer Perceptions of Coca-Cola’s Sustainability Initiatives”

This project has been conducted in partial fulfilment of the requirements for the award of the
MBA Degree under the guidance of Dr. Anamika Singh, Faculty of Management and Commerce, at
Khawaja Moinuddin Chishti Language University, Lucknow.

The work presented in this report is original and has not been submitted earlier for the award of any
degree or diploma to any other university or institution.

We commend the student for the successful completion of this academic endeavour.

Dr. Anamika Singh Prof.Musheer Ahmed

Faculty Mentor HOD, Business Administration
Assistant professor, KMCLU
KMCLU

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 ACKNOWLEDGMENT

I would like to express my heartfelt gratitude to all those who have contributed to the successful
completion of this summer internship report titled “A Study of Consumer Perceptions of Coca-
Cola’s Sustainability Initiatives”

First and foremost, I am deeply thankful to Khwaja Moinuddin Chishti Language University, Lucknow, for
providing me with the opportunity to undertake this internship as part of my academic curriculum. The
support and guidance offered by the university have been invaluable in enriching my learning
experience.

I would like to extend my sincere gratitude to Prof. Musheer Ahmed, Head of the Department of
Business Administration, for his encouragement and constructive advice throughout this project. His
insights and expertise have been instrumental in shaping the direction of my research and analysis.

I am also immensely grateful to the management and marketing team at Amul for granting me the
opportunity to intern with such a reputed organization. Their mentorship, cooperation, and practical
insights into the field of marketing have greatly enhanced my understanding of real-world business
challenges and strategies.

Lastly, I would like to acknowledge my family, friends, and colleagues for their constant support and
motivation during the course of this project. Their encouragement helped me stay focused and
committed to achieving the objectives of this study.

This project would not have been possible without the collective efforts and support of all these
individuals.

Thank you all.

Ramsha Mirza
MBA 4th sem
Khwaja Moinuddin Chishti Language University, Lucknow

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 Table of Contents
Sr. No. Content Page No.

1 Front Page

2 Certificate of Completion (Company)

3 Student’s Declaration
4 Acknowledgement

5 Table of Content

6 List of Tables

7 Executive Summary

8 Introduction

9 Rationale for the Study

10 Statement of Problem

12 Significance of the Problem

13 Research Objectives

14 Scope of the Study

17 Data Collection Instrument

18 Sampling Design

19 Sample Size

Sampling Method

INTRODUCTION

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Fast-moving consumer goods (FMCGs) are products that sell quickly at relatively low cost.
FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and
confections) or because they are perishable (e.g., meat, dairy products, and baked goods).

They are bought often, consumed rapidly, priced low, and sold in large quantities. They also have
a high turnover on store shelves. The largest FMCG companies by revenue are among the best
known, such as Nestle SA. (NSRGY) ($99.32 billion in 2023 earnings) and PepsiCo Inc. (PEP)
($91.47 billion). From the 1980s up to the early 2010s, the FMCG sector was a paradigm of
stable and impressive growth; annual revenue was consistently around 9% in the first decade of
this century, with returns on invested capital (ROIC) at 22%

The industry's success has been attributed to its tried-and-true formula of building strong brands,
expanding into and with new markets and consumer channels, and avidly managing costs while
cultivating worldwide brands. The past few years have seen the first declines in memory in the
sector's sales growth—a contraction blamed (depending on the source) on post-pandemic supply-
chain issues, inflation, competitive pressures (including online retail), the rise of private labels,
and, perhaps most long-term, changes in consumer tastes. In 2023, for example, American
consumers spent 10% more on groceries but bought 4% fewer items. That said, the industry still
posted a remarkable 27% average ROIC.23

FMCGs, Ecommerce, and Changing Consumer Habits

In the past, popular goods for online purchase were related to travel, entertainment, or durable
goods, such as fashion and electronics. However, the online market for groceries and other
consumable products is growing as companies redefine delivery logistics efficiency and shorten
delivery times. Thus, the FMCG industry has been significantly influenced by the rapid growth
of ecommerce and evolving consumer habits.4 The widespread adoption of online shopping has
transformed how consumers buy their daily necessities, leading to a shift in the traditional retail
landscape.2 Ecommerce platforms have supplied consumers with the convenience of 24/7
shopping, vast product choices, and competitive prices, forcing FMCG companies to adapt their
strategies.17

While nonconsumable categories will likely continue to lead consumable products in sheer
volume for online shopping, efficiency gains in logistics have increased the use of ecommerce
channels to buy FMCGs.1 The continuing rise in online shopping has prompted FMCG
companies to invest heavily in their digital presence, including developing user-friendly
websites, mobile apps, and partnerships with leading ecommerce platforms. FMCG companies
have also had to rethink their supply chain and logistics networks to ensure prompt delivery of
products to consumers via the main online retailers.

In addition, changing consumer habits have driven FMCG companies to diversify their products.
Today's consumers are increasingly health-conscious, environmentally aware, and socially
responsible, leading to a growing demand for organic, natural, and sustainable products. In

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response, FMCG companies have launched new product lines that cater to these preferences,
such as plant-based alternatives and eco-friendly packaging.

As ecommerce continues to grow and consumer habits evolve, FMCG companies must remain
agile to stay competitive in the market.3 This involves investing in digital technologies, such as
AI and big data analytics, so that companies can dig deeper into consumer behavior and
preferences. Further, companies are at least advertising how they prioritize sustainability and
social responsibility to align with the values of their customers. Here are some other challenges
in this area of the economy:

 Slowdown in sales growth, especially in rural areas: This can be attributed to inflation,
changing consumer preferences, and increased competition from local and regional
players.

 Rise of challenger brands and product personalization: New, niche brands are shifting the
market by offering personalized products, catering to specific consumer preferences, and
challenging established FMCG giants.

 Intensifying competition from private labels and retail consolidation: The growth of
private-label brands and the consolidation of retail chains have increased competition for
market share and shelf space.

 Evolving consumer preferences across different age groups: FMCG companies are
having to cater to diverging preferences among other age groups, with younger
consumers favoring more personalized products, while older consumers often still prefer
traditional offerings.

INDUSTRY OVERVIEW
Understanding Fast-Moving Consumer Goods (FMCG)

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To understand FMCGs, it's worth setting out terms that can be confusing to those from outside
these industries. FMCG's are products with relatively low cost and high turnover rate. They are
within the category of consumer packaged goods (durable and nondurable), which is a part of all
consumer goods. Consumer nondurable goods are FMCGs plus gasoline, clothing, shoes, etc.
Here's a table differentiating terms commonly heard when discussing FMCGs. Heads up: there is
some overlap among these classifications:

The Characteristics of Different Kinds of Goods

Characteristic Fast-Moving Slow-Moving Consumer Consumer Consumer

Consumer Consumer Packaged Durables Nondurables
Goods Goods (SMCG) Goods (CPG)
(FMCG)

Life span Short (days, Varies (longer Varies (days Long (3+ Short (under
weeks) than FMCG) to years) years) 3 years)

Purchase High Low Medium-High Low Medium

Frequency

Prices Low Varies (often Varies High Varies

higher than
FMCG)

Profit Margin Low May be higher Varies High Varies

per Unit to compensate
for slower sales

Sales Volume High Low Medium-High Low Medium

Examples Packaged Specialty food Appliances, Furniture, Food,

foods, items, luxury electronics, cars, clothing,
beverages, goods, furniture, clothing appliances gasoline
toiletries seasonal items

Durable goods have a shelf life of three years or more, while nondurable goods have a shelf life
of less than three years.56 Fast-moving consumer goods are the largest segment of consumer
goods. They fall into the nondurable category, as they are consumed immediately and have a
short shelf life.

Everyone uses FMCGs daily. They are the small-scale consumer purchases we make at the
produce stand, grocery store, supermarket, or the local CVS on the way home. Examples include

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milk, gum, fruit and vegetables, toilet paper, soda, beer, and over-the-counter medications like
aspirin.

Nondurable goods, including FMCGs, account for more than half of all consumer spending but
tend to be low-involvement purchases.7 Consumers are more likely to show off a durable good
such as a new car or beautifully designed smartphone than a new energy drink they picked up for
$2.50 at the convenience store.

Beverage industry overview

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As one of the most important industries that satisfy daily human necessities, the beverage
industry has witnessed a surge in market cap. Thus, an overview of the beverage industry offers
crucial insights into this ever-changing sector.

This report will give insights into the manufacturing, sales, and consumption of beverages
globally. We’ll also provide data on the total market size and competition in the beverage
industry. This information allows beverage companies to make effective business strategies.

Overview of the beverage industry

The beverage market has been growing steadily on a global scale. Between 2023 and 2028, it is
expected to expand from $ 3.56 trillion in 2023 to $ 4.39 trillion in 2030, at a compound annual
growth rate (CAGR) of 4.26%.

The food and beverage sector is one of the most essential industries that meet daily human needs

An important note is that drink shops (like milk tea stores , coffee chains, etc.) are part of the
food and beverage service sector. This service sector won’t be covered by this beverage industry
report.

Generally speaking, there are two primary segments of the beverage industry

Non- Alcoholic beverage

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Non-alcoholic beverages contain no alcohol, such as soft drinks, juices, tea, coffee, energy
drinks, water, functional drinks, etc. In 2023, the global market for non-alcoholic drinks was
expected to be worth $1,223.93 billion USD

Non-alcoholic beverages are vital to our daily life. Bottled water, juice, soft drink keep us
hydrated and refreshed. That’s why its consumption is rising in every country. Every day, billions
of people buy non-alcoholic beverages to quench their thirst.

Annual consumption of Non-alcoholic beverage among a decade from 2011 to 2021

Alcoholic beverages

Alcoholic beverages include drinks containing alcohol, such as beer, wine, spirits (vodka,
whiskey, rum, etc.), and liqueurs. The production process involves fermentation (for beer and
wine) and distillation (for spirits). The alcoholic beverages market was valued at $2,313.2 billion
USD in 2023.

Despite the considerable number increasing during the years, the alcoholic beverages industry
accounts for a booming consumption in some countries, especially in South-est Asia. Three
leading countries are Vietnam, China and India, made up of 11.3% to nearly 90% during the
given period.

By contrast, there is a slight decrease in the average liters consumed by a person in the developed
countries such as Australia (-14.4%), Canada (-10.8%) and the United Kingdom (-7.3%).

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The consumption trend of alcoholic beverages regards countries (2010-2017)

Impacts of Covid-19 epidemic on the beverage market

From the beginning stage of Covid-19, the beverage industry had to deal with both the plummet
in consumption in almost all categories and the disrupted supply chains. The in-house
consumption has increased considerately. However, the out-of-home consumption, which
brought the largest profit margin, decreased.

Restaurants are rapidly losing their business, and it is predicted that over ⅓ of all restaurants will
not succeed in the long term post-COVID-19. Those who remain open now make a mere 20% of
their typical sales via takeout and delivery.

In 2020, it is estimated that one-third of food and beverage owners lost their businesses in the
epidemic time. Among them, a lot of companies had been interrupted or closed . The left could
only be made up with 20% compared with usual typical sales.

However, at-home consumption has led to the rising popularity of ready-to-drink beverages. This
segment significantly boosted beverage sales across the globe.

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Negative impacts of Covid-19 epidemic on the beverage industry

The biggest Beverage Industry Segments

The beverage industry’s products are incredibly diverse regarding classification, with a wide
range of servings for customers regardless of age or health statement. There are some common
ways and the beverage market can be broken up.

Let’s look at the overview of the biggest segments in the beverage industry:

Alcoholic Beverage

Beer

By 2023, the beer market around the world had grown to over $ 649.63 billion. Between 2024
and 2032, the beer market is projected to reach a value of almost $ 847.65 billion, expanding at a
CAGR of 3%.

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Some competitive beer brands with exceptional sales cases

Emerging markets and developing countries play a pivotal role in driving growth within the beer
industry:

 These regions, including countries like China, Canada, and Germany, experience rising
acceptance of beer consumption. As economies grow and lifestyles evolve, more people
seek out beer for special occasions and everyday enjoyment.

 A growing middle class and urbanization contribute to higher beer consumption in these
countries. As disposable incomes rise, so does the demand for beverages like beer.

 Beer companies recognize the potential in these markets and invest strategically. They
acquire or partner with local breweries to gain access, expand distribution networks, and
cater to diverse tastes.

 The popularity of craft beer is also growing as younger consumers choose its wide range
of flavours and styles.

Wine

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In 2023, Expert Market Research estimated the global wine market to be worth $ 428.96 billion.
It is expected to expand at a CAGR of 6.20% from 2024 to 2032, with an estimated value of $
737.13 billion by 2032.

Top wine brands in terms of sales revenue and market share

Being the dominant segment with the largest market share among alcoholic beverages, the wine
industry feels confident in leading the profit margin.

The introduction of low-ABV drinks for the working population and the growing trend of people
socializing over alcohol are the main drivers of the wine market’s growth.

Spirits

The estimated value of the worldwide spirits market as of 2023 is $ 59,408 million. It is expected
to grow at a compound annual growth rate (CAGR) of almost 4% during the forecast period.
Around $ 90,288.9 million is expected to be generated by spirits sales worldwide by 2033.

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Top spirit brands in terms of sales revenue and market share

The main reason may be the growing demand for premium alcoholic drinks brought on by
increased consumer spending. Additionally, the popularity of bars, pubs, hotels, and restaurants
that serve alcohol is rising, and this trend is expected to drive spirits sales even higher.

Non-alcoholic Beverage

Juice

The juice market is projected to grow from an estimated $137.9 billion in 2024 to $168.4 billion
in 2030.

Juice sales

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This growth is attributed to the growing consumer preference for healthier beverages and the use
of cold-pressed juices. Healthier diets and organic trends have pushed this industry forward in
recent years.

Bottled Water

Let’s look at two tables of sales below:

Bottled
water sales

It can be informed that Bottled had the most dramatic growth. Bottled water is essential to
disaster struck areas. And they are a safe source of drinking water whenever you travel. This is
why it accounts for an outstanding market share.

Soft Drink

In 2023, the market for carbonated soft drinks was valued at about $ 604.0 billion worldwide.
With a projected growth rate (CAGR) of 4.18% from 2024 to 2032, it is anticipated to reach $
872.8 billion.

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 Th
ere is a wide variety of soft drinks available, including carbonated, zelo-calorie, and more

On the other hand, the non-carbonated drink market is projected to grow from $ 335.60 billion in
2024 to $ 514.96 billion in 2030. The projected CAGR is 7.11% from 2022 to 2027.

Industry demand is further driven by millennials’ preference for soft drinks and higher R&D
spending in the food and beverage sector.

Coffee

According to Mordor Intelligence, the coffee market was expected to be worth $ 132.13 billion.
Growing at a CAGR of 4.72% over the forecast period (2024–2029), it is anticipated to reach
roughly $ 166.39 billion by 2029.

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 Market share and
sales case of RTD Coffee

As more people embrace the coffee culture, the demand for coffee continues to rise globally.

Tea

Mordor Intelligence estimates that the global tea market reached $ 12.63 billion by 2023. At a
compound annual growth rate (CAGR) of 5.5%, its value is expected to reach roughly $ 17.41
billion by 2029.

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Tea, especially when substituted for higher-calorie drinks, is beneficial

This growth is attributed to the health benefits of drinking tea, growing consumer awareness of
carbonated drinks, and changing consumer preferences for natural ingredients.

How competitive is the beverage industry?

In general, is the competition in the beverage industry high?

Yes, it is.

The simple reason is that every fat land will attract a vast number of farmers. So does
the profitable beverage industry.

The beverage industry is highly competitive due to ongoing innovation, shifting consumer tastes,
and shifting market positioning. Businesses face numerous obstacles in their quest for customers’
attention. Here are the 4 biggest challenges for companies in the beverage industry.

A growing number of start-ups

The food and beverage industry is crowded, according to a StartUs Insights report, with over
349,000 companies actively registered in the database. However, the market is dominated and
influenced by well-known companies like Nestle, PepsiCo, Anheuser-Busch InBev, Heineken,
and Coca-Cola.

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Nonetheless, innovative startups are also becoming more prevalent in the beverage industry.
These startups compete based on novelty and innovation. As a result, they contribute to over
92,100 patents and more than 6,240 grants.

When new players join the beverage market, they must set themselves apart with creative
branding, distinctive value propositions, and innovative approaches.

Changing consumer preferences

Rapidly changing consumer preferences demand a more comprehensive range of sustainable,

healthy, and tasty beverage options.

There is a growing market for low- and non-alcoholic beverages (like wine, kombucha, beers,
and seltzers).

Customers are turning away from beverages with added sugar.

Brands emphasize premium ingredients, flavours, and experiences because consumers value
quality and originality.

 Market dominance is seen in drinks with extra nutrients, such as vitamins, antioxidants,
or probiotics.

 Waste reduction, eco-friendly packaging, and ethical sourcing are some top concerns for
consumers.

Brands must always remain flexible and agile to stay updated and meet these preferences.

Supply chain complexities

Because of its global nature, the beverage industry faces complex supply chain difficulties. Raw
ingredients like fruits and vegetables have high seasonality and locality factors. These can lead to
price swings and shortages.

Ensuring the safety and quality of food and beverages is critical. Tainted or adulterated products
can hurt customers and ruin a business’s reputation.

Beverage companies can face supply chain issues such as growing fuel costs, fluctuating
demand, scarcity, and specialized storage and transportation requirements.

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 Inf
rastructure investments are substantial when it comes to beverage production

Environmental concerns

When selecting beverages, consumers give sustainability a top priority. Because of this, brands
need to create eco-friendly projects.

 Ensuring the ethical and ecologically sustainable sourcing of raw materials.

 Economical use of resources during manufacturing.

 Reducing trash and encouraging recycling.

 To overcome these problems, brands must engage in strategic planning, be innovative,

and have a profound awareness of the industry dynamics.

Top 5 Biggest beverage companies in the world

With their vast product lines and presence on a global scale, these corporations have a dominant
position in the beverage industry everywhere.

Anheuser-Busch InBev (AB InBev)

Anheuser-Busch InBev (AB InBev) is a Belgian-Brazilian multinational drink and brewing

company headquartered in Leuven, Belgium. It is the largest beverage company in the world by

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revenue ($59 Billion USD in 2023). Anheuser-Busch InBev specializes in manufacturing and
brewing all kinds of alcoholic beverages.

With 595 million hectoliters of beer produced annually, it is the largest brewer in the world. AB
InBev is renowned for its wide range of recognizable national and international brands, which
include over 500 highly appreciated beers. Their love of brewing inspires them to develop the
industry and produce worthwhile experiences.

An
heuser-Busch InBev presently controls over 500 beer brands across 150 countries

The Coca-Cola Co.

Founded in 1892, The Coca-Cola Company is a multinational corporation in the United States. It
is the biggest non-alcoholic beverage company in the world by revenue ($45.754 billion USD in
2023).

It manufactures, sells, and markets soft drinks, including the iconic Coca-Cola brand and other
non-alcoholic beverage concentrates, syrups, and alcoholic beverages. With products sold in
more than 200 countries and territories, it remains a global leader in the beverage industry.

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Coca-Cola’s extensive range of beverages and associated products

Nestlé SA

Nestlé SA is a Swiss multinational food and beverage company headquartered in Vevey,

Switzerland. In 2023, the company’s beverage divisions (including beverages, water and dairy)
generated nearly $40 billion USD in revenue.

Nestlé operates in over 70 countries and offers a variety of wonderful beverage brands that cater
to different tastes and preferences. Nestlé is committed to nutrition, sustainability, and advancing
regenerative food systems. Their brands touch lives globally, positively impacting quality of life.

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Millions of people all over the world love NESCAFÉ coffee

PepsiCo Inc.

PepsiCo is an American multinational food and beverage corporation headquartered in Harrison,

New York. In 2023, Pepsico’s net beverage revenue was $37 billion USD (which was 41% of
their total revenue).

With a diverse portfolio of brands, PepsiCo produces and markets a wide range of beverages,
including Pepsi-Cola, Gatorade, Mountain Dew, and SodaStream. Their commitment to
sustainability, diversity, and community impact drives their global presence.

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One of the world’s largest beverage producers and distributors is PepsiCo

Heineken NV

Heineken employs approximately 85,000 people and is a global beverage industry leader in
alcoholic beverages. Their 2023 revenue is € 30 billion EUR. Heineken continues to shape the
beer world as the number one brewer in Europe and one of the largest brewers worldwide by
volume.

Heineken N.V. is a Dutch multinational brewing company founded in 1864 by Gerard Adriaan
Heineken in Amsterdam.

With over 165 breweries in more than 70 countries, Heineken produces a diverse range of 348
international, regional, local, and specialty beers and ciders.

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HEINEKEN Beverages creates a global experience

These businesses are still influencing the beverage sector by adjusting to shifting consumer tastes
and worldwide patterns.

Conclusion

To sum up, despite the high mutual competitiveness among segments, the beverage industry is
considered a potential market with a promising future. As can be clarified above, we have
provided you a general overview of the beverage industry by related statistics for sales revenue,
market share, and estimated growth.

From that, you can get the entire picture of both current and future product trends to obtain the
purpose of satisfying customers and maximizing their great experiences.

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Types of Fast-Moving Consumer Goods

FMCGs include several subcategories:

 Processed foods: Cheese products, cereals, and boxed pasta

 Prepared meals: Ready-to-eat meals

 Beverages: Bottled water, energy drinks, and juices

 Baked goods: Cookies, croissants, and bagels

 Fresh foods, frozen foods, and dry goods: Fruits, vegetables, and nuts

 Medicines: Aspirin, pain relievers, and other medications that can be purchased without a
prescription

 Cleaning products: Baking soda, oven cleaner, and window and glass cleaner

 Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap

 Office supplies: Pens, pencils, and markers

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 Non-alcoholic Beverages Market Trends

The global non-alcoholic beverages market size was estimated at USD 1,223.93 billion in 2023
and is expected to grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2030.
With the growing acceptance of the no-alcohol and low-alcohol categories by consumers,
manufacturers in the market are catering to the new trends and have been innovating existing
product portfolios, which is likely to bode well for future growth. The ripple effect of consumers
opting for non-alcoholic drinks and beverages has been the development of a whole new segment
of premium, complex-tasting soft drinks aimed at adult palates.

To learn more about this report, request a free sample copy

According to a Waitrose Food and Drink Report published in October 2021, searches for alcohol-
free drinks continue to increase by 22% every year. Brands have been keeping up pace with new
trends by launching new offerings or expanding existing product lines. For instance, in May
2020, U.S.-based tea brand Good Earth expanded its product offering in the UK. The company’s
portfolio includes a range of fruit & herbal, green, and black teas, as well as original and
flavored kombucha, each blended with natural ingredients. According to the 2022 Bacardi
Cocktail Trends Report, approximately 58% of consumers globally are shifting to non-alcoholic
and low-ABV cocktails and beverages.

With the growing acceptance of the no-alcohol and low-alcohol categories by consumers,
manufacturers in the market are catering to the new trends and have been innovating their current
product portfolios, which is likely to bode well for future growth. The rising consumer
consciousness about the health benefits of consuming bottled water is projected to drive the
segment. An inclination toward bottled water over ordinary water, particularly among younger

29
consumers, drives product sales. Observing this trend, several restaurants are providing various
types of bottled water.

Another key factor propelling the non-alcoholic beverage industry is the changing demographics
and a shift in drinking habits among younger generations. Millennials and Generation Z, in
particular, are showing a preference for moderation and balance, eschewing excessive alcohol
consumption. This demographic trend has spurred the development of innovative and diverse
non-alcoholic beverage options, ranging from alcohol-free beer and wine to craft mocktails,
catering to a more discerning and sophisticated palate.

Market Concentration & Characteristics

Packaging and production are getting a makeover. Biodegradable bottles, water-saving

processes, and locally sourced ingredients are becoming priorities. Consumers are thirsty for eco-
conscious choices. Consumer demand for natural and organic products was influencing
innovation. Beverages with fewer artificial additives, preservatives, and sweeteners were gaining
traction.

Several market players such as Nestlé, PepsiCo, Unilever Non-alcoholic beverages company,
Morning Foods, and General Mills are involved in merger and acquisition activities. Through
M&A activity, these companies can expand their geographic reach and enter new territories.

The non-alcoholic beverages market is significantly impacted by food safety regulations, which
mandate adherence to specific safety standards. To guarantee the absence of harmful
contaminants, government bodies such as the U.S. Food and Drug Administration (FDA) and the
European Food Safety Authority in Europe enforce these standards for non-alcoholic beverages,
aligning with the broader regulations governing food safety.

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To learn more about this report, request a free sample copy

Emerging product that has gained considerable attention is the category of functional beverages.
These beverages go beyond mere refreshment, offering added health benefits such as enhanced
hydration, vitamins, antioxidants, and other bioactive compounds. The functional beverage
market includes products like infused waters, herbal teas, and wellness shots, providing
consumers with a diversified range of choices that align with their desire for health-conscious
options.

Another substitute making waves in the market is the plant-based beverage category. With a
growing number of consumers adopting vegetarian, vegan, or flexitarian diets, plant-based
alternatives have become a popular choice. Plant-based milks, such as almonds, soy, oats, and
coconut milk, has gained widespread acceptance as an alternative to traditional dairy products.

Product Insights

The carbonated soft drinks segment accounted for the largest revenue share of 28.10% in 2023.
Carbonated soft drinks are known for their effervescence and wide array of flavors, catering to
diverse taste preferences. The convenience and availability of CSDs in various packaging sizes
further contribute to their popularity, making them a go-to choice for consumers seeking a quick
and satisfying thirst-quencher.

Functional beverages segment is anticipated to witness significant market growth over the
forecast period. Increasing awareness and emphasis on health and wellness. As consumers
become more health-conscious, there is a growing demand for beverages that offer not just
refreshments but also functional benefits. Functional beverages, which include products enriched

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with vitamins, minerals, antioxidants, and other health-promoting ingredients, align with the
contemporary focus on preventive healthcare and overall well-being.

Distribution Channel Insights

Retail segment dominated the market in 2023. The segment is projected to expand further at the
fastest CAGR during the forecast period. Supermarkets, hypermarkets, internet retailers, and
other channels make up the retail channel. Due to the availability of a broad variety of brands
and goods under one roof, supermarkets and hypermarkets in this subcategory hold the largest
share. Several supermarkets are increasing their selections in the alcohol-free market, including
Whole Foods, Target, Aldi, and Walmart.

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Segment has been anticipated to grow at a rapid pace during the forecast period. Foodservice is
one of the primary distribution channels for non-alcoholic beverages. Busy schedules of people
worldwide, coupled with an increased disposable income, often compel them to dine out. New
eateries cater to varied tastes and beverage preferences that further drive this trend. A growing
number of full-service restaurants are adopting all-inclusive dining practices to serve better its
consumers. This involves analyzing local dietary trends and innovating their offerings to align
with the same. It increases the frequency of consumer visits.

Regional Insights

Asia Pacific dominated the overall non-alcoholic beverages industry with the market share of
33.5% in 2023. The increasing demand for alcohol-free beverages from developing countries,
such as China, India, Thailand, and Malaysia, is expected to drive the regional market. Various

32
government initiatives to develop the manufacturing sector by providing tax cuts, subsidies, and
increasing FDI limits are attracting key global players to expand their operations and distribution
facilities in this region. Also, due to a shift in beverage consumption patterns, consumers
nowadays choose functional and flavored bottled water over carbonated drinks with high sugar
content.

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China accounted for the largest share of the market in Asia Pacific in 2023. One significant
driver is the growing health consciousness among consumers. As awareness of the impact of
lifestyle choices on health increases, many Chinese consumers are opting for nonalcoholic
beverages as a healthier alternative to traditional sugary and alcoholic drinks. This trend is
particularly pronounced among the younger generation, who are actively seeking beverages that
align with their desire for a balanced and nutritious diet.

The North America region is expected to grow at a significant rate during the forecast period.
North America, especially the U.S., is home to many globally renowned beverage manufacturers.
However, the growing prevalence of obesity in the U.S. and Mexico along with taxes on sugar
products imposed by the governments restrain the demand for Carbonated Soft Drinks (CSDs),
which is a product of non-alcoholic beverages. This drives the demand for low-calorie beverages
containing non-nutritive sweeteners.

Key Companies & Market Share Insights

Nestlé and PepsiCo non-alcoholic beverages Company are some of the dominant players
operating in the non-alcoholic beverages industry.

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  Nestlé has a notable presence with a diverse portfolio catering to different consumer
preferences. One of its flagship products is Nescafé, a globally recognized coffee brand
offering a variety of coffee products such as instant coffee, ground coffee, and specialty
coffee. Nestea, another prominent brand, provides a range of iced tea and ready-to-drink
tea beverages.

 PepsiCo has strategically positioned itself as a leader with a focus on offering a broad
spectrum of choices to cater to diverse consumer preferences. Tropicana, a brand under
PepsiCo, is renowned for its fruit juices, providing consumers with a variety of fruit
flavors and nutritional options. Gatorade, another flagship brand, specializes in sports and
energy drinks, targeting consumers engaged in physical activities.

Key Non-alcoholic Beverages Companies:

 Nestlé

 PepsiCo

 Unilever

 Keurig Dr. Pepper Inc.

 The Coca-Cola Company

 Jones Soda Co.

 Danone S.A

 Suntory Beverage & Food Ltd

 Asahi Group Holdings, Ltd.

 Red Bull

Recent Developments

 In September 2023, Red Bull introduced its inaugural limited Red Bull Winter Edition
Spiced Pear in the UK, featuring a complete range that comprises 250ml, 250ml PMP
(Price Marked Pack), and 355ml Sugarfree variants. The product features a combination
of pear infused with a hint of cinnamon.

 In July 2022, PepsiCo, Inc. cleared an agreement to buy land near Denver International
Airport, where it will build a 1.2 billion sq. ft. manufacturing facility. Denver is funding
PepsiCo USD 1 Billion from its Business Incentive Fund to build the plant, which will
turn out to be the company’s largest soda manufacturing facility in the U.S.

34
  In February 2022, Nestlé launched a new plant-based version of Milo in Thailand. The
new Ready-To-Drink (RTD) product is soy-based and combines the unique Milo malt
flavor to provide a nutritious plant-based alternative.

 In February 2022, Jones Soda Co. partnered with The ICEE Company, a leading provider
of dispensed frozen beverage treats, to introduce new flavors in the market

Non-alcoholic Beverages Market Report Scope

Report Attribute Details

Market size value in 2024 USD 1,303.42 billion

Revenue forecast in 2030 USD 1,997.25 billion

Growth rate CAGR of 7.4% from 2024 to 2030

Base year for estimation 2023

Historical data 2018 - 2022

Forecast period 2024 - 2030

Report updated January 2024

Revenue in USD billion/trillion and CAGR from

Quantitative units
2024 to 2030

Revenue forecast, company ranking, competitive

Report coverage
landscape, growth factors, and trends

Segments covered Product, distribution channel, region

North America; Europe; Asia Pacific; Central &

Regional scope
South America; MEA

Country scope U.S.; Canada; Mexico; UK; Germany; France; Italy;

Spain; China; India; Japan; Brazil; South Africa

35
 Nestlé; PepsiCo; Unilever; Keurig Dr Pepper Inc.;
The Coca-Cola Company; Jones Soda Co.; Danone
Key companies profiled
S.A.; Suntory Beverage & Food Ltd.; Asahi Group
Holdings, Ltd.; Red Bull

Free report customization (equivalent up to 8

Customization scope analysts working days) with purchase. Addition or
alteration to country, regional & segment scope.

Avail customized purchase options to meet your

Pricing and purchase options
exact research needs. Explore purchase options

Global Non-alcoholic Beverages Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an
analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study,
Grand View Research has segmented the global non-alcoholic beverages market report based on
product, distribution channel, and region:

To learn more about this report, request a free sample copy

 Product Outlook (Revenue, USD Billion, 2018 - 2030)

 Carbonated Soft Drinks

36
  Bottled Water

 RTD Tea & Coffee

 Functional Beverages

 Juices

 Dairy-based Beverages

 Others

 Distribution channel Outlook (Revenue, USD Billion, 2018 - 2030)

 Food Service

 Retail

 Regional Outlook (Revenue, USD Billion, 2018 - 2030)

 North America

o U.S.

o Canada

o Mexico

 Europe

o UK

o Germany

o France

o Italy

o Spain

 Asia Pacific

o China

o India

o Japan

 Central & South America

37
 o Brazil

 Middle East & Africa

o South Africa

COMPANY OVERVIEW

38
 The Coca-Cola Company

The Coca-Cola Company is an American corporation founded in 1892 and today engaged
primarily in the manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened
carbonated beverage that is a cultural institution in the United States and a global symbol of
American tastes.

The company also produces and sells other soft drinks and citrus beverages. With more than 500
brands available in more than 200 countries, Coca-Cola is the largest beverage manufacturer and
distributor in the world, one of the largest corporations in the United States, and one of the most
successful brands in marketing history. Its headquarters are in Atlanta, Georgia.

A Coca-Cola advertisement, c. 1890s.

Popular Graphic Arts Collection/Library of Congress, Washington, D.C. (Digital file no. cph
3g12222)

Date:

39
1892 - present

Ticker:

KO

Share price:

$73.3 (mkt close, Apr. 23, 2025)

Market cap:

$318.03 bil.

Annual revenue:

$47.06 bil.

Earnings per share (prev. year):

$2.46

Sector:

Consumer Staples

Industry:

Beverages

CEO:

Mr. James Robert B. Quincey

Headquarters:

Atlanta

as company, Coca-Cola has a long history of steady growth and stability, having raised
its dividend each year for more than 60 years. That makes it one of the so-called dividend kings
(i.e., companies that have raised their annual dividend for 50 years or more).

40
As a company, Coca-Cola has a long history of steady growth and stability, having raised
its dividend each year for more than 60 years. That makes it one of the so-called dividend kings
(i.e., companies that have raised their annual dividend for 50 years or more).

Founding and early history

The drink Coca-Cola was originated in 1886 by an Atlanta pharmacist, John S. Pemberton
(1831–88), at his Pemberton Chemical Company. His bookkeeper, Frank Robinson, chose the
name for the drink and penned it in the flowing script that became the Coca-Cola trademark.

Pemberton originally touted his drink as a tonic for most common ailments, basing it
on cocaine from the coca leaf and caffeine-rich extracts of the kola nut. The cocaine was
removed from Coca-Cola’s formula in about 1903.

How much caffeine is found in drinks.

Encyclopædia Britannica, Inc.

Pemberton sold his syrup to local soda fountains, and, with advertising, the drink became
phenomenally successful. By 1891 another Atlanta pharmacist, Asa Griggs Candler (1851–
1929), had secured complete ownership of the business (for a total cash outlay of $2,300 and the
exchange of some proprietary rights), and he incorporated the Coca-Cola Company the following
year. The trademark “Coca-Cola” was registered with the U.S. Patent Office in 1893.

 Coca-Cola sales rose from about 9,000 gallons of syrup in 1890 to 370,877 gallons in
1900.

 Between 1890 and 1900, syrup-making plants were established in Dallas, Los Angeles,
and Philadelphia. The product came to be sold in every U.S. state and territory as well as
in Canada.

 In 1899 the Coca-Cola Company signed its first agreement with an independent bottling
company, which was allowed to buy the syrup and produce, bottle, and distribute the
Coca-Cola drink.

 Capitalized at $100,000 in 1892 upon incorporation, the Coca-Cola Company was sold in
1919 for $25 million to a group of investors led by Atlanta businessman Ernest Woodruff.

 Robert Winship Woodruff, Ernest’s son, guided the company as president and chair for
more than three decades (1923–55).

Coca-Cola and licensed distribution

Coca-Cola’s 1899 licensing agreement formed the basis of a unique distribution system that now
characterizes most of the American soft drink industry. Independent bottlers produce and

41
package the products and distribute them locally. Coca-Cola completed its most recent
refranchise effort in 2017.

Post–World War II

Somebody Knew I Was Coming, a depiction of Santa Claus holding a bottle of Coca-Cola;
painting by Haddon Sundblom for the Coca-Cola Company, 1940.

PRNewsFoto/The Coca-Cola Company/AP Images

The post–World War II years saw diversification in the packaging of Coca-Cola and the
development or acquisition of new products.

 Coke. The trademark “Coke,” first used in advertising in 1941, was registered in 1945.

 Fanta. In 1946 the company purchased rights to Fanta, a soft drink previously developed
in Germany.

 McDonald’s. Coca-Cola partnered with McDonald’s to sell branded soft drinks in 1955,
an exclusive partnership that lasted until 2007, when some locations began selling Pepsi
products. There is still a strong partnership between Coca-Cola and McDonald’s, with
Coca-Cola maintaining a separate McDonald’s division.

 Coke bottle. The contoured Coca-Cola bottle, first introduced in 1916, was registered in
1960.

 Orange juice. With its purchase of Minute Maid Corporation in 1960, the company
entered the citrus juice market.

 Sprite. Lemon-lime drink Sprite was introduced in 1961.

 Tab. Coca-Cola’s first diet cola, sugar-free Tab, was launched in 1963.

 Fresca. The brand Fresca was added to Coca-Cola’s stable in 1966.

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  China. In 1978 Coca-Cola became the only company allowed to sell cold packaged
beverages in the People’s Republic of China.

 Diet Coke. In 1982 the company introduced its low-calorie, sugar-free soft drink Diet
Coke (originally named Diet Coca-Cola).

 New Coke/old Coke. In an effort to address its decline in market share, the company
adopted a new flavor of Coca-Cola in April 1985, using a formula it developed through
taste tests. New Coke was not well received, however. Owing to the public outcry, Coca-
Cola revived its original flavor in July, which was then marketed as Coca-Cola Classic.

 Media. From 1982 to 1989, the company held a controlling interest in Columbia Pictures
Industries, Inc., a motion picture and entertainment company.

 Global reach. The company began selling products in East Germany in 1990 and in
India in 1993.

 Recycling. In 1992, the company introduced its first bottle made partially from recycled
plastic—a major innovation in the industry at the time.

Roberto Goizueta (left), chairman of the board and CEO of the Coca-Cola Company, toasting the
launch of New Coke with Donald Keough, president and chief operating officer, 1985.

AP/Shutterstock.com

Coca-Cola created many new beverages during the 1990s, including the Asia-marketed Qoo
children’s fruit drink, Powerade sports drink, and Dasani bottled water. Also during this period,
the company acquired Barq’s root beer in the United States; Inca Kola in Peru; Maaza, Thums
Up, and Limca in India; and Cadbury Schweppes beverages, which were sold in more than 120
countries across the globe.

43
Coca-Cola in the new century

Coca-Cola has continued to reign as the largest beverage company in the world through various
leadership changes in the 2000s.

 Douglas N. Daft: 2000–04, presided over continued expansion into emerging markets. In
2005 the company introduced Coca-Cola Zero, a zero-calorie soft drink with the taste of
regular Coca-Cola.

 E. Neville Isdell: 2004–08, presided over the acquisition of Energy Brands, known as
Glacéau, marking Coca-Cola’s entrance into the enhanced water market in 2007. Also in
2007, Coca-Cola announced it would join the Business Leaders Initiative on Human
Rights (BLIHR), a group of companies working together to develop and implement
corporate responses to human rights issues that affect the business world.

 Muhtar Kent: 2008–17, presided over the purchases of Honest Tea in 2011 and ZICO
Pure Premium Coconut Water in 2013.

 James Quincey: 2017–present, presided over the entrance of Coca-Cola into the coffee
market by completing the acquisition of Costa Limited in early 2019. The company also
relaunched its Coke Zero product in 2017, calling it Coke Zero Sugar and touting its
updated taste.

0 seconds of 1 minute, 48 secondsVolume 90%

Explore the history of the Coca-Cola Company and brand.

Encyclopædia Britannica, Inc.

Coca-Cola and controversies

In the early 2000s, Coca-Cola faced allegations of illegal soil and water pollution, as well as
allegations of severe human rights violations. The company has also faced criticism over its
efforts to obscure the health impacts of its drinks.

 In 2001 the United Steelworkers of America and the International Labor Rights Fund
(ILRF) filed a lawsuit against Coca-Cola and Bebidas y Alimentos and Panamerican
Beverages, Inc. (also known as Panamco LLC; the primary bottlers of Coca-Cola’s
beverages in Latin America), claiming that the defendants had openly engaged so-called
“death squads” to intimidate, torture, kidnap, and even murder union officials in Latin
America. The controversy gained worldwide attention and led several American
universities to ban the sale of Coca-Cola products on their campuses. The lawsuit was
eventually dismissed.

44
  In April 2002, protests at Coca-Cola’s Plachimada plant in India highlighted water
accessibility issues caused by the company. Local residents complained that the plant was
drying out wells and contaminating the water supply. The plant operated on and off
during a years-long legal battle, but was eventually closed permanently.

 Students spearheaded efforts from 2005 through 2007 to have Coca-Cola products
removed from campuses due to alleged human rights and labor violations.

 In 2015 Coca-Cola came under fire for its effort to direct health issues away from its
sugary drinks and put more blame for obesity on a lack of exercise. The company was
involved in efforts to provide financial support to scientists and researchers who would
then downplay the impact of sugary drinks like Coca-Cola on diabetes and other health-
related problems.

Coca-Cola and sustainability

 Coca-Cola announced a water security strategy in 2023 with the goal of achieving
circular water use in 175 facilities and returning two trillion liters of water back to nature
and global communities by 2030.

 Additionally, Coca-Cola announced a goal to make 100% of its packaging recyclable by

2025 and use at least 50% recycled materials in its packaging by 2023.

A look ahead

Coca-Cola continues to cement its place as a total beverage company. Beginning in 2018, the
company launched its foray into alcoholic beverages with Lemon-Dou in Japan. Today, Coca-
Cola sells hard seltzers like Topo Chico and offers premixed cocktails, such as its Jack and Coke
brand through its partnership with Jack Daniels.

As one of the premier American brands and cultural touchstones, it’s unlikely that Coca-Cola
will be dethroned anytime soon, especially as the company continues to push its brands
worldwide and focus on publicizing its efforts to become a sustainable company.

brand (marketing), a set of words, images, and associations that represent and distinguish a
product or service in the marketplace. Strong brands elicit an emotional response from
consumers and add value to the products and services they represent. Manufacturers have
identified their products with names or symbols for thousands of years, and in the 20th century
brands became not only critical to the promotion of goods and services but valuable assets in
themselves. With the shift toward digital commerce in the 21st century, brands continue to be
valuable but face new challenges because of the greater accessibility of information about
products and services, the companies that produce or offer them, and the performance history of
the branded offerings.

45
History of brands and brand marketing

The term brand originates from the Middle English word for torch and the Old English verb
meaning “to burn,” as well as from the historic practice of identifying goods with the mark of
a firebrand (a burning piece of wood) and, later, a hot or cold iron. The branded “goods” might
be the assets themselves (as with the hot-iron branding of cattle, a practice common as far back
as ancient Egypt) or the barrels and boxes containing the products. Even enslaved people and
criminals, for purposes of identification and punishment, have been branded throughout history.

Producers have been marking their goods for millennia—there are stones, for example,
from ancient Egypt marked with a symbol of the quarry they hail from that are 6,000 years old
and Chinese pottery marked to indicate the potter who made it that are from 4,000 to 5,000 years
old. The use of brand names to denote manufacturers became widespread in Europe in the late
Middle Ages. Such branding soon became legally mandated. In 1266 the English Parliament
enacted a law requiring bakers to mark loaves of bread made for sale, and, in the centuries that
followed, European courts developed a body of law protecting the rights of producers to own
their names and marks.

With the rise of industrial-scale manufacturing and the widespread geographical distribution of
products, reliable identification of goods became increasingly important, as consumers no longer
purchased directly from local producers. By the late 19th century, manufacturers of all kinds
were using stylized text, logos, and color schemes not just to identify their goods but to
distinguish them in a crowded marketplace through promises of superior quality or value.
Advertising agencies also emerged, notably J. Walter Thompson Co., which pioneered early
techniques of using magazine advertisements to connect products with generalized associations
such as the longing for luxury, security, or love. Coca-Cola, Ivory Soap, and Colgate all emerged
as brands during this period with the support of extensive advertising campaigns.

The reach and evocative power of mass media, such as radio and especially television, facilitated
the modern era of branding. Manufacturers, led by American consumer packaged goods
companies, began investing heavily in advertising, not just to raise awareness of their brands but
to build specific emotional associations with their products. Brand management thus became an
organizational concept. Procter & Gamble Company was a pioneer in such brand management,
rejecting the notion of a single corporate marketing department and instead putting each of its
branded products (e.g., Ivory, Tide, Crest, Crisco) under a separate management team,
responsible for identifying a specific consumer segment and building a brand to appeal to that
specific kind of buyer. By the 1950s, this strategy had become the standard marketing model in
consumer-goods companies.

The overall strategy for success at that time was rather simple: drive down costs using mass
production, invest the savings in mass media ad campaigns that imbued the brands with
emotional resonance, and then make a profit by charging prices for the branded product that were

46
higher than those charged by generic producers or those with weaker brands—prices that
consumers would gladly pay because they valued the emotional connection they had with the
stronger brand. The latter half of the 20th century was a period of increased sophistication,
investment, and profitability in brand-based marketing. Marketers refined their message based on
focus groups, consumer surveys, and data collected through retailers, and they expanded their
reach through event sponsorships (such as the Super Bowl) and film and television product
placement. Additionally, they owned and operated brand-specific retail stores.

The rise of the Internet, however, profoundly challenged the branding models of the 20th
century. The controlled one-way messaging strategy so effective in mass media did not always
translate well to the interactive online environment. Leading brands spent millions of dollars on
“brochureware” websites (websites that simply listed their products and services online, akin to
listing their products in a static brochure) that sparked limited consumer interest. Meanwhile, the
disruptive effect of the new marketing channel allowed new brands to emerge as well as new
types of intermediaries between product manufacturers and consumers, including review
websites, pricing agents, and search engines. Consumers grew less reliant on the brands
themselves to signal quality or value.

Brand strategy

Defining the product

In a crowded, competitive marketplace, a brand and its associations convey the unique selling
proposition of a product. This includes both rational attributes, such as price and quality, and
emotional attributes, such as prestige, freedom, or reliability. Retailers often position themselves
squarely on the rational benefit of price. Walmart, for example, has relied on a variety of slogans
to communicate low prices, such as “Every Day Low Prices” and “Save Money. Live Better.”
Luxury retailer Neiman Marcus, on the other hand, flaunts its high prices, featuring outrageously
expensive “fantasy gifts” in its holiday catalogs. Recent offerings from the latter included a $6.1
million diamond ring and a $285,000 electric pickup truck.

American Express is a classic example of a brand that combines rational associations (conveying
itself as a reliable, secure partner for expensive transactions) with aspirational, emotional ones
(prestige, upward mobility, luxury). For years, the company spent heavily on advertising that
featured familiar celebrities (including actor Karl Malden, director Martin Scorsese,
singer Sheryl Crow, and athlete Shaun White) who relied on the American Express card. The
advertising was combined with a product strategy that supplemented the credit card with a suite
of complimentary travel rewards and perks. Advertisements promised American Express
cardholders unique, luxury experiences that differentiated the brand from its competition, such
as Visa and Mastercard.

Defining the consumer

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Brands offer consumers a means of expressing themselves privately and publicly. Whereas early
advertisements simply promoted the product, sophisticated marketers realized they could build
stronger emotional connections if they focused on what their brands said about users of their
product. During the peak of the feminist movement in the 1960s and early ʾ70s, cigarette brand
Virginia Slims built a business on this strategy by touting the progress women had made in
recent years, using its famous tagline: “You’ve come a long way, baby.” Nike, with the slogan
“Just Do It,” became the global leader in athletic footwear by focusing its brand on the efforts
and achievements of Nike-wearers instead of on the shoes themselves. As smart brand marketers
discovered, humans are social animals who are constantly on the lookout for ways to signal their
success and value to others.

Some product categories are inherently well suited to “self-expressive benefits” and branding
that helps consumers signal aspects of their status or personality. Outdoor gear, for instance, is
often worn or used not just for utility in the wilderness but to signal the owner’s affinity for
adventure. The cooler brand YETI surged to a leadership position in a previously sleepy category
with prominent labeling—offering a strong, consistent visual identity across its products and
advertising and a promise of rugged, even overbuilt quality.

One of the greatest brand-building successes in history has been Apple. Although the company’s
category, computer hardware, was long associated with office drudgery and introverted users,
Apple’s branding made its customers feel creative and unique. The company’s 1984 Super Bowl
commercial, announcing the then new Macintosh computer, was perhaps the single most
influential advertisement ever aired. Yet the commercial never showed a computer or explained
what it could be used for or how it could be purchased. It did not even mention the brand name
in the multimillion-dollar commercial until the final five seconds. Instead, it did something more
powerful: it defined the brand’s customer as revolutionary and creative.

Operating within a brand architecture

Brand architecture is the organizing structure of a brand portfolio. Brand managers often use
more than one brand for a product and may span a single brand across many products. For
example, Coca-Cola originated as a single-product brand, associated for more than a century
with a specific carbonated soft drink. But in recent years it spawned several sub-brands, which
are distinguished with additional terminology (“Diet,” “Cherry,” “Zero”) and visual cues, such as
the silver associated with Diet Coke and the black associated with Coke Zero. Coca-Cola is also
not just a consumer brand but a strong corporate brand, used to communicate the company’s
track record of financial success to investors and business partners. These multiple uses of the
brand help increase the return Coca-Cola gets from investing in a single brand, but they come at
a cost to flexibility. The brand manager for Coke Zero, for example, has to consider the potential
impact of a new promotion or partnership not just on the Coke Zero brand but on the other
products under the Coca-Cola brand umbrella as well as the Coca-Cola corporate brand. By

48
contrast, the brand manager for Sprite (a brand owned by Coca-Cola) has more freedom, since
consumers are unlikely to associate advertising messages from Sprite with the Coca-Cola brand.

0 seconds of 1 minute, 48 secondsVolume 90%

Explore the history of the Coca-Cola Company and brand.

Encyclopædia Britannica, Inc.

Brand managers use an array of tactics to organize complex brand architectures, but, broadly
speaking, companies follow either a “branded house” or a “house of brands’’
approach. Apple operates mainly as a branded house, with nearly all of its products prominently
identified with the “Apple” brand. Individual Apple products are distinguished through product
brands (e.g., iPhone, AirPods) but the Apple name, visual style, and language are present in all
communications. Consumer packaged-goods companies, on the other hand, typically prefer the
house of brands, multiple-branding strategy, as seen with Procter & Gamble (Crest, Gillette,
Tide) and Colgate-Palmolive (Softsoap, Tom’s of Maine, Ajax). Variations are common, although
companies typically keep brands separate when they convey distinct and even conflicting
associations (such as brands for toothpaste and dishwasher detergent) but link them together
when their various products benefit from common values (as with digital products like mobile
phones and laptops).

For each individual brand within the marketing architecture, brand managers decide how closely
to connect them with one another and with the larger corporate brand. Various terms are
sometimes used, not necessarily consistently across companies, to denote these relationships.
Managers might refer to a brand that is closely linked to its parent as a “sub-brand” (for example,
FedEx Ground and FedEx Office), whereas a brand with a more subtle connection might be
termed an “endorsed brand” (Courtyard by Marriott). “Ingredient” brands can even operate
within another company’s architecture. Intel’s “Intel Inside” campaign helped the company
maintain dominance in personal computer chips for decades by adding their product and the Intel
branding to goods produced by other companies, such as Dell, Acer, and Lenovo. These
marketing approaches are fluid and situational, and most multibrand companies today employ a
range of tactics.

Tools, uses, and dangers of branding

At its core, a brand is a name, but nearly all brands are associated with other symbols, including
logos, colors, taglines, and music. Over time, these symbols can acquire substantial monetary
value and are generally protected through trademark law. Brand managers must be careful to
keep control over their brand elements, or trademark protection can be lost. Large brands
typically have detailed internal rules about the use of brand imagery, precise colors, and design

49
elements. Ironically, great success in brand marketing can be fatal, leading to genericide: when a
brand, due to market saturation, becomes the generic term for the product itself and loses its legal
protection. Aspirin, for example, was once a trademark of the Bayer company, and cellophane
was formerly a DuPont trademark. Consequently, companies that have built popular brands such
as Google, Photoshop, and Kleenex must be careful in communications and with partners to
prevent their brands from becoming generic, legally useable terms.

Pepsi-Cola Company

There are also assorted powerful branding tools. The use of sound, for example, has evolved
from classic advertising “jingles” (e.g., “The best part of waking up is Folgers in your cup” for
Folgers Coffee) to signature sounds, such as HBO’s “static angel” intro, Netflix’s “ta-dum,” or
Intel’s five-note “bong.” A signature colour can also be powerful, because of how widely it can
be used—at the point of sale, for product extensions, and in advertising—once the colour is
established in the minds of consumers. Examples include Tiffany’s turquoise blue, T-Mobile’s
pink, and Home Depot’s orange.

For most brands, though, the primary means of building awareness and associations are through
advertising, still a multibillion-dollar industry. In this classic marketing approach, the brand is
advertised in a scene or narrative intended to evoke the desired associations. AT&T, for example,
has for decades promoted the power of a phone call to bridge the geographical divide, keeping
families and loved ones connected. But advertising has progressed beyond obvious commercials,
as companies seek to reach consumers in more subtle ways, such as through product placement
in films and television programs, affiliation with celebrities and “influencers” (either by using
them as spokespersons or by sponsoring their events), and association with admired causes (such
as environmentalism or disaster relief). These tactics can generate much greater returns than
traditional advertising—in 1982, for example, Hershey paid $1 million to feature a new candy,
Reese’s Pieces, in the film E.T. the Extra-Terrestrial and enjoyed a 65 percent increase in sales
and a lasting association with a beloved movie character. Today, there are entire advertising
agencies devoted to linking brands with movies, social media personalities, and special events.

Sponsorship branding, where a brand is tied to an athlete or entertainer or special occasion or

cause, is another popular means of building associations, though this marketing method
is fraught with risk. Michael Jordan’s longtime partnership with Nike, for example, has made
both parties billions of dollars. On the other hand, Adidas’s lucrative partnership with
entertainer Kanye West backfired after he made a series of anti-Semitic remarks, leading the
company to cut ties with him in 2022 at an immediate cost to the corporation of some $250
million and the risk of much greater long-term damage to the brand. Social or political
associations can similarly be treacherous for brands. In 2023, both Bud Light and Target received
backlash and calls for boycotts of their brands after the former engaged a transgender influencer
for a promotion of its beer and the latter marketed trans-friendly merchandise during Pride
Month.

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Brand-building is not limited to external promotional communications. Brand managers seek to
align all aspects of the company and the product with the brand and vice versa. Nike, for
example, encourages its employees to pursue athletic hobbies, while Walmart promotes frugality
with spartan corporate offices. Branding can even mean deliberately selling less of the product, a
classic supply-and-demand tactic known as “scarcity marketing.” Clothing retailer Supreme built
its brand on the back of its retail “drops,” new products introduced in limited supply at its own
retail locations, which attract long lines in highly visible urban neighborhoods, building
associations of exclusivity for the company.

Although brands and branding evolved as a tool for marketing consumer products, brands are
relevant in a variety of contexts. Brands can be valuable in business-to-business transactions,
where managers often prefer to do business with established brands as a way of protecting
themselves and limiting risk. For decades, “nobody ever got fired for buying IBM” was a widely
used expression, reflecting the associations of reliability and quality that the IBM brand, known
as “Big Blue,” had earned in corporate boardrooms. Similarly, consulting firms like McKinsey &
Company and Boston Consulting Group implicitly promise their clients, as part of their brand
appeal, a “seal of approval.” Managers advocating for a risky corporate venture frequently hire
one of these firms to develop the strategy and add their brand strength to the proposal so that it
carries more weight with corporate leadership.

Less commercial organizations also rely on and invest in their brands. Young people spend years
studying to be accepted at universities and then spend years paying off related debt, all for the
lifelong right to associate themselves with brands like Harvard, Yale, Princeton, Cambridge, and
Oxford. Modern universities employ many of the same tactics as shoe manufacturers and
hamburger chains to enhance and protect their brands. Governments, political parties, artists, and
charitable organizations are all active stewards of their brands, and some have developed
sophisticated brand systems. Donald Trump’s bright red “Make America Great Again” hats,
Livestrong’s yellow bracelets, and the Salvation Army’s red kettle are all iconic brand symbols
intended to spur a host of non-commercial associations, from patriotism and political
engagement to philanthropy and compassion.

Benefits of strong brands

The foundational virtue of a strong brand is pricing power. A well-branded product will sell for
more than an otherwise identical generic one. But strong brands have other virtues. They give
companies a head start into new product areas and opportunities through brand extensions.
Apple’s iPhones, iPods, and AirPods headphones all benefited from the tailwind of the Apple
brand. Gmail is trusted by millions of users in part because it comes from Google, a company
that was already their main portal to the Internet.

Strong brands are also moats against incursions by competitors. Dominant brands often “own”
the most valuable associations in a category, and challenger brands must either spend prodigious

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amounts on marketing to compete head-to-head with them or adopt niche positions to carve out a
smaller market share. In the U.S., for example, T-Mobile is the second largest wireless carrier,
but it came into the market with lesser brand awareness than the leaders, Verizon and AT&T, so
it built the T-Mobile brand in express contrast with them, calling itself the “Un-carrier.” Trusted
brands are also better suited to survive difficult times. The Tylenol brand survived a terrifying
poison scare in 1982 in part because it had been part of consumer’s lives for nearly 30 years.
Coca-Cola emerged from a failed attempt to reformulate its core product (“New Coke”) stronger
than ever when the controversial change reinvigorated consumers’ lifelong associations with
Coca-Cola. Brands without those years of established associations, however, can be more fragile.
Soon after Ford introduced the Pinto, the model suffered a series of highly publicized fiery
crashes. Lacking the ballast of other associations, the brand became known for those crashes,
even though the car (which Ford knew was potentially dangerous) was no more dangerous than
many other cars of its era. Ford abandoned the brand name.

Testing bottles of Extra Strength Tylenol with a chemically treated paper that turns blue in the
presence of cyanide, Chicago, 1982. Such testing followed in the wake of the Tylenol poisoning
tragedy that killed seven people in the Chicago area and led to a mass recall of the over-the-
counter drug.

John Swart—AP/Shutterstock.com

Strong brands can even turn consumers into brand ambassadors. A popular metric for measuring
brand strength is the Net Promoter Score (NPS), which relies on a single question: “How likely
are you to recommend this product to someone else?” A brand that people are proud to be
associated with is one that people are more likely to recommend and promote, for example,
through social media.

Controversy over branding

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Branding has its critics. Some argue that the increased price charged for branded products is
exploitative, a means of using the power of mass media to manipulate people into wasteful
spending. Specific brands, products, and advertising campaigns have also been charged with
promoting harmful stereotypes, unhealthy pastimes, and unattainable ideals. Products such
as Aunt Jemima pancake mix, Uncle Ben’s rice, and Cream of Wheat have all discontinued their
historic brands or logos depicting African Americans because they have been charged with racial
stereotyping; the fashion industry has frequently been singled out for promoting unhealthy body
types; and advertising tied to smoking, especially when apparently aimed at children (as the
manufacturers of vaping products are widely accused of doing), has long been criticized for
encouraging a dangerous addiction. Additionally, because advertising is often the primary source
of funding for news and entertainment content, critics warn that advertisers may actually be
purchasing biased treatment and reviews of their products. “Greenwashing” refers to companies
using advertising and brand associations to counter the environmental and human harms their
products or services may have caused. Major international oil companies, for example, have all
faced controversies over using advertising to change consumer perceptions. In 2001 BP began
promoting itself as “Beyond Petroleum” (the firm’s initials historically stood for “British
Petroleum”) despite the fact that it produced billions of barrels of oil and gas per year. Less than
a decade later, it abandoned the campaign after it sold its solar and wind divisions in order to
cover losses stemming from the Deepwater Horizon oil spill.

Challenges in the digital age

The worldwide use of the Internet has spurred the most profound change to brand strategy since
the rise of mass media in the 20th century. At their core, brands are a means of communication,
one historically controlled by the manufacturer and owner of the brand. In a digital marketplace,
however, consumers have great access to information and a global audience as well as novel
means and tools for publishing their thoughts. As a consequence, brand owners have much less
control over the ways their brands are used, viewed, and critiqued. A traditional television
commercial or magazine advertisement, for example, is a self-contained, unalterable experience.
Online, however, consumers or critics can use brand assets in unexpected ways, often subverting
the brand owner’s mission and message. Parody accounts on social media, for instance, can
associate unflattering messages with apparently legitimate brand imagery. Even a brand’s own
website or social media channel can become a forum for criticism and competitive voices. In
2022, after Twitter relaxed the requirements to obtain a “blue check” that indicates a legitimate
account, pranksters made accounts in the name of various corporations and tweeted messages
associating, for example, Eli Lilly with price gouging for insulin, Chiquita with Latin American
dictatorships, and Tesla with automobile crashes.

Because the Internet delivers news and data directly to consumers, buyers are also less reliant
now on brands to convey information about a particular product or service. Before the Internet,
for instance, a business traveler headed to a new city likely would have booked a room at a
familiar branded hotel, such as the Hilton or Ritz-Carlton. Now, in just a few minutes, travelers

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can identify boutique options more akin to their likes, closer to their destination, and otherwise
more valuable to them in distinct ways. The value of a brand as a signifier of quality has lessened
in the online age.

While traditional product brands have often stumbled in adapting to the digital age, those
surviving have conformed nonetheless and incorporated online messaging into their strategies.
Native digital brands, meanwhile, have become some of the most popular, valuable, and admired
ones in the world: Google, Amazon, and PayPal, for example, all rely on their strong brands to
garner consumer trust and attention in the online marketplace.

Literature Review
Sustainability has emerged as a key focus for multinational corporations like Coca-Cola, as
consumers increasingly demand environmentally and socially responsible practices. Several

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studies have explored how consumer perceptions influence brand image, purchase intentions,
and brand loyalty in relation to sustainability efforts.

1. Corporate Social Responsibility and Consumer Perception: According to Kotler & Keller
(2016), consumers tend to prefer brands that show commitment to sustainability. Coca-Cola,
through its various initiatives such as "World Without Waste" and water replenishment programs,
aims to build a positive brand image. Research by Mohr, Webb, and Harris (2001) supports that
consumers are more likely to support a brand if they believe its sustainability claims are genuine.

2. Coca-Cola’s Environmental Initiatives: Coca-Cola has committed to collecting and recycling

the equivalent of every bottle or can it sells by 2030. However, critical studies (e.g., The
Guardian, 2020) highlight skepticism among consumers, particularly due to Coca-Cola’s ranking
as one of the top global plastic polluters. This duality creates a complex perception landscape.

3. Impact on Brand Loyalty: A study by Cone Communications (2017) found that 87% of
consumers would purchase a product because a company advocated for an issue they care about.
In Coca-Cola's case, efforts like reducing carbon emissions and improving community water
access have positively influenced younger consumers, especially Gen Z and Millennials
(Nielsen, 2019).

4. Greenwashing Concerns: While Coca-Cola actively promotes its sustainability goals, some
researchers argue that there is a gap between promises and actual performance, leading to
consumer distrust (Delmas & Burbano, 2011). The concept of "greenwashing" becomes critical
in understanding how informed consumers view such campaigns.

5. Cultural and Regional Differences: Consumer perception of Coca-Cola’s sustainability also

varies by region. In developing countries, community development and access to clean water
may be seen more favorably, whereas in developed nations, recycling and carbon footprint
reduction receive more attention (Schlegelmilch, 2016).

1. Purpose

The purpose of this literature review is to explore existing research on how consumers perceive
Coca-Cola’s sustainability initiatives. It aims to identify recurring themes, evaluate the
effectiveness of such initiatives on consumer behavior, and assess the impact of perceived
sustainability on brand loyalty and trust.

2. Method of Selection

Relevant academic journal articles, industry reports, corporate sustainability reports, and case
studies were selected using databases such as Google Scholar, JSTOR, ResearchGate, and
Scopus. Keywords included: “Coca-Cola sustainability,” “consumer perception,” “CSR in

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beverage industry,” “greenwashing,” and “brand loyalty and sustainability.” Studies from the last
10–15 years were prioritized, especially those with global or emerging market focus.

3. Thematic Organization

Theme 1: Corporate Social Responsibility (CSR) and Consumer Perception

Consumers are becoming more conscious of ethical business practices. Studies show that CSR
positively influences brand image and purchase intentions (Kotler & Keller, 2016; Mohr et al.,
2001).

Theme 2: Environmental Initiatives by Coca-Cola

Coca-Cola’s “World Without Waste” campaign and water stewardship programs are widely
publicized, but critics argue about their actual environmental impact (Greenpeace, 2020; Coca-
Cola Sustainability Reports).

Theme 3: Consumer Trust and Greenwashing Concerns

While some consumers appreciate Coca-Cola’s efforts, others express skepticism, perceiving the
campaigns as greenwashing (Delmas & Burbano, 2011). This perception affects trust and brand
loyalty.

Theme 4: Demographic and Regional Variation

Perception varies across age, education level, and geographic location. Younger consumers are
more environmentally conscious and responsive to sustainability messages (Nielsen, 2019).

Theme 5: Impact on Brand Loyalty and Purchase Intentions

CSR activities can influence brand loyalty, especially if consumers believe the actions are
authentic (Cone Communications, 2017; Schlegelmilch, 2016).

4. Key Papers and Studies

Mohr, L.A., Webb, D.J., & Harris, K.E. (2001). Do consumers expect companies to be socially
responsible? Journal of Consumer Affairs.

Delmas, M.A. & Burbano, V.C. (2011). The Drivers of Greenwashing. California Management
Review.

Cone Communications CSR Study (2017).

Coca-Cola Company Sustainability Reports (2015–2023).

Nielsen Global Sustainability Report (2019).

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Schlegelmilch, B. (2016). Global Marketing Strategy.

5. Theoretical Framework

Stakeholder Theory (Freeman, 1984): Highlights the importance of addressing the interests of all
stakeholders, including consumers, in sustainability decisions.

Triple Bottom Line (Elkington, 1997): Emphasizes the balance between profit, people, and
planet.

Attribution Theory (Heider, 1958): Used to analyze how consumers attribute motives (genuine
vs. profit-driven) to Coca-Cola’s sustainability actions, affecting trust.

Theory of Planned Behavior (Ajzen, 1991): Helps explain how attitudes towards sustainability
influence behavioral intentions like brand loyalty or purchase decisions.

Coca-Cola’s Marketing Mix

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Below is a review of Coca-Cola’s 7 P’s, which includes Product, Price, Place, Promotion, People,
Process and Physical Evidence.

“The marketing mix refers to the set of actions that a company uses to promote its brand or
product in the market”.

– JEROME MCCARTHY –

1. Product:

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Coca Cola owns and distributes over 500 different brands and has one of the most diverse
product lines with over 3,500 different drinks (Pratap, A., 2019) [1]. It has adopted a customer-
centric strategy by continually expanding its beverage portfolio to meet consumer needs and
adapt to lifestyle changes.

Coca-Cola Brands Overview, Kalombe, C (2018)

2. Price:

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One of the pricing strategies used by Coca Cola is value pricing: prices are neither above the
average customer’s reach nor too low to be associated with a low-quality product (Heart of
Codes, 2018) . It has adopted a competitive pricing approach to stay in line with Pepsi and stop
price-sensitive customers from switching.

Coca-Cola vs. Pepsi Price Wars, Lin, H. (2012)

3. Place:

Coca-Cola is present in more than 200 countries worldwide (MBA Skool, n.d.) . Its wide
distribution network proves the importance of the “place strategy” for the company’s marketing
mix, in order to expand and gain a larger market share and increase its revenue.

The Coca-Cola Brand in Different Countries, Klein, K. (2012)

4. Promotion:

Coca-Cola follows an aggressive marketing strategy through multiple channels such as TV,
radio, print or sponsorships. By sponsoring major events, the company increases brand
awareness, visibility and customer loyalty (Heart of Codes, 2018) .

Coca-Cola Cans Featuring Olympics Design, Duckworth, T. (2012)

5. People:

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Coca-Cola has put in place numerous initiatives in order to ensure employee wellbeing at the
workplace, reward them and keep them motivated while increasing productivity.

The brand aims to create a working environment where people are fully engaged by
implementing teams such as ‘fun at work’ or ‘live positively’.

Coca-Cola’s Key Brand Values, Coca-Cola (2018)

6. Process:

How Coke is Made, How Food is Made (2016)

Coca-Cola has adopted an integrated competitive supply chain approach to optimise its
operational infrastructure and ensure sustainability (Coca-Cola HBC, n.d.)

It has a number of processes including ingredient conveyance, equipment washing, mixing and
blending, filling, labelling, packaging, and warehousing. It is considered a hidden process as it is
not visible to customers (Krunal, C., 2014)

7. Physical Evidence:

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Brand recognition is easily achieved in any country across the globe, as Coca-Cola’s packaging
and logo are very easily identifiable on retail shelves thanks to their distinctive shape and
colours.

The products are also displayed on specific shelves provided to the retailer, which stay in line
with the company’s branding, and help customers find the product they wish to purchase easily
and quickly.

Coca-Cola’s instantly recognisable branding knows no cultural barriers, Lebanon News (2018)

Now let’s look at the promotional mix in more detail:

Promotion is one of the key elements of a company’s marketing mix. This is especially true in
the case of Coca-Cola: with an established presence in over 200 countries, the company has been
listed as one of the world’s most valuable brands with more than 90% of the world’s population
recognising the red and white logo (Pahwa, A., 2019) .

This has been achieved by developing compelling and responsive promotional strategies that
raise brand awareness, build customer loyalty and constantly adapt to the ever-evolving
consumer needs.

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Coca-Cola owes most of its success to experiential promotion, where the purchasing process
merges with the customer’s lifestyle:

Over the past century, Coca Cola Company has played a key role in popular culture and
established itself as a real benchmark in the soft drinks market. The main goal for the company
has always been to focus its advertising efforts on connecting it with its customers in order to
better understand their needs while differentiating itself from its competitors (Insights for
Professionals, 2017) .

Coca-Cola aims to create a positive change across the globe to make the world a better place. It
positions itself as a lifestyle and social brand, that sells the experience of happiness and
joy (Pahwa, A., 2019) .

The brand follows a mass segmentation approach (Bhasin, H., 2018) : its target encompasses all
social backgrounds, genres and age groups, with one unified message for all, always based on the
terms “enjoy” and “happiness”.

The company’s “I’d Like to Buy the World a Coke“ is a good example illustrating the brand’s
commitment to diversity and social interaction (Pahwa, 2019) . Another example is the “Share a
Coke” campaign, which encouraged people to find bottles with names they connected with and
give them to a friend or family member.

The company creates different campaigns for each of its brands, but as Coca-Cola is its flagship
drink, a larger part of the advertising budget is allocated to the brand (Essays, UK, 2018) . Last
year alone, $5.8 billion was spent on global advertising, more than twice the amount spent by its
main competitor, Pepsi which spent $2 billion in 2018 (Investopedia, 2019) .

Initially focused on the American market only, the brand started growing and expanding
internationally around the 40’s-50’s (Pahwa, A., 2019) . Part of Coca-Cola’s successful
marketing communication today relies on glocalisation, which consists in integrating a global
strategy with elements of the local culture (Dumitrescu, L. and Vinerean, S.,2010) .

By creating country-specific campaigns, the brand shows its capacity to adapt to local tastes,
attitudes and values (Insights for Professionals, 2017).
While Coca-Cola’s promotional activities change across countries, the brand has opted to follow
an integrated marketing communications approach (Stringer, G., 2015)
There is a coordination of all mass marketing activities, ranging from media advertising, sales
promotions, personal selling, and public relations, as well as direct marketing, sponsorships, and
other forms of promotion across all markets (Rahman, M., n.d.). The aim is to communicate a
consistent, unified message by following a customer- centric strategy (Global Marketing
Professor, 2019) .

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The brand also makes use of celebrity endorsements to increase brand awareness, build customer
loyalty, improve brand recall and boost sales.

Coca-Cola’s promotional strategy follows a perpetual evolution approach, focused on the

customer experience. Today, the company aims to build a portfolio of consumer-centric brands,
which requires “shifting focus from what the company wants to sell to what consumers want to
buy”, as explained by President and Chief Operating Officer James Quincey (Coca-Cola
Journey, 2017)

Over the last few years, health and wellness trends have been reshaping the food and drinks
industry: consumers are becoming more health conscious and are looking for more natural
products (Coca-Cola Journey, 2017) . Coca-Cola quickly reacted to this trend by reinventing
most of its formulas, with over 30% of its portfolio falling into the zero sugar, zero calories
category (Hepburn, M., 2017) .

As a response to this phenomenon, the brand also unveiled the unveiled the “one brand”
approach back in 2016: by uniting Coke’s trademark brands (Coca-Cola Light/Diet Coca-Cola,
Coca-Cola Zero and Coca-Cola Life), the company reinforced its commitment to choice,
“offering consumers whichever Coca-Cola suits their taste, lifestyle and diet – with or without
calories, with or without caffeine” (Coca-Cola Journey, 2016) .

To conclude, Coca-Cola has managed to achieve international market leadership by continually

building its brand value and recognition through successful advertising and experiential
promotion.

The brand has also shown its ability to evolve and adapt to different cultures and trends by
following a glocal (global-local) approach in perpetual evolution, which have proved to be
essential skills to survive and thrive in a changing world.

SWOT Analysis of Coca-Cola

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Coca-cola Strengths

1. Strong Brand Identity

Coca-Cola maintains its position as the world’s strongest non-alcoholic drinks brand, with an
AAA+ rating and a Brand Strength Index (BSI) score of 89.6/100. Everything from its colorful
ribbon and red logo to its distinctive TV and online advertising campaigns is carefully designed
by the corporation.

These efforts made Coca-Cola a global refreshment icon. Coca-Cola’s creative marketing has
made it the world’s best-selling beverage by making bottles more than just thirst-quenchers.

2. Strong Brand Value

Interbrand ranks Coca-Cola 8th on its 2023 “Best Global Brands” list, valuing it at $58 billion.
This estimate highlights Coca-Cola’s industry dominance. Coca-Cola’s high brand value results
from a century of product excellence and community participation, not just marketing.

3. Global Reach

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In almost 200 nations, 1.9 billion people drink Coca-Cola daily. Coca-Cola has built lasting ties
with over 16 million stores by offering various refreshment options to a broad global audience at
different rates. They have launched over 500 new goods to keep their range as dynamic as their
markets by investigating regional consumer preferences.

4. Market Share

Coca-Cola dominates the beverage sector with its products available worldwide. Coca-Cola’s
market share in the US in 2023 was 46.3%. Marketing and distribution help Coca-Cola dominate
the carbonated soft drink market despite intense competition from Pepsi.

5. Innovation

Research and development efforts show Coca-Cola’s constant commitment to innovation and
continuing product evolution. Coca-Cola Zero Sugar, Coca-Cola Energy, and Topo Chico Hard
Seltzer demonstrate the company’s flexibility in meeting changing consumer tastes. Coca-Cola
adapts to evolving preferences and lifestyles by updating its product selection.

6. Repositioning Portfolio

Coca-Cola has many brands and product lines outside of soda. Coca-Cola is now producing over
200 brands. Coca-Cola wisely divided these offerings into five major categories: Coca-Cola;
Plant, Nutrition Juice, and Dairy; Emerging; Sparkling Flavors; Hydration, Sports, Tea, and
Coffee. This strategic category helps develop items and healthy beverages that appeal to local
cultures and consumer preferences, boosting the company’s global standing.

7. Brand Association

As one of the most “emotionally attached” brands, Coca-Cola is famous in the US. Coca-Cola’s
brand loyalty connects consumers with its unique taste, making alternatives less desirable. Star-
studded sponsorships and viral campaigns keep the public interested in the company’s
advertising. Coca-Cola has become a household name with the most prominent digital presence
and following of any beverage brand.

8. Distribution System

Coca-Cola has an unmatched distribution network. About 200 bottling partners and 950 bottling
plants worldwide and 2.2B servings daily. As “a Global Business working on a local scale,”
Coca-Cola has a complex supply chain. The corporation monitors quality as its bottling partners,
many of whom are Coca-Cola-owned, process and supply concentrates and syrups to retailers
and vendors.

9. Acquisitions

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Coca-Cola’s purchase strategies show its expanding plan. Coca-Cola’s Costa Coffee, Fuze Tea,
and Fairlife acquisitions complement its product diversification goals. These purchases help the
company extend its market share and strengthen its position in the beverage business, adjusting
to consumer changes and increasing its worldwide beverage industry influence.

Coca-cola Weaknesses

1. Limited Product Diversification

Coca-Cola’s beverage portfolio is extensive, yet it remains narrow compared to PepsiCo. Besides
selling beverages, PepsiCo owns a large piece of the snacking and food sector, giving it a diverse
revenue source.

This expanded product line helps Pepsi navigate market changes and customer preferences.
Coca-Cola has introduced non-carbonated beverages and acquired Costa Coffee, but the snack
market still needs more diversification.

2. Dependence on Carbonated Drinks

The iconic carbonated soft drink has driven Coca-Cola’s growth. Carbonated beverages still
make up much of the company’s revenue despite diversifying. This dependence disadvantages
Coca-Cola, especially as health-conscious consumers seek healthier, lower-calorie, and non-
carbonated drinks.

Coca-Cola has developed more nutritious options like Coca-Cola Zero Sugar, but it still needs to
match the profitability and volume of its sparkling line-up.

3. Overdependence on Third-Party Technology Providers

Technology is essential for productivity, product creation, and consumer involvement in the
digital age. Coca-Cola works with Microsoft to use the Azure Cloud Platform and Microsoft 365
apps, as seen in 2020.

Outsourcing provides specialized skills but also risks over-reliance, security breaches of data,
and higher operating costs. If third-party providers disrupt or disagree, Coca-Cola may lose
market share due to external management of vital technology infrastructure.

4. Water Management Concerns

Water is the main ingredient in most Coca-Cola products, making it one of the world’s most
significant water users. Water usage methods have drawn criticism and negative press, especially
in water-scarce locations.

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Coca-Cola strives for water neutrality and water efficiency. Developing and maintaining
sustainable water management practices across worldwide businesses is an ongoing challenge
and an area for improvement.

5. Environmentally Destructive Packaging

The Coca-Cola Company is the top polluter for the sixth consecutive year in 2023, breaking a
new record with a total plastic trash count of 33,820 – the highest amount for the company since
the project’s beginning.

Coca-Cola’s packaging has been questioned despite its sustainability efforts. Coca-Cola has
vowed to use 25% reusable packaging by 2030, but decreasing its plastic footprint and
overcoming public opposition is difficult.

6. Reducing Beloved Coke Products

The strategic choice under CEO James Quincey to halve Coca-Cola’s brand portfolio,
terminating loved but underperforming brands like Odwalla and Tab, received support and
criticism.

This drive to reduce processes and focus on high-performing items could turn off loyal
customers and damage loyalty to the brand. Coca-Cola must handle this change carefully to
maintain brand equity and customer loyalty.

7. Dependency on Bottlers

Coca-Cola relies on independent bottlers for production, packaging, and distribution. Due to this
dependency, Coca-Cola’s success may be affected by production costs, distribution efficiency,
and local market strategy. These bottlers’ bottlenecks can also impact Coca-Cola’s supply chain,
market presence, and revenue.

Coca-cola Opportunities

1. Expansion of The Ready-to-drink (RTD) Coffee Industry in the U.S.

From 2013 to 2017, the US ready-to-drink (RTD) coffee sector grew the fastest among liquid
beverage categories. In 1975, Coca-Cola entered this market in Japan with its Georgia RTD
coffee brand, which was introduced to the U.S. in 2009.

Coca-Cola can extend its market in the U.S., where Asians are the main customers. Coca-Cola
can increase its market share in this profitable area by pushing the Georgia brand and acquiring
smaller, fast-growing RTD coffee companies.

2. Benefits from the Declining Value of the U.S. Currency

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As a multinational corporation, Coca-Cola is strongly affected by currency exchange rates. A
weak U.S. dollar offers financial opportunities since $20.683 billion of its sales came from
abroad in 2017.

As the dollar falls, Coca-Cola’s products become more competitive worldwide, increasing
foreign revenue profitability. The corporation benefits from this favorable exchange rate
environment by increasing worldwide sales and geographic income diversification.

3. Launching New Health-Conscious Products and Reducing Added Sugar

Coca-Cola, like Pepsi, has a great chance to expand its product line by releasing new health and
wellness drinks. Coca-Cola has reduced its sugar intake to meet consumer demand for healthier
drinks.

According to recent figures, 28% of Coca-Cola’s sales were low- or no-calorie. This strategy
shift could raise income and brand image among health-conscious consumers.

4. Expanding Presence in Developing Nations

With significant cold beverage consumption, Coca-Cola can expand its market in warmer regions
like the Middle East and Africa. Expanding in these new markets can boost the company’s
growth by tapping into the vast consumer base seeking refreshing soft drinks.

5. Advancing the Supply Chain System

Coca-Cola relies on effective logistics and supply chain management, so growing transportation
and fuel costs require creative solutions. Advanced, more efficient distribution systems could
lower operational costs and increase market quickness, allowing for optimization and expansion.

6. Tapping into the Packaged Drinking Water Segment

With brands like Kinley, Coca-Cola can profit from the increased demand for packaged drinking
water. Expanding in this market helps Coca-Cola address consumer complaints by producing
healthier beverages and growing revenue.

7. Strategic Acquisitions for Growth

Strategic acquisitions like Costa Coffee and Aha sparkling water have quickly helped Coca-Cola
enter new markets and sectors. Coca-Cola can continue this strategy by buying startups or SMBs
with significant financial resources in other emerging markets and areas, grabbing fresh
expansion chances.

8. Partnerships with Alcoholic Beverage Brands

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Coca-Cola’s strategic partnership with Corona maker Constellation Brands to make Fresca
cocktails is an alcohol market entry. Using both companies’ brand familiarity, this partnership
diversifies product offerings and captures more of the growing demand for spirits-based drinks.

9. Leveraging Social Media Through TikTok Challenges

Coca-Cola’s first U.S. TikTok challenge shows a novel approach to brand recognition among
younger groups. Collaborations with celebrities like Grammy-nominated artist Khalid and
choreographer Jalaiah Harmon boost Coca-Cola’s cultural significance.

10. Investing in Sustainable Practices

Coca-Cola can lead by example as consumers prioritize environmental sustainability and

corporate responsibility. Investing in plastic waste reduction, recycled material use, and carbon-
reduction techniques can boost Coca-Cola’s global brand image as an environmentally conscious
firm that meets consumer needs.

Coca-cola Threats

1. Water Usage Controversy

Water is a crucial resource for our planet and Coca-Cola’s main ingredient. One liter of Coke
requires 3.12 liters of water. Coca-Cola celebrated worldwide water equality beforehand, but this
claim is questionable.

The large amount of water needed to grow sugar, another Coke ingredient, raises concerns about
local communities and water conservation. This controversy shows the tight balance between
corporate sustainability and real-world effects.

2. Pollution Lawsuit

The Earth Island Institute challenged Coca-Cola in June 2021. The claim? Misleading the public
by announcing itself as eco-friendly while causing worldwide plastic pollution. Coca-Cola has
been criticized and investigated, but the lawsuits highlight growing concern over corporate
environmental practices, particularly non-biodegradable packaging.

3. Fierce Competition

Coca-Cola’s iconic position does not protect it from non alcoholic beverage industry and market
competition. Pepsi and Red Bull compete with customers who have comparable products.
Indirect competitors like Starbucks and Costa Coffee provide additional beverage options. This
scenario illustrates the ongoing market share war in a changing sector.

4. Economic Uncertainty

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Like many multinationals, Coca-Cola faces economic uncertainty from geopolitical tensions to
inflation and pandemics. Coca-Cola’s revenue streams are subject to global economic swings due
to sales decreases in Nigeria and Russia and the pandemic. Sustainable growth requires flexible
and forward-thinking initiatives in such uncertainties.

5. Extension of ‘Soda Tax’

Berkeley’s 2015 sugar-sweetened beverage imposes challenges to Coca-Cola’s sugary drinks

market. After reducing sugary beverage consumption and encouraging healthy alternatives, this
tax could grow, hurting Coca-Cola’s profit line.

These policies demonstrate the health consciousness of society and their potential financial
impact on soda corporations.

6. Increasing Health Awareness

The global health awareness tsunami is changing beverage choices. Coca-Cola has introduced
“Zero” sugar sodas as sugary soda sales drop. These transitions accompany the effort to win
customer trust in ingredient safety and higher production and marketing expenses.

7. Product Recalls

Due to foreign object contamination, Coca-Cola faced a significant hurdle when it voluntarily
recalled Minute Maid products in November 2021. This recall, which includes Sprite and other
Coca-Cola Zero products, damages customer trust and can cost companies money and brand
image. Recalls show beverage sector operating concerns.

8. Regulations and Taxes

Government rules and tariffs to reduce sugary drink consumption compromise Coca-Cola’s
business models. These initiatives to address obesity and diabetes could raise manufacturing
costs and lower demand for Coca-Cola goods, forcing the business to innovate or diversify away
from sugary recipes.

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 CONCLUSION

This review highlights that while Coca-Cola has made significant strides in promoting its
sustainability initiatives, consumer perceptions remain mixed. On one hand, campaigns such as
"World Without Waste," water replenishment programs, and carbon reduction targets have
positively influenced brand image, particularly among environmentally conscious consumers. On
the other hand, skepticism exists due to concerns of greenwashing, inconsistent execution, and
Coca-Cola’s association with high plastic usage.

Consumer perception is not uniform; it varies significantly by demographic factors such as age,
education level, and geographic region. Younger consumers tend to be more responsive to
sustainability efforts, whereas older or more informed consumers may critically evaluate the
authenticity of such campaigns

Overall, Coca-Cola’s sustainability initiatives have the potential to enhance brand loyalty and
trust if communicated transparently and implemented effectively. However, gaps between
promises and performance can erode consumer trust and damage reputation.

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 RECOMMENDATIONS

1. Increase Transparency and Accountability

Coca-Cola should provide detailed, measurable updates on its sustainability goals and
achievements through third-party audits to build credibility and trust.

2. Engage Consumers Through Education

Awareness campaigns can help educate consumers on the impact of Coca-Cola’s sustainability
actions, enhancing perceived value and encouraging responsible consumer behavior.

3. Customize Regional Strategies

Tailor sustainability messaging to local environmental issues and consumer concerns to build
stronger emotional and cultural connections.

4. Limit Plastic Use and Promote Innovation

Invest more aggressively in sustainable packaging alternatives and circular economy models to
reduce plastic footprint and match consumer expectations.

5. Collaborate with NGOs and Local Communities

Partnering with credible environmental organizations and community groups can enhance
authenticity and show a genuine commitment to change.

6. Leverage Digital Platforms for Storytelling

Use social media and interactive content to showcase real stories and data about sustainability
efforts, making them relatable and trustworthy.

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