Coca-Cola Global Sales

India Most Promising International Market

Dec 28, 2006 Daniel Workman

Who chugs down more Coca-Cola beverages annually, India's 1.1 billion consumers or Mexico's 108 million drinkers?

According to Coke's 2005 annual report, Mexicans lead the world by drinking some 533 8-ounce servings of Coke beverages per capita annually. India is near the bottom of the list, accounting for 6 servings per capita each year.

These statistics compare with 431 annual servings In the United States, and a worldwide benchmark average of 77 servings.

The per-serving numbers for other international markets are as follows: Chile (377), Australia (323), Belgium (323), Spain (305), Norway (280), Israel (254), Argentina (253), Canada (247), South Africa (235), Great Britain (199), Denmark (181), Hungary (179), Japan (175), Germany (169), Brazil (156), Philippines (151), Romania (133), Tunisia (116), France (113), Turkey (102), Zimbabwe (95), Thailand (80), Poland (74), Morocco (73), Korea (63), Angola (57), Russia (49), Nigeria (29), Egypt (28), China (18), Indonesia (16), Pakistan (7), and Bangladesh (1).

Coke sells some 400 brands of soft drinks, sports drinks, coffees, teas, bottled waters and fruit juices in over 200 countries. Some brands are only available in specific regions or countries of the world, target marketed based on the unique characteristics of local demand.

Coca-Cola is the most valued brand name on the face of the earth, far surpassing its rival Pepsi. The world's number one soft-drink company, Coke owns four of the world's top five soft-drink brands: Coca-Cola, Diet Coke, Fanta and Sprite. North American brands include Barq's, Minute Maid, POWERade and Dasani water. In international markets Coke sells Crush, Dr. Pepper and Schweppes.

The firm also owns about 36% of Coca-Cola Enterprises, the world's biggest Coke bottling company, as well as some 40% of Mexico's bottler Coca-Cola FEMSA.

Coke is the largest private-sector employer in all of Africa.

And The Winners Are...

International markets are key drivers for Coke's revenue growth. Some 72% of Coke beverages are sold outside of North America. Overall revenue growth was 4% worldwide in 2005, fuelled by an average 5% growth from international operations.

For 2005, case volume sales showed double-digit increases in Pakistan, China, Egypt and Russia. Coke's operations in North Asia, Eurasia and Middle East led the way with a 15% rise in sales from 2004 and now account for 22% of the company's net operating revenues. The European Union generates some 19% of net operating revenues, followed by Latin America (12.5%), Africa (5.5%), and East/South Asia & Pacific Rim (4%).

However, India and Mexico may well be the two most dramatic growth stories for America's most well-known multinational.

Sources: Hoovers stock analysis, CIA's The World Factbook

The copyright of the article Coca-Cola Global Sales in International Trade is owned by Daniel Workman. Permission to republish Coca-Cola Global Sales in print or online must be granted by the author in writing.

Coke's Case Volume Sales Were Up 5% In 2005