Coca Cola Sees Emerging Market Growth Help Sluggish Domestic Sales

Coca Cola has today announced third quarter figures to a substantial rise on previous periods, citing strong demand in emerging Eastern markets for its increased level of performance in counteracting negative sales elsewhere.

The international brand recorded a 16% increase in profits before tax, up to $2.1 billion on a revenue increase to $7.7 billion, up some nineteen percent. Much of this has been attributed to strong demand, particularly in China and Russia for Coca Cola and its subsidiary brands.

Meanwhile it has been those very subsidiary brands that have provided stability in growth throughout the more established markets, which actually fell overall in terms of sales over the period. However growth in emerging marketplaces had been recorded beyond 10% in some places, reflecting the changing dynamic of the organisation.

The growth in the emerging markets has been much of the driving force behind the increased profit figures, although below par growth and development in the North American market had almost a negative effect, growing by just 1.0% over the quarter.

Significantly Coca Cola non-fizzy brands outstripped their main brand counterparts throughout the UK, US and European market places where Coca Cola has traditionally been strong over the last few decades, as a reflection of growing awareness as to the health problems associated with obesity and diabetes.

The weakness of the dollar has also helped Coca Cola in its expansion into foreign markets, with this allowing for more buying power from foreign retailers as leveraged against Coca Cola’s weaker dollar value.

Whilst today’s figures marked a promising period for Coca Cola, it remains to be seen whether the emerging markets will begin to subside in the same way the traditional fronts have with the rise in obesity levels and related conditions worldwide.

Story link: Coca Cola Sees Emerging Market Growth Help Sluggish Domestic Sales