Six
Things You Didn’t Know about Coca-Cola
The Coca-Cola is ubiquitous all around the world. In fact,
in some parts of the U.S. all soft drinks are referred to as “coke.” (Personally,
I’m still adjusting the way the Midwest calls all soft drinks “pop”, when rest
of the country calls it soda.) For the Coca-Cola Company, business is about
more than just soda. Their fastest
growing segment is in water and healthier beverages and the majority of their
revenue did not come from beverages until 2010. The Motley Fool did some
digging and found six interesting things you did not know about Coca-Cola.
1. They
distribute their competitor’s products. In 2010, Coca-Cola purchased the major
distributor of Dr. Pepper Snapple Group products, which is why they can be
found in Coca-Cola vending machines in North America. .
2. Coca-Cola’s syrup used to be its biggest
business. In 2008, syrup and concentrates represented 54% of Coca-Cola’s
operating revenue. That changed after a big acquisition in 2010. Now in 2012,
syrup only makes up 38% of Coca-Cola’s operating revenue.
3. Coca-Cola
has not always outperformed the market. In fact, until recently Coca-Cola has
underperformed the S&P 500.
4. Warren
Buffett does not serve on the board of directors, but his son does. While
Buffett’s company, Berkshire Hathway owns 400M shares, or 9% of Coca-Cola
Warren and his hands off style of ownership elect not to sit on the board.
Howard Buffett manages Buffett Farms does sit on the board, and his experience
in the agricultural industry helps Coca-Cola’s strategy in developing nations.
5. Coca-Cola’s
most heavily penetrated market is not the United States. The U.S. ranks fourth
in this category with 401 servings per person in 2012, behind Mexico
(745servings/person) Chile (486 servings/person) and Panama (416 servings/person).
6. Coca-Cola
has room for growth. Given they are not very saturated in China and Nigeria,
and their highest growth has been in Pacific and Eurasia and Africa, they are
poised for strong growth, especially if they can continue to offer healthier
options.