Business Analysis of Coca-Cola

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Coca-Cola

COCA-COLA

Business Overview

The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Its sparkling beverages include nonalcoholic ready-to-drink beverages with carbonation, such as carbonated energy drinks, and carbonated waters and flavored waters. The company's still beverages comprise nonalcoholic beverages without carbonation, including noncarbonated waters, flavored and enhanced waters, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and coffees, and sports drinks. It also provides flavoring ingredients, sweeteners, beverage ingredients, and fountain syrups, as well as powders for purified water products. The Coca-Cola Company sells its products primarily under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero, Fanta, Sprite, Minute Maid, Georgia, Powerade, Del Valle, Schweppes, Aquarius, Minute Maid Pulpy, Dasani, Simply, Glaceau Vitaminwater, Gold Peak, FUZE TEA, Glaceau Smartwater, Ice Dew, I LOHAS, and Ayataka brand names. The company offers its beverage products through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers. The Coca-Cola Company has a strategic partnership with Delivery Hero Group to collaborate in the field of online food ordering and delivery services. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

Coca-Cola

Coca-Cola


R&P Rank: 60
Sector: Consumer Goods
Industry:Beverages
H.Q Location:Georgia
Website: www.coca-colacompany.com
Company Address:
ONE COCA COLA PLAZA, ATLANTA GA 30313
Ph:404-676-2121

Business Analysis of Coca-Cola

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Coca-Cola compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Coca-Cola to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Coca-Cola with an interactive chart.

  1. Revenue Growth: Coca-Cola reported a revenue growth of -5.5% year-on-year during 2016. Beverages Industry grew at 1.8% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Coca-Cola spent 39.3% of its total revenues on COGS. Beverages industry average (COGS share of revenue) in the same period was 48.6%
  3. R&D share of Revenues: Coca-Cola R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Coca-Cola spent 36.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Beverages industry average SG&A spending in the same period was 32.0%
  5. Inventory share of Revenues: As a percentage of revenue, Coca-Cola spent 6.4% of its total revenues on Inventories. Beverages industry average Inventory spending in the same period was 7.1%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Coca-Cola invested 22.7% of its total revenues on Accounts Payable (A/P) Beverages industry average Accounts Payable investment in the same period was 18.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Coca-Cola invested 9.2% of its total revenues on Accounts Receivable (A/R). Beverages industry average Accounts Receivable investment in the same period was 9.7%
  8. PP&E share of Revenues: As a percentage of revenue, Coca-Cola invested 25.4% of its total revenues on Property, Plants, and Equipments (PP&E). Beverages industry average PPE investment in the same period was 27.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Coca-Cola invested 50.5% of its total revenues on Intangibles. Beverages industry average Intangibles investment in the same period was 60.4%
  10. Net Margins: Coca-Cola Net Margins in the year 2016 were 15.6%. Beverages industry average Net Margins in the same period were 13.5%

Sector and Industry Association of Coca-Cola

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Coca-Cola is associated with Consumer Goods Sector and Beverages Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of Coca-Cola

With $41.9 billion revenues, Coca-Cola ranked number 2 of all the companies in the US Beverages industry. There were a total of 18 public companies in the US Beverages industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Beverages industry by revenues during 2016 were:

  1. PepsiCo ($62.8 billion)
  2. Coca-Cola ($41.9 billion)
  3. Starbucks ($21.3 billion)
  4. Constellation Brands ($6.5 billion)
  5. Dr Pepper Snapple Group ($6.4 billion)
  6. Molson Coors Brewing ($4.9 billion)
  7. Brown-Forman Corp ($4 billion)
  8. Cott ($3.2 billion)
  9. Coca Cola Bottling ($3.2 billion)
  10. Monster Beverage ($3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Coca-Colaand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of coca-cola

PepsiCo (PEP) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PepsiCo Inc with $63 billion revenues in the year 2016 was the number 1 Beverages company. Read this report to know the top competitors of PepsiCo and identify growth and cost optimization opportunities of PepsiCo

Starbucks (SBUX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Starbucks Corp with $21 billion revenues in the year 2016 was the number 3 Beverages company. Read this report to know the top competitors of Starbucks and identify growth and cost optimization opportunities of Starbucks

Constellation Brands (STZ) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Constellation Brands, Inc. with $7 billion revenues in the year 2016 was the number 4 Beverages company. Read this report to know the top competitors of Constellation Brands and identify growth and cost optimization opportunities of Constellation Brands

Dr Pepper Snapple Group (DPS) Business Analysis – Analyze Historical Performance,...

Dr Pepper Snapple Group, Inc. with $6 billion revenues in the year 2016 was the number 5 Beverages company. Read this report to know the top competitors of Dr Pepper Snapple Group and identify growth and cost optimization opportunities of Dr Pepper Snapple Group

Molson Coors Brewing (TAP) Business Analysis – Analyze Historical Performance, Strategic...

Molson Coors Brewing Co with $5 billion revenues in the year 2016 was the number 6 Beverages company. Read this report to know the top competitors of Molson Coors Brewing and identify growth and cost optimization opportunities of Molson Coors Brewing

Brown-Forman Corp (BFB) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Brown-Forman Corp with $4 billion revenues in the year 2016 was the number 7 Beverages company. Read this report to know the top competitors of Brown-Forman Corp and identify growth and cost optimization opportunities of Brown-Forman Corp

Revenues Analysis

Coca-Cola (KO) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Coca Cola Co (KO) from 2012 to 2016. Coca-Cola generated a total of $41.9 billion revenues during 2016. Coca-Cola reported a revenue growth of -5.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Coca-Cola (KO) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Coca Cola Co (KO) from 2002 to 2016. Coca-Cola generated a total of $41.9 billion revenues during 2016. Coca-Cola reported a revenue growth of -5.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Coca-Cola (KO) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Coca Cola Co (KO) revenue growth with Beverages industry growth during the last five years from 2012 to 2016. Coca-Cola reported a revenue growth of -5.5% year-over-year during 2016. The Beverages industry growth was 1.8% year-over-year during 2016. Coca-Cola growth was slower than the industry during 2016.