Summary:
The article "Coca-Colas Weak Earnings no Surprise: American’s Drink Less Soda", by Ricardo Lopez was published July 16th, 2013. It was published in the Los Angeles Times. Ricardo Lopez explains that American's are becoming more health conscious by drinking less soda. In the year 2013, executives were blaming weather and currency exchanges for the decline in Coca-Cola sales. Net income fell 4% in the year 2013. Executives say that although they're disappointed in their performance for the year, they are pleased to say that they have gained global volume. The consumption of cola has decreased dramatically over the past 8 years. In fact, although health advocates are pleased with the decline, Coca-Cola is not with 2013 being the year for the lowest soda consumption in 26 years. The only reason Coca-Cola's revenue has kept up is because of its readily available tea's and water products such as Dasani. Lopez explains these alternative beverages made by Coca-Cola -on top of expanding globally- were designed to increase revenue for the company and keep it alive.
Opinion:
Coca-Cola should be concerned about their decrease in revenue as the more healthy living ideas develop, the greater chance there is that the company will lose revenue. In order for the company to maintain stability, they need to continue coming out with healthier products that people will feel inclined to drink. Creating products such as Coke Zero, Cherry Coke Zero and Diet Coke was a good idea for a short period of time. It worked until health advocates advertised how bad products with Aspartame are for the human body. Coca-Cola is my favorite soft drink company but unless they come out with healthier options, I know that I will continue to drink less of it. I don't necessarily think its fair to blame weather and currency exchanges on the decline of Coca-Cola product sales. I think that the decline in their sales could have a lot to do with several new soft drink company's coming out with new product that people could potentially like better or find to be a healthier option. I also believe that in order for Coca-Cola to remain successful not only in the US but globally, they need to decrease the prices in certain countries as much as they can while still being able to profit from expanding globally. For example, I have heard the cost of a bottle of coke in certain parts of Europe such as Paris, can be very pricey. In order to sell more product in Paris Coca-Cola needs to decrease the cost as much as they can while still profiting.
Feedback:
What do you think? If Coca-Cola came out with more variety that includes healthier options would you be more inclined to purchase their products? What kind of products would you suggest the company come out with? Do you think that the creation
Resources:
Lopez, R. (2013, July 16). Coca-Colas weak earnings no surprise: American’s drink less soda.
coca-cola-earnings-soda-consumption-20130716
I don't think cola-cola would come out with healthier options as it's the kind of drink that it's already really unhealthy, but if it came out with other flavours like vanilla (if it's not already available) or some other fruity one, than I would definitely try it.
ReplyDeleteWell they actually do already have some healthier options as they are the creators of Dasani water. Although they are known for their sugary sodas they could potentially come out with some type of vitamin water or juice products that hold a smaller amount of sugar
ReplyDeleteI didn't even know they have Dasani water, that's great. I only knew about all the sugary sodas, but yea I agree, vitamin water or juices would be a really good idea for them.
DeleteI agree that Coca-Cola is probably experiencing a decrease in revenue because of all the new ways to be health-conscious that are arising. Although, coke or soda in general has always been bad for you and consumers continued to drink it. Whether it be coke, pepsi, sprite, they were all sugary treats to satisfy your craving. I believe the die-hard fans will continue to support Coke but I do agree that they will need to change their focus a bit to match the overall consumer demand for a healthier choice in order to raise revenue but not in order to succeed financially. They are a global company and I don't see them plummeting a great deal anytime soon.
ReplyDeleteI agree with what you're saying, Ashley. I think that there are so many people addicted to sugary sodas that the company will continue to earn income but not necessarily increase in revenue. I can see coca cola losing some of its revenue but not enough to plummet into bankruptcy.
DeleteAs Desani Bottled Water is the best product from the Coca Cola company. They are adding more flavours in it but if we talk about soda then personally I don't like to drink soda as they are unhealthy. On the other hand if they make any other product with natural sugar and with some flavour but no soda then I can think to taste that.
ReplyDeleteAs long as they continue to create new healthier products, they will continue to keep their business going and avoid decreasing their revenue too much. The more variety they provide for all audiences, the more chance cocacola has for increasing or maintaining revenue for their company.
DeleteI believe that Coca-Cola is experiencing a decrease in their revenue. This is one of the major advertisement campaigns in which they have tried as a multi-national company to draw its consumers back. Many individuals are beginning to turn to healthier options, simply not only juices as they are mainly sugars but to flavored water. In some countries, Coca-Cola have launched a cranberry flavored water (cran-water) which have been quite successful since its launch.
ReplyDeleteIn terms of individuals using coke as a carbonated product, there have been companies venturing into flavored carbonated waters. These companies have paid a large amount to advertise which is beginning to pay off. The beverage industry is quite competitive and will only become more competitive as consumers are being more health conscious. Coca-Cola must not only make alternatives to "Coke" but also healthier options with reduced sugars while avoiding alternative sweeteners.
I think that if Coca-Cola came up with healthier options, they would be able to maintain or even increase their revenue. The more amount of healthy options that come out, the less chance Coca-Cola has for maintaining its revenue.
DeleteI think that if Coca-Cola were to introduce a line of sports drinks they could play off their already lucrative athlete endorsements and branch off in to the sports drink market. It would also appeal to those who wish to have a healthier alternative to pop. However, introducing this may be detrimental when looking at Coca-Cola consumers who have been with the brand for a long time.
ReplyDeleteI think as long as Coca-Cola continues to make its coke products but also introduces healthier options, the brand can only get better as well as keep its long time fans on the brand
DeleteTeresa and I actually believe that it would not make any difference on Coca Colas revenue if they introduced more variety. This is because Coca Cola has already invested in products and tried this before, the products that usually last, do not go away. Specifically, speaking of products such as Sprite and Canada Dry. We personally believe that if any products were to be released to increase revenues is to introduce new bottle designs each season. This creates a new hype for the same product.
ReplyDeleteAmit, don't you think you guys have commented on my blog enough?
ReplyDelete