Coca Cola redefining its product base, it seems profitable until now – Business News Today – Sat May 19

Coca-Cola Co. is revamping its portfolio mix by investing and introducing products for healthy minded people. Recent results of the company has beaten the street estimated as it adds more product beyond the soda and to serve a new health conscious segment. EPS of the company turned out to be 47 cents as compared to the average estimate of 46 cents. Further, revenue was $7.6 billon against the estimate of $7.35 billion.

-Coca-Cola Zero Sugar brand saw double-digit growth in quarter

-Expanding sparkling water lineup also helps boost results

Moreover, according to the company officials, the new strategy is working as expected as the company is on its way to fulfill yearly targets. The strategy is bearing fruits of the company as both core and new product have started to bring dividend for the investors. Initially, the company failed to entice its shareholders over its long term strategy.

However, that has changed as the company’s stock is on upward trajectory. The core area of the company’s strategy is to gradually minimize its reliance on the soda-drink. This decision is taken on the back of the decline in the trend of Americans that are consuming soda.

However, concerned with the large amount of sugar in a bottle of Coca Cola, the management has decided to re-launch Coke Zero and Diet Coke in order to give boost to the overall soda-drink sales. Another thing that merits attention is that the company saw a double digit growth in the Coca-Cola Zero sugar brand.

A recent strategy that the company is following is to acquire or to take a stakes in the promising start-ups. These include Honest Tea, Fairlife dairy and Suja Life LLC, which makes high-pressure processed juices, kombucha and drinking vinegars. The company aims to use the venture model to expand its operations and diversify its product portfolio by applying the model beyond the United States. In this regard the company is already in talks with the possible partners in Europe.

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