Tomahawk, WI 10/16/2013 (BasicsMedia) – The Coca-Cola Company (NYSE:KO) has been on a mission to double its current revenues by 2020. It hopes to achieve this goal for the company, and its bottlers all over the world. This is quite a goal for the world’s largest producer of soft drinks with a market cap standing at $166.95 billion. There are more than 500 nonalcoholic soft drinks, with which the company is associated. It owns some of these drinks, offers licenses for others, but markets all of them. Where is KO looking at in order to increase its revenues, sales, and profits for the next 5-7 years?

KO’s Net Income Shoots Up

While announcing the company’s current quarterly financial results, the CEO Muhtar Kent, said that he expects KO to focus more effort and marketing strategies on emerging markets. While KO is not the only global brand with such a strategy, I think it is a good one if it intends to witness more growth by 2020. The company has not done badly as some might have expected. Its net income for this quarter rose to $2.45 billion, an increase of around 6%. Last year, during the same quarter, KO’s net income was $2.31 billion. This year has been good in this aspect.

KO To Benefit from Emerging Markets

 The reason why KO wants to pay special emphasis on the emerging markets is that the middle class in those economies is growing at a fast rate. These emerging markets have the potential of helping KO to grow its revenues beyond the current $12.03 billion. This quarter’s revenues were much lower than what the company posted in 2012 during the same quarter, $12.34 billion. Consequently, one sees that there was a fall of around $3% in revenue from last year to this year. The company attributes this fall to weaker currencies in most emerging markets.

KO’s revenues fell due to the struggles the company went through in restructuring its bottling operations in Philippines and Brazil. The weaknesses of most currencies in the emerging markets are expected to continue hurting KO’s revenues, sales and profits by between 5% and 6%. KO expects this to be the trend when it announces its fourth quarter results for this fiscal year. Coke is still a major brand and enjoys global recognition in a way that other companies can only dream. The brand recognition gives it a fair chance of increasing profits compared to the rest.

KO Enjoys Increased Growth Volume

Coca Cola enjoyed growth of 2% in global volume. It is still one of the most popular brands in North America, even though the performance of soda in the U.S is below what is expected. KO’s beverages succeeded in delivering more than 181 billion servings around the globe in this quarter alone. Even though the company is quite popular in the U.S, it enjoys great value from the international markets as opposed to local. Its soft drinks are responsible for up to 70% of the company’s shares. International markets are responsible for close to 60% of KO’s revenue.

Generally, KO’s sales grew across all the regions in the world. It can achieve its goals by 2020 by focusing on acquisitions and investing in its brands more than it has ever done in the past.

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