Soda is free out of the fountains on every floor at corporate. The benefits package is pretty nice if you can actually get hired on as something with a salary and not employed by a third party. I speak to people from all walks of life who all have one thing in common: The majority of people I speak to who are salaried are severely overworked - around hours a week.
Changing consumption trends have caused an increasing number of investors to turn bearish on the company and its stock.
One of the most challenging problems that governments and NGOs face in providing medicines and vaccines to poorer parts of the world is distribution.
Getting products to rural villages in areas with limited infrastructure can be incredibly daunting. When I travel to the developing world, Coke feels ubiquitous.
This single anecdote says much about The Coca-Cola Company KO and its distribution system of bottlers around the world. For decades, the company held the rights to the most valuable brand in the world.
The company has also been one of the all-time great stock market investments. Despite many advantages that The Coca-Cola Company maintains, general opinion on the company has seemed to move more and more negative with time. In spite of those concerns, Coca-Cola continues to have genuine strengths.
Consumer packaged goods companies have sold off in tandem in recent years over concerns about the shifting power between themselves and retailers as well as the growing prevalence of private label brands.
While Coca-Cola has had to adjust to dealing with Walmart WMT and Costco COST as well, it has been much more insulated against private label competition because consumers are far, far more likely to trade Tide detergent for a private label competitor than they would Coca-Cola.
This is often missed by commentators. This decaying fundamental strength has led many dividend growth investors to question their investment in the once stalwart dividend aristocrat.
There are one-time charges in addition to the tax charge last year that affected results, including restructuring and asset impairment charges. But, more broadly, in order to better understand the dynamics influencing the company, it is extremely important to understand the two factors that have dominated results in recent years: The Bottling System Coca-Cola has long relied on local bottling partners to distribute and manufacture its product, while the parent company focuses on selling concentrate to them.
That system has meant that Coca-Cola itself can run an asset-light company and relies on a system that incorporates significant local knowledge. Control over the bottling operations has been maintained through both minority investments and master bottling agreements between Coca-Cola and its bottlers.
When Coca-Cola was designed to sell as much as possible of a relatively few brands, the interests of the bottlers and Coca-Cola were well aligned. It was simply not in the interests of many bottlers to run small volumes of certain brands or be willing to experiment with new ones.
For this reason and some others, Coca-Cola has restructured its bottling system over the last decade or so by buying up bottlers, re-engineering territories, revising bottling agreements, and then re-franchising the bottlers into new companies.
A re-focused Bottling Investment Group, wholly owned within Coca-Cola, has also been created which acquires bottlers that have stumbled or need new ownership as well as to act as a liaison between the bottlers throughout the world so best practices can be shared.
The group is also responsible for reporting on the independent bottlers to Coca-Cola for a more objective means of judging individual bottler performance. Outside of Coca-Cola Beverages Africa, the re-franchising is largely complete.
Compiled by the author using the annual reports of The Coca-Cola Company and the annual reports of the bottlers listed. Data is forexcept in cases where territory changes make a pro-forma volume and revenue more meaningful.
The obvious impact has come through valuation changes that flow through to the income statement in impairment charges. Additionally, charges have been necessary at times during the ownership of some bottlers while they have been restructured.
But, secondarily, the company also is impacted by the immediate loss of income from assets that are divested.
The bottler businesses trade at lower valuations than Coca-Cola itself does and so even if proceeds are invested in stock repurchases, it would not be enough to fully offset lost earnings.
Not enough details of most of the divestitures are known, so deal by deal analyses are not possible, but in the developed world, bottlers can trade at 14xx earnings versus 21x for the stock of Coca-Cola. And, of course, not all of the sales proceeds automatically were used for share repurchases.
Essentially, The Coca-Cola Company has decided to forgo some earnings streams and lower its current income with the offsetting benefit of a higher quality future earnings stream that requires less capital to maintain.
Foreign Exchange The overall impact to the company from foreign exchange rate movements, according to Coca-Cola, is shown in the chart below. Coca-Cola Company Annual Reports. The company is among the most levered to a weaker dollar in the world.
It does not, however, break out its revenue by either country or currency.Coca-Cola India Pvt. Ltd.
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Jan 31, · Great, dedicated people who believe in the product and will work very hard to be the number one beverage company in the pfmlures.com: Current Employee - Business Development Manager. (Coca-cola Company)” Coca-cola has their own quality management system, which called TCCQS at the beginning.
This quality system has featured quality and environmental standards. It provides a guideline for the company and guarantees of the high quality as well.