Essay on Coca Cola Financial Analysis

1384 Words Nov 30th, 2012 6 Pages
Assignment #1: Coca-Cola Company Financial Results Analysis: Q3 2012

ACC499/Accounting Capstone
10/21/12
Coca-Cola Company is a beverage company headquartered in the United States with significant international operations. Operating in over 200 countries worldwide with a product offering of over 500 different products, Coca-Cola Company has come a long way from a small beginning in 1886 (Coca-Cola, History, 2012). Long considered a strong corporate entity by investors and analysts, Coca-Cola recently released 2012 Q3 financial results and business targets on October 16, 2012 as discussed below. North American Market Volume Results North America is part of the Coca-Cola Americas division which also
…show more content…
North America has long been considered the flagship for Coca-Cola but as mentioned previously, recent concerns over obesity rates particularly in children and young adults in the United States has forced the spot light on sugary drinks as a contributing factor (Coca-Cola, Earnings, 2012). Coca-Cola has responded by changing packaging for some drinks, offering them in mini-can size for those concerned with portion control and continuing development of lower calorie alternatives such as natural, zero calorie sweeteners for Sprite and Fanta drinks. Coke Zero continues to hold stable as a leading diet soft drink in the market today (Choi, 2012). As Coca-Cola plans for the future, it will have to continue to work with the identified drivers of profitability listed above as well as additional drivers. Despite the favorable market gains overall in 2012, unfavorable currency exchange rates between Europe and the U.S. deflated some of the percentage gains in the various markets resulting in a 5% profits decrease (Zacks, 2012). Coca-Cola Company enjoys world-wide brand recognition which will assist in gaining market share in those areas not already saturated with Coke products. Strong brand recognition and consumer loyalty also allows Coca-Cola Company to pass on (to

Related Documents