Why Coca-Cola’s Dependence On Powerade And Other Brands Is Growing

by Trefis Team
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Coca Cola
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Although 73% of The Coca-Cola Company‘s (NYSE:KO) volumes are constituted by the core carbonated soft drinks (CSD) divisions comprising Coca-Cola, Diet Coke, Sprite and Fanta, and Coke Zero, Sprite Zero, and other drinks, these divisions combined to form 63% of the company’s value, as per our estimates. As customers, especially in developed markets, continue to ditch sugary CSDs due to the large content of calories in these drinks, segments such as functional drinks (sports and energy drinks) have grown more popular. While sports drinks carry a healthier perception, energy drinks have benefited from innovative marketing and their popularity among the younger consumers. The contribution of Powerade and Other Brands (functional drinks) to Coca-Cola’s revenue is estimated to grow from 8% in 2011 to nearly 13% in 2016.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Coca-Cola

 

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