Boston, MA 10/21/2013 (wallstreetpr) – Even after being dethroned as the Best Global Brand by Apple Inc in the Interbrand prestigious listing, The Coca-Cola Company (NYSE:KO) remains the company with the largest market presence which span more than 200 countries. This is a distribution network that even its archrivals can only envy. As trading begins this week, it is important to call to memory the concerns that some investors have had concerning KO’s future in revenue growth.
It is true that KO is facing growing competition in the carbonated soft drinks market. In fact, the company has appeared to be almost leveling at $50 billion revenue, which has prompted concerns of whether it could be approaching the zero-revenue growth phase in its 126 years of operation.
That KO reported 2% growth in global beverage volume in its Q3.13 is a pointer to a company that has dependable expansion plans.
Among the plans in the card for KO in its endeavor for continued revenue growth is promoting of health drinks. This is the market segment that includes sport drinks, ready-to-drink tea and juice drinks. This segment is seen as a potential redeemer for the company’s shrinking fortunes in the developed economies where soda sales have been on a decline as more consumers increasingly shy away from KO’s traditional line.
That KO is serious in increasing its revenue through this very promising segment can be seen in its acquisition of the British company Innocent Drinks which is reported to have strong footholds in natural juices, veg pots and kids drinks.
Yet another revenue growth opportunity for the Sprite maker is in energy drinks. As of 2012, the total sales in this segment hit beyond $12.5 billion in the U.S. alone. But KO isn’t doing enough in this segment which means that with increased campaign, it could be a dependable future revenue generator.
But even for soda, KO still has plenty of opportunities in the emerging markets. These markets could be the true catalyst to KO’s 2020 vision of taking daily servings beyond 3 billion.
For a long-term value investor, KO is a perfect add-on to investment portfolio. The company also has rich dividend payout. The Coke maker’s shares closed up 0.60% Friday, October 18, to settle at $38.78.
