Coca-Cola's volumes grew 12% in 2011 in India, helped by strong performances by Sprite, Coca-Cola and Thums Up, the Indian cola company acquired by Coca-Cola in 1993. The per-capita consumption of soft drinks in India is only a fraction of what it is in more mature markets, and so the soft drink companies see a great future in the country.
So far, Coca-Cola has spent around $2 billion in India since its return to the country in 1993. Overall, this is part of $30 billion of global investments planned by the company in the next five years.
Coca-Cola's unique selling point is its high degree of brand recognition. The brand is identifiable everywhere, even by consumers in countries where it has little to no presence. Hence, whenever Coca Cola launches a new product, there is a certain degree of excitement associated with the launch and consumers are more than willing to try the product.In fact, according to one report, the Coca-Cola logo is identifiable by a whopping 94% of the world's population. Besides India, we look at some other regions where Coca-Cola is investing heavily in and whose success is critical to the company's long-term performance. (See our
Brazil: The company will invest a staggering $7.6 billion in Brazil through 2016, which includes sponsorship for the soccer world cup to be held in 2012 and the Olympic games in 2016. The investment will also see the company opening three new factories in a country which already has 47 factories. Although Coca-Cola's volume grew only 1% in Brazil in 2011, it surged 11% in 2010.
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