You Might Be Surprised to Find Out What's Driving Growth at Coca-Cola. Hint: It's Not Coca-Cola
Coca-Cola (NYSE: KO) the brand is synonymous with the red cans of its popular namesake beverage. The Coca-Cola name has incredible brand power, and it generates tons of cash to run the company and return some to shareholders. But there's something else that's driving higher growth now at the beverage giant -- and that's in the form of some of its other brands you might not know.
Coca-Cola owns 200 brands in several ready-to-drink categories. That's actually trimmed down from about 400 before the pandemic. Management let go of about half its brands, mostly small, locally based brands that accounted for 2% of volume and only 1% of revenue. That was to free up resources to devote to its larger, core brands.
And it's still developing and acquiring new brands. That's important because it's the newer brands that are contributing to higher growth overall. Coca-Cola has five categories: sparkling soft drinks; juice, value-added dairy, and plant-based; water, sports, coffee, and tea; energy; and hot beverages. It also has an emerging category.
Source Fool.com
