The Coca-Cola Co recently declared its quarterly results which were better than Street’s estimates. However, growth for the company in the past few quarters has been a continuous challenge. Muhtar Kent, Coca-Cola chairman and CEO, was on CNBC to talk about what strategy he is deploying to combat that.
“I think we are in a new normal all around the world,” Kent said. “I think the consumer is volatile, is mixed, is confused and we have a new normal with pretty high unemployment around the world, despite growth rates coming back in some places and not coming back in others. And we have a consumer that really is not as optimistic as he or she used to be five, six, seven, eight years ago.”
“That’s what we have. In that normal, we have to ensure that we can keep winning and keep growing and the strategy…The strategy is really based on having consumers enjoy more Coca-Cola drinks more often in the United States or anywhere in the world. So that’s the key.”
He continued, “Taking an architecture of price-packed channel and occasion and ensuring that you can have the offer and choice to consumers so that they can enjoy more Coca-Cola beverages more often and that means if it’s in smaller packages, that’s fine also because our model works on that basis.”
Latin America: A Challenge
Kent was asked when he thinks that the growth in emerging markets will resume. He replied, “I think we can’t assess when exactly it’s going to come back, but certainly when you look around the world — Latin America, Brazil, Mexico Argentina — all challenged economies, big economies, challenged economies. The only economy that’s doing well in Latin America right now is Colombia.”
By Ritesh Anan