Summary
- In its earnings report Coca Cola says it expects to release Coca-Cola Coffee in more than 25 global markets by the end of the year.
- With a history of strong execution, Coca Cola could make a significant impact in the coffee industry from brand recognition alone.
- The coffee market is competitive but large enough for Coca-Cola to have a place in it.
- Experience gained from the Keurig Kold and Costa Coffee transactions will be beneficial to the Coca-Cola Coffee product strategy.
Note: All figures are in U.S. dollars unless otherwise noted.
Sweet and Caffeinated Redemption
This week, Coca-Cola (NYSE:KO) reported better than expected earnings to the delight of investors. The financial results were impressive as net revenues increases 5% in Q1 2019 and organic revenues increased 6%.
One of the more exciting takeaways from the conference call and forward guidance is that Coca Cola is expected to release Coca-Cola Coffee in more than 25 global markets by the end of the year. Coca-Cola is not a complete stranger to the coffee business as we will dive into below. In the past, there have been a few hiccups surrounding Coke's coffee ventures and this time the company going to want to redeem themselves. In this article, we review why this particular coffee venture could be a great fit for the company, what has gone wrong in previous coffee ventures, and how it should positively impact them in the future.
