Coca-Cola to boost brand spend by up to $400m

Coca-Cola: plans to invest $400m in brand-building initiatives
Coca-Cola: plans to invest $400m in brand-building initiatives

Coca-Cola has outlined a plan to re-invest up to $400m (£253m) of operational cost savings into brand-building initiatives over a period of four years.

The soft drinks giant is calling the initiative its 'Productivity And Reinvestment' programme.

The programme is part of Coca-Cola's "continuous approach to productivity", which, it states, includes "redirecting resources to drive profitable growth through marketing and innovation effectiveness".

Coca-Cola said: "Productivity is a core pillar of our 2020 Vision, and a leading priority of our company is to design and implement the most effective and efficient business system."

Yesterday (7 February), the company reported net operating revenues of $46.5bn (£29.4bn) in the year to 31 December 2011, up 33% year on year, and net income of $8.6bn, down 27% year on year.

Coca-Cola said its sparkling beverage volume was driven in Europe by its Coca-Cola main brand and Coca-Cola Zero, through the leveraging of integrated marketing campaigns focused on the Olympic Torch Relay and Christmas.

Muhtar Kent, chairman and chief executive at The Coca-Cola Company, said: "The Coca-Cola Company continues its momentum toward realizing our 2020 Vision, with stronger brands, clear strategies and well-focused execution to drive further growth.

"We once again achieved financial results for both the year and the quarter in line with, or ahead of, our long-term targets, with quarterly volume and revenue growth in every one of our five geographic operating groups.

"Importantly, we also continued to increase our global volume and value share in 2011."

In an interview with Marketing last month, James Eadie, Coca-Cola's portfolio director for the 2012 Olympic Games, predicted that by volume, 75% of the drinks the company sells at the Games will be low or no-calorie products such as water, juice or smoothies.

Read the full interview here.

Follow Loulla-Mae Eleftheriou-Smith on Twitter @LoullaMae_ES


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message