COCA COLA DISTRIBUTION STRATEGY.
Summary
TLDRCoca-Cola, a global beverage giant, sells 1.9 billion products daily through a franchising distribution model. The company partners with local bottling and canning operations, distributors, and retailers to sell its products worldwide. Key bottling partners, including Coca-Cola Femsa, Coca-Cola Europacific Partners, Coca-Cola HBC AG, Coca-Cola Hellenic, and Swire Beverages, contribute significantly to the company's distribution network, representing 41% of total unit case volume. These partners combine concentrates with water and sweeteners to prepare and distribute the final beverages, ensuring Coca-Cola's iconic taste is enjoyed globally.
Takeaways
- π Coca-Cola products are sold extensively with 1.9 billion units sold daily worldwide.
- π The company uses a franchising distribution model to sell its products through local channels and authorized partners.
- π Coca-Cola retains the right to manufacture and distribute its products while allowing bottling partners exclusivity in their territories.
- π€ They participate in sales and marketing activities with their bottling partners to boost the brand's presence.
- π The company delivers beverage bases and syrups to bottling operations, which then sell to retailers and customers.
- π° Coca-Cola saves on distribution costs by selling to bottling and canning operations, distributors, and wholesalers who further distribute to retail outlets.
- πͺ Retail outlets like corner stores and convenience stores, as well as sari-sari stores in the Philippines, are part of the distribution network.
- π The top five independent bottling partners in 2021 accounted for 41% of Coca-Cola's total unit case volume.
- π The largest bottling partners serve various regions including Latin America, Western Europe, Eastern Europe, and Asia.
- π The bottling partners combine concentrates with water and sweeteners to prepare, package, sell, and distribute the finished beverages.
Q & A
How many Coca-Cola products are sold worldwide every day according to the script?
-1.9 billion Coca-Cola products are sold worldwide every day.
What is the role of local channels in Coca-Cola's distribution?
-Local channels help Coca-Cola distribute its products across the world.
What does Coca-Cola typically agree to refrain from doing in its distribution agreements?
-Coca-Cola typically agrees to refrain from selling or distributing, or allowing authorized third parties to sell or distribute the company's trademark beverage in the identified territory.
What rights does Coca-Cola typically reserve for itself in its distribution agreements?
-Coca-Cola typically reserves the right to manufacture and distribute its trademark products and brands.
How does Coca-Cola participate in the sales and marketing activities of its bottling partners?
-Coca-Cola participates in the sales and marketing activities of its bottling partners, ensuring a collaborative approach to promoting the brand.
What does Coca-Cola deliver to bottling operations?
-Coca-Cola delivers the beverage bases and syrups to bottling operations.
What type of distribution model does Coca-Cola use?
-Coca-Cola uses a franchising distribution model, where they distribute outlets through company vendors.
How does the distribution model save money for the Coca-Cola company?
-The distribution model saves a significant amount of money on distribution by leveraging local partners and their established networks.
Who are the largest independent bottling partners of Coca-Cola, as mentioned in the script?
-The largest independent bottling partners in 2021 are Coca-Cola FEMSA, Coca-Cola Europacific Partners, Coca-Cola HBC, Coca-Cola Hellenic, and Swire Beverages.
What percentage of Coca-Cola's total unit case volume do these five bottling partners represent?
-These five bottling partners combined represented 41 percent of Coca-Cola's total unit case volume.
How do bottling partners prepare the finished beverages?
-Bottling partners combine the concentrates with water, sweeteners, and sometimes sparkling water to prepare, package, sell, and distribute the finished beverages.
What does the term 'taste the feeling' refer to in the context of the script?
-The term 'taste the feeling' is likely a slogan or marketing phrase associated with the Coca-Cola brand, suggesting an emotional connection to the taste of their products.
Outlines
π Global Reach of Coca-Cola
The paragraph discusses the vast distribution network of Coca-Cola, which sells 1.9 billion products daily worldwide. It explains the franchising model used by the company, where it partners with local channels to sell its products exclusively within a territory. Coca-Cola retains the right to manufacture and distribute its products, while also engaging in sales and marketing activities with its bottling partners. The paragraph also mentions the role of bottling operations and retailers in the distribution chain, highlighting the cost-saving benefits of this model for Coca-Cola. It provides examples of independent bottling partners in the Philippines and lists the top five bottling partners that represent a significant portion of Coca-Cola's volume. The paragraph concludes by describing the process of how the final beverages are prepared and distributed by these partners.
Mindmap
Keywords
π‘Coca-cola
π‘Distribution
π‘Franchise
π‘Bottling Partners
π‘Territory
π‘Manufacture
π‘Retailer
π‘Beverage Bases and Syrups
π‘Sales and Marketing Activity
π‘Unit Volume
π‘Taste the Feeling
Highlights
1.9 billion Coca-Cola products are sold worldwide every day.
Coca-Cola distributes its products through various local channels.
Agreements ensure bottling partners' exclusivity in identified territories.
Coca-Cola reserves the right to manufacture and distribute its products.
The company participates in sales and marketing activities of its bottling partners.
Manufacturers deliver beverage bases and syrups to bottling operations.
Retailers sell and distribute the final beverages to customers.
Coca-Cola's distribution model is a franchising system.
The company saves significant amounts on distribution through this model.
Coca-Cola sells its products to bottling, canning operations, distributors, and retailers.
In the Philippines, sari-sari stores are key distribution outlets.
Top five bottling partners represented 41% of Coca-Cola's total unit case volume in 2021.
Coca-Cola Femsa serves Latin America.
Coca-Cola European Partners serves Western Europe, Australia, and Indonesia.
Coca-Cola HBC serves Eastern Europe.
Arca Continental serves Latin America and parts of North America.
Swear Beverages serves Asia and parts of North America.
Bottling partners combine concentrates with water and sweeteners to prepare finished beverages.
Coca-Cola's finished product operation includes company-owned or controlled bottling and distribution.
The iconic slogan 'Taste the feeling' encapsulates the brand's essence.
Transcripts
i kinda like you
[Applause]
[Music]
wow
[Music]
according to official statistics
1.9 billion coca-cola products are sold
around the world every day
coca-cola distributes its product across
the world
it is done with vargas local channels
coca-cola typically agrees to refrain
from selling or distributing or from
authorized third parties
to sell or distribute the company
trademark beverage
throughout the identified territory to
guarantee bottling partners
exclusively under the territory and
products
however
coca-cola typically reserves for itself
the right to manufacture and distribute
its trademark products and brands
in exchange coca-cola also participates
in sales and marketing activity of its
bottling partners
the coca-cola manufacturers delivers the
beverages bases and syrups to bottling
operations
the retailer sells distribution the
final beverages to the customers
it is one a franchising distribution
they distributed
outlets cornerstone
company vendors from here in the
philippines sarasatti stores the
coca-cola business will save a
significant amount of money on
distribution
the coca-cola company sells its product
to bottling and canning operations
distributors founding wholesalers and
some fountain retailers and they sell
this or distribute it to retail outlets
corner stores convenience stores and
here in the philippines sarisari stores
largest independent battling partners in
2021 these five battling partners
combined represented 41 percent of our
total unit fees volume first coca-cola
femsa serving latin america
second coca-cola europe pacific partners
plc ccep serving western europe
australia pacific and indonesia third
coca-cola hbc
ag coca-cola hellenic serving eastern
europe port arca continental serving
latin america and parts of north america
five swear beverages serving asia and
parts of north america
battling partners combine the
concentrates
with steel and or sparkling water and or
sweeteners depending on the product to
prepare package
sell and distribute finished beverages
our finished product operation consists
primarily of company owned or controlled
battling sales and distribution
operations
taste the feeling
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