COCA COLA DISTRIBUTION STRATEGY.

Summary

Coca-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

• 🌐 Coca-Cola products are sold extensively with 1.9 billion units sold daily worldwide.
• 📊 The company uses a franchising distribution model to sell its products through local channels and authorized partners.
• 🔄 Coca-Cola retains the right to manufacture and distribute its products while allowing bottling partners exclusivity in their territories.
• 🤝 They participate in sales and marketing activities with their bottling partners to boost the brand's presence.
• 🚚 The company delivers beverage bases and syrups to bottling operations, which then sell to retailers and customers.
• 💰 Coca-Cola saves on distribution costs by selling to bottling and canning operations, distributors, and wholesalers who further distribute to retail outlets.
• 🏪 Retail outlets like corner stores and convenience stores, as well as sari-sari stores in the Philippines, are part of the distribution network.
• 🔝 The top five independent bottling partners in 2021 accounted for 41% of Coca-Cola's total unit case volume.
• 📈 The largest bottling partners serve various regions including Latin America, Western Europe, Eastern Europe, and Asia.
• 🌟 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.