Coca Cola Essay

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1. Introduction And Rationale For Choosing Coca-Cola Company
Coca-Cola Company (CCC) leads in the production, distribution and marketing of nonalcoholic beverages in the United States and all over the world. This was originally invented by John Pemberton in the 19th century but as a patent medicine, the Coca-Cola recipe was bought by Asa Friggs Candler and merchandised as a carbonated beverage (Isdell, 2011). It was first sold in bottles in 1894 and later on in cans after 1955 (Isdell, 2011). Today, Coca-Cola Company is a multinational corporation that has strong market presence and extensive production setups throughout the world. The Company produces a concentrate which is sold to registered Coca-Cola bottling companies globally. These bottlers, who have exclusive agreements with the CCC, then produce the final beverage in cans and bottles by mixing the concentrate with water and sweeteners. The soft-drink is then sold, distributed and marketed to Coca-Cola sellers and vending machines. The company also sells the concentrate for soda fountains to food service distributors and restaurants (Kalakumari & Sekar, 2014). Coca Cola is operating in about 200 countries worldwide and they offer more than 500 varieties of products, this is a far walk from where they had began in 1886 (Coca-Cola History, 2012).
The reason to select this company is because it has shown consistent and sustainable growth through the years since it has been established. Today, the Coca-Cola Company has also grown from soft drinks to making fruit juices and also makes other drinks that are not soda based. Meanwhile, however, the Company’s intention has always been to maintain global leadership in the beverage industry while adopting top-notch quality manufactu...

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... (in millions) 8,584 9,019 8,572
Earnings per share (EPS) 1.95 2.02 1.89
Share price1, 2 38.07 38.45 34.59
P/E Ratio, Comparison to Industry
Coca-Cola Co. 19.54 19 18.27
Industry, Consumer Goods 17.15 17.93 12.89
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Coca-Cola Co.'s Annual Report.

Price to Operating Profit (P/OP)
31-Dec-13 31-Dec-12 31-Dec-11
No. shares of common stock outstanding1 4,405,893,150 4,456,717,996 4,526,408,442
Selected Financial Data (USD $)
Operating income (in millions) 10,228 10,779 10,154
Operating profit per share 2.32 2.42 2.24
Share price1, 2 38.07 38.45 34.59
P/OP Ratio, Comparison to Industry
Coca-Cola Co. 16.4 15.9 15.42
Industry, Consumer Goods 13.07 20.9 11.68
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of Coca-Cola Co.'s Annual Report.

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