Dive Brief:
- Coca-Cola issued its fourth quarter earnings report Tuesday, with the continuing decline in soda sales, particularly the U.S., continuing to impact its bottom line.
- The soft drink giant's global sales volume rose only 1% in the quarter, with North America falling 1% and Europe growing 1%. Revenue was up 4% when foreign exchange rates and a bottling operation split were excluded, but it fell 3.6% overall to $11.04 billion.
- Productivity improvements made between now and 2016 are being eyed to save the company $1 billion, particularly with a boost in advertising.
Dive Insight:
Beyond the advertising boost, Coke is also banking on a partnership with Keurig maker Green Mountain Coffee Roasters, Inc., which it now owns a 10% stake in. The move will result in a new cold drinks system that would allow consumers to make their own soft drinks, putting it into competition with SodaStream's DIY system. Could Pepsi soon make a similar bet on SodaStream and take the soda wars to a new frontier?
