Tuesday, April 20, 2010

Coca-Cola's 1st Quarter Profit Climbs 19%

This article is from: http://finance.yahoo.com/news/CocaCola-1Q-profit-rises-19-apf-3982964402.html?x=0

Due to the booming markets such as in India and Brazil, the billions that Coca-Cola is investing overseas paid off in the first quarter as the world's largest soft drink maker reported. The overall case volume rose 3 percent because the international case volume is growing faster at 5 percent.

"One way for Coca-Cola Co. to sell even more overseas is to add more plants and also the branded coolers that get products in front of potential consumers. CEO Muhtar Kent said the billions the company has spent in countries like China, Brazil, and India is paying off."

In emerging markets like in India, in the first quarter the company decided to add 65,000 of its coolers in Indian retail locations and nearly 3,000 employees to sell the products. This caused India's unit volume to grow 29 percent; Turkey's grew 18 percent.

The article also states that "consumers in Egypt, Africa, Tunisia and Morocco each drink less than 150 8-ounce servings of soft drinks per year. That's less than half what Americans drink. In countries with comparatively low levels of consumption, unit case volume rose 10 percent over the past three months."

What do you guys think about this already booming industry overseas? How is this going to effect the people living in other countries compared to people living here in the U.S?

1 comment:

Rebecca K. said...

I think the fact that people are consuming in other countries is obviously a positive aspect because the Coca-Cola industry back in the States is making money off of it.

But are there any factories that are going oversees? Or is it just the production? Because I believe though that as long as there are no jobs that are going oversees( a fear that many americans have) then this boom is overall pretty positive. I wonder though if this is in any way helping the economies of the booming market.