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22.10.2010 Coca-Cola seeks to boost brand equity

Coca-Cola, the soft drinks giant, will invest in emerging markets, corporate social responsibility and building brand equity as it seeks to drive growth. Muhter Kent, the company's chief executive, argued on a conference callthat a 5% uptick in volume sales and 8% revenue improvement during the last quarter were largely fuelled by popular loyalty to its products. "We always put our brands first in everything that we do, across each and every one of our operating groups," he said. "Our brand equity is growing stronger around the world as evidenced by a measurable increase in consumer preference for our brands this quarter, as well as more potent global growth for our flagship brand, Coca-Cola."

North America, where trading conditions have been particularly difficult in the recession, contributed to such a positive picture. "Brand Coca-Cola health measures keep improving as we increased our favourite brand score versus our primary competitor amongst the most critical consumer segments," said Kent. "We continue to invest in our brands and it's paying off. Coca-Cola remains the number one favourite brand and has widened that lead over its nearest competitor. Coke Zero, Sprite and Fanta all posted heightened sales across the reporting period, similarly attributed to a long-term emphasis on specific areas”.

Powerade saw demand surge by more than 30%, and has gained seven points of volume share when combined with Glaceau since 2007. Several developing nations have assumed priority status for the Atlanta-based firm, which will allocate $3bn to China, $5bn to Mexico, $6bn to Brazil and $12bn to Africa going forward.

B.L. 22.10.2010