According to this morning's ATLANTA CONSTITUTION, projected
3rd-quarter international sales for Coca-Cola Co. will jump 14%
from last year, while domestic sales will rise 5 to 6% --
enabling the company "to post its best quarterly volume gain in
five years." Coca-Cola Chair and CEO Roberto Goizueta "credited
aggressive marketing -- including the company's new contour
bottle, summer and World Cup promotions, and effective ad
campaigns -- and good weather in Germany and Japan. ... But the
huge success of the plastic version of the classic curvy Coke
bottle is the eye-opener." Goizueta: "I don't remember seeing
this kind of connection (with the consumer) since 1985 -- when we
changed the formula and then brought back the original formula as
Coca-Cola Classic." Goizueta also said the company's additional
revenue is being directed "into marketing, which had been pared
in some markets to meet earnings goals" (Cynthia Mitchell,
ATLANTA CONSTITUTION, 9/20).
THIRST QUENCHERS: The WALL STREET JOURNAL reports that
Coke's domestic growth has been helped, not just by the new
plastic bottle, but also by the company's "new juice and sport
drinks." The JOURNAL also says dramatic volume gains of up to
40% are expected "for the quarter in the region that covers
Eastern Europe, the Middle East, and India" (Laurie Grossman,
WALL STREET JOURNAL, 9/20).
STRIKE IMPACT: In today's USA TODAY, Lehman Bros.' Caroline
Levy "notes Coca-Cola controls much of the baseball stadium
fountain business," but says earnings have not been affected by
the MLB strike. Levy: "Should the strike continue (into next
season), this could become an issue" (Ellen Neuborne, USA TODAY,
9/20).
