Coca-Cola is planning to increase its global investment in media and brand building by US$1 billion in a bid to “regain momentum” in the face of falling sales and profit.
The company will also “redeploy” more of its consumer facing marketing across markets to generate the highest possible return and speed up growth, it said in its end of year results presentation.
It says the shift will “transform” its commercial model.
Coke hopes to drive the savings from supply chain optimisation and implementing standardised data and IT systems, and reinvest the savings in global brand-building initiatives with an emphasis on increased media spending.
Coke said the additional $1bn investment by 2016 will come on top of existing commitments to reinvestment initiatives it outlined in 2012.
Pre-tax profit fell 6% to US$2.23 billion in the fourth quarter. Revenue fell 4% to 11.1 billion. It does not split out figures for the Australian market.
Muhtar Kent, chairman and CEO of The Coca-Cola Company said: “While we move forward in what remains an uncertain global economy the long-term fundamentals driving our business and industry have not changed. A rising middle class, greater urbanisation and increasing personal consumption expenditures in markets around the world will continue to drive greater demand for our beverages as consumers look for moments of refreshment.
“We are committed to accelerating marketing investments in our brands, further advancing our innovation strategies and maximising productivity and reinvestment for growth.”
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at rosiebaker@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.