Good news today! Coca-Cola profit increased 14%during this 3rd quarter... although in U.S. things are not going well...
-----------------------------------

Coca-Cola 3Q Profit Rises 14 Percent
By DANIEL YEE , 10.19.2006, 09:10 AM


The Coca-Cola Co. reported a 14 percent jump in third-quarter profit Thursday, aided by sales gains in Europe tied to World Cup soccer promotions and growth in emerging markets but the company said it was not satisfied with its efforts in Japan and North America. The overall results beat Wall Street expectations.

The world's largest beverage maker said it earned $1.46 billion, or 62 cents a share, for the three months ending Sept. 29, compared to a profit of $1.28 billion, or 54 cents a share, a year earlier.

Analysts surveyed by Thomson Financial were expecting earnings of 59 cents a share in the quarter.

Revenue in the third-quarter rose 7 percent to $6.45 billion from $6.04 billion a year before.

"Overall, I'm very pleased with our top and bottom line performance," Coca-Cola chief executive Neville Isdell said. "We continue to effectively manage our portfolio brands and our portfolio countries."

Coke did not provide earnings per share guidance for the rest of the year, in keeping with past policy.

Its shares rose 69 cents to $44.65 in premarket trading.

Companywide, unit case volume increased by 5 percent in the third quarter, aided by double-digit growth in several markets, including Brazil, Argentina, east and central Africa, central and eastern Europe, China, Russia, Turkey and the Middle East.

Isdell said he was not satisfied with the company's North American efforts, illustrated by a 1 percent decline in unit case volume growth in that sector for the third quarter.

Isdell said the company will refocus its efforts behind its profitable Dasani bottled water business but will have to be innovative in the carbonated beverage market to take advantage of opportunities there.

Regarding Japan, Isdell said the company will see "sequential improvement" in the fourth quarter although the "results will remain weak" through new flavor launches in Fanta soft drinks and Georgia coffee. The company also will focus on Diet Coke, will reintroduce Cherry Coke there during the holiday season and increase Coca-Cola promotions "to maximize home consumption," Isdell said.

Unit case volume increased 7 percent in Latin America and 10 percent in the company's European Union segment, but revenue there fell 7 percent due to what it described as structural changes in its business model in Spain. Coke said it saw volume declines in the Philippines.

Coke said sales of carbonated beverages rose 5 percent, matching the 5 percent sales gain for noncarbonated drinks such as water, ready-to-drink juice and sports drinks. But Isdell said "there's clearly more that we can do" in increasing sales of non-carbonated drinks, such as ready-to-drink tea and coffee.

For the first nine months of the year, Coca-Cola earnings rose 10 percent to $4.4 billion from $4.01 billion in the same period last year. Nine-month revenue rose 3 percent to $18.16 billion, up from $17.55 billion recorded a year ago.

Source: Forbes.com

Originally posted by Ramón Cokeaholic:
Good news today! Coca-Cola profit increased 14%during this 3rd quarter... although in U.S. things are not going well...
-----------------------------------

Coca-Cola 3Q Profit Rises 14 Percent
By DANIEL YEE , 10.19.2006, 09:10 AM


The Coca-Cola Co. reported a 14 percent jump in third-quarter profit Thursday, aided by sales gains in Europe tied to World Cup soccer promotions and growth in emerging markets but ......The overall results beat Wall Street expectations.

Source: Forbes.com

I love how the executives like to say that an increase in sales was because of certain marketing programs and hard work put in by the executive management team, but when the sales are down it is the guys on the front line/street levels fault. The salesman are packing out the stores or pushing promos enough or some other reason.

[ 10-19-2006, 12:05 PM: Message edited by: greg ]

Here's what the Coca-Cola Company 3Q report says about U.S. operations:

Unit case volume in the North America operating group declined 1 percent in the quarter, primarily due to the unit case volume decline in warehouse-delivered water resulting from the strategic decision to refocus resources behind the more profitable Dasani business. Net revenues for the quarter increased 4 percent, reflecting a 2 percent decrease in gallon sales, offset by positive pricing and growth of finished goods businesses. Operating income decreased 7 percent for the quarter, reflecting the lower gallons sales, higher input costs on the finished goods businesses and unfavorable product mix.
• North America’s and the Retail division’s unit case volume growth rates in the quarter were impacted by the warehouse-delivered water unit case volume decline. Excluding this impact, both North America and Retail unit case volume growth were even in the quarter, cycling 3 percent and 4 percent growth, respectively, in the prior year quarter. Foodservice and Hospitality unit case volume increased 1 percent in the quarter.
• Carbonated beverages unit case volume declined 1 percent in the quarter while gaining category share. Coca-Cola Zero unit case volume increased in excess of 30 percent and successfully cycled its launch in the summer of 2005. Vault and Vault Zero continued to perform well particularly in immediate consumption, and energy drinks gained category share as distribution and display activity increased across the portfolio.
• Unit case volume for noncarbonated beverages excluding warehouse-delivered water increased 3 percent in the quarter led by double-digit growth in Trademark Dasani, which continued to gain share, and by mid-single digit growth in Trademark POWERade, which cycled in excess of 30 percent growth in the prior year. Total juice unit case volume declined mid-single digits in the quarter. Warehouse-delivered juice unit case volume was negatively impacted by price increases on Minute Maid to cover higher ingredient costs. This decline was partially offset by continued unit case volume growth in Odwalla and Trademark Simply juices.

and about Mexico operations ...

In Mexico, unit case volume increased 4 percent in the quarter. Carbonated soft drinks gained share in the quarter driven by mid-single digit growth in Trademark Coca-Cola.

For more, visit:
http://www2.coca-cola.com/presscente...gs20061019.pdf

[ 10-19-2006, 01:00 PM: Message edited by: Ramón Cokeaholic ]

thanks, ramon.

so... what is coke zero's US market share this year? could it crack the top 10? [img]smile.gif[/img]

Maybe... but it should be in the top 10... Coke Zero is great!

Just my local grocery store observation.
Granted this is not a scientific study, I see more facings of Coke Zero and more shoppers buying Coke Zero fridge packs.

I would not be surprised if Coke Zero makes it near or in the top ten. Strange but I often see shoppers buy one Coke Zero and one Classic Coke fridge packs. In my mind these two brands are starting to catch on as compliments, which I beleive was the original marketing plan.

MrR, help me out here,please. [img]smile.gif[/img]

[ 10-19-2006, 05:30 PM: Message edited by: Mr Zabe ]

i've actually been drinking coke zero in place of regular coke with meals lately. something i didn't used to do. i'm just so used to the taste, there's barely any difference anymore. i just serve the regular stuff to guests if they want it.

we have a promo going on here where you buy a 24 pack of regular coke, and get a free fridgepack of coke zero, or get a 20 oz of regular coke, and get a free zero. i see carts everywhere in the grocery store with coke 24's and a coke zero... its selling well here because of that promo. we even have 24 oz bottles and 24 packs in now.

Originally posted by Mr Zabe:
Just my local grocery store observation.
Granted this is not a scientific study, I see more facings of Coke Zero and more shoppers buying Coke Zero fridge packs.

I would not be surprised if Coke Zero makes it near or in the top ten. Strange but I often see shoppers buy one Coke Zero and one Classic Coke fridge packs. In my mind these two brands are starting to catch on as compliments, which I beleive was the original marketing plan.

MrR, help me out here,please. [img]smile.gif[/img]

That's right MrZ... in fact I remember seeing in the site announce.coca-cola.com (that unfortunately now is restricted ) a magazine ad with a coupon for a free 20 oz. Coke Zero on a purchase of a 20 oz. Coke Classic, and by what you comment... I think that marketing effort worked very well... buying some Coke Classic and some Coke zero too...

More local Chicago Coke Zero info.
I saw Coke Zero 24oz btls 6pks this morning at my local grocery store. They were cut in a nice free standing display with other 24oz 6pks. It was 1 tray wide and about 7 trays high. I must admit LOL,it felt good to see it. I know I'm a sick soda pop freak who tries not to discriminate. LOLOLOL