Coca-Cola: Company Strategic Alliance Objectives with Bottlers

A look at the attached Alliance Constellation Map reveals Coca-Cola’s general structure of partnerships. The company engages in partnerships of a wide variety, therefore it’s important to first understand how the company chooses those partners.

Bottlers

Coca-Cola looks for existing bottling companies that have the infrastructure needed to bottle their product and distribute it to a defined market. Presently, Coca-Cola owns minority equity stakes in a number of its bottlers and outright owns a few more, though generally the company’s equity investments in its bottlers fluctuates according to internal policy. Most Coca-Cola bottling partners are still independent from the firm. As Coca-Cola has become a major international brand, the company’s products are available in most markets around the world. As such, the company generally doesn’t look for new bottling partners except in instances when previously-closed emerging markets open up. Allying with bottlers, rather than setting up bottling plants of its own, was how Coca-Cola achieved rapid internationalization throughout the 20th century. In 1990, when apartheid ended in South Africa and the country’s economy was no longer hampered by social perceptions, Coca-Cola’s rapid ramp-up in the country was due partnerships and capital investments in a handfull of South African bottling and canning companies. This is one example of how combining an existing efficient supply chain with local bottling and distribution expertise creates a synergy that results in profit for all parties.

Other posts on Coca-Cola's brand and strategy:

Coca-Cola: Company Strategic Alliance Objectives with Suppliers
Coca-Cola: Company Strategic Alliance Objectives with Bottlers
Coca-Cola: Company Strategic Alliance Objectives with Brands
Coca-Cola: Life-Cycle Model of Evolving Strategic Alliance Strategy Early Days
Coca-Cola: Current Strategic Alliances – Major Strengths
Coca-Cola: Life-Cycle Model of Evolving Strategic Alliance Strategy
Coca-Cola: Current Strategic Alliances – Major Weaknesses
Coca Cola: Future Strategic Alliance Objectives and Strategy Overview Recommendations
Works Cited Page for Coca-Cola Analysis of Alliances Portfolio

Woodward, Douglas P., and Sandra J. Teel. "Doing Business in South Africa." The Ziels. Woodward, B&E Review, Vol. 45, No. 4. Web. 28 Mar. 2011. http://www.theziels.org/BandE/bande45/45n4/safrica.htm.