Coca-Cola M&A Activity: Company Portfolio Analysis

Coca-Cola M&A Portfolio Analysis

The array of M&A activity presented in Exhibit 2 below showcases the company’s answer to the constantly changing beverage landscape. With some deals aimed at expanding market share and others designed to create operational synergies, the company has embraced a model of expansion that is well suited to today’s largely saturated global beverage markets. Coca-Cola’s equity takeover of both Inca Kola in Peru and Thums Up in India resulted from the company’s desire to expand revenue figures in those countries. Each of these brands was home to its country and held the majority of market share as such. Coca-Cola’s answer to slow growth of its signature brands in these emerging markets led it to the decision to acquire each brand in the mid-1990s. These investments represent the first major beverage industry trend, growing market share and brand recognition worldwide, through the acquisition of successful brands. The company’s 1995 acquisition of the Barq’s root beer brand is another example of this. What all three of these transactions have in common, however, is they’re soda brands. The late 1990s still featured growing soft drink consumption in the North American market. As the decade turned, so did consumer preferences in the United States.

In identifying a potential acquisition target, Coca-Cola considers a variety of factors. The first and foremost considerations are the strength of a company’s brand and financial situation. In order to even be considered for takeover, a beverage company must fill a market void that Coca-Cola has for some reason been unable to master as of yet. Both Coke and PepsiCo have in recent years been acquiring juice makers in foreign countries. As the middle class in foreign countries swells and consumers look for alternatives to sugary soft drinks, the juice market worldwide is going to continue to boom. In Russia and China, neither company has been able to establish a juice brand with any real success. This explains the move to acquire these companies in those markets.

More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):

Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List