Coca-Cola M&A Activity: Company Portfolio Analysis (2)

Other major considerations are less strategic and more practical in nature. First, Coke must identify the short-term integration issues the company might face in an acquisition scenario. Generally Coke has left businesses alone to function as if the takeover didn’t occur, and simply institutes usage of the company’s vast global supply chain to distribute the new products. On this note, national culture is also important to consider, given the variety of products that beverage companies make and the diversity of international customs and cultures. As Coca-Cola enhances a newly purchased brand with its distribution network, the issue of culture clash becomes a long-term consideration. For example, Coca-Cola and PepsiCo do not own any alcoholic beverage brands, generally ensuring that all their beverage products will be consumable in markets across the world, regardless of expected demand for those goods. Finally, company culture at an acquisition target is worth observing. In the case of Honest Tea, Coca-Cola appreciate that part of the brand’s equity was derived from the founder’s commitment to sourcing from approved locations that met certain sustainability and ethical standards. Accordingly, Honest Tea continues to thrive under the umbrella of Coke ownership because the company’s founder was allowed to continue running it, and ensuring that commitment to excellence does not waver. Of all the considerations Coca-Cola makes when assessing takeover targets, perhaps mass product appeal is the most important.


The decade 2000 to 2010 featured mostly non-carbonated drink company acquisitions by Coca-Cola. In 2001 the company recognized the upside of the healthy juice drink market in the North American region, and bought up Odwalla accordingly.[ "The Coca-Cola Company." Wikipedia, the Free Encyclopedia. Web. 29 Apr. 2011. http://en.wikipedia.org/wiki/The_Coca-Cola_Company .] Later on in 2007, Coke acquired both Energy Brands (owner of Glaceau, maker of VitaminWater) and Fuze Beverage in the same year. Both companies make what are known in the industry as “enhanced water drinks.” Fuze sells a fruity-flavored water while Energy Brands’s division making VitaminWater features flavored water products that have vitamins added. Both companies were marketing their products as healthy alternatives to sugary cola drinks, and when their sales began to explode, Coke decided the brands were must-haves. In a similar fashion, the company made a partial equity investment in Honest Tea in 2007 and later acquired the rest of the company in early 2011. What Coca-Cola gained in all three of these brand acquisitions was unparalleled access to the fast-growing health drinks segment of the consumer beverage market.

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