Coca-Cola M&A Activity: Introduction

Introduction

With the beverage industry changing shape rapidly, major beverage companies are finding new ways to stay profitable. Companies like Coca-Cola and PepsiCo continue to grow their business by expanding the portfolio of drink brands they sell, and by acquiring their franchise bottling partners in order to realize operational synergies. The overarching objective of this paper is to analyze M&A activity in the beverage industry in order to provide a framework for which to understand Coca-Cola’s acquisition of CCE’s North American operations. Further, details of the deal, its major players, and the likelihood of the deal’s future success will all be addressed.

To begin, an analysis of product and consumer trends in the beverage industry is appropriate. Coca-Cola sells 1.7 billion[ "The Coca-Cola System." Coca-Cola: The Coca-Cola Company. Web. 04 May 2011. http://www.thecoca-colacompany.com/citizenship/the_coca-cola_system.html .] beverage servings per day to consumers, making it the largest beverage company in the world. Deals like the one with CCE illustrate the scale with which Coca-Cola operates. Next, a view of the shifting business model of beverage companies will lay the groundwork for understanding the significance of the Coca-Cola/CCE deal. Looking at other industry M&A activity will give context to the deal. Finally, looking at the deal itself will reveal how this $12.3 billion acquisition is a landmark in the industry and a model for corporate growth. Exhibit 1 begins with a SWOT analysis of Coca-Cola.

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