Coca-Cola M&A Activity: Product Trends

Product Trends

With regard to product trends in the beverage industry, several issues have come to companies’ attention:

Raw materials costs are rapidly on the rise.

Products must modify quickly to keep up with transforming consumer preferences.

New taxes are being levied on sugary soft drinks, a key staple of major beverage companies’ portfolios.

As the diversity of consumer demands for beverages worldwide grows, so does the number of product lines that Coca-Cola serves. Enhancements to new and existing products will focus on the above issues, while also addressing the trend of sustainability. A product’s “carbon footprint” will begin to matter more, and one industry follower believes “packaging will have ‘green packaging ratings’ that consumers will include as a factor in drink purchase decisions.”[ "Beverage Industry Trends." Chem.Info. Chem.Insider Daily, 8 Mar. 2010. Web. 30 Apr. 2011. http://www.chem.info/Articles/2010/03/Plant-Operations-Beverage-Industry-Trends/ .] Trends in packaging include using less bulk packaging while finding ways to make current products more resistant to breakage.[ Ibid.] Drink containers will continue to become more reusable, and a variety of new product sizes is likely to appear as convenience becomes a more important factor for certain beverage segments. For example, Coca-Cola’s Powerade brand is likely to be sold in ever-increasing sized bottles as athletes and other high per capita sports beverage consumers look for ways to obtain greater value from the product. Very mobile, on-the-go consumers, alternatively, will be looking for small-sized beverages that offer maximum portability.

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