World’s Leading Beverage Company

Name of student:
Unit Title:
Unit Code:
Assignment title:
Name of supervisor:
Date due:

Introduction
The Coca-Cola Company is the world’s leading Beverage Company. The
company manufacturers retail and non-alcoholic market beverages concentrate and
syrups which are sold globally. The company was formed in the year 1886 by John
Pemberton, and it is headquartered in Georgia (Alahi & Bass, 2018). The company
currently owns more than 500 brands. Some of the most famous brands include;
Dasani bottled water, Coca-Cola soda, happy valley and minute maid (Alahi et al.,
2018).As a global organization the company has had to deal with quite a number
issues. For example in the recent past, it has had to deal with issues such as rising
interest rates, global warming and underemployment which it has tackled
successfully. In addition to tackling these issues, the company continues to explore
new ways to increase their water supply and encourage the employment of more
people.
One of the biggest problems facing most international food and Beverages
Company is the increasing health concern by consumers (Cutelo, 2018). This has
resulted in a decrease in the demand for the products and hence leading to a decline in
sales volumes. The effect of Coca-Cola products on health has been documented over
the years. Cocacola products have excess sugar levels and hence causing illnesses.
Some of the diseases associated with coca-cola beverages include obesity and

increased risk of diabetes and other chronic diseases (Haasova & Florack, 2019).
Fizzy drinks have been blamed for the rising cases of obesity in America and Europe.
This has prompted efforts by social attempts calling for the ban on beverages which
contain excess sugars and calories.Many health campaigns have been launched in
most of the developed countries to sensitize people on a healthy diet to avoid diseases
associated with unhealthy food and beverages. There have also been efforts to stop the
company from advertising to children who are an essential segment of the company’s
products (Bundechanan & Fongsuwan, 2017). These actions have also led to many
consumers avoiding the companies` products and hence leading to a decrease in
demand.
Research shows that consumers, primarily in developed countries, have
become increasingly concerned about their health. Most consumers care about the
impact that any product has on their health before purchasing it. This has, therefore,
shifted the demand to more organic beverages such as juices made from natural fruits
and which do not contain any artificial ingredients. The company’s revenues have
been reducing over the past few years. For example, in the last quarter of the year
2019, Coca-Cola profits reduced by 8.4% to $1.7 billion ("Income Statement", 2020).
The company missed its revenue target by more than $300 million. The company’s
revenue also declined by 4.2% to $11 billion. The decline in revenues by the company
has been attributed to increased health consciousness by consumers in North America
and European markets which make up for a considerable chunk of its market.
The shift in consumer preferences has been necessitated primarily by the
deterioration of health conditions for populations in many countries. The increase in
the number of obesity cases is for example cited as an outcome of too much sugar