Coca-Cola products combine in a $27 billion deal—What’s the future hold?

By Cutter Slagle

In recent news, it would appear that Coca-Cola is making a deal—a rather big deal! Specifically, three of Europe’s main bottlers of Coca-Cola products are planning to combine in a deal that is worth an astounding $27 billion dollars. The goal? To simplify manufacturing and cut costs, as consumers are beginning to look elsewhere when it comes to finding a refreshing soda.

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Coca-Cola will soon merge with its Iberian and German counterparts. It should come as no surprise that this will be one of the biggest consumer deals in Europe. Furthermore, the deal will successfully create a company with revenues exceeding $12.5 billion to be headquartered in London.

But what does the future hold for Coke?

As stated, the deal comes at a time when Coca-Cola is seeing a slip in sales, especially in developed markets. Therefore, the group is hoping to cut costs with this new deal and eventually boost profitability.

Another method the group is considering is to reduce the size of the beverage bottles. In doing so, Coca-Cola could generate more profit per ounce.

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In response to the deal, James Quincey, president of Coca-Cola in Europe, has stated that he believes this particular deal could potentially improve the company’s ability to respond more swiftly to changing consumer trends.

But is Quincey right in this estimation?

Sure, Coca-Cola may still be known as the “world’s largest drink maker,” but there are so many different options when it comes to choosing soda—competition is normal. Does Coke no longer have what it takes to stay at the top?

Not to mention, in a day and age where more and more people are becoming more health conscious and aware of what goes in their body, perhaps water is being chosen over soda.

For the latest news in the food and beverage industry, visit out sister site Food, Drink & Franchise.

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[SOURCE: Irish Times]

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