The world’s financial situation hasn’t been too stellar in recent years and plenty of consumers have been cutting back on the little extras of life. One continued cause for concern has been what will happen in emerging markets.
“Brazil got overheated, slowed down and is starting to come back,” Gary Fayard, the company’s CFO, stated this week at the Consumer Analyst Group of New York conference, FT.com reports. “In general, if you look at developing and emerging countries, we’re not seeing significant shifts.”
In its most recent quarter, Coke reported “flat sales volumes in Brazil,” which worried analysts, the Financial Times reports. And Coke hasn’t been overspending in those markets either, the FT points out: “Coke had about $10bn in cash offshore last year, including $3bn in Brazil.”[more]
That isn’t stopping Coca-Cola from focusing on emerging markets — far from it. In the Philippines, for example, it’s promoting a co-developed brand called NutriJuice, “a beverage that provides nutrients and iron to help reduce the incidence of Iron Deficiency Anemia.” in the Philippines. It’s been distributed to over 100,000 schoolchildren including Andy Plaza, a young boy from Quezon Province featured in the 30-second commercial above.
Domestically, Coca-Cola is saying that it doesn’t have any plans to up its advertising to keep pace with a recent increase of $500 million or $600 million this year by its archrival, Pepsi, Reuters reports. “As of today, I don’t see that we’ll be adding to what we’ve already planned,” said Fayard, according to Reuters. “We’ve got a great plan in place in the U.S. and I feel confident in our plan. I think we’re OK.”
On the sustainability front, meanwhile, Coca-Cola “has recently deployed more than 50 hydrogen fuel cell units to replace traditional battery power in its electric lift truck fleet,” according to IndustryWeek.