Soda sales seem to be falling short of their stipulated targets for a few years now. As health awareness and a growing health conscious population increases steadily in the United States, the demand for aerated drinks seems to be extremely sluggish. The Coca-Cola (NYSE:KO) company which seems to have capitalized on the aerated soft drink market seems to try acquisitions and go a more healthy way, but has not really managed to penetrate the market as much as expected. The Coca-Cola company has now decided to look elsewhere for an established market.
Coca-Cola shifts attention towards Africa
Coca-Cola has invested 17 billion dollars in the African market for production, marketing and sales in Africa. Even though soda sales has been nowhere compared to the American market, Coca-Cola seems to be positive that the investment amounts and stimulation of the soda market are all that is needed to flourish successfully in the African market. Coca-Cola is already slated to buy a 40 percent stake in the Nigeria’s largest juice maker, Chi Ltd. The company is famously known for the production of health juices and ice teas in the country.
Coca-Cola is additionally working at expanding their already large profile too into the African market by seeking to invest and acquire native food and beverages companies to expand their portfolio. Sales growth has been steady in Africa, and the company sees a lot more potential in the continent. South Africa has witnessed a 21 percent growth, and a general 13 percent of sales growth rate was reported in an average in the entire continent. On the other hand, consumption in the United States has fallen by 25 percent in the past decade. Coca-Cola is also expanding beyond the range of aerated soft drinks globally.
The new company approach
Coca-Cola plans to modify their strategy and focus more towards health-oriented products and away from their signature products that have generally been associated with health deteriorating products. Coca-Cola plans to invest into healthy dairy products in the African continent as well. The platform for such health-oriented strategy has already been laid in the United States with the production of products such as smart sparkling water. Coca-Cola will also be entering the food market in Africa while simultaneously trying to localize taste according to the region. Coca-Cola also plans to fuse the local taste into American products in order to acclimatize the regional market to the brand.