Coca-Cola Co.—ad spending, facts and profile

Overview The Coca-Cola Co. is a beverage marketer based in Atlanta. The company said in its annual regulatory filing for the year ended December 2023: “The Coca-Cola Company is a total beverage company, and beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries and territories. “We own or license and market numerous beverage brands, which we group into the following categories: Trademark Coca-Cola; sparkling flavors; water, sports, coffee and tea; juice, value-added dairy and plant-based beverages; and emerging beverages. “We own and market several of the world’s largest nonalcoholic sparkling soft drink brands, including Coca-Cola, Sprite, Fanta, Coca-Cola Zero Sugar and Diet Coke/Coca-Cola Light. “We make our branded beverage products available to consumers throughout the world through our network of independent bottling partners, distributors, wholesalers and retailers as well as our consolidated bottling and distribution operations. “Beverages bearing trademarks owned by or licensed to the company account for 2.2 billion of the estimated 64 billion servings of all beverages consumed worldwide every day.” Business segments and operations See more: Coca-Cola’s business and brands Coca-Cola said this about competitors in its annual 10-K regulatory filing for calendar 2023: “In many of the countries in which we do business, PepsiCo Inc. is a primary competitor. Other significant competitors include, but are not limited to, Nestlé S.A., Keurig Dr Pepper Inc., Danone S.A., Suntory Beverage & Food Limited, AB InBev, Kirin Holdings, Heineken N.V., Diageo and Red Bull GmbH. “We also compete against numerous regional and local companies and, increasingly, against smaller companies that are developing microbrands and selling them directly to consumers through e-commerce retailers and other e-commerce platforms. “In addition, in some markets, we compete against retailers that have developed their own store or private-label beverage brands.” Marketing spending Worldwide ad spending: Total worldwide advertising spending figures shown in the Ad Age World’s Largest Advertisers report are Coca-Cola’s stated worldwide “advertising expenses” (including media and production). Coca-Cola disclosed worldwide advertising expenses of $5.010 billion in 2023, an all-time high. That was up 16.0% from $4.319 billion in 2022. U.S. ad spending: Total U.S. advertising spending shown in the Ad Age Leading National Advertisers report is an Ad Age Datacenter estimate. Ad Age Datacenter changed its spending model for Coca-Cola’s total U.S. ad spending effective with the June 2023 Leading National Advertisers report. Promotional and marketing programs: The company said in its 10-K for calendar 2023: “In addition to conducting our own independent advertising and marketing activities, we may provide promotional and marketing support and/or funds to our bottlers. “In most cases, we do this on a discretionary basis under the terms of commitment letters or agreements, even though we are not obligated to do so under the terms of the bottler’s agreements between our company and the bottlers. “Also, on a discretionary basis in most cases, our company may develop and introduce new products, packages and equipment to assist the bottlers. “Likewise, in many instances, we provide promotional and marketing support and/or funds and/or dispensing equipment and repair services to fountain and bottle/can retailers, typically pursuant to marketing agreements.” Coca-Cola’s 10-K for calendar 2023 did not break out the dollar amount for promotional and marketing programs. Previous annual filings disclosed the following aggregate amount provided by the company to bottlers, resellers and other customers, principally for participation in promotional and marketing programs: 2022: $4.8 billion 2021: $4.7 billion 2020: $4.1 billion 2019: $4.4 billion 2018: $4.3 billion 2017: $6.2 billion 2016: $6.6 billion 2015: $6.8 billion 2014: $7.0 billion 2013: $6.9 billion 2012: $6.1 billion 2011: $5.8 billion 2010: $5.0 billion 2009: $4.5 billion Selling, general and administrative expenses: The company said in its 10-K for calendar 2023: “Selling, general and administrative expenses increased $1,092 million, or 8%, in 2023. This increase was primarily due to higher advertising and other operating expenses, partially offset by decreases in selling and distribution expenses and stock-based compensation expense. The increase in other operating expenses was primarily due to higher other marketing expenses and increased charitable donations, as well as higher annual incentive expense and other employee benefit costs. “The decrease in selling and distribution expenses was primarily a result of the refranchising of our bottling operations in Vietnam and Cambodia. The decrease in stock-based compensation expense was primarily due to the cumulative expense that was recorded in 2022 resulting from the impact a more favorable financial outlook had on the outstanding nonvested performance share units. In 2023, foreign currency exchange rate fluctuations decreased selling, general and administrative expenses by 3%.” The company said in its 10-K for calendar 2022: “Selling, general and administrative expenses increased $736 million, or 6%, in 2022. This increase was primarily due to increased marketing spending, higher selling and distribution expenses, and higher annual incentive and stock-based compensation expense. The increase in selling and distribution expenses was due to the continued recovery from the COVID-19 pandemic. “The increase in stock-based compensation expense was primarily due to our strong financial performance in 2022 and a more favorable outlook of our future financial performance, which resulted in higher payout assumptions as compared to 2021. In 2022, foreign currency exchange rate fluctuations decreased selling, general and administrative expenses by 6%.” The company said in its 10-K for calendar 2021: “Selling, general and administrative expenses increased $2,413 million, or 25%, in 2021. This increase was primarily due to higher annual incentive and stock-based compensation expense, increased charitable donations and increased marketing spending, which was reduced in 2020 as a result of uncertainties associated with the COVID-19 pandemic. “The increase in annual incentive and stock-based compensation expense was primarily due to improved financial performance in 2021 and a more favorable outlook of our future financial performance, which resulted in higher payout assumptions as compared to 2020. In 2021, foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 2%.” The company said in its 10-K for calendar 2020: “Selling, general and administrative expenses decreased $2,372 million, or 20%, in 2020. This decrease was primarily due to effective cost management and a reduction in marketing spending as a result of uncertainties related to the impact of the COVID-19 pandemic, the impact of savings from our productivity initiatives, the impact of a reduction in stock-based compensation expense resulting from a change in estimated payout, and a foreign currency exchange rate impact of 1%.” Links to Ad Age’s advertiser rankings Latest rankings: U.S. The Ad Age Leading National Advertisers 2024 ranking was released Oct. 28, 2024. Ad Age Leading National Advertisers 2024 U.S. ad spending, rankings, analysis and profiles for the biggest marketers Click here Past rankings: U.S. Ad Age Leading National Advertisers 2023 Ad Age Leading National Advertisers 2022 Latest rankings: worldwide The Ad Age World’s Largest Advertisers 2024 ranking was released Dec. 9, 2024. Ad Age World’s Largest Advertisers 2024 Global ad spending, rankings, analysis and profiles for the biggest marketers Click here Past rankings: worldwide Ad Age World’s Largest Advertisers 2023 Ad Age World’s Largest Advertisers 2022 Financial results See more: Coca-Cola financial results Read Coca-Cola’s annual filing Deals and strategic moves Coca-Cola in May 2022 said it was discontinuing Honest Tea as part of a decision to focus its ready-to-drink tea portfolio on brands “with the greatest potential for scale and profitable growth” (namely, its Gold Peak and Peace Tea brands). The company said it would continue to market the associated Honest Kids product lines. Coca-Cola in February 2008 bought 40% of premium tea marketer Honest Tea with an option to buy the rest after three years. Coca-Cola in March 2011 bought the remaining 60% stake. Honest Tea had 2010 sales of $72 million. Coca-Cola in November 2021 bought the remaining 85% stake in BodyArmor (BA Sports Nutrition), a U.S.-based marketer of a premium sports drink, for $5.6 billion cash, giving Coca-Cola 100% ownership. Coca-Cola bought a minority stake in 2018. Coca-Cola in October 2020 revealed plans to discontinue Zico, its coconut water brand, by the end of 2020. The company in November 2013 had purchased the remaining ownership stake in Zico Beverages, marketer of Zico Pure Premium Coconut Water. Coca-Cola Co. made its first investment in Zico in 2009 and bought a majority stake in 2012. El Segundo, California-based Zico was founded in 2004. Coca-Cola in July 2020 discontinued its Odwalla brand. The company in December 2001 bought Odwalla, a U.S. marketer of juices, smoothies, dairy-free shakes, spring water and food bars, in a deal Coca-Cola valued at about $190 million. The company in January 2020 bought the remaining 57.5% stake in Fairlife from its joint venture partner, Select Milk Producers, for $979 million in cash (net of cash acquired), increasing Coca-Cola’s ownership to 100%. Fairlife launched in 2012 with a high-protein milkshake called Core Power and over time expanded into other dairy products. Coca-Cola in January 2019 bought coffee marketer Costa Ltd. from Whitbread, a U.K.-based hotel and restaurant company, for $4.9 billion cash. Costa, founded in London in 1971, as of 2018 operated 4,000 retail outlets in more than 30 countries, a coffee vending business, for-home coffee formats and a roastery. At the time of the acquisition, Costa operated in Europe, Asia Pacific, the Middle East and Africa. In its 10-K filing in February 2020, Coca-Cola said: “We believe this acquisition will allow us to increase our presence in the hot beverage market as Costa has a scalable platform across multiple formats and channels, including opportunities to introduce ready-to-drink products.” Unilever in March 2017 sold AdeS, a soy beverage business in Latin America, to Coca-Cola Co. and Coca-Cola Femsa for $575 million. Coca-Cola in 2016 bought Xiamen Culiangwang Beverage Technology Co., Ltd. (China Green). Coca-Cola in April 2015 had signed a deal to buy the company for about $400 million including debt. China Culiangwang was founded in 1998 and markets plant-based protein drinks in China. The company in June 2015 bought a 16.7% stake in Monster Beverage Corp. as part of a new long-term strategic partnership with the energy-drink marketer. The deal expanded an existing distribution agreement between Coca-Cola and Monster that dated to 2008. Coca-Cola owned a 20% stake in Monster as of the end of 2023. Coca-Cola in June 2007 paid $4.1 billion for Energy Brands, also known as Glaceau, the marketer of “enhanced” water brands including Vitaminwater, Fruitwater and Smartwater. Coca-Cola in the first quarter of 2007 bought Fuze Beverage, a U.S.-based marketer of enhanced juices and teas, and Leao Junior, a Brazilian herbal beverage company. Management and employees James Quincey, Coca-Cola’s president and chief operating officer, succeeded Muhtar Kent as CEO May 1, 2017. Kent continued as chairman until April 2019, when Quincey became chairman-CEO. Quincey joined Coca-Cola in Atlanta in 1996 as director, learning strategy, for the Latin America Group. Prior to joining Coca-Cola, Quincey was a partner in strategy consulting at Kalchas Group, a spinoff from Bain & Co. and McKinsey. Quincey, who is bilingual in English and Spanish, received a bachelor’s degree in electronic engineering from the University of Liverpool. See more: Coca-Cola management See more: Coca-Cola careers Stock Coca-Cola trades on the New York Stock Exchange. Ticker: KO History Coca-Cola was founded in 1886. See more: Company history and the origin of Coca-Cola Ad Age Leading National Advertisers 2024 U.S. ad spending, rankings, analysis and profiles for the biggest marketers Click here

Coca-Cola Co.—ad spending, facts and profile

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