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The Coca-Cola Company reported a strong third quarter earnings for the year 2011, which met and surpassed the company’s long-term growth goals, gaining value share and volume in non-alcoholic beverages in addition to the sparkling beverage classes (The Coca-Cola Company, 2011). According to the report, the Coca-Cola Company persists to enhance its worldwide impetus from a position of strength, through the realization of growth across all of its operating groups in this period of economic recovery across the globe (The Coca-Cola Company, 2011).  The Chief Executive Officer and Chairman of the Company, Muhtar Kent, put forth that the outcomes of the third quarter of 2011 exceeded the company’s growth objective during the time of the worldwide market volatility, and this was swayed by the company’s strong brands, focused and clear vision, and solid implementation (The Coca-Cola Company, 2011).

The volume of the Coca-Cola Company North America Group had increased five percent in the third quarter of 2011. Without considering novel cross-licensed brands, principally Dr. Pepper brands, the group’s volume escalated one percent in the third quarter, with a sustained value share and volume gains across overall non-alcoholic ready-to-drink beverages (The Coca-Cola Company, 2011). Net revenue reported for the third quarter grew to 148 percent, mainly mirroring the acquirement of CCE’s ex- North America functions (The Coca-Cola Company, 2011). The Company attained two percent pricing to the retailers, which was impelled by three percent pricing on sparkling beverages, whilst operating income was reported to have increased to 23 percent (The Coca-Cola Company, 2011). Besides, equivalent currency neutral working income increased to 56 percent, principally mirroring the acquirement of CCE’s ex-North America functions and advancement in the fundamental business, to some extent counterbalanced by commodity costs (The Coca-Cola Company, 2011).

In the third quarter, sparkling volume increased to six percent. Furthermore, apart from novel cross-licensed brands, primarily Dr. Pepper brands, the volume of organic sparkling beverage reduced to one percent, whilst pricing to the retailers on these beverages grew by three percent (The Coca-Cola Company, 2011). Significantly, the Coca-Cola Company gained sparkling beverage value share and volume in the third quarter, impelled by greatly focusing on occasion-based price, package, brand, channel strategies and  an entirely incorporated 125 days of Summer Fun marketing campaign (The Coca-Cola Company, 2011). In addition to this, the volume of Coca-Cola Zero increased to 12 percent, and this delivered double-digit growth in volume that was compelled by long-term growth and strong marketing in the foodservice channel, whilst the volume of Fanta grew by two percent, which was driven by strong retail launch (The Coca-Cola Company, 2011).

The volume of still beverage for the North America Group increased by four percent in the third quarter, which was led by the growth in Gold Peak tea of 39 percent and growth in Powerade of nine percent (The Coca-Cola Company, 2011). Moreover, during the third quarter, the company expanded value share and volume in overall still beverages with the value share and volume increases in a variety of still beverages, encompassing energy drinks, sports drinks, packaged water and ready-to-drink coffees and teas (The Coca-Cola Company, 2011). Additionally, the volume of Glaceau trademark grew by four percent in the third quarter with the volume in smart water and vitamin water zero persisting to increase double digits.

In the third quarter, the Coca-Cola Company’s profits rose by eight percent and this was driven by increased sale of drinks internationally,  increased prices and smaller packaging of its products in North America, the company’s largest market (Skidmore, 2011). The company having over 500 brands encompassing Minute Maid, Dasani, Sprite, and Fanta amongst others has weather-beaten the downturn through heavy investments on its business, for instance, the new plants, new products and heavy advertisements (Skidmore, 2011). Besides, in spite of the hard economic times, the company sustained growth and profitability that have been driven by employment of efficient strategies.

In spite of the fact that the company persists to feel the pressure of increased commodity costs that reduced its gross margin to 60.2 percent in the third quarter, as compared to 65.4 percent in the second quarter, Kent put forth that stronger sales growth has counterbalanced that (Skidmore, 2011). The long-term impacts of these drives are that they will lead to increased profits of the company, and through proper implementation, the firm will be in a position of meeting its visions in 2020.

The company’s net income increased to 2.22 US dollar billion same as 95 cents each share in the third quarter (Skidmore, 2011). This was an increase from 2.06 billion US dollar, which is similar to 88 cents each share in 2010. Not including one-time stuffs, the company made 1.03 US dollar per share, whilst revenues increased to 12.25 US dollar billion. According to FactSet, the third quarter surpassed analysts’ projections of 1.02 US dollar per share on revenue of 12.5 billion US dollar (Skidmore, 2011). Nevertheless, the company’s shares decreased by 26 cents in the third quarter to 66.74 US dollar. As a result, the Coca-Cola Company raised its share purchasing program and the chairman put forth that the company’s objective was to buy 3billion US dollar shares by the end of 2011.

Like any other company, the Coca-Cola Company has gone abroad for growth, especially emerging markets such as China and India (Skidmore, 2011). Globally, the sales volume of the Coca-Cola Company was reported to have increased to five percent, and this was driven greatly by the company’s brand (Skidmore, 2011). In addition to this, the company’s gains were reported to be stronger in emerging markets, encompassing volume increase of seven percent in Latin America and a 19 percent rise in India market (Skidmore, 2011).

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