Coke profits down 8% but remains 'committed' to marketing investment
Coca-Cola has today reported an 8.4% decline in its fourth quarter net income to $1.7bn, but insists it is "committed to accelerating marketing investments" in its brands, advancing innovation strategies and maximising reinvestment for growth.
Coca-Cola: 'live like grandpa' TV campaign
The company is planning on expanding its productivity and reinvestment programme to drive an incremental $1bn in productivity by 2016, which it said would be primarily redirected into increased media investments.
As part of this, Coke said it will "transform" its marketing and commercial model to "redeploy into more consumer-facing marketing investments to generate the highest possible return and accelerate growth".
"Productivity is a core pillar of our 2020 Vision", the company said in a statement, showing that the goal of increasing its incremental productivity investments is to reinvest in global brand building initiatives, with an emphasis on increased media spending.
Coke released both its full year and fourth quarter results today. It said the group's volume grew 1% in Europe for the three months to 31 December, and 1% for the overall year.
The company said the consolidation of the Innocent branded juice and smoothie business contributed "significantly" to net revenues in both the quarter and the year.
Chief executive Muhtar Kent said: "While we move forward in what remains an uncertain global economy, the long-term fundamentals driving our business and industry have not changed.
"A rising middle class, greater urbanization and increasing personal consumption expenditures in markets around the world will continue to drive greater demand for our beverages as consumers look for moments of refreshment.
"As we work to restore momentum in our business during 2014, we see many reasons to believe we can accelerate our growth and achieve our 2020 Vision.
"We are committed to accelerating marketing investments in our brands, further advancing our innovation strategies and maximizing productivity and reinvestment for growth."
This article was first published on marketingmagazine.co.uk
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