Tuesday, February 18, 2014
Long-term Crisis
Coca-Cola's sales are falling in the US as people cut back on sugar and fructose in drinks. Coke can fight the trend or find other avenues to grow. Either way, it faces a long-term challenge to grow revenues to replace what it is losing in soft drinks. The company's problem is a long-term crisis, one that it can watch unfold slowly from year to year. One could say that is a benefit because Coke isn't losing most of its market at once. On the other hand, there will be a temptation to ride down the curve as long as most of its revenue comes from colas. That could put it in the same bind that Kodak faced as the film business went away. Kodak had no major revenue streams to rely on. Coke could be facing the same result. From a PR perspective, it is not a pleasant position to be in.
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