Coke wants to drink up more beverage market share, looking beyond fizzy drinks

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The Coca-Cola Company (NYSE:KO) is looking past its distinctive namesake product, introduced to the world in 1886, and today considers itself a “total beverage company.” Since the first glass of Coke was savored in Atlanta, when Dr. John Pemberton’s syrup was converted into a drink at Jacobs’ Pharmacy with the addition of carbonated water, Coke has taken the world by storm. Initially served as a soda fountain drink, for five cents a glass, at the Atlanta pharmacy, the fizzy beverage is now available pretty much across the world and is a well-recognized symbol of American capitalism.

Today, the company, going with the slogan “refresh the world, make a difference,” describes itself as a “total beverage company focused on crafting loved brands and offering a range of drink choices for all lifestyles and occasions, including still and sparkling soft drinks and water, dairy, fruit juices, sports and plant-based drinks, teas and coffees.” The company even has a presence in the alcoholic beverage market.

Coca-Cola’s offerings dominate the carbonated soft drink market, enjoying a 69% market share in the U.S, in 2023, with Pepsi’s brands trailing behind in a distant second place with a 27% market share. And Coca-Cola’s portfolio encompasses more than 200 brands, including its recent introduction of a “Simply Pop” lineup of prebiotic sodas that the company says is made from fruit juice concentrate and has no added sugar. The company also provides marketing support and aids sales of other beverage brands, such as Monster, through joint ventures, licenses and other “strategic relationships.”

The S&P 500 dividend aristocrat, which has been steadily raising its annual dividends for years, also has a big Warren Buffett presence, with his Berkshire Hathaway company owning about a 10% share in Coca-Cola as of mid-2024. It is also Coca-Cola’s biggest shareholder. What’s important for investors though is what the future prospects for the company are. Will it continue to drink up market share and satisfy their thirst for returns?