The once, ubiquitous Coca Cola has seen their global sales fall for the first time since 1999. The sugary brown carbonated water saw global sales slip down by 1% in the first quarter. This may be due to the ever-increasing health kick that the United States and surrounding countries have been pushing. In Mexico, the government has added a new tax on sugary drinks that has driven sales of Coca-Cola down by a mid-single-digit percentage there. This is not good for the company because just as sales have been decreasing in the US for the past 13 years, now they are decreasing rapidly in their second largest market, Mexico. Coca Cola is not good for you and many are recognizing that fact. However, it is not the end of the classic American soft drink. Sales remained high in China and in other emerging markets around the world that are just discovering the sugary, refreshing taste of Coke.
To combat slumping sales Coca-Cola Co. has launched a very intense, aggressive campaign that will cover wide-ranging markets all over the world. They will also focus their efforts on investing in their original, core carbonated drinks because many consumers have stopped drinking their diet sodas. It’s clear that consumers understand that putting fake sugar into their bodies is worse for them than actually consuming the high-calorie, real thing.
The global sales slip, although small right now, indicates that the company could be facing future difficulties. Coca-Cola Co. is based in Atlanta and, up until now, they were able to rely on their name and the heavy nostalgic association that most Americans feel towards the soft drink. Coca Cola has been around since 1886 and has been enjoying and reaping the benefits of being a household name since then. Coke has a strong following and may just need to remind Americans of those glass bottles and happy times of the past. The company gets 70% of their global sales from just soda alone, so it may be time to consider how to keep the soft drink alive, despite the know negative health effects.