Overall, in 2013, still beverages performed better than sparkling beverages across all the segments except for Europe. Sparkling beverage volumes have been declining over the past few years.
Sparkling beverages, or carbonates, are a mature category of the soft drink industry. Carbonates are losing their popularity as consumers become more particular about calories in their drinks.
The Coca-Cola Company (KO) and Pepsico, Inc. (PEP), are dominant players in the soft drinks market. Both companies own a strong portfolio of liquid refreshments and several brands.
Stagnant carbonated drink sales in developed markets have made soft drink makers like The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP), look for opportunities in emerging markets.
The Coca-Cola Company (KO) is entering into key partnerships that will help it expand its portfolio in growing beverage categories and reduce its dependence on regular carbonates.
According to Beverage Digest, US carbonated soft drinks (or CSD) volume declined by 3% in 2013 to 8.9 billion 192-ounce cases—back to 1995 levels.
The Coca-Cola Company (KO) has been implementing several efficiency initiatives to offset the impact of adverse market conditions and declining demand for carbonated soft drinks.
In 2013, Coca-Cola spent $3.37 billion, or 7.0% of it’s 2013 revenues, on advertising—including in-store activations, loyalty points programs, and point-of-sale marketing.
Coca-Cola enjoys huge popularity across the world. The company ranked third in Interbrand’s 2014 world’s most valuable brands list, with an estimated brand value of $81.6 billion.
The Coca-Cola Company (KO), founded in 1892, is the world’s largest soft drink maker. It sells more than 3,500 products worldwide.
Gol expanded further into international markets. Its improved operational performance in FY14 will be further catalyzed if Brazil’s economy recovers as expected in FY15.
Gol is exposed to currency risk, as ~72% of the 3Q14 debt was denominated in foreign currency. However, this was reduced from ~76% in 3Q13.
Gol’s financial assets decreased in 3Q14, but its cash balance increased to 1,942 million real from 1,636 million real in FY13.
Using a single aircraft type reduces disruption of operations due to maintenance efficiencies. The airline reduces training costs with standardized pilot training and maintenance routines.
Gol’s operating income turned positive in FY13 after reporting losses for two consecutive years.
Fuel costs for Brazilian airlines comprise 40% of total operating costs, which is higher compared to US airlines.
Aircraft fuel cost has been the largest cost component, comprising ~42% of Gol’s total operating expenses in FY13.
Interline and codeshare agreements enable Gol to add more routes for its customers’ convenience, encouraging expansion in international markets.
Brazil is the third largest domestic aviation market. With double-digit traffic growth, Brazil was one of the fastest-growing domestic markets in 2010 and 2011.
In 2013, while Gol’s passenger revenue increased at a rate of ~13%, revenue from cargo and other sources decreased by ~12%.