|By Marketwired .||
|September 3, 2014 02:18 PM EDT||
MIAMI, FL--(Marketwired - September 03, 2014) - Despite a shift in drinking habits fueled by a growing concern over obesity, Coke doubles down on red. Coca Cola, the world's major beverage company, is upping its $3.3 billion marketing spending by $1 billion over the next three years. The gamble could prove costly, especially since U.S soda volumes dropped by 2% in 2013, a big deficit since the company derives 75% of its global sales volume from carbonated soft drinks
Gonzalo Lopez Jordan, manager of Patagonia Financial Holdings, a Miami based private equity firm, commented on the issue "Trends have long been shifting towards healthier drinks in America thus Coke has to either grow in emerging markets or expand revenues through acquisitions". Santiago Steed, a co-manager at the same firm, added, "Coke has huge cash reserves which it can deploy towards acquiring beverage companies that operate in other areas outside the soft drinks market".
According to Euromonitor, soda volume rose only 0.9% worldwide last year thus deriving more revenue from areas such as tea and coffee, where coke is a minor player, could prove much more beneficial.
Coke's cash and short-term investments, which could be liquidated quickly, totaled $17.12 billion at the end of December so a strategy of growth by diversifying product lines could very well be achieved. Pepsi, its major competitor, has long been relaying on inorganic growth to meet shareholder expectations.
Additionally, Coke could also develop a new line a products which should boost profits significantly. "We have seen the energy drink market explode in recent years", said Gonzalo Lopez Jordan. "I agree, Coke has to allocate resources effectively; perhaps the solution is R&D, not marketing", added Santiago Steed.
ABOUT PATAGONIA FINANCIAL HOLDINGS
Patagonia Financial Holdings is a private equity firm headed by Gonzalo Lopez Jordan and Santiago Steed. The firm has over $500 million of deployed capital, primarily focused on structuring value-oriented and special situation investments.
Based in Florida, American Regional Center Group LLC (ARCG) was founded in partnership with Patagonia Financial Holdings LLC (PFH) to provide sound and reliable EB-5 investment opportunities for foreign investors and their families who wish to obtain permanent residency in the United States.
Patagonia Financial Holdings is headquartered at 1200 Brickell Avenue, Suite 1950, in the heart of Miami's Financial District.
For more information, please visit www.patagoniafinancial.com
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Dec. 3, 2016 11:00 PM EST Reads: 4,121
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 11:00 PM EST Reads: 941
Dec. 3, 2016 09:30 PM EST Reads: 1,759
Dec. 3, 2016 09:30 PM EST Reads: 1,597
Dec. 3, 2016 08:00 PM EST Reads: 1,742
Dec. 3, 2016 08:00 PM EST Reads: 3,950
Dec. 3, 2016 06:15 PM EST Reads: 1,510
Dec. 3, 2016 05:30 PM EST Reads: 4,040
Dec. 3, 2016 05:15 PM EST Reads: 2,137
Dec. 3, 2016 05:15 PM EST Reads: 1,998
Dec. 3, 2016 04:30 PM EST Reads: 1,473
Dec. 3, 2016 04:00 PM EST Reads: 4,859
Dec. 3, 2016 03:30 PM EST Reads: 1,591
Dec. 3, 2016 03:15 PM EST Reads: 3,222
Dec. 3, 2016 03:00 PM EST Reads: 477