Coca-Cola’s business model is simple:
Our Company markets, manufactures and sells:
- beverage concentrates, sometimes referred to as ‘‘beverage bases,’’ and syrups, including fountain syrups (we refer to this part of our business as our ‘‘concentrate business’’ or ‘‘concentrate operations’’); and
- finished sparkling and still beverages (we refer to this part of our business as our ‘‘finished products business’’ or ‘‘finished products operations’’).
Generally, finished products operations generate higher net operating revenues but lower gross profit margins than concentrate operations.
The quote above is cited from page 3 of Coca-Cola’s 2010 Annual Report on Form 10-K filled with the SEC on 02/28/11. This text is referenced within their 10k document at least 10 times to explain the impact of various business decisions made throughout the year on Coca-Cola’s gross profit margins. Continue reading “Why you need to add some Coca-Cola Syrup to your Business Model”