Back
VCGuy
Believe me, it’s not... • 1d
I was always curious why Coca-Cola doesn’t own its bottling infrastructure. They run a franchise bottling model- ⤷ It sells concentrate syrup to bottling partners, who handle manufacturing, packaging, logistics, and distribution. The parent company focuses on brand + marketing → bottlers invest in capex-heavy infrastructure. ⤷ Coca-Cola’s avg Return on Capital: ~30% ⤷ Bottlers operate at ~10–12% (rare established bottle operators could be making higher teens) (managing a global brand and managing bottling are fundamentally different businesses) What initially started as a workaround became a core advantage - a). Bottlers bring deep regional knowledge → pack sizes, pricing, and delivery models vary by market b). Local execution allows innovation without compromising brand consistency c). The global network stays aligned through long-term franchise agreements d). Coke avoids asset-heavy operations while retaining control over marketing + product standards Outsourcing the low-return part of the business while owning the high-return brand machine. ⏭️Founded in 1886, Coca-Cola serves 2.2 billion drinks/day ⇨ present in every country except North Korea and Cuba.
Replies (1)
More like this
Recommendations from Medial
Tushar Aher Patil
Trying to do better • 2m
How Coca-Cola reaches consumers globally: the Coca-Cola bottling system. While The Coca-Cola Company primarily sells the product, the actual bottling is handled by numerous independent and franchise-based bottlers worldwide. The Coca-Cola Company foc
See More
Jayant Mundhra
•
Dexter Capital Advisors • 2m
Whenever we talk of the Indian cola space, we generally discuss how Mukesh Ambani’s Campa is ravaging the markets 🙏🙏 But what’s even more interesting is how much is changing with Coca-Cola’s India bottling ops. Let me explain bit by bit. .. Fir
See More
gray man
I'm just a normal gu... • 4m
Coca-Cola’s largest bottling partner in India, SLMG Beverages, has announced a massive investment of over $1 billion (approximately ₹8,700 crore) as part of an ambitious expansion plan in Uttar Pradesh and Bihar. This investment will be directed to
See More
Download the medial app to read full posts, comements and news.