Sure, Coca-Cola‘s (NYSE: KO) most famous drinks are its eponymous colas in various flavors and packaging. But Coca-Cola has a brand assortment with 200 labels that you may or may not realize are owned the by largest beverage company in the world. And some of them are the top names in their own categories.
Coca-Cola has the best … water?
Coca-Cola operates six distinct beverage segments in its non-alcoholic, ready-to-drink business. These include sparkling soft drinks; juice, value-added dairy and plant-based beverages; water, sports, coffee, and tea; energy drinks; hot beverages; and emerging.
You likely drink or at least know of Coca-Cola sparkling labels, such as Sprite and Fresca, and some of its juices, like Minute Maid. Dasani, the top-selling water brand in the world, also falls under its umbrella.
Coca-Cola’s business thrives on two key operating principles: Coca-Cola and other signature brands bring in the cash, while newer innovations bring in the growth. Coca-Cola the brand is still growing and accounts for significant volume but not the majority. The company needs the contributions from its other brands that keep Coca-Cola at the top of its game and in the leading position in the beverage industry.
The company introduced Dasani in 1999, and over the past 24 years, it has become the top-selling water brand in the world. It also owns SmartWater and AHA.
Bringing you the best in beverages and dividends
Dasani’s leading position in water isn’t insurmountable, but it’s strong. Coca-Cola has an unmatched distribution network and robust marketing machine that keep it in stores and on customers’ minds, leading to high sales and profits. The company uses the proceeds to fund new brands and ideas that can become the next Fresca or Dasani, and it uses lots of its cash to keep shareholders happy with its famous dividend.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Like Bottled Water? You Might Love Coca-Cola Stock was originally published by The Motley Fool