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Fresca Report


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  • 1. LETTER OF TRANSMITTAL In accordance with our meeting dated September 9, 2007.The following report has been prepared by conducting surveys and analyzing market trends for our expansion programs in Asia and introduction of new range.
  • 2. October 18, 2007 To: Managing Director (COCO COLA Ltd) (Asia Region) By: Lokesh Gupta Saumil Srivastava (Members of Expansion Committee FRESCA Ltd. )
  • 3. INTRODUCTION 1.1 HISTORY Fresca is a brand of citrus soft drink made by The Coca-Cola Company. First introduced in the United States in 1963, the drink is now sold throughout the world, although not widely available outside of North America. It is, as well, a distinct rarity in Coke products, in that it does not have a Pepsi equivalent. Since its inception, Fresca has been marketed in the United States as a calorie-free, grapefruit-flavored soft drink, ostensibly catering to discriminating adult tastes. Fresca underwent its major ingredient change in 1985, when its non-caloric sweetener saccharin was replaced by aspartame. For years Fresca has been having a cult following which consists of people who had grown up with the drink, yet it didn't obtain major global market appeal. Around the turn of the century (2000), however, Fresca grew in popularity somewhat organically, enough so that it was sufficiently popular for Coca-Cola to take notice giving it a huge fan following in whole of North America & Europe. 1.2 Product During this, two new flavors were introduced Sparkling Peach Citrus and Sparkling Black Cherry Citrus and the original grapefruit flavor was renamed Sparkling Citrus.
  • 4. Subsequently, "Sparkling" was dropped from the name of the first two flavours and the original flavour renamed Original Citrus. Fresca means "fresh" in Portuguese, Spanish and Italian. 1.3 NUTRITION FACTS: Serving size one 12 oz can CALORIES 0 (0)% SODIUM 35Mg (1)% TOTAL CARB O g (0)% PROTEIN O g (0)% TOTAL FAT 0 g (0)% Contains phenylalanine. 1.3 SALES FIGURES According to the 2005 Annual Report, Coca-Cola had gallon sales distributed as follows: 27% in the United States 27% in Mexico, India, Japan and China 46% in spread throughout the world .Despite full-year declines, The Coca-Cola Co.'s total sales saw balanced unit case volume growth in the fourth quarter last year, with carbonated soft drinks growing 2 percent, and its other categories growing much larger, such as 12 percent for non-carbonated beverages ( excluding water) and 17 percent for water. Trademark Coca-Cola, Sprite and Fanta grew unit case volume by and 4 percent, respectively, in the quarter. For the full year, both global sales of Coca-Cola and Sprite brands recorded their highest growth rates in five years,
  • 5. Coca-Cola's annual report says. Coca-Cola's net income fell 28 percent to $864 million during the last quarter of 2005, but the drop was not as bad as analysts had expected. Fourth-quarter revenues grew 7 percent to $5.5 billion. Coca-Cola's full-year revenues rose 6 percent during 2005, with a 4 percent increase in case volumes attributed to strong sales in emerging markets such as Indian subcontinent China, Turkey, Brazil and Russia. Full-year income was flat at $4.87 million. For North America, Coca-Cola's carbonated beverages unit case volume increased more than 1 percent in the fourth quarter, reversing negative trends through the first three quarters of 2005. Continued success of Coca-Cola Zero, and Diet Coke according to its annual report. In addition, the launch of new Fresca flavors contributed to unit case volume and share growth in non carbonated beverages during the quarter.
  • 6. Recommendations 1. Looking towards the future, the most important recommendation to Coca-Cola Asia is continuing product innovation and expansion of their product line. The soft-drinks industry is fully saturated with competitors. Also, the industry is no longer expanding, and market share is actually decreasing as more consumers are looking to healthier options. By continually introducing new products, Coca-Cola will be able to increase their profits and allow the company to continue to grow. Also, having a diverse product line will make the corporation very stable,which is appealing to investors and creditors. 2.A second recommendation would be to sustain or increase the global market share. Coca-Cola is very well-established globally, and is the global soft-drinks leader. This is very important to sustain because it is the source of the majority of their profits. If they lose global market share, their profits will decline dramatically.