Giant beverage manufacturer The Coca-Cola Company (NYSE: KO) spent a record of $4.24 billion on global advertising in 2019 alone. Data gathered by Learnbonds.com further indicates that the company’s advertising budget for the last five years was $20 billion.
In most instances, the Coca-Cola advertising budget is usually utilized in print, radio, television and other advertisements, marketing campaigns, point-of-sale merchandising and sales promotion.
From the data, Coca-Cola has spent an average of about $4 billion annually advertising over the last six years. It is worth noting that the advertising budget is for global operations but the United States market accounts for about 20% of the total budget.
In 2018, Coca-Cola used $4.11 billion on advertising and marketing, an increase of 3.6% from the $3.96 billion spent in 2017. The 2017 budget slightly dropped compared to 2016 when the soft drinks manufacturer spent $4 billion on advertising.
In 2015, the Coca-Cola advertising budget stood at $3.98 billion, an increase of about 12% from the $3.5 billion used the previous year.
The huge Coca-Cola advertising budget reflects the innovative and appealing advertising campaign nature of its ads. Additionally, advertising has placed the company among the most valuable brands globally.
The Coca-Cola brand has been present through the traditional advertising platforms and recently, the company has been utilizing social media platforms like Facebook and YouTube. For example, the company’s YouTube channel has amassed over 2 billion views to date.
Coca-Cola ’s net operating income grows by 7.9%
Coca-Cola’s $4.2 billion used in 2019 for advertising reflected the increase in net income recorded at the end of the year. Last year the American firm recorded a net operating income of $37.6 billion with $10.08 billion in operating income. The income was an increase of about 7.9% from $34.3 billion recorded in 2018.
Net operating income refers to the annual income generated by an income-producing company after taking into account all income collected from operations and deducting all expenses incurred from operations. On the other hand operating income measures the amount of profit realized from a business’s operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold.
Between 2009 and 2019, Coca-Cola had a net operating income of $447.455 billion with operating incoming standing at $101.879 billion.
Coca-Cola’s net operating income took a slump in 2018 when it recorded $34.3 billion, a drop of about 5.2% from $36.212 billion registered in 2017.
In 2016, it was the last time Coca-Cola recorded a net operating income of over $40 billion. During this period, the income was $41.863 billion which was a drop of 5.4% when it recorded $44. 294 billion in 2015.
In 2014, Coca-Cola’s net operating income was $45.998 billion a drop of 1.8% $46.854 billion registered the previous year.
Over the last decade, Coca-Cola’s net operating income started declining in 2013 when it registered $46.854 billion. This was a drop of 2.4% when it registered $48. 017 billion in 2012, notably, this was the period when Coca-Cola recorded the highest net operating income in the last 10 years.
Coca-Cola ’s highest net operating income growth was between 2010 ($35.11 billion) and 2011 ($46.542 billion) period. The net operating income grew by 24.5%. Elsewhere 2009 was lowest for Coca-Cola’s net operating income with $30.99 billion being registered.
Interestingly, when Coca-Cola registered the highest net operating income in 2012, the company had the highest number of employees worldwide at 150,900. Between 2007 and 2019, Coca-Cola’s lowest employee figure was in 2017 at 61,800.
In general, the number of Coca-Cola employees were on a decline from 2013 to 2018. In 2013, the company had employed 130,600 employees and by December 31, 2018, the employees were 62,600. This was a decline of 52%.
In 2019, the number of employees grew by 27.3%. The employees are posted at Coca-Cola’s global operating firm in Atlanta’s corporate division, and about 300 bottling partners worldwide.
Coca-Cola’s packaging environmental pollution concerns
The product range of Coca-Cola comprises non-alcoholic beverages such as soft drinks, bottled water, sports drinks, and energy drinks.
The company’s soft drink market dominance has been undisputed for years now. However, Coca-Cola is facing an uphill task regarding environmental pollution related to its plastic bottles. A recent study shows that Coca-Cola bottles and cans are the most commonly found items of packaging pollution on British beaches accounting for 12% of all litter.
Coca-Cola maintains that it will not do away with the packaging as consumers prefer plastic bottles. As a result, Coca Cola has embarked on a recycling initiative with Sweden becoming the flagship country. From 2020, Coca-Cola will make all of its plastic bottles from 100% recycled material.