Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0037

Year : 2004

Industry : Beverages

Region : USA

Teaching Note:Available

Structured Assignment :Available

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Introduction:For years, consumers have been moving away in droves from carbonated drinks to juices, bottled water and other non-carbonated beverages. In the US alone, the non-carbonated drinks market grew by 8% in 2003 compared to the previous year, while carbonated drinks consumption grewby less than 1% between 1998 and 2003. Atlanta-based Coca-Cola, the world's top beverage makers and owning roughly half of the global beverage market, also succumbed to this change. Since the late 1990s, the company has experienced stagnating growth and flat profits due to saturation of carbonated markets.

Beverages outside the purview of carbonated beverages began contributing to a large portion of its growth. To capture the growing non-carbonated segment, Coca-Cola began focusing its attention on developing new beverages to reinvigorate its growth. After decades of focusing almost exclusively on carbonated drinks, the company has incorporated a cultural shift to move beyond carbonated beverages into the non-carbonated arena.