Visualised: CPG Cost Breakdown
2 dollars on shelf. How much into Coca-Cola's pocket?
Commentary:
Nothing new about Coca-Cola. It has been going since the 1800s. It’s so old that its name refers to a time when cocaine was a constituent of the drink!
But it’s a product which everyone is familiar with, and will provide a useful frame of reference against which new business models and concepts will be evaluated.
As much as possible I have relied on information available from Coca-Cola’s reported financial information. Where this is not enough, I have turned to Nestle (which being Europe based has slightly different reporting requirements) or online research. This bottom-up research aligns with my instinct from years spent working in CPG.
Sources:
https://investors.coca-colacompany.com/financial-information
https://www.strategyand.pwc.com/gx/en/insights/zbt-for-cpg-leaders.html
https://s2.q4cdn.com/056532643/files/doc_financials/2021/ar/WMT_2021_AnnualReport.pdf
https://daxueconsulting.com/genki-forest-china-market-strategy-2/
https://www.nestle.com/sites/default/files/2020-02/2019-financial-statements-en.pdf