Coca-Cola’s 20 Billion Dollar Brands & Future Growth

Glaceau Vitamin Water

Glaceau Vitamin Water was acquired by Coca-Cola in 2007 for $4.1 billion. Along with Vitamin Water, Glaceau also sells Smart Water and Fruit Water. The deal was Coca-Cola’s largest acquisition at the time.

At the time of acquisition, Glaceau had annual sales of $350 million. Coca-Cola acquired the company for a price-to-sales ratio of 11.7, more than 10 times the price-to-sales ratio the company paid to acquire Del Valle in the same year.

Coca-Cola quickly grew Vitamin Water into a billion dollar brand after acquiring it. Still, the company paid such a loft valuation multiple for the company that the deal likely should not have been made. Coca-Cola would have been much better off simply repurchasing its own shares than paying $4.1 billion for a brand with $350 million in annual sales; not profits.

Aquarius

Aquarius is the leading sports drink in Japan. Coca-Cola also sells water under the Aquarius brand in various countries. Coca-Cola release Aquarius in 1983.

The brand’s growth model is similar to that of Powerade. Coca-Cola sponsors international sporting events to promote the Aquarius brand. The brand is most popular in Asia, especially Japan.

Ayataka

Ayataka is a calorie free green tea brand sold in Japan and Singapore. The Ayataka brand imitates the experience of drinking traditionally brewed Japanese green tea.

Coca-Cola introduced Ayataka in 2007. By 2012, the brand reached $1 billion per year in annual sales. The Ayataka brand’s success comes from its unique formulation and marketing.

When consumers swirl a bottle of Ayataka, they can see cloudiness and particles inside the beverage. This is a similar experience to authentically brewed green tea in Japan. The Ayataka brand is an on-the-go solution for Japanese green tea drinkers.

Coca-Cola

The Coca-Cola brand is the most popular ready-to-drink beverage in history. Coca-Cola was created in Atlanta, Georgia in1886 by John Pemberton.

The Coca-Cola brand is sold in over 200 countries in the world. Coca-Cola is an iconic brand. It is instantly recognizable around the world.

The Coca-Cola brand needs little explanation. The amazing success of the Coca-Cola brand has resulted in Coca-Cola company’s tremendous growth over the last 100+ years.