Coca-Cola’s strategic and structural transformation boosts profits generated by advertising

Stephen Whiteside

Coca-Cola, the soft drinks giant, has driven an increase in the gross profits generated by its advertising as part of a major transformation program in this area of its business.

The Coca-Cola Co., the soft-drinks giant, saw the return on investment (ROI) from its advertising expenditure bubble upwards following a transformation in its strategy and structure.

The Atlanta, Georgia-based company – which owns brands including Fanta, Powerade and Sprite alongside its eponymous beverage line – reported that the gross profit attributable to a dollar spent on advertising rose by 7% between 2019 and 2021.

Coca-Cola’s global ad budget has topped $4 billion a yearin the recent past, so this percentage uptick is no small feat. James Quincey, Coca Cola’s CEO, discussed the company’s plans going forward at the...

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