Coca-Cola has been sitting on top of the global fizzy drink industry, much like Cristiano Ronaldo being the undefeated king of world football. What happens when two undefeated kings come face to face? They collide, and one of them is bound to go down.
In this case, unfortunately, it was Coke that had to suffer the business wrath as Ronaldo casually stretched his arm to reach the two Coke bottles in front of him at the Euro 2020 press conference podium and replaced them with water.
The video went viral in no time, with the media falsely claiming that the gesture alone was responsible for the brand losing billions on the stock market. But even though such claims were dismissed, one is bound to question the bad rep that Coca Cola faced despite being one of the top sponsors for the European Championship.
After all, sports personalities like the Portugal captain with over 550 million social media followers are beyond the control of any sponsorship and may proceed to do as they please with whatever they want. With that heavy influence over that whopping amount of people, fans who back you up in every move you make, one can only imagine the power that comes with it.
However, despite whatever the power dynamics there might be, one can’t help but think that is Coca-Cola really losing its charm and finally being thrown off from the monopolistic throne of fizzy drinks it reigns over. The truth may surprise you.
Coca Cola – The Brand
Undeniably, anybody who has ever thought of owning their own beverage company has idealized Coca Cola as the brand to look up to. After all, even after decades of operating, Coca-Cola still retains its title as the most valuable soft drink brand, taking up 20% of the YS$37 billion brand value. Even though in close competition with Pepsi, Coke still validates its position whenever Pepsi suffers a drop in its brand value and Coke doesn’t even budge. With a Brand Strength Index or BSI of 90 out of 100 and corresponding AAA+ brand strength, Coca-Cola is the world’s strongest brand across the board for the food and non-alcoholic beverage sector. Therefore, as per the brand’s value and strength, one can never question if Coca-Cola has lost its charm.
Coca Cola Products
This one fact about Coca-Cola will likely blow your mind as the brand is known for owning up to 3500 beverages and 500 separate brands under its banner. From snacks and confectionery to water, energy drinks, and soy-based products, Coca-Cola has a diverse product portfolio competing with big names in the global food and beverage industry. The best part is that despite so many products to maintain quality and name with, Coca-Cola still shows up in the top names when listed. This proves that even though the company has a large variety of products, Coca-Cola has very much retained its charm and may keep it going for many years to come.
Coca Cola Market Valuation
Don’t go believing the false narrative that was recently created attributing Ronaldo’s gestures to the stock market decline faced by Coke the very same day. The reason now sighted has been that the market was already downplaying the stocks that day, with even Ford losing $2 billion in market value. Hence, even though these confounding events have resulted in the Coke stock losing value, the gesture alone wasn’t responsible. One can’t deny that Coca-Cola is too strong of a brand to have its market valuation lowered by Ronaldo single-handedly. With almost $36 billion in revenue valuation, Coca-Cola stands 84th on the list of the world’s largest economies alongside Costa Rica, a fully-fledged country.
Coca Cola – The Drink Itself
This may be a biased opinion depending on people who enjoy drinking Coke and those who don’t. However, a whopping majority speaks for itself and hails Coke as the fizzy drink king. People have gone as far as claiming Coke to be an alternative to water for them even though it might result in serious health implications. But the fanatics can’t seem to care less as, despite numerous research findings, people continue to buy Coke as their very first preference when asked about a drink.
Bottom Line
Even though Ronaldo’s gesture had stirred up the media quite a bit, the Coca-Cola brand has gone untarnished. It has emerged victorious yet again despite backlash and pressure from fellow brands and companies citing all sorts of reasons. It shows many people in the beverage development industry that if you hope to have your own beverage company one day, a giant is sitting on top, dictating how the industry works.
Have an idea for a beverage you think can become a public favorite like Coke? Don’t keep it in your diary– share it with our team at Drink Labs. We are a curated team of beverage scientists, graphic designers, and operation specialists working together to bring your beverage ideas to life. Our expert team creates unique formulas, helping you create a viable brand from the ground up. Contact us for more details.
SOURCES:
https://www.businessinsider.com/facts-about-coca-cola-2011-6