Coca-Cola eyes growth in emerging economies, Fairlife brand expansion

USA – The Coca-Cola Company is positioning itself for sustained global growth, focusing on emerging markets internationally and domestic expansion of its fairlife dairy brand.

According to James Quincey, chief executive officer, the company aims to achieve 4% to 6% annual organic sales growth through a balanced strategy of volume and pricing adjustments.

Speaking on December 3 at the Morgan Stanley Global Consumer and Retail Conference, Quincey emphasized the significant role emerging economies will play in Coca-Cola’s growth trajectory.

He noted that developing markets account for 80% of the global population, yet consumer habits differ significantly between developed and developing economies.

“Consumers in developed economies probably pay for seven or eight out of every 10 drinks they consume,” Quincey said.

“Consumers in developing and emerging economies only pay for about two out of every 10 drinks they consume. So the vast majority of the industry is yet to be created.”

Quincey further highlighted that Coca-Cola anticipates greater volume growth in emerging markets compared to mature economies.

Countries such as India, despite short-term fluctuations, continue to demonstrate consistent long-term growth. Similarly, Nigeria, though volatile within shorter cycles, remains a market with promising volume potential.

However, geopolitical challenges in certain regions have presented obstacles for Coca-Cola and other US-based companies.

As reported by Quincey, ongoing conflicts in the Middle East have led to consumer hesitation toward international brands, particularly those linked to the United States.

This impact has extended to markets like Turkey and some Southeast Asian Muslim countries, creating temporary setbacks for Coca-Cola’s brand performance.

Domestically, Coca-Cola’s investment in the fairlife brand underscores its commitment to the US dairy sector.

The company is allocating US$650 million toward the construction of a 745,000-square-foot production facility in Webster, New York, aimed at scaling fairlife’s operations.

Quincey described the brand’s steady rise as “an overnight success 12 years in the making,” noting its consistent growth trajectory over the past decade.

Unlike Coca-Cola’s carbonated beverages or bottled water, fairlife’s expansion will remain concentrated in the United States due to the local nature of the dairy industry. “It’s not as easy to export as a Coke or a BodyArmor or a water,” Quincey explained.