The Coca-Cola Company (KO): Making Soda a Treat to Reduce Obesity

Obesity has become a big issue in the last two decades particularly in the U.S. and soft drinks represent a major contributor to it. It seems that big soda companies like The Coca-Cola Company (NYSE:KO) are having a change of heart in the way they perceive their business, at least for starters, they have started acknowledging the fact that sodas make people obese and are taking baby steps into preventing people from drinking an excess amount of it. The Coca-Cola Company (NYSE:KO) recently came up with smaller sizes for its soft drinks, in order to reduce the amount of soda that people consume.

Claire Suddath, Correspondent, Bloomberg Businessweek discussed The Coca-Cola Company (NYSE:KO)’s new obesity campaign on Bloomberg.

“They basically have said that they recognize the fact that they have sold them in sizes that are way too large for people just huge and huge and huge. And so they are starting to sell them in smaller sizes now. You know, they introduced those little mini cans a few years ago and they are really pushing the glass bottles which have seen excellent growth,” Suddath said.

Suddath mentioned that the problem for The Coca-Cola Company (NYSE:KO) is that it’s selling the larger sizes despite introducing the smaller sized containers and the company is not going to stop producing the large sized soda bottles as they make up 75% of the business of The Coca-Cola Company (NYSE:KO). Suddath also said that in her meetings with The Coca-Cola Company (NYSE:KO)’s senior executives, they have accepted the mistake that The Coca-Cola Company (NYSE:KO) contributed to the obesity problem in the U.S. and that they are ready to move on from it by making amends.

“Around the world they are doing pretty well, but in the U.S. their new tactic is the smaller sizes will cost a bit more per ounce, so, their hope is that if more people drink it, but just in the smaller sizes they will be able to make more money,” Suddath added.

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