COCA-COLA: DEFENDING THE MOAT

CEO Strategic Memo

June 2030 | CEO Edition

TO: Coca-Cola Executive Team

FROM: CEO Office

RE: Growth in a Mature Market

Our stock has appreciated 18% since 2023, but growth remains 4% CAGR. Investors expect more.

The Challenge: Soft drink consumption is declining in developed markets. Growth is coming from emerging markets (India, Brazil, Southeast Asia) and non-carbonated segments (water, juice, sports drinks).

The Strategy:

1. Accelerate Non-Carbonated Growth - Target non-carbonated segments to represent 45% of revenue by 2035 (vs. 40% today) - This requires acquisitions and new product development - Brands like Smartwater, Minute Maid, Powerade have better growth profiles

2. Pricing Discipline in Emerging Markets - Continue to raise prices in emerging markets where elasticity is lower - Accept volume declines in developed markets; focus on margin

3. Cost Reduction - Target $1.5B in annual cost reductions by 2033 - This provides offset to volume declines

Financial Target: 5% CAGR revenue growth by 2035 (vs. current 4%)