Warren Buffett: “It’s Hard to Beat Coca-Cola” by Jay Moye, Coca-Cola Company
Warren Buffett appeared as an unannounced guest at The Coca-Cola Company’s annual shareowners meeting to share his thoughts on the company’s growth prospects, consumer trends and the rebounding U.S. economy during a 20-minute conversation with Coca-Cola Chairman and CEO Muhtar Kent.
Coke’s largest shareowner praised the company’s core business model and unprecedented distribution footprint. “When you’re selling 1.9 billion eight-ounce servings a day, you know you’re doing something right,” he said.
The company’s flagship brand, which posted more than $80 billion in global retail sales in 2014, “brings smiles to people’s faces,” Warren Buffett said. “And as long as you bring smiles to people’s faces at a reasonable price, you’ve got a great, great business.”
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Long-term macroeconomic trends are working in the company’s favor, Warren Buffett noted, with more disposable income leading to more consumers drinking more Coke products more often.
He said the company, which sells more than 3,600 beverages in more than 200 countries, must continue to adapt to evolving tastes and win over the world’s 7 billion potential consumers who will help map out Coke’s path to future growth.
“Every great company listens to its consumers, and this company has done that throughout its history,” Warren Buffett said, citing the 1985 launch of his favorite drink, Cherry Coke, as one example. “It doesn’t require any change in your DNA.”
See full article here by Coca-Cola Company