Coke's Water Purchase Could Pay Off


	Coke's Water Purchase Could Pay Off

Tom Van Riper

4-1-2008 10:24 AM

598 views

Tom Van Riper says:

Coca-Cola paid a hefty $4.1 billion for relatively unknown enhanced water company Glaceau, the maker of Vitaminwater. But with sales of carbonated drinks falling for a third straight year, the company's massive marketing and distribution systems could bring big dividends from Glaceau.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/0e9a9648-85ba-49d8-9d06-9048666b68df/3E966D7F-3E72-49E7-A224-2B6AC8C3C898/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.ajc.com/business/content/business/coke/stories/2008/03/31/glaceau_0331.html" href="http://www.ajc.com/business/content/business/coke/stories/2008/03/31/glaceau_0331.html" style="font-size: 11px;">www.ajc.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ajc.com/business/content/business/coke/stories/2008/03/31/glaceau_0331.html"><P>The <A href="http://www.ajc.com/business/content/business/coke/index.html?cxntlid=linkr">Coca-Cola Co</A>.'s $4.1 billion purchase last year for Glaceau, an enhanced-water firm, was viewed by some industry experts as a hefty price for grabbing market share in an emerging segment.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ajc.com/business/content/business/coke/stories/2008/03/31/glaceau_0331.html"><P>But after posting a fourth straight year of triple-digit volume growth, Glaceau says it sees more opportunity ahead as its lineup, anchored by Vitaminwater, gets pushed further into the massive Coca-Cola distribution system.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ajc.com/business/content/business/coke/stories/2008/03/31/glaceau_0331.html"><P>The long-term measure of Coca-Cola's acquisition of Glaceau will be whether it holds onto this leadership position and premium image as this segment expands, Swartzberg said.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/3E966D7F-3E72-49E7-A224-2B6AC8C3C898/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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