[Annotated] Coca-Cola's new boss tries to move beyond its core product

More governments see its sugar-laden^[각주:1] products as a scourge^[각주:2]

Few companies are as defined by a single product as Coca-Cola. The firm has sold the sweet dark soda since 1886. At its headquarters in Atlanta, archives^[각주:3] house^[각주:4] the advertisements that sowed Coke in^[각주:5] the world's consciousness^[각주:6]: posters urging consumers to^[각주:7] "Have a Coke and a Smile"; Norman Rockwell's 1935 painting of a boy fishing, Coke bottle in hand; a Coca-Cola record with tunes^[각주:8] sung by Ray Charles, Aretha Franklin and The Who; advertisements with a red-coated^[각주:9], bearded Santa Claus - it was Coca-Cola that popularized^[각주:10] the image of Santa in the 20th century. 

Today Coca-Cola has $42bn in revenue^[각주:11] and is available "within an arm's reach of desire", as the firm puts it, in every country but Cuba and North Korea. Its distribution^[각주:12] is so broad, its marketing so expert that the Gates Foundation has urged vaccine campaigns to^[각주:13] mimic its strategy. The question for James Quincey, an insider^[각주:14] who took over as^[각주:15] CEO this month, is whether Coca-Cola can move beyond Coke. 

The company is under pressure. A growing number of governments see its main product as not an icon but a scourge, and have introduced soda taxes. Coca-Cola must adapt^[각주:16] as^[각주:17] shoppers switch to^[각주:18] buying more online. Meanwhile, investors want its 24% profit margin to expand. Jorge Paulo Lemannm the founder of 3G, a private-equity firm^[각주:19] that is stalking^[각주:20] the consumer-goods industry^[각주:21], has quipped that^[각주:22] he could run Coca-Cola with 200 staff.

Efficiency measures are already being taken, including a plan, expanded last month, to save $3.8bn by 2019. Selling off^[각주:23] Coke's vast network of bottlers^[각주:24] - together, Coca-Cola and its many bottlers amount to^[각주:25] the world's biggest consumer company - could mean revenue plunging by^[각주:26] more than $7bn this year. The idea is that the firm will become more agile^[각주:27] and profitable as a result^[각주:28].

But the most important and risky shift^[각주:29] is Coca-Cola's effort to diversify^[각주:30]. "The company has outgrown^[각주:31] its core brand," Mr Quincey said in February. Until 1955 the company sold only Coca-Cola, either in soda fountains or in small bottles. Its soda strategy thereafter^[각주:32] might be summarized as^[각주:33] Coca-Cola squared^[각주:34]: the company sold more, bigger containers of Coca-Cola and other fizzy^[각주:35] products like it, such as Sprite and Fanta. The greater the volume of soda that bottlers sold, the more money they made. Managers within Coca-Cola were rewarded for^[각주:36] boosting volumes^[각주:37], too. The result is impressive. Last year Coca-Cola accounted for about half of all soda drunk around the world, according to Euromonitor, a research firm. 

However, in many countries the market for fizzy drinks looks increasingly flat^[각주:38]. In America the consumption of soda per person peaked^[각주:39] in the late 1990s, at nearly 53 gallons per person, and has since declined to about 75% of that level. Last year volumes of Diet Coke, once seen as a fix^[각주:40] for more health-conscious^[각주:41] consumers, dropped by 4.3%, according to Beverage Digest, as shoppers grew wary of^[각주:42] artificial sweeteners^[각주:43]. Volumes of bottled water^[각주:44] in America exceeded^[각주:45] those of carbonated^[각주:46] soft drinks for the first time in 2016. Soda-makers must deal with restless^[각주:47] governments. France, Norway and the American cities of Philadelphia and Berkeley are among those with taxes on sweet drinks. Britain will introduce its own tax next year.

Muhtar Kent, the CEO who preceded^[각주:48] Mr Quincey, began to address these problems. The company is reducing sugar in some sodas, though not in original Coca-Cola. It has also invested in other types of drinks. For instance Coca-Cola recently bought AdeS, a soy drink, from Unilever, an Anglo-Dutch conglomerate^[각주:49]. It is also developing products internally, such as Gold Peak iced tea, whose annual sales now exceed^[각주:50] $1bn.

Mr Quincey wants to speed^[각주:51] the growth of such new offerings^[각주:52], as well as to bolster^[각주:53] the firm's existing products^[각주:54]. "The direction of travel is clear," he says. "If we are truly doing our jobs, we will have a broader portfolio^[각주:55]." In his prior^[각주:56] roles Mr Quincey expanded its range of products, for example through the acquisitions of Innocent, a British maker of^[각주:57] "smoothie" fruit drinks, and Jugos del Valle, a Mexican juice company. Nevertheless, soda still accounts for 70% of Coca-Cola's volume^[각주:58]. That is down from nearly 90% in 2000 but still an extremely high share. Pepsico, Coca-Cola's chief rival, has long had a more diversified^[각주:59] portfolio of drinks and snacks.

A business unit called Venturing & Emerging Brands, or VEB, is trying to find other promising new drinks. In a VEB conference room^[각주:60] in Atlanta, shelves are stacked with^[각주:61] bottles touting^[각주:62] everything from fermented drinks^[각주:63] and coconut water to hemp^[각주:64] iced tea and an "aloe vera drink with pulp^[각주:65]". Most are not Coca-Cola brands, but the company is keeping a close eye on^[각주:66] them. "There is a tremendous amount of innovation and entry into^[각주:67] our market," says Mr Quincey.

VEB acts as^[각주:68] a sort of venture-capital firm^[각주:69] and incubator^[각주:70]. Sometimes it takes a stake in^[각주:71] an external venture-capital firm, which enables Coca-Cola to make indirect investments^[각주:72] in young brands. In other instances the unit backs^[각주:73] a company directly and then helps it in areas such as sourcing^[각주:74] and distribution^[각주:75]. For example, in 2015 it invested in Suja Life, a maker of "cold-pressured" juice - and increasingly Suja's "Master Cleanse" is, for better or worse, within an arm's reach of desire. VEB is now due to^[각주:76] expand to Asia.

There are risks. Marketing has been Coca-Cola's strength and whether that magic will keep its old oomph^[각주:77] when sprinkled across^[각주:78] dozens of brands remains to be seen^[각주:79]. Traditional soda is usually more profitable than alternatives, says Ali Dibadj of Sanford C. Bernstein, a research firm, largely because healthier brands' ingredients cost more. Bottled water has seen greater growth than any other drink, but it has particularly slim margins^[각주:80]. Coca-Cola insists that it can broaden^[각주:81] its portfolio^[각주:82], profitably, by focusing on premium drinks: for instance the company's "smartwater" brand is enriched with^[각주:83] electrolytes^[각주:84]. 

As for the firm's traditional products, Coca-Cola is seeking higher volumes in young markets and higher profits in old ones. To propel growth in^[각주:85] India, for example, it has developed a new bottle to keep its soda fizzy^[각주:86] despite long and bumpy^[각주:87] journeys. And in developed markets, where volumes are stable at best, Coca-Cola is making bubbly^[각주:88] drinks more profitable through a mixture of^[각주:89] higher prices and smaller packages.

From investor's point of view, the firm's strategy is strongly reminiscent of^[각주:90] the way in which Big Tobacco has coped with^[각주:91] the stigmatization of^[각주:92] its unhealthy legacy^[각주:93] product. To be sure, even Coca-Cola's most sugary^[각주:94] drinks are like leafy^[각주:95] kale^[각주:96] compared with cigarettes. Yet like tobacco firms investing in e-cigarettes^[각주:97] and lifting the cost of packs^[각주:98] to consumers, Coca-Cola is diversifying into^[각주:99] healthier beverages and raising prices for its traditional drinks. The resemblance to^[각주:100] tobacco, says Mr Dibadj, is what makes the firm such a compelling^[각주:101] investment right now - though not one that the company's new boss or its legions of accomplished marketers^[각주:102] are likely to tout^[각주:103].

1. laden ; 3. -laden (형용사를 형성하여) …이 가득한 [본문으로]
2. scourge ; 1. [주로 단수로] ~ (of sb/sth) (격식) 재앙, 골칫거리 [본문으로]
3. archives ; [명사] 공문서, 기록 보관소 [본문으로]
4. house ; 2. KEEP STH | 보관[수용/소장]하다 [본문으로]
5. sow ; 2. [타동사][VN] ~ sth (in sth) (특히 문제의 소지가 있는 감정・생각 등을) 심다[싹트게 하다] [본문으로]
6. consciousness ; 3. (한 사람이나 단체의) 생각[의식] [본문으로]
7. urge ; 3. [타동사][VN + adv. / prep.] (격식) (사람・동물을) 재촉하다[재촉하며 몰다] [본문으로]
8. tune ; [C] 곡, 곡조, 선율 ;; 참고 signature tune, theme tune call v., change v., dance v., pay v., sing [본문으로]
9. coated ; 1.[COMB in ADJ] [ADJ n] -coated combines with colour adjectives such as `white' and `red', or words for types of coat like `fur', to form adjectives that describe someone as wearing a certain sort of coat. [본문으로]
10. popularize ; [vn] 1. 많은 사람들에게 알리다, 대중화하다 [본문으로]
11. in revenue ; 매출, 수익 부분에서 [본문으로]
12. distribution ; 3. [U] (상업) 유통 [본문으로]
13. urge ; 1. (…하도록) 충고하다[설득하려 하다] [본문으로]
14. insider ; [명사] (조직・단체의) 내부자 ;; 참고 outsider [본문으로]
15. take over as ; ~의 직책을 맡다 [본문으로]
16. adapt ; 1. [타동사][VN] ~ sth (for sth) (새로운 용도・상황에) 맞추다[조정하다] [본문으로]
17. adapt as ; adapt는 타동사지만 adapt as이후에 절이 따라 와서 "~에 적응하다, 맞추다" 정도의 의미가 되는 것을 확인 [본문으로]
18. switch to ; …으로 바뀌다, 바꾸다 [본문으로]
19. private equity firm ; A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies. [본문으로]
20. stalk ; 2. [타동사][VN] 쫓아다니며 괴롭히다, 스토킹하다 [본문으로]
21. consumer goods industry ; [명사] 소비재 산업 [본문으로]
22. quip ; [타동사][V speech] (-pp-) 재담을 하다 [본문으로]
23. sell off ; 2. (산업체·기업·토지를) 매각하다 ;; 참고 sell-off [본문으로]
24. bottler ; 2. 탄산음료 제조업자 [본문으로]
25. amount to ; 1. (합계가) …에 이르다[달하다] [본문으로]
26. plunge ; 2. [자동사][V] (가격・기온 등이) 급락하다 [본문으로]
27. agile ; 2. (생각이) 재빠른, 기민한 [본문으로]
28. as a result ; 결과적으로 [본문으로]
29. risky shift ; (심리학) 모험(적) 이행(冒險(的)移行); 모험 지향 이동 ;; shift ; 1. CHANGE | [C] ~ (in sth) (위치・입장・방향의) 변화 ;; 참고 paradigm shift [본문으로]
30. diversify ; (di・ver・si・fies , di・ver・si・fy・ing , di・ver・si・fied , di・ver・si・fied) 1. ~ (sth) (into sth) (특히 사업체나 회사가 사업을) 다각[다양]화하다 [본문으로]
31. outgrow ; 2. …보다 더 커지다[많아지다] [본문으로]
32. thereafter ; [부사] (격식) 그 후에 ;; 참고 hereafter [본문으로]
33. be summarized as ; ~로 요약할 수 있다, 요약된다 [본문으로]
34. square ; 2. MATHEMATICS | [주로 수동태로] 제곱하다 [본문으로]
35. fizzy ; (英) (음료가) 거품이 나는, 탄산의 [본문으로]
36. be rewarded for ; ~에 대한 보상을 받다 [본문으로]
37. volume ; 1. [U , C] 용량, 용적 [본문으로]
38. flat ; 8. BUSINESS | (매출 등이) 저조한 [본문으로]
39. peak ; [자동사][V] 절정[최고조]에 달하다 [본문으로]
40. fix ; 1. SOLUTION | [C] (비격식) (특히 쉽거나 잠정적인) 해결책 [본문으로]
41. health-conscious ; [형용사] (자기의) 건강을 의식하는[조심하는] [본문으로]
42. grow wary of ; ~에 대한 주의가 커지다, 더해지다 [본문으로]
43. artificial sweetener ; 인공 감미료 [본문으로]
44. bottled water ; [명사] 병[휴대용 용기]에 든 생수. [본문으로]
45. exceed ; (격식) 1. (특정한 수・양을) 넘다[초과하다/초월하다] [본문으로]
46. carbonated ; [형용사] (전문 용어) 음료가 탄산이 든 [본문으로]
47. restless ; 1. (지루하거나 따분해서) 가만히 못 있는[들썩이는] [본문으로]
48. precede ; 1. …에 앞서다[선행하다] [본문으로]
49. conglomerate ; 1. [C] (상업) (거대) 복합 기업, 대기업 [본문으로]
50. exceed ; (격식) 1. (특정한 수・양을) 넘다[초과하다/초월하다] [본문으로]
51. speed ; 3. MOVE/HAPPEN QUICKLY | [타동사][VN] (격식) 더 빠르게 하다, 가속화하다 [본문으로]
52. offering ; (참고: burnt offering , peace offering) 1. (사람들이 사용하거나 즐기도록) 제공된[내놓은] 것 [본문으로]
53. bolster ; [타동사][VN] ~ sth (up) 북돋우다, 강화[개선]하다 [본문으로]
54. existing products ; 기존 제품 [본문으로]
55. portfolio ; 5. (특정 회사・기관의) 상품[서비스] 목록[범위] [본문으로]
56. prior ; [명사 앞에만 씀] 1. (다른 무엇・특정 시간보다) 사전의 [본문으로]
57. maker ; 1. [C] [흔히 합성어에서] ~ (of sth) …을 만드는[생산하는] 사람[회사/기계] ;; 참고 holidaymaker, peacemaker, troublemaker [본문으로]
58. volume ; 1. [U , C] 용량, 용적 [본문으로]
59. diversified ; [형용사] 변화가 많은, 여러 가지의(varied), 다각적인 [본문으로]
60. conference room ; [명사] 회의실 [본문으로]
61. stack ; 1. ~ (sth) (up) (깔끔하게 정돈하여) 쌓다[포개다]; 쌓이다, 포개지다 [본문으로]
62. tout ; 2. ~ (for sth) (특히 英) (제품・서비스를) 광고[홍보]하다 [본문으로]
63. fermented drinks ; 발효 음료 [본문으로]
64. hemp ; 동사???? [본문으로]
65. pulp ; 3. [U] (과일・채소의) 과육[펄프] [본문으로]
66. keep a close eye on ; ~을 감시, 주시하다, ~을 잘 지켜보다 [본문으로]
67. entry ; (pl. -ies) 1. GOING IN | [C , U] ~ (into sth) 들어감[옴], 입장, 등장 [본문으로]
68. act as ; …으로서의 역할을 하다[맡다], ...의 소임을 다하다. [본문으로]
69. venture capital ; Venture capital (VC) is a type of private equity,[1] a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake, in the companies they invest in. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. The start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology (IT), social media or biotechnology. [본문으로]
70. incubator ; [명사] (신조어) 기업 인큐베이터. 신생기업에 사무실 공간 및 설비를 제공하고, 금융서비스를 이용할 수 있도록 하며, 사업에 대한 안내를 해주는 기업 [본문으로]
71. take a stake in ; ~에 대한 지분을 가지다 [본문으로]
72. indirect investment ; (금융) 간접투자 [본문으로]
73. back ; 2. SUPPORT | [타동사][VN] 도와주다, 지지[원조/후원]하다 [본문으로]
74. sourcing ; [명사] (경제) (부품의) 대외구매: 흔히 외국으로부터의 구매. [본문으로]
75. distribution ; 3. [U] (상업) 유통 [본문으로]
76. be due to ; ~할 예정이다 [본문으로]
77. oomph ; [U] (비격식) 정력; 특별한 매력 [본문으로]
78. be sprinkled across ; ~의 도처에 널려 있다, 흩뿌려져 있다. [본문으로]
79. remain to be seen ; 두고 볼 일이다. [본문으로]
80. slim margin ; 근소한 차이, 박한 이득, 근소한 여백 [본문으로]
81. broaden ; 2. (영향권이[을]) 넓어지다[넓히다] [본문으로]
82. portfolio ; 5. (특정 회사・기관의) 상품[서비스] 목록[범위] [본문으로]
83. enrich ; 1. ~ sth (with sth) 질을 높이다, 풍요롭게 하다; (식품에 어떤 영양소를) 강화하다 [본문으로]
84. electrolyte ; [명사] (화학) 전해액 ;; US·UK [ɪ|lektrəlaɪt] [본문으로]
85. propel ; (-ll-), [vn], [흔히 수동태로], (참고: propulsion) 1. (몰거나 밀거나 해서) 나아가게 하다 [본문으로]
86. fizzy ; [형용사] 음료가 거품이 나는 [본문으로]
87. bumpy ; (여정이) 평탄치 않은 [본문으로]
88. bubbly ; 1. 거품이 많은[이는] [본문으로]
89. mixture ; 1. [C] [주로 단수로] (서로 다른 것들이 섞인) 혼합물[혼합체] [본문으로]
90. be reminiscent of ; ~을 연상시키다, 회상하게 하다. ;; US.UK [|remɪ|nɪsnt] [본문으로]
91. cope with ; [동사] …에 대처[대응]하다; …에 대항하다. ;; 동의어 deal with. [본문으로]
92. stigmatization ; [U] 1. 오명 씌우기; 비난 [본문으로]
93. legacy ; 2. (과거의) 유산 [본문으로]
94. sugary ; 1. 설탕이 든; 설탕 맛이 나는 [본문으로]
95. leafy ; 1. 잎이 무성한 [본문으로]
96. kale ; [U] (美 또한 |collard greens [pl.]) 케일(양배추같이 생긴 진녹색 채소) [본문으로]
97. e-cigarette ; [명사] (신조어) 전자담배. 니코틴층이 있는 액상 용액을 가열하여 흡입 가능한 연기를 발생시키는 전자장치 (동일표현: ecigarette) [본문으로]
98. lift ; 10. INCREASE | (양・수준을) 올리다, 인상하다; 올라가다, 인상되다 [본문으로]
99. diversify ; 1. ~ (sth) (into sth) (특히 사업체나 회사가 사업을) 다각[다양]화하다 [본문으로]
100. resemblance ; [C , U] ~ (to sb/sth) | ~ (between A and B) 닮음, 비슷함, 유사함 [본문으로]
101. compelling ; 1. (너무나 흥미로워서) 주목하지 않을 수 없는[눈을 뗄 수 없는] [본문으로]
102. marketer ; [명사] 장 보러 가는 사람; 시장에서 매매하는 사람[회사]; 시장 경영자, 마케팅 담당자 [본문으로]
103. tout ; 2. ~ (for sth) (특히 英) (제품・서비스를) 광고[홍보]하다 [본문으로]