Coca-Cola keeps a sparkle, as soda fizzles

This facility in Shijiazhuang is the 43rd Coca-Cola bottling plant in China.

(Fortune)

Almost 2 billion people every day drink a Coca-Cola product. That's roughly a third of the global population, spread across nearly every country in the world. With its iconic red-and-white logo, polar bears, and annual advertising budget twice the size of the GDP of Belize, the world's largest beverage company (and No. 6 on Fortune's list of Most Admired Companies) dominates the battle for market share: Its flagship brand, Coke, makes up 17% of the carbonated soft drink sales in the U.S., and 27% abroad. But in today's new era of quinoa and kale, market forces are threatening to erode its supremacy. In the U.S. last year soda sales fell 3%, the biggest dip on record, according to Beverage Digest. And in April, for the first time in 15 years, Coca-Cola's global soda volume (about 75% of its business) registered a quarterly decline. Muhtar Kent, CEO of the 128-year-old company, says that's just a hiccup in the grander plan to double 2009 business by 2020 -- growth that will come, analysts project, from different markets, as well as from new packaging, new sweeteners, and new distribution systems.

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