The Coca-Cola Company (KO): Business Model Canvas [Dec-2025 Updated]

You're looking at one of the world's most resilient business blueprints, and honestly, it's a masterclass in brand power. The Coca-Cola Company's model, which projects revenues around $48.15 billion for fiscal year 2025, isn't just about selling soda; it's about owning the global thirst through an iconic brand equity valued near $98.7 billion and a distribution network that touches nearly every corner of the planet. It's defintely a structure built to last, but the real genius lies in the details of how they manage their bottlers and marketing spend. Dive into the nine blocks below to see exactly how this global giant keeps the fizz going.

The Coca-Cola Company (KO) - Canvas Business Model: Key Partnerships

You're looking at the backbone of The Coca-Cola Company's global reach, which relies heavily on its network of partners to get that iconic beverage into consumers' hands. The structure is complex, mixing direct sales with a vast franchise system. Here's a breakdown of the key relationships as of late 2025, grounded in the latest available figures.

Independent Bottling Partners (e.g., Coca-Cola FEMSA)

The concentrate model means The Coca-Cola Company depends on independent bottlers for manufacturing, distribution, and sales in many territories. For instance, looking at Coca-Cola FEMSA, the largest franchise bottler by sales volume, their Q3 2025 results give us a snapshot of this partnership in action. In Q3 2025, Coca-Cola FEMSA's total unit case volume was down 0.6%, though their South America division saw volume increase by 2.6% year-on-year. To put the scale in perspective, The Coca-Cola Company partners with about 200 bottlers worldwide, and in 2023, the top 5 bottlers produced up to 42% of its total worldwide unit case volume.

The system is also actively evolving its franchise footprint. In Q3 2025, The Coca-Cola Company announced a definitive agreement where Coca-Cola HBC AG (CCHBC) would acquire a controlling interest in Coca-Cola Beverages Africa Pty Ltd (CCBA) from The Coca-Cola Company and Gutsche Family Investments, signaling continued focus on capable, local bottling partners.

Here's a look at some of the operational metrics from a major partner in Q3 2025:

Global Retail and Food Service Chains

The distribution network relies on securing shelf space and service agreements with major global and local entities. While specific 2025 revenue breakdowns tied directly to these chains aren't public, the scale is evident: in 2023, The Coca-Cola Company served 2.2 billion drinks each day across its system. The company's focus on its 200 brands means securing placement across diverse channels, from large supermarket chains to quick-service restaurants.

Key aspects of these relationships include:

• Securing prime cold-vault placement in major grocery retailers.
• Maintaining fountain syrup contracts with large food service operators.
• Leveraging digital platforms like Coca-Cola FEMSA's Juntos+, which surpassed 100,000 digital monthly active users in Q3 2025.

Key Agricultural Suppliers for Sugar and Fruit Crops

Sustainability in sourcing is a major partnership focus, tied to the Mission 2025 commitment. The key agricultural ingredients include sugar (cane and beet), HFCS (from corn), and juices from fruit crops. These priority ingredients represent about 80% of total annual agricultural ingredient purchases.

The primary goal for Coca-Cola HBC is to source 100% of these key agricultural ingredients in line with sustainable agricultural principles by 2025, certified by third-party standards. As a benchmark, Coca-Cola HBC achieved 78% certification across its related crops in 2022. Furthermore, a specific collaboration for 2025 involved an agreement with Nordzucker for a pilot on beet sugar crop production to control FLAG emissions.

Environmental NGOs (e.g., WWF) for Water Stewardship

The long-standing partnership with the World Wildlife Fund (WWF), which began in 2007, directly impacts water stewardship, a critical area given water is the main component of the drinks and needed for ingredient growth. Coca-Cola HBC invested €5.2 million in water saving and water efficiency programs in 2024.

The Coca-Cola Company has set ambitious 2035 Water Stewardship goals:

• Aim to return more than 100% of the water used in finished products globally, on an aggregate level, to nature and communities.
• Seek to return 100% of the total water used in each of the more than 200 high-risk locations across the Coca-Cola system.

High-risk locations, determined via assessments in 2024, represent almost a third of the system's locations globally. The partnership has focused on securing freshwater basins in over 50 countries.

Strategic Alliances for New Product Categories

The company builds partnerships to expand its 200-brand portfolio across categories like coffee (Costa), energy drinks, and plant-based beverages. A significant recent transaction involved contingent consideration payment for the acquisition of fairlife, LLC, with a year-to-date cash flow impact of $6.1 billion in Q3 2025 results, reflecting a prior acquisition. These alliances are crucial for entering new spaces and leveraging existing distribution strength.

The Coca-Cola Company (KO) - Canvas Business Model: Key Activities

The core of The Coca-Cola Company's operations centers on high-volume, high-margin concentrate production and intensive global brand stewardship, supported by a disciplined, data-driven approach to market execution.

Manufacturing and supplying beverage concentrates/syrups

This activity is the foundation of the franchise model, where The Coca-Cola Company focuses on producing and selling beverage concentrates and syrups to authorized bottling partners globally. The financial results reflect the health of this core business through concentrate sales performance.

The company is strategically completing its refranchising journey, which impacts how volume and revenue are reported across segments.

Global brand marketing and advertising

This key activity ensures the enduring value of the brand portfolio, which includes over 30 billion-dollar brands. Marketing investment is calibrated to drive brand lift and cultural alignment, balancing global consistency with local relevance.

• Advertising expense for fiscal years ending December 2020 to 2024 averaged $4.231 billion.
• Comparable currency neutral operating income (non-GAAP) growth in Q3 2025 was partially offset by an increase in marketing investments.
• The brand reaches consumers through approximately 1.9 billion servings sold every day across over 200 countries.

Research and development for new products and packaging

R&D focuses on portfolio innovation, including functional beverages and sustainable packaging solutions, though reported R&D expenses are minimal compared to peers.

The company is focused on its 'total beverage approach,' complementing its core sparkling portfolio with growth in areas like water, sports, coffee, and tea.

Strategic management of the global bottling system

The Coca-Cola Company actively manages its relationships with bottling partners, with a strategy nearing completion to reduce direct operational involvement in bottling.

• The company is progressing toward the completion of its refranchising strategy.
• In Q3 2025, the Bottling Investments segment saw comparable currency neutral operating income (non-GAAP) grow 30%.
• Coca-Cola Hellenic has an intention to acquire a controlling interest in Coca-Cola Beverages Africa.

End-to-end revenue growth management (RGM)

RGM is critical for ensuring the right product mix, package size, and price point to meet consumer needs, especially in a dynamic environment where consumers are price-sensitive.

The RGM framework directly influences margin expansion; for instance, Q2 2025 operating margin reached 34.1%, up from 21.3% in Q2 2024, driven by pricing actions and optimized mix.

The company's full-year 2025 guidance anticipates comparable currency-neutral EPS growth of approximately 8%, supported by this disciplined execution.

Net debt leverage stood at 1.8x EBITDA as of Q3 2025, reflecting a strong balance sheet position supporting these operational strategies.

The Coca-Cola Company (KO) - Canvas Business Model: Key Resources

The Coca-Cola Company's foundation rests on several irreplaceable assets that drive its global market position and pricing power.

Iconic global brand equity remains paramount, with the flagship brand valued near $98.7 billion as of late 2024/early 2025 data. This brand strength allows The Coca-Cola Company to command shelf space and premium pricing across its categories. Furthermore, the company's non-alcoholic drinks portfolio brand value was cited at USD 46.3 billion in August 2025, marking its 11th year as the most valuable in the sector.

The company relies on proprietary beverage formulas and trade secrets, which are the core intellectual property behind its most successful products. These secrets are protected assets that competitors cannot easily replicate.

The physical reach is secured by an extensive global distribution network. The Coca-Cola Company's beverages are available in more than 200 countries and territories globally. On a daily basis, approximately 1.9 billion servings of The Coca-Cola Company's drinks are consumed worldwide.

The asset-light franchise model still requires significant financial capital to fund bottling investments and strategic initiatives by the parent company. The most recent reported Free Cash Flow stood at approximately $5.60 Billion, with a 2025 forecast for non-GAAP Free Cash Flow reaching $9.5 billion. For context on capital deployment, The Coca-Cola Company generated $96.4 billion in operating cash flows between 2015 and 2024.

The breadth of the portfolio is a key resource, encompassing a diverse portfolio of over 200 brands, following a strategic reduction from over 400 brands to focus on top performers. This portfolio includes 30 billion-dollar brands, such as Diet Coke, Sprite, Smartwater, and Fairlife, which each generate at least a billion dollars annually in revenue sales.

Here is a snapshot of some key operational and financial metrics underpinning these resources:

The intangible assets, particularly the brand power, translate directly into market performance, as seen in the company's premium valuation metrics compared to peers.

The core tangible and intangible assets supporting The Coca-Cola Company's operations include:

• The core concentrate and syrup production capabilities.
• The global trademark portfolio, including 30 brands exceeding $1 billion in annual retail revenue.
• Strong relationships with approximately 200 bottlers worldwide.
• High Return on Invested Capital (ROIC) performance, which increased by 6 points between 2015 and 2024.
• A robust balance sheet, with total assets reported at $101.7 billion as of Q1 2025.

The company's ability to generate high margins, with gross margins consistently above 60% and operating margins above 20% between 2014 and 2024, reflects the inherent value of these key resources.

The Coca-Cola Company (KO) - Canvas Business Model: Value Propositions

The core value proposition of The Coca-Cola Company rests on delivering consistent, globally recognized products that are available almost everywhere you look.

Consistent, globally recognized taste and quality

You get the same taste profile whether you're buying a product in Atlanta or Asia Pacific. This consistency underpins massive brand equity. The brand value in 2025 reached an estimated $111.392-billion according to Kantar's BrandZ report, showing a 13% growth from the previous year. Furthermore, Brand Finance valued the brand at $46.3bn in 2025, marking a 32% increase. This strength is reflected in a Brand Strength Index (BSI) score of 93.4 out of 100 in 2025. The company commands over 40% of the global non-alcoholic beverage sector sales.

Ubiquitous availability in over 200 countries

The sheer scale of distribution is a key value driver. The Coca-Cola Company makes its products available in more than 200 countries and territories. This reach is supported by a vast physical footprint.

Diverse product portfolio (sparkling, water, coffee, tea)

You aren't just buying one thing; you're buying access to a massive ecosystem of beverages that capture different consumption moments. The portfolio spans sparkling, water, sports drinks, juices, teas, and coffees. This diversification helps stabilize revenue, as seen with the 5% organic revenue growth in Q2 2025, even when global unit case volume declined by 1%.

Here's a look at recent volume performance across key categories:

• Water, sports drinks, coffee and tea volume grew 3% in Q3 2025.
• Sparkling flavors grew 2% in Q4 2024.
• Juice, value-added dairy, and plant-based beverages rose 1% (Q3 2024 data).
• The company acquired Costa Coffee in 2019 for $4.9 billion, signaling commitment to the coffee segment.

Health-conscious options like Coca-Cola Zero Sugar

Meeting the shift toward lower-sugar options is a clear value driver, evidenced by strong volume gains in key zero-sugar and light variants. This focus helps offset softness in other areas. For instance, in Q3 2025, Coca-Cola Zero Sugar volume increased by 14% across all geographic operating segments.

Performance of key low/no-sugar and related brands:

• Coca-Cola Zero Sugar volume growth: 14% (Q3 2025).
• Diet Coke/Coca-Cola Light volume growth: 2% (Q3 2025).
• Diet Coke achieved its fourth consecutive quarter of volume growth in North America (Q2 2025).

Emotional connection and nostalgia through brand storytelling

The brand leverages deep-seated emotional ties, which translates directly into pricing power and consumer preference. The company continued to drive consumer engagement in 2025 by globally relaunching the iconic "Share a Coke" campaign. This emotional resonance allows the company to drive price/mix growth, which was 6% in Q2 2025. The overall TTM revenue as of September 30, 2025, stood at $47.663B.

The Coca-Cola Company (KO) - Canvas Business Model: Customer Relationships

The Coca-Cola Company focuses its customer relationships on massive emotional resonance, increasingly layered with data-driven digital precision.

Mass-market emotional branding and advertising

The foundation remains broad, cultural storytelling designed to evoke feelings of happiness and togetherness. This strategy has delivered tangible value, with Trademark Coca-Cola adding $40 billion in retail value over the past three years, as of mid-2025. The company is channeling significant investment into localized campaigns and digital storytelling to maintain this relevance. For instance, the relaunch of the iconic "Share a Coke" campaign in Q2 2025 activated on more than 10 billion bottles and cans across over 120 countries, featuring over 30,000 tailored names. The company still expects organic revenue growth for the full year 2025 to be in the range of 5% to 6%, supported by this marketing resilience. The Coca-Cola Company gained value share in total nonalcoholic ready-to-drink ("NARTD") beverages in Q2 2025.

Key Promotional and Brand Metrics (2025 Data)

Data-driven personalization via digital channels

The Coca-Cola Company is moving toward a refreshed marketing model that blends digital, live, and in-store touchpoints. Studio X, its in-house content engine, enables the rapid creation of data-driven, personalized marketing content. This strategy is crucial for engaging younger demographics like Millennial and Gen Z consumers through social media and influencer collaborations. The company leverages AI and predictive analytics to ensure campaigns feel personal and relevant. This focus on digital engagement is supported by industry trends, where 91% of consumers are more likely to engage with brands that personalize content and offers based on their preferences. Furthermore, members who redeem personalized rewards in general loyalty programs spend 4.3 times more than those redeeming non-personalized rewards.

Loyalty programs and direct consumer engagement

The Coca-Cola Company is actively redefining its direct consumer engagement through a revamped loyalty program, shifting focus to digital platforms to make participation easier and more fun. This overhaul moves away from older methods requiring manual entry of codes found under bottle caps. The goal is to secure deeper user data for insights, which aligns with the broader industry finding that 80% of customers say the experience a company provides is just as important as its products or services. The company is prioritizing relationship-building over pure transactions. General loyalty statistics show that 85% of customers say loyalty rewards make them more likely to shop with brands, and members of free programs buy more frequently and spend more, with 76% saying they spend more.

The shift to digital engagement is critical because:

• The revamped program aims for easier reward redemption.
• It ensures brands have a deep set of user data for mining insights.
• It follows the trend where over 70% of loyalty program members prefer to engage via mobile app.

Dedicated B2B sales support for retailers and restaurants

Customer relationship management extends beyond the end consumer to the vast network of retailers and distributors. The Coca-Cola Company drives loyalty with its distributors by creating a 360-degree view of their operations and tracking their purchases. This B2B focus is essential for maintaining shelf presence and securing placement in restaurants and retail outlets. Partnerships with fast-food chains, often involving value meal deals, demonstrate leveraging this vast distribution network to buoy sales in key markets like the U.S. The company's Q1 2025 unit case volume growth of 2% was led by markets including India, China, and Brazil, showing the effectiveness of this deep channel engagement.

The Coca-Cola Company (KO) - Canvas Business Model: Channels

You're looking at how The Coca-Cola Company gets its product into the hands of the nearly 1.9 billion people who enjoy its beverages daily across more than 200 countries. The channel strategy is heavily reliant on its franchise system.

Independent and company-owned bottling partners

The Coca-Cola Company operates through a complex franchise model, selling beverage concentrate to bottling partners who then produce, package, and distribute the finished product. In 2024, the concentrate division accounted for 59% of group revenue, while the finished-product business, which includes company-owned bottling, was 41% of revenue.

As of late 2024, The Coca-Cola Company had 81 owned or leased bottling locations globally. The Bottling Investments operating segment showed unit case volume growth of 2% in the first quarter of 2025.

The largest bottler by volume is Coca-Cola FEMSA, operating in various Latin American countries and the Philippines. Coca-Cola Consolidated, the largest bottler in the United States, serves approximately 60 million consumers across 14 states and the District of Columbia.

Physical retail: supermarkets, convenience stores, gas stations

This segment captures the vast majority of at-home consumption. For Coca-Cola Consolidated in the third quarter of 2025, net sales for the Sparkling category increased 4.7%, driven by multi-pack, take-home packages sold within its large store, club and value channels. Still category net sales for the same bottler rose 9.9% in Q3 2025, primarily from sales in large retail and convenience stores.

Globally, The Coca-Cola Company's overall unit case volume grew 1% in the third quarter of 2025. Within this, Coca-Cola Zero Sugar was a standout, with unit case volumes up 14% globally in Q3 2025.

Food service outlets: restaurants, cinemas, vending machines

The away-from-home channel is critical for immediate consumption. While direct channel revenue splits aren't explicitly provided for this segment, transaction data gives a view into channel activity. In the juice drinks category, the company added more than 130 million transactions year-to-date (as of Q2 2025) by focusing on lower-cost single-serve offerings in markets like Latin America and India.

The company's products are enjoyed 1.9 billion times daily across the globe.

• Global Unit Case Volume growth (Q3 2025): 1%.
• Water, sports, coffee and tea case volumes rose 3% in Q3 2025 (one segment report).
• Trademark Coca-Cola unit case volumes grew 1% globally in Q3 2025.

E-commerce platforms and mobile ordering apps

Digital commerce is an area of strategic focus, often integrated through retailer partnerships. In a specific market analysis for India in late 2025, quick commerce platforms contributed nearly two-thirds of all online grocery orders, with adoption accelerating at 8-9% annually in smaller cities. In that context, The Coca-Cola Company leveraged retailer-linked data to optimize its sugar-free portfolio, achieving a 39% improvement in Return on Ad Spend (ROAS) and 40% lower acquisition costs in the high-intent shopper segment.

Smart vending machines for personalized experiences

Specific financial or unit numbers for smart vending machines are not publicly detailed in the latest reports. The focus remains on leveraging data through partners to create more transactions at the point of sale, as seen in the 130 million transaction increase mentioned earlier in specific categories.

The Coca-Cola Company (KO) - Canvas Business Model: Customer Segments

You're looking at the core groups The Coca-Cola Company targets to keep its global engine running. This isn't just about selling soda; it's about segmenting the entire planet's thirst into manageable, profitable buckets. The sheer scale is hard to grasp-The Coca-Cola Company beverages are available in over 200 countries and territories, with approximately 1.9 billion servings consumed daily across its 500+ brands.

The segmentation strategy recognizes that a teenager in Tokyo has different needs than a family shopper in Chicago or a price-sensitive consumer in Lagos. The company's 2024 annual revenue hit $47.1 Billion, and Q3 2025 net revenues were $12.5 billion, showing the massive financial scale supported by these customer groups.

Here's a breakdown of the primary customer segments The Coca-Cola Company focuses on:

• Global mass market consumers of all demographics: This is the foundation, targeting teens and young adults who drive volume for flagship sparkling beverages.
• B2B partners: The essential network of bottlers, retailers, wholesalers, and foodservice operators.
• Health-conscious individuals: A strategic growth priority demanding low/no-sugar and functional options.
• Emerging market consumers: Young, expanding populations seeking affordable indulgence and value.

The company's success hinges on tailoring its 500+ brands to these distinct groups. For instance, in Q3 2025, Trademark Coca-Cola volume grew 1%, while Coca-Cola Zero Sugar volume jumped 14% globally, showing the dual focus on core and health-oriented segments.

B2B partners: retailers, wholesalers, and food service operators

This segment is the backbone of distribution and visibility. The Coca-Cola Company doesn't just sell to consumers; it sells to the entire ecosystem that gets the product into the consumer's hand. You're talking about a massive, established network. The company collaborates with a network of around 225 bottling partners globally. This franchise model is vital for market penetration.

For foodservice, the global fountain syrup division is key, maintaining long-term visibility contracts, such as the primary soft drink supplier relationship with McDonald's since 1955. Retailers and wholesalers are targeted with specific packaging strategies to meet varied income levels across geographies.

Health-conscious individuals seeking low/no-sugar options

This group drives the portfolio diversification away from traditional sparkling. The shift is clear in the numbers: Coca-Cola Zero Sugar is a major success story, achieving double-digit growth recently. In Q3 2025, Coca-Cola Zero Sugar unit case volumes were up 14% across all geographic operating segments. Furthermore, Diet Coke/Coca-Cola Light saw growth of 2% in the same quarter.

The commitment here is portfolio-wide; for example, Water, sports, coffee, and tea categories grew 3% in Q3 2025. In Europe, the company specifically introduced 'Coca-Cola Stevia No Sugar,' which now accounts for 10% of Coke zero-sugar volume in that region. This segment is not a niche; it's a core driver of growth, evidenced by Coca-Cola Zero Sugar holding a market share exceeding 50% in several key markets like the U.S. and Europe.

Emerging market consumers seeking affordable indulgence

Emerging markets-Latin America, Africa, the Middle East, Eastern Europe, and emerging Asia-Pacific-are where volume expansion is most pronounced. The Coca-Cola HBC AG segment, covering Africa, Central, and Eastern Europe, was a standout performer in Q2 2025, delivering 17.4% organic revenue growth. India, China, and Brazil are specifically noted as volume growth leaders.

The strategy here is explicitly about affordability to capture price-sensitive consumers. This means leveraging localized packaging like 1.25-liter PET bottles in Nigeria. This focus on value helps balance softer sentiment in developed markets where North America saw unit case volume decline by 3% in Q1 2025. The ability to offer value packaging is what keeps the consumer base engaged in these high-potential regions. Finance: draft 13-week cash view by Friday.

The Coca-Cola Company (KO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive The Coca-Cola Company's operations as of late 2025. These are the major drains on cash that the company must manage to keep its global beverage empire running profitably. It's a mix of physical commodities, massive brand spending, and complex logistics.

High cost of raw materials (sweeteners, aluminum, water)

Input costs remain a persistent pressure point. Aluminum, critical for can production, saw significant volatility, with prices spiking nearly 20% in the first quarter of 2025 compared to the first quarter of 2023. While PET plastic prices have been more stable, other manufacturing costs, like electricity and labor, have seen increases around 8%. The company's total Cost of Goods Sold for the twelve months ending September 30, 2025, was reported at $18.287B. Water stewardship is a major operational focus, with the Coca-Cola system's water use ratio in 2024 being 1.78 liters of water used per liter of beverage, an improvement from the 2015 baseline of 1.98.

The primary cost components for The Coca-Cola Company (KO) are summarized below:

Significant marketing and advertising expenditure

Marketing is a massive, non-negotiable cost, acting as the motor for top-line growth. The advertising expense for fiscal year 2024 reached a peak of $5.146 billion. The company continues to pivot its spending aggressively toward digital channels, with digital comprising 60% of its total spend, up from 30% in 2019. This investment is designed to reinforce brand values and foster emotional connections.

Costs associated with bottling and distribution logistics

While The Coca-Cola Company focuses on concentrate sales, the costs associated with its system partners, including logistics and distribution, are significant. For the consolidated bottler, Coca-Cola Consolidated, Selling, Delivery and Administrative (SD&A) expenses in the first quarter of 2025 were $12.1 million higher than the prior year, representing 27.7% of net sales. For the parent company, KO's SG&A expenses for the Trailing Twelve Months (TTM) ending September 30, 2025, stood at $14.37B.

The structure of these selling and administrative costs involves several key areas:

• Labor costs related to annual wage adjustments.
• Inflationary pressures across various expense categories.
• Costs associated with managing the global supply chain and distribution network.

Operating expenses for company-owned bottling investments

The ongoing strategy of refranchising bottling operations directly impacts the reported operating expenses and income structure. For The Coca-Cola Company (KO), the unit case volume for its Bottling Investments segment declined 26% in the fourth quarter of 2024, largely due to these refranchising activities. This refranchising impact was a key driver in the expansion of the comparable operating margin for the core business in the fourth quarter of 2024. The comparable currency neutral operating income for the Bottling Investments segment declined 3% in that same quarter.

R&D and sustainability investment costs

Investment in sustainability is becoming a quantified cost center. For Coca-Cola HBC in 2024, investments supporting carbon reduction included €340 million in Operating Expenditure (Opex), primarily for rPET (recycled PET) support, and €65 million in Capital Expenditure (Capex) for energy and logistics technologies. Separately, Coca-Cola HBC reported €131.1 million in Capex in 2024 specifically for projects aimed at reducing emissions. Research and Development expenses for The Coca-Cola Company were reported as $0B for the full year 2024, with the TTM ending September 30, 2025, reported at $0M, according to one data source.

The Coca-Cola Company (KO) - Canvas Business Model: Revenue Streams

You're looking at how The Coca-Cola Company actually books its sales, which is a mix of high-margin concentrate sales and direct sales from its company-owned bottling operations. Honestly, understanding this split tells you a lot about their operating leverage.

The company is projecting a total net revenue of $48.15 billion for FY2025. That's the top-line number we're working with for the full fiscal year. On the growth front, management reiterated expectations for organic revenue growth to land between 5% to 6% in 2025, which shows they are still driving pricing power and volume, even with currency headwinds.

The revenue streams are fundamentally split between the core concentrate/franchise model and the direct-to-consumer sales from the Bottling Investments Group. The franchise model, where they sell the secret sauce (concentrates and syrups), is the engine for high-margin, predictable revenue. The Bottling Investments Group handles the capital-intensive side-manufacturing, packaging, and distributing finished products in certain territories.

Here's a look at the latest available segment revenue data, which closely maps to these revenue sources, based on the Trailing Twelve Months ending September 30, 2025:

The sale of concentrates and syrups to bottling partners remains the backbone. This revenue stream is generated across the major geographic operating segments. For instance, in Q3 2025, concentrate sales were reported as even with unit case volume, indicating that the 6% organic revenue growth came from price/mix actions, which is a key indicator of pricing power in the concentrate business.

The sale of finished products from the Bottling Investments Group is a smaller, but still significant, portion of the total. For the three months ending September 26, 2025, this segment saw unit case volume grow 2%, driven by Africa and India, though impacted by ongoing refranchising efforts. This segment's revenue is more capital-intensive, so you watch its margins closely.

Licensing and franchise fees from bottlers are inherently tied to the concentrate sales model. When you see growth in concentrate sales volume or price/mix in the operating segments, that directly reflects stronger underlying franchise performance and fee collection. For example, in Q1 2025, organic revenue growth of 6% included a 1% increase in concentrate sales, showing this stream is still expanding.

You can see the geographic concentration of the concentrate/franchise revenue stream here:

• North America (Concentrate/Franchise Proxy): $19.32 Billion TTM Sep 30, 2025
• Europe, Middle East, and Africa (Concentrate/Franchise Proxy): $10.62 Billion TTM Sep 30, 2025
• Latin America (Concentrate/Franchise Proxy): $6.28 Billion TTM Sep 30, 2025
• Asia Pacific (Concentrate/Franchise Proxy): $5.72 Billion TTM Sep 30, 2025

The company's focus on price/mix is critical to this revenue model, as seen in Q3 2025 where price/mix grew 6% while concentrate sales were even, meaning they extracted more value from each unit sold through the franchise network.

Finance: draft 13-week cash view by Friday.