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Coca-Cola Must Buy New Companies to Offset Shifting Soft-Drink Tastes
By: News Visual   Tuesday, May 13, 2008 11:42 AM
Symbols: CMI, ETR, KO, MGM, WPO
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(NewsVisual, powered by IntellectSpace) -- Because of shifting consumption patterns among a new generation of beverage drinkers, the Coca-Cola Company (NYSE: KO) must be nimble enough to plan for dwindling sales of its traditional products, and the company is therefore embarked on an aggressive acquisition program.

Coca-Cola “is seeking more acquisition opportunities in the fast-growing soft drinks market to expand its revenue sources, the company’s presumptive next chief executive said on Tuesday," The New York Times reported in an online article on Tuesday.

"Sales of established soft drinks are declining in the United States as people opt for the likes of bottled water and tea, which they see as healthier," The Times added as an explanation of why the company views the acquisitions as necessary.

The company’s Directors must provide over-sight to ensure that whatever new companies it purchases will have the potential for increasing revenues.

NewsVisual decided to create an IntellectSpace Knowledge Map in order to illustrate the organizational connections of Coca-Cola’s Board of Directors.

The Knowledge Map shows that two of the company’s Directors have held high government posts:

Director Donald F McHenry is a former U.S. Ambassador to the United Nations and a Distinguished Professor of Georgetown University, as well as a Director of the International Paper Co; Director Alexis M Herman is a former U.S. Secretary of Labor, as well as a Director of several companies, including New Ventures LLC, Cummins Inc, Entergy Inc, and MGM Mirage.

The Map also shows that the following Coca-Cola Directors currently serve as Directors of other large corporations:

Director Peter V Ueberroth also sits on the board of the Hilton Hotels Corp; Director James D Robinson III also serves on the board of the Bristol-Meyers Squibb Co; and Director Barry Diller is the CEO/Chairman of InterActiveCorp (IAC) and a Director of The Washington Post Co.






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