Coca-Cola has recently hit a rough patch: the new CEO plans to lay off 1,200 headquarters employees in 2017. Additionally, the new CEO intends to sell Coca-Cola's bottled water business, reducing the workforce from 123,000 to 39,000 and halving capital expenditure to $1.3 billion. Chinese netizens say, "We'll take the blame!" Coca-Cola is about to 'die'! The newly disclosed Q1 2017 financial report shows Coca-Cola's revenue at $9.1 billion, down 10% year-on-year; net profit was $1.18 billion, down 21% year-on-year. This marks the fourth consecutive year of declining performance for Coca-Cola. 2012 was Coca-Cola's peak, with revenue reaching $48 billion. In 2016, Coca-Cola's annual sales were $41.863 billion, down 5.49% from 2015, and pre-tax net profit was $8.136 billion, down 15% from the previous year. This was also the fourth consecutive year of declining performance. The same decline also occurred in China.
Data shows that in 2000, carbonated beverages held a 36% share of the domestic market, dropping to 30.96% by 2006, 22.34% by 2010, around 20% by 2012, and 13.7% by 2015. In 2013, carbonated beverages lost the top spot to packaged drinking water.
The China National Food Industry Association's "2016 Annual Beverage Industry Overall Operation Report" states that shifts in consumer groups, concepts, and habits are the main reasons constraining the industry's performance decline. Tea drinks, functional beverages, and healthy drinking water are increasing their share, further eroding the carbonated beverage market.
Source: "2016 Annual Beverage Industry Overall Operation Report"
Additionally, according to industry statistics from the China National Food Industry Association, in 2016, the production growth rate of carbonated beverages in China turned negative. Meanwhile, the proportion of carbonated beverages was 9.6%, down 0.6 percentage points from the same period last year. Why is Coca-Cola suffering so much? Because of health issues. Huaxia Times once reported that regarding Coca-Cola's decline, food and beverage expert Xu Xiongjun analyzed that this is due to rising consumer health awareness. We all know that regular beer consumption causes a beer belly, but it's actually the carbonation that causes obesity. Large amounts of carbonic acid entering the body affect the acid-base balance. To prevent acidic liquids from damaging organs, the body wraps these carbonic acids in fat, so the fat becomes thicker and thicker, leading to obesity. Coca-Cola, as a carbonated beverage, is a stronger "obesity drink" than beer. The United States, as the largest Coca-Cola market globally, was previously the country with the highest obesity rate. In 2013, a UN report showed Mexico's obesity rate at 32.8%, surpassing the US's 31.8%, making it the most obese country in the world. Mexico is Coca-Cola's largest overseas market outside the US, while China, with 1.4 billion people, is the second-largest overseas market. Besides obesity, drinking too much cola can also harm dental health, cause calcium loss, and increase the risk of esophageal cancer... So what should foreigners drink? I didn't know either until I saw a news story on "Guancha.cn". A Weibo user named @DavidHohhot, verified as the "Principal of New Continent Language School," uploaded a video he recorded, praising a mysterious drink unique to China with the most flattering words.
It's this—the shared memory of the 80s and 90s generations—Wahaha AD Calcium Milk.
Image source: Guancha.cn
At the start of the video, David first complains about his childhood.
Australian kids could only drink cola, water, milk, or juice—very monotonous.
Image source: Guancha.cn
He says this with a look of disdain.
Image source: Guancha.cn
Then David talks about how his wife bought a bottle of AD Calcium Milk for their daughter one day.
Image source: Guancha.cn
His eyes light up when he mentions this.
Image source: Guancha.cn
"Oh, brother!"
Image source: Guancha.cn
"Oh, Wahaha!"
Image source: Guancha.cn
He becomes animated, and every screenshot is a meme.
Image source: Guancha.cn
The taste of AD Calcium Milk is simply amazing; the guy almost questions life: "Australia is so lame!"
Image source: Guancha.cn
After marveling at how delicious it is, he reflects and envies Chinese children for his daughter.
Image source: Guancha.cn
Because Chinese kids have Wahaha!
Image source: Guancha.cn
In his view, drinking Wahaha once is like going to heaven.
And this delicious mysterious liquid, like a sweet fairyland, is packed in a plastic bottle...
Image source: Guancha.cn
Finally, he concludes that Chinese food and drink are truly amazing.
In Australia, parents give their kids who-knows-what.
Image source: Guancha.cn
If I hadn't seen his praise, I probably wouldn't have realized how fortunate I am. The above "AD Calcium Milk" is my personal reflection and has no connection to Wahaha, but Coca-Cola's health issues are indeed worth heeding. "The future of 'people worldwide' indeed requires the efforts of Chinese companies." Source: FX168 -END-