The incoming CEO of Coca-Cola is focusing on local brands to find the next $1 billion success story. Henrique Braun, the current chief operating officer set to take over the top position next month, shared his growth plans during Coca-Cola’s recent earnings call. He emphasized the importance of identifying and scaling local, emerging brands as part of the company’s strategy.
Smaller local brands have been thriving in grocery stores due to their ability to quickly respond to consumer trends. Coca-Cola aims to capitalize on these opportunities and not miss out on potential billion-dollar brands. Outgoing CEO James Quincey highlighted that three-quarters of Coca-Cola’s billion-dollar brands are from non-traditional soft drink categories, with examples like Mexico-based dairy brand Santa Clara.
Aside from scaling local brands, Coca-Cola is also focusing on tailoring its innovations to suit regional preferences. The company’s recent launch of Sprite Lemon & Mint in the Middle East is a result of consumer insights driving product development. Braun stressed the importance of getting closer to consumers and improving speed to market with innovative products.
Braun, who has held various roles at Coca-Cola across different regions, has been tasked with identifying growth opportunities globally. The company is currently undergoing a restructuring initiative, with corporate layoffs expected soon. Despite this, Coca-Cola reported a 2% year-over-year increase in net revenue for the fourth quarter, reaching $11.8 billion, and a 2% rise in fiscal year 2025 revenue to $47.9 billion.