Coke's Shrinking Backyard

Coca Cola (KO) announced great global results and has created shareholder wealth. The North American market continues to be vexatious. It just continues to shrink and cost control, containment, reduction is the name of the game.

Are we seeing a cultural phenomena that started in the home market? Where are the Harvard B School studies about what went wrong.

Financially Coca Cola must reduce costs fast enough so that foreign growth is not cannibalized.

Usually you can shoot your losers. Close down a product line or retreat from a market. Coca Cola cannot leave North America. They cannot stop selling Cokeproducts at home. There is an interesting tipping point coming for Coke. You can only cut costs for so long.

Coke needs to figure out a way to start growing in their back yard.