With over 6.1 billion people in the world and the population growing by approximately 95 million people per year, there are plenty of consumers eager to quench their thirst. Coca-Cola operates in over 200 countries throughout the world, possesses a superior distribution system, and has one of the most recognized trademarks around the globe. Travel to Vietnam, India, or Venezuela, and you will begin to appreciate the ubiquity of Coke. Coca-Cola has done a tremendous amount of research into its customers. Thus, if the population of the earth 30 years from now grows to 9 billion, Coke will be able to fully take advantage of this growth with its superior branding and distribution systems while expanding its profit potential.
Beverage companies are innovators as well.
New product innovations such as Diet Coke have created an explosion in consumer demand. However, with varied tastes globally, there is plenty of opportunity to develop new products to further penetrate existing markets while benefiting from long-term growth trends in the population. Of course, other beverage companies benefit from population growth trends as well. Fortune magazine recently honored Pepsi as the most admired company in the beverage industry. Over time, each company may have its share of problems, but if investors buy great businesses at great prices when few people want to own them, market-beating returns are waiting.