Coca-Cola has faced challenges in 2025, which has been marked by a global cost of living crisis and geopolitical instability. Despite these difficulties, the company has outperformed Wall Street expectations, with net sales reaching $12.46 billion, a 5% increase from the previous year. Organic revenue saw a rise of 6%, showcasing Coca-Cola’s resilience in a competitive market.
Coca-Cola’s Resilient Brand Performance
The brand continues to stand strong in a maturing soft drink category. According to Kantar, Coca-Cola ranks as one of the most valuable brands worldwide. It has notably improved its market presence in the USA, enhancing its pricing power against competitors like Pepsi. BrandZ data indicates that Coca-Cola dominates demand creation, ranking first in the soft drinks category in 90% of markets.
Advertising Investment
Coca-Cola reported a record advertising spend of $5.146 billion in 2024, up 2.7% from 2023. This investment is largely due to the restructuring of its marketing organization led by Manolo Arroyo, the global chief marketing officer. Over the past four years, Arroyo has streamlined agency relationships and shifted the company towards a digital-first marketing strategy.
- Company: Coca-Cola
- Net Sales: $12.46 billion (5% increase)
- Organic Revenue: 6% growth
- Advertising Spend: $5.146 billion (record high)
- Increase from previous year: 2.7%
Transforming Marketing Ecosystem
The transformation resulted in the creation of nine studios, fostering deeper collaboration among employees from both Coca-Cola and WPP. This new marketing structure has shifted advertising investment from traditional media to digital platforms, with plans to allocate 70% of paid media to digital formats.
Modern Media Approach
Arroyo’s vision for a “modern media” strategy emphasizes a data-driven execution model. This approach integrates diverse data sources to create highly segmented marketing campaigns. Coca-Cola plans to implement this strategy in its top 40 markets by the end of 2024.
Hyper-Personalization through Data
The modern media strategy aims for targeted engagement across 30 million outlets worldwide. This initiative has already proven successful with campaigns like ‘Share a Coke,’ which saw a significant boost in sales and consumer engagement. By customizing messaging on a local level and utilizing advanced data analytics, Coca-Cola seeks to understand consumer preferences better.
Artificial Intelligence in Marketing
Manolo Arroyo recognizes the significant role of artificial intelligence in marketing transformation. Coca-Cola has integrated AI into its processes, with around 85% of its global marketers using AI tools like ChatGPT. Arroyo emphasizes collaboration between human creativity and AI capabilities to enhance marketing outcomes.
However, the company has faced backlash over AI usage in some campaigns. While concerns have been raised about its creative executions, Arroyo defends the effectiveness of these strategies, highlighting high performance scores for their campaigns.
Commitment to Ethical Technology Use
Arroyo is committed to encouraging responsible AI adoption in marketing. He believes trust, ethics, and transparency are essential to the evolving landscape. His prominent role within the industry reinforces the need for ethical standards as brands navigate technological advancements.
Acknowledgments
Manolo Arroyo’s contributions to the marketing field have earned him a nomination for The Drum and the World Federation of Advertisers’ Global Marketer of the Year Award 2025. Previously recognized leaders in this award include Asmita Dubey of L’Oréal and Marcel Marcondes of AB InBev.
