UPDATE 2-Coca-Cola aims to double system revenue by 2020
* Coke targeting system revenue doubling by 2020
* Aims to more than double servings to over 3 bln/day
* Says long-term growth targets are appropriate (Adds details on long-term goals, byline; changes headline)
ATLANTA, Nov 16 (Reuters) - Coca-Cola Co (KO.N) unveiled goals on Monday that call for the revenue generated by the company and its bottlers to double to roughly $200 billion by 2020, with profit margins increasing.
Coke also said it hopes to more than double the number of soft drink servings it sells to over 3 billion per day by the end of 2020.
The world's largest soft drink maker discussed its targets for the next ten years at a two-day investor meeting in Atlanta, its first such gathering in its hometown in over a decade.
Chief Executive Officer Muhtar Kent said there were several worldwide trends that supported the company's growth in the medium- to long-term -- including a shift in the economic power of developing countries and growing urbanization.
Coke derives more than three-quarters of its revenue from international markets, and is therefore able to offset falling sales in the United States with strong growth in emerging markets like India, China and Brazil. The company said last week that it planned to ramp up investment in Brazil.[ID:nN12295033]
Industrywide sales of carbonated soft drinks had been falling in the United States even before the recession slammed the brakes on consumer spending. Some consumers, taking heed of growing awareness of nutritional health, opted for drinks such as bottled water, juice and tea.
Coke has repeatedly said its long-term growth targets call for annual sales volume to increase 3 percent to 4 percent, revenue to increase 5 percent to 6 percent and earnings per share to increase at a high single-digit percentage rate.
"The long term growth rates are appropriate (moving into 2010), but we're not content with them," said Chief Financial Officer Gary Fayard. "The fundamentals of our business remain strong as we continue to gain market share globally and in key markets, expand our margins, and generate tremendous cash flows."
Last month, Coke reported lower-than-expected third-quarter revenue, hurt by the stronger U.S. dollar and said a weak economy would keep consumers under pressure next year.[ID:nN20380392]
Coke shares closed 0.5 percent higher at $56.74 on Monday. (Editing Bernard Orr)
