• Being well aware of the sugar and calorie levels of Coca Cola and the other carbonated beverages, consumers are increasingly shifting towards healthy beverage types such as fruit drinks and fruit juices. This has resulted in a considerable drop in sales revenue for the company• Another main challenge is company’s inability to find an alternate sweater to be used in its beverage formula in place of sugar which is natural, safe and contains low or no calories.• Scarcity of water and poor quality of the available water- In Coca Cola’s production process water is a main ingredient. At the same time water is a limited resource in many parts of the world.
In many instances Coca Cola has been brought to the lime light due to its large volume of water consumption. With the increase in demand for water it is also visible that the quality of the water declines which will increase production cost for the company.• Increasing cost of energy – Coca Cola’s logistics operation involves a large number of trucks and also the production process involves large consumption of electricity, gas and other energy sources. With the increasing cost of energy, it is unavoidable that cost of production would increase shrinking the profit margins. (Keller, 2008)