Coca-Cola Is Bubbling in Russia

Cafe inside the Hermitage

Visiting St. Petersburg, Russia, last month, I couldn't help but notice Coca-Cola's instantly-recognizable logo virtually everywhere.

For example, cafe signage inside the famed Hermitage museum includes the Coca-Cola name, as you can see from this photo. Many stores featured Coke. Also, dozens of street vendors outside major tourist destinations sold Cokes from under branded red-and-white umbrellas.

In fact, sales of the Coca-Cola brand grew by 26% in Russia last year alone, thanks to the company's intensive marketing focus, an improving local economy, and numerous sponsorships that put the name before the public in so many different places and ways.

According to Coca-Cola's research, Russians consume only 18% as much Coke as Americans drink. In other words, as strong as the brand's sales have become, there is plenty of room for growth and increased profitability.

Yet dairy and fruit drinks are also becoming huge battlegrounds for the traditional Coke vs. Pepsi rivalry. Pepsi has bought a major beverage and food marketer to expand in Russia, so Coca-Cola will have to keep pouring on the marketing muscle to grow its business in all beverages, not just its flagship carbonated brand.