Soda Pop Organics Annual Report

Background

Soda Pop Organics, Inc. (hereinafter referred to as “Organics”) is a soft drink company, with headquarters located in Washougal, Washington, USA. At the end of 2013, Organics employed over 120,000 people, had investments in over 1,550 locally owned organic/hydroponic farms and owned 130 sugar cane farms that grow and process exclusively organic sugar cane products. Organics operates in the non-alcoholic beverage market sector and offers some competition to industry giants, Pepsi (PEP) and Coca-Cola (KO) (2013 Annual Report.)

Organics began at a local produce stand in 2001 in Washington with the formation of a farm cooperative. Early products for sale at the produce stand are unknown, but it is assumed to be carbonated drinks. Participation in the cooperative required local farmers of fruits and vegetables to share production costs and bottling costs. The revenue earned was invested back into the cooperative so it could increase growing area,

There is also an equal emphasis placed on the sustainable farming initiative. In its mission, Organics pledges to “offer healthy, plant-based, soft drink products from sustainable farming activities made with only the most wholesome ingredients” (2013 Annual Report.) In the 2013 market, this was an insightful mission as both the healthy/organic products (Gagliardi) and the sustainable farming products were taking off (Roberts). The Organics mission also makes mention of relationship building within local communities. This will create goodwill and brand loyalty in the consumer, but only in those local areas. Additionally, the company’s emphasis on local markets and environment may be pulling focus away from sales and profits, the primary concern of professional traders in the US Stock Exchange. This is corroborated by a gain in the traded stock price of 1.7% over 2013 when the earnings per share were 5% over the same