Coca-Cola Increases Spending on Marketing

Coca-Cola Co. said it boosted marketing spending 12% to $4.3 billion in 1996 and that it foresees significant expenses over the next several years as it upgrades its internal information system. In its just-released annual report, Coke said advertising expenses increased 11% to $1.4 billion. Total marketing expenses for 1996 also include consumer marketing, encompassing Coke’s push to promote its ties with the Olympics. The Atlanta-based company said it will continue to lower its dividend payout ratio to 30%, which will free up cash to invest in its business or to repurchase stock. Coca-Cola shares rose 87.5 cents to close at $62 on the New York Stock Exchange. In a separate development, two Coca-Cola Enterprises Inc. executives were indicted by a federal grand jury, which said they bribed an employee to work against a union organizing effort. The executives, James Wardlaw and Eric Turpin, were charged with five counts of violating federal labor law, U.S. Atty. Kent Alexander said.