Coca-Cola has said that it will cut an additional $1 billion (£600 million) in costs by 2016, where the beverage giant will target productivity savings through supply chain optimisation and IT standardisation.

The announcement comes as the company reported a $1.7 billion (£1 billion) drop in net income for the fourth quarter, which led to Coca-Cola's share price dropping by nearly 4%.

The £600 million cost savings are part of the company's 'productivity and reinvestment' plan and add to a previously announced $550 million (£330 million) to $650 million (£390 million) it expects to save over the same period – bringing the total expected savings by 2016 to reach between £930 million and £990 million.

Coca-Cola said: "The primary components of the incremental productivity goal will consist of (i) expanded savings through global supply chain optimisation as well as data and information technology system standardisation, which will be reinvested in global brand-building initiatives with an emphasis on increased media spending, and (ii) improved effectiveness of our marketing investments by transforming our marketing and commercial model to redeploy into more consumer facing marketing investments to generate the highest possible return and accelerate growth."

Coca-Cola Enterprises recently revealed that it is in the middle of switching from a 'cumbersome' SAP CRM platform to Salesforce on mobile, which is being rolled out to 2,000 sales reps across Western Europe.

The 360 Connect iPhone application is saving each member of CCE's sales team up to 45 minutes a day, which was previously spent on connecting to sluggish VPNs and inputting data onto laptops.