Famous for its iconic branded drink, the Coca-Cola Company also produces a diverse range of carbonated beverages. The original formula was created in 1886, but the company wasn’t incorporated until 6 years later in 1892. With a worldwide marketplace for the brand, Coca-Cola has become a byword for the drink.
By 1919, when the company went public, the brand was already powering Coca-Cola towards its current status of a market leader. The famed company has steadily bought out one competitor after another and its shares continue to increase by around 11% year on year making it one of the top investment opportunities. With its global network of franchised bottling plants that utilise concentrated syrups, Coca-Cola can sell its famous products in virtually every country in the world.
The soft drinks giant grosses annual revenue that exceeds $41 billion and has a market capitalization of $188 billion.
On the downside, nutrition and health are currently featuring heavily in the media and even governments are intervening with measures to reduce sugar intake. Coca-Cola has already responded by adding juices to many of their products, but the brand and its variations still account for over three-quarters of the company’s total sales.
While it may be true that the Coca-Cola Company is fast reaching the pinnacle of its potential market penetration, there will always be further opportunities via new products and enhancements to their existing ones. Determining the future of the company can be facilitated through a detailed research of both its latest and historical earning reports. Deals with other companies such as the one with the Keurig Green Mountain Coffee Company may also provide a way forward in the future development of the company’s product ranges.
- A recent drop in sales amounting to 11% has been attributed to increased consumer awareness concerning the detrimental effects to health by both artificial and natural sweeteners including sugar. With the overall US consumption of carbonated drinks now at an all-time 30-year low point, some of Coca Cola’s rivals are already fighting back and gaining market share. This trend would tend to suggest that there is still some room for a market share increase.
- While such things as the company’s strong brand and consumer loyalty should all play a role in sustaining Coca-Cola as the market leader, there are no guarantees. Their experience and adaptability combined with a solid track record are likely to go a long way in getting them past any future challenges that the marketplace may present to them.
- Coca-Cola has already displayed its ability to learn and react from mistakes such as the one made via the ill-fated introduction of “New Coke”. They recovered very quickly and retained their credibility and customer loyalty into the bargain.
- Coca-Cola trades on the New York Stock Exchange as KO and many industry pundits and financial analysts foresee a continued dominance of the company within its market sector.
When trading an asset like KO, it’s essential that investors have access to a responsive platform in order to open and close positions in a swift manner. Almahfaza is proud to offer this type of technology. The use of educational and money management tools is also likely to make trading Coca-Cola and other stocks both easier and faster.