The Coca-Cola Company is the largest nonalcoholic beverage business in the world. It is very well-known globally for marketing some of the most popular carbonated drinks such as Coke, Sprite, and Fanta. The company also sells products under brands like Georgia Coffee and Minute Maid. Coca Cola makes the concentrate base for all its carbonated drinks. This concentrate is processed and packaged by a network of more than 100 bottlers globally before distributing to various channels.
Coca-Cola Company Background
Coca-Cola has been operating for more than 130 years. It has enjoyed tremendous business growth over the decades from the carbonated soft drink market. In recent times, as the eating habits shift towards healthier alternatives, Coca-Cola has also adapted by switching its focus towards energy drinks and premium water. Coca-Cola has also managed to build up its international business. It derives some 40% of its revenues from emerging economies where the middle-class grows and the per-capita consumption of carbonated soft drinks moves up. The significant size and scale of Coca-Cola give it cost advantages. Additionally, its strong brand value is another source of a competitive moat.
Buy Food And Beverage Stocks, But Which Ones?
Coca-Cola’s stock closed at $53.27 on 17th December 2020. The stock was trading at a 3% dividend yield at that time. Over the preceding month, the stock is up 1.25% while on a year-to-date basis, Coca-Cola is down 3% as the pandemic has affected Coca-Cola consumption at event venues and movie theatres. On a 5-year basis, the stock is up 25%.
Coca-Cola’s rival, PepsiCo, has had a stronger performance. Its stock last closed at $145.71 on 17th December 2020. The stock is up 1.6% over the preceding month and up 7.3% on a year-to-date basis. On a 5-year timeline, PepsiCo’s stock is up 48%. The stock currently trades at a 2.8% dividend yield.
Keurig Dr Pepper’s stock closed at $31.12 on 17th December 2020. It is up almost 5.5% over the preceding month and up 8.3% for the year 2020.