Articles for Coca Cola

Mexico the New El Dorado For Soft Drink Giants

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Thursday, February 2nd, 2012 by Trefis Team

It seems like soft drink powerhouses Coca Cola Co (NYSE:KO) and PepsiCo (NYSE:PEP) are betting heavily on Mexico as both the companies recently announced huge investments in the country. Mexico has one of the highest obesity rates in the world and the government has undertaken several measures to promote a healthier lifestyle. Major Food & Beverage (F&B) companies are hoping to leverage the incentives provided by the government to build a healthy portfolio in the region. Besides these two, Dr Pepper Snapple (NYSE:DPS) has also made significant investments in the country and is witnessing a healthy revenue growth.

We maintain a price estimate of $71, which is about 8% above the current market price.

Coca Cola’s Global Investments Will Drive Growth

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Wednesday, January 25th, 2012 by Trefis Team

After gaining close to 10% last year, Coca Cola Co (NYSE:KO) looks well poised for further gains as the company’s slew of investments globally continue to reap benefits for the famous cola maker. The company is also investing more than $3 billion in the U.S. this year, which will also provide a tax benefit. Besides the investments, Coca Cola is working toward maintaining a healthy public image by creating jobs locally and promoting sustainability with its recycling programs. It currently competes with companies like Pepsi (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) and other domestic players.

We estimate a $75 price for Coca Cola, which is about 10% higher than the market price.

Coca Cola and Nestle End U.S. Tea Party, Focus on Overseas Growth

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Friday, January 13th, 2012 by Trefis Team

Coca Cola Co (NYSE:KO) and Nestle SA have agreed to scale back their beverages joint venture. The companies will phase out partnership in U.S. by the end of the year and focus on Europe and Canada. Coca Cola will also enter into a license agreement with Nestle in Taiwan and Hong Kong. The joint venture between the two companies, known as Beverage Partners Worldwide (BPW), sold Ready-to-Drink (RTD) teas under the label Nestea. We think that this is a move in the right direction as the RTD segment is growing in the U.S. and Nestea sales were flagging. The move will also give Coca Cola the freedom to launch its independent RTD tea brands. Coca Cola currently competes with companies like PepsiCo (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS), among others in the U.S.

Coca Cola Update: Bubbling Abroad With Bangladesh Expansion

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Friday, January 6th, 2012 by Trefis Team

After making investments in the Middle East, Africa and the U.S., Coca-Cola (NYSE:KO) is investing $50 million in Bangladesh to set up its first bottling plant in the country. Bangladesh is an important market for carbonated soft drink makers as it has a population of about 150 million, almost half of that of the U.S. with a low soft drink penetration rate. Furthermore, the country has weathered the global recession remarkably well averaging 6-7% growth per year. Coca Cola currently competes with companies like PepsiCo (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS), among others.

After Middle East, Coca Cola Invests in Expansion at Home

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Tuesday, January 3rd, 2012 by Trefis Team

Coca Cola (NYSE:KO) will invest more than $3 billion in the U.S. alone in the coming year, according to the company’s Chief Executive Mr. Muhtar Kent. Mr. Kent also sounded optimistic about the U.S. recovery and said that the country has a bright future ahead. Coca Cola enjoys a very strong brand recognition within the country, so an improved economic environment could really help the company in the long run. Recently, the company also invested $980 million buying a stake in Aujan Industries in the Middle East. Coca Cola currently competes with companies like Pepsi (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) and other domestic players.

Coke Brings Juice to Africa Supporting Local Farmers

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Friday, December 23rd, 2011 by Trefis Team

Coca Cola Co (NYSE:KO) is stepping up its presence in the African continent by introducing Minute Maid in Tanzania. Last month, the company also launched the juice brand in Uganda and Kenya. The move will help Coca Cola gain share of the African juice market, which remains highly fragmented and offers tremendous opportunity. Last week, the company also signed an agreement with Aujan Industries to grab a foothold in the Middle East and the North African beverage markets. Coca Cola currently competes with companies like Pepsi (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) and other domestic players.

Coca Cola Inks Deal to Guzzle Middle East & Africa Growth

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Monday, December 19th, 2011 by Trefis Team

The Coca Cola Company (NYSE:KO) agreed to buy 50% equity of Aujan Industries in a deal worth $980 million. The deal also includes a 49% stake in the company’s bottling and distribution business. With this, Coca Cola will have a greater presence in a region in which it has struggled historically. Aujan Industries has revenues of more than $850 million and is amongst the top 100 companies of Saudi Arabia. Coca Cola currently competes with companies like Pepsi (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS) and other domestic players.

We estimate a $75 price for Coca Cola, which is more than 10% higher than the market price.

Coke Tries to Fizz to $75 with Freestyle Options, Indian Expansion

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Thursday, December 15th, 2011 by Trefis Team

The Coca Cola Company‘s (NYSE:KO) Freestyle soda got a major boost as Burger King plans to install the high tech machine in all of its 850 company owned restaurants. Freestyle soda machines let users choose from more than 100 different flavor combinations and feature a touch screen. Burger King will also offer its franchisee restaurants the option to install the machines on a voluntary basis. Coca Cola currently competes with companies like Pepsi (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS).

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Why Billionaire Phillip Frost’s Bet On PROLOR Biotech Is Lucrative

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Thursday, December 15th, 2011 by Trefis Team

While many investors flock to traditionally defensive companies, like Coca Cola (NYSE:KO) and GE (NYSE:GE), amidst macro headwinds, some of the best risk/reward can be found in biotechnology. From inelastic demand to innovation and growth potential, this industry provides a lucrative hedge against domestic stagnation. Here is one for investors interested in following Forbes’ Billionaires:

PROLOR Biotech (PBTH) is an Israeli emerging healthcare company that uses low-risk CTP technology to develop new forms of previously approved therapeutics. This business model provides for a safe investment due to less expensive and shorter clinical trials. A major catalyst for the firm is hGH-CTP, which will be the first FDA-approved long-acting hGH product. It has already had strong Phase II results that indicated patients could receive just weekly injections to return IGF-1 levels within normal range. By contrast, commercial hGH requires daily injections.

Coca Cola Sharpens Focus on Green Initiatives, $75 Fair Value

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Monday, December 5th, 2011 by Trefis Team

The Coca Cola Company (NYSE:KO), the maker of popular drinks such as Coca Cola, Fanta and Sprite, is pushing a greener strategy in order to implement sustainable initiatives and eventually reduce costs. The company has also called for a responsibility deal within the soft drink industry to promote recyclability of bottles and cans. Coca Cola currently competes with companies like Pepsi (NYSE:PEP) and Dr. Pepper Snapple Group (NYSE:DPS).

We estimate a $75 price for Coca Cola, which is about 15% higher than the market price.