Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to Howard,Bhoddhisatva,penym,Anonymous,Rhyd6, for Donating to support the site

Coca cola - lost it's bubbles?

Analysing companies' finances and value from their financial statements using ratios and formulae
PinkDalek
Lemon Half
Posts: 5106
Joined: November 4th, 2016, 1:12 pm
Has thanked: 1235 times
Been thanked: 1420 times

Re: Coca cola - lost it's bubbles?

#273449

Postby PinkDalek » December 26th, 2019, 3:20 pm

Irish Malt Whiskey?

With Coca Cola?

TheMotorcycleBoy
Lemon Quarter
Posts: 2882
Joined: March 7th, 2018, 8:14 pm
Has thanked: 1363 times
Been thanked: 255 times

Re: Coca cola - lost it's bubbles?

#273570

Postby TheMotorcycleBoy » December 27th, 2019, 2:27 pm

So I might run the Pepsi numbers. However (perhaps you people know about this already?), I'm now surfing various market research to figure out the decline of KO, and came across this for Pepsi:

The main headwinds
However, several long-term headwinds could still throttle PepsiCo's growth. Soda consumption in the U.S. is currently at a three-decade low, according to Beverage Digest, and that softer demand is reflected across other markets. The approval of soda taxes in several markets could exacerbate that pain.
https://www.fool.com/investing/2019/09/ ... years.aspx

Also found this:

Why Americans Are Drinking Less Soda than They Were 20 Years Ago
Are you surprised to learn that full-calorie soda consumption in the United States has dropped by 25 percent in the last 20 years?

It’s the largest change in the American diet in the last century, thanks to big campaigns that raised awareness on the health detriments related to soda consumption.

As a result, the beverage industry has shifted gears in the direction of soda alternatives, like iced tea, sports drinks, and bottled and flavored waters.

Soda is seen as the new tobacco, and experts think that soda consumption will decline even more as anti-soda campaigns and policies move forward. And for diet soda? Seems like it’s headed down the same path as soda, with consumers being increasingly skeptical of artificial sweeteners.

https://www.thekitchn.com/why-americans ... ago-224248

Americans are buying less soda, but the industry is still dominating
Americans sure aren’t drinking soda like they used to, but big beverage companies are still betting soft-drink die-hards want new options.

“It turns out people who still love soda are willing to pay more for it, especially now that it is in smaller packages that make it easier to control portions,” Duane Stanford, executive editor at Beverage Digest, tells FOX Business.

Case in point, Coke (NYSE:KO) is rebooting Coke Zero to Coke Zero Sugar with a new formula debuting later this month.

Stuart Kronauge, business unit president, USA Operations and senior vice president, Marketing, Coca-Cola North America is hoping loyal Coke Zero fans will embrace the revamp. “We also hope that people who love the unforgettable taste of Coca-Cola, but want less sugar, will try it and enjoy,” he said in a statement.

Along with healthier options, consumers also like a deal when it comes to soda. Last week, fast food giant McDonald’s (NYSE:MCD) reported better-than expected sales for the first time in more than five years after executives said customers reacted positively to a $1 soda promotion, in addition to their premium sandwich deals.

The soda category continues to outsize trendier water drinks when it comes to revenues. Top soda brands like Coke (NYSE:KO), Pepsi (NYSE:PEP) and Dr. Pepper raked in over $80.5 billion in retail sales during 2016, with water coming in as a far second at $23.2 billion, according to Beverage Digest. Even though soda consumption declined for the 12th straight year.

Stanford says that soda companies should only start to worry about the fall in consumption when they fail to “profitably meet consumer demand.”

“There have been two seismic consumer shifts in beverages. The obsessive hunt for variety and the need to better balance sugar and calorie consumption. Add to that a growing desire for simpler labels and more functional ingredients and this is a revolution. Beverage makers like Coca-Cola, PepsiCo and Dr. Pepper Snapple are learning how to assimilate these trends and make them work at scale. But turning a large ship takes time and the complexity can be staggering,” Stanford adds.

https://www.foxbusiness.com/features/am ... dominating

Google delivers loads more related documents using "why americans drink less soda"

Matt

ADrunkenMarcus
Lemon Slice
Posts: 701
Joined: November 5th, 2016, 11:16 am
Has thanked: 121 times
Been thanked: 177 times

Re: Coca cola - lost it's bubbles?

#292971

Postby ADrunkenMarcus » March 21st, 2020, 5:36 pm

Matt

Coke is currently on a 5.1% free cash flow yield, the valuation looks to be the lowest since 2010-11 and it has a 4.3% dividend yield.

Pepsi 4.5% FCFY, the cheapest since 2012-13 and 3.9% dividend.

FWIW.

Best wishes

Mark.

TheMotorcycleBoy
Lemon Quarter
Posts: 2882
Joined: March 7th, 2018, 8:14 pm
Has thanked: 1363 times
Been thanked: 255 times

Re: Coca cola - lost it's bubbles?

#292996

Postby TheMotorcycleBoy » March 21st, 2020, 6:39 pm

ADrunkenMarcus wrote:Matt

Coke is currently on a 5.1% free cash flow yield, the valuation looks to be the lowest since 2010-11 and it has a 4.3% dividend yield.

Pepsi 4.5% FCFY, the cheapest since 2012-13 and 3.9% dividend.

FWIW.

Best wishes

Mark.

Interesting, thanks Mark!

Gotta say, re. the US markets I'm currently stalking Visa. Currently between $140-150. I've plotting the SP500 for past 2 weeks. Definitely still falling. I'll take another look midweek and see what I reckon.

Thanks again for the heads up!

Matt

ADrunkenMarcus
Lemon Slice
Posts: 701
Joined: November 5th, 2016, 11:16 am
Has thanked: 121 times
Been thanked: 177 times

Re: Coca cola - lost it's bubbles?

#293004

Postby ADrunkenMarcus » March 21st, 2020, 6:54 pm

That’s good for Visa!

I prefer MasterCard but both are great. I’ll be topping up big in April.

Best wishes

Mark

flyer61
Lemon Slice
Posts: 312
Joined: November 11th, 2016, 12:53 pm
Has thanked: 81 times
Been thanked: 85 times

Re: Coca cola - lost it's bubbles?

#293042

Postby flyer61 » March 21st, 2020, 9:12 pm

Potted that PepsiCo dropped 11 per cent on Friday. What am I missing? This is a global Titan whose products are flying off the shelves at the present time.

ADrunkenMarcus
Lemon Slice
Posts: 701
Joined: November 5th, 2016, 11:16 am
Has thanked: 121 times
Been thanked: 177 times

Re: Coca cola - lost it's bubbles?

#293061

Postby ADrunkenMarcus » March 21st, 2020, 11:01 pm

flyer61 wrote:Potted that PepsiCo dropped 11 per cent on Friday. What am I missing? This is a global Titan whose products are flying off the shelves at the present time.


It is, and revenues should be resilient.

Debt is 2.1 times forecast 2020 EBITDA, which seems reasonable and manageable for a company like PepsiCo.

Best wishes

Mark.

TheMotorcycleBoy
Lemon Quarter
Posts: 2882
Joined: March 7th, 2018, 8:14 pm
Has thanked: 1363 times
Been thanked: 255 times

Re: Coca cola - lost it's bubbles?

#293074

Postby TheMotorcycleBoy » March 22nd, 2020, 5:04 am

flyer61 wrote:Potted that PepsiCo dropped 11 per cent on Friday. What am I missing? This is a global Titan whose products are flying off the shelves at the present time.

I guess the market is assuming a global contraction in wages, hence spending power of customers, e.g. lay-offs particularly Stateside. I doubt whether a significant number of those customers will die, however.

Whether the SP fall is proportionate is what's up for debate. Probably not!

Matt


Return to “Company Analysis”

Who is online

Users browsing this forum: No registered users and 2 guests