Coca-Cola Co. (NYSE: KO) says that Coke Zero is its most successful launch [subscription required] in 20 years. That says something about how badly the company has been doing. According to The Wall Street Journal, Coke Zero has sold more than 100 million unit cases. That is considered a sign of modest success in the soft drink market.
Apparently, Coke Zero is also not stealing much share from other Coke products.
The problems at Coke and rival PepsiCo, Inc. (NYSE: PEP) are not going away because of a new diet soda. Over the last five years, both stocks have underperformed the S&P 500. It may be that sales of soft drinks have simply topped out. Everyone in the world who want to drink coke already does.
The competition for beverages has heated up. Almost every food retailer carries Snapple. Energy drinks like Redbull are taking part of the market. Then there is also Gatorade and Arizona Iced Tea. The shelves are getting crowded.
Coke Zero may be selling more just fine, bu, that won't solve Coke's problems.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
4-18-2007 @ 3:46AM
Eric said...
Seems he forgets to mention who makes gatorade