CocaCola posts
FeedPosted Feb 10th 2009 9:45AM by Mark Fightmaster (RSS feed)
Filed under: Coca-Cola (KO)

I found a very interesting article while surfing one of the greatest sports blogs on the Web,
Deadspin. According to
The Brown Daily Herald, the NCAA has sent out an email to coaches and student-athletes informing them that some flavors of Vitaminwater are banned under the body's rules. According to an organization that conducts drug testing for some NCAA schools, six of the 15 flavors of Vitaminwater "contain common stimulates or other psychoactive chemicals that could be problematic for both the University and the student-athletes."
The article made me think back to some baseball players (not A-Roid or Baroid) who have blamed their positive tests on supplements and unknown ingredients (and for fairness, I think some football players used this "dog ate my homework" style defense as well). I just wonder if any of them sampled Vitaminwater ahead of their tests. However, back to the problem.
Continue reading The NCAA bans some Vitaminwater flavors, will it hurt Coke's earnings?
Posted Jan 14th 2009 4:03AM by Douglas McIntyre (RSS feed)
Filed under: Consumer experience, Coca-Cola (KO), Marketing and advertising
Coca-Cola (NYSE:KO) has come up with a novel marketing message. Drinking Coke can make you happy in hard times.
According to The Wall Street Journal, "Coca-Cola is launching a new global ad campaign for its iconic cola, hoping to appeal to consumers' longing for comfort and optimism at a time when the weakening economy is sapping soft-drink sales."
How subtle. And, to think it might work. Most people are not boobs and the obvious nature of the message is not likely to be lost on anyone, but who would not like a little ray of sunshine on a cloudy day? To some extent the new message is just an extension of the decades-long philosophy behind advertising Coke. It has always been about feeling good, sharing a soda with friends, and enjoying life
The fact that the drink is pure sugar and stimulates the brain has nothing to do with it. Neither does the experience of an energy "crash" when the sugar wears off.
Go ahead and hug yourself, have a Coke, and don't worry that you are out of work.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Oct 29th 2008 12:45PM by Elizabeth Harrow (RSS feed)
Filed under: Analyst reports, Analyst upgrades and downgrades, Bad news, Coca-Cola (KO), Coca-Cola Enterprises (CCE)
Blue-chip soda titan Coca-Cola Company (NYSE: KO) slipped into the red this morning after Standard & Poor's last night revised the company's outlook to "negative." The ratings change also affects the Dow component's two main bottling units, Coca-Cola Enterprises (NYSE: CCE) and Coca-Cola Hellenic Bottling (NYSE: CCH). Analyst Jean Stout noted, "Weak economic conditions in select markets and volatile commodity costs have pressured the Coke system's operating performance."
Currently, Coca-Cola's S&P rating is "A+," the fifth-highest investment-grade notch. The downwardly revised outlook indicates that the rating is in danger of being cut over the next one to two years. In response to S&P's "negative" label, CCE postponed pricing a previously announced, $1 billion bond issue.
Stout added that "reduced share repurchases at Coke could restore some financial flexibility to the Coke system," but warned, "weakening macroeconomic conditions, as well as further acquisitions at Coke, CCE, or CCHB will likely further weaken Coke system credit measures."
Continue reading Coca-Cola's outlook slashed at Standard & Poor's
Posted Oct 28th 2008 2:57PM by Bruce Watson (RSS feed)
Filed under: Campbell Soup (CPB), Coca-Cola Enterprises (CCE), Procter and Gamble (PG), Kraft Foods'A' (KFT)

Almost a year ago, when Steve Halpern
suggested that investors take a second look at
Procter & Gamble (NYSE:
PG), he offered a very sound argument: the manufacturer had a strong domestic and international presence, was trading well and -- perhaps most importantly -- was heavily involved in staples. Over the ensuing year, Halpern's advice has proven to be pretty strong. In fact, on September 29, when the bottom was falling out of the market, P&G
was one of the three stocks in the S&P 500 that fell the least.
P&G, as well as the other two stocks that fell the least,
Kraft Foods (NYSE:
KFT) and
Coca-Cola Enterprises (NYSE:
CCE), and the one S&P stock that actually rose,
Campbell Soup Company (NYSE:
CPB) have a few things in common. First off, they all are connected to products that make people feel safe. These sorts of brands (which Kevin Roberts calls
Lovemarks) are almost recession-proof. When things get bad and people lose faith in the market, they experience an ever-greater desire to reach for a Coke and a smile, grab a bowl of "Mmm! Mmm! Good!" Campbell's soup and eat a plate of Kraft Macaroni and Cheese. Given their ability to evoke memories of a comforting childhood, these mid-level brands will often experience an uptick in troubling times.
The other thing that all these companies have in common is that they are staples. In boom times, people tend to eat out more, subcontract cleaning and laundry services, and try pricier, upscale brands. In tougher times, however, the tendency to eat in and do one's own laundry means that companies like Kraft, Coca-Cola and P&G may actually find themselves in a better financial position. This isn't to say that staples don't have ups and downs, but rather that their fluctuations tend to be less severe -- and they sometimes even buck the prevailing market trends!
Posted Sep 3rd 2008 1:55PM by Zac Bissonnette (RSS feed)
Filed under: Deals, Coca-Cola (KO)
Coca-Cola (NYSE:
KO)
has offered [subscription required] to acquire Beijing-based China Huiyuan Juice Group Ltd, China's number one 100% juice and nectar company. The deal, which would be the second largest in Coke's history (behind Vitamin Water), would require the approval of Chinese regulators.
Coke says the deal would be accretive to earnings in third year -- but of course there are lies, damn lies, and forward-looking statements. The deal represents a continuation of Coke's efforts to diversify away from the declining soft drink industry and into higher-priced, more natural beverages.
The question is whether Coke will be able to add meaningfully to the value of these brands with its own marketing and distribution power. If Coke is just pumping up its sales by adding brands at high prices, that's probably not a good strategy for long-term shareholder value. Very few companies have been able to create such value through acquisitions, and Coke's shopping spree should be seen as a sign of increasing weakness in the company's current businesses.
Posted Apr 7th 2008 12:46PM by Zac Bissonnette (RSS feed)
Filed under: Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising
Coca Cola (NYSE:
KO) and
PepsiCo (NYSE:
PEP) better look out. Red Bull GmbH, the Austrian company behind bestselling energy drink and household name Red Bull, wants to try its hand at selling cola. The new drink, shown at right, will launch in seven countries over the next several months, with the US launch slated for June,
according [subscription required] to the
Wall Street Journal.
According to
BrandWeek,
"Unlike Coca-Cola and Pepsi, Red Bull Cola will be 100% natural and command a premium price. Its formula will consist of kola nut and coca leaf."
The all-natural formula could be a big advantage for Red Bull,wcreating the perception of a more healthy beverage in the same way that vitaminwater became a big hit among people looking to drink healthier, in spite of being pretty high in calories.
Will Red Bull have success? That's hard to say without knowing what it tastes like, but with a strong brand and rapid growth, Red Bull could present the most serious challenge to the cola leadership of Coke and Pepsi in a long time -- possibly ever.
With Coke and Pepsi both experiencing significant declines in sales last year, this could be the perfect time to kick them while they're down. Posted Jan 31st 2008 9:57AM by Paul Foster (RSS feed)
Filed under: Coca-Cola (KO), Hansen Natural (HANS), Options
Hansen Natural (NASDAQ: HANS) was trading up $1.29 to $38.50 in pre-open trading.
UBS Warburg believes Coke (NYSE: KO) has been looking into a potential acquisition of HANS.
Stifel says: "We reiterate our Buy rating on HANS after shares declined yesterday following a note from an independent research firm."
HANS February option implied volatility of 74 is above its 26-week average of 60 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Posted Dec 27th 2007 3:15PM by Zac Bissonnette (RSS feed)
Filed under: Deals, Coca-Cola (KO)
Coca Cola's (NYSE: KO) strategy of acquiring premium non-carbonated beverage brands like Glacéau Vitamin Water appears poised to continue, with the company reportedly in advanced talks to acquire Honest Tea.
The eight year-old Bethesda, Maryland company has about $13.5 million in annual sales, and Coke is hoping that that number can grow as more healthful beverages take market share away from soda.
CNN Money quotes Beverage Digest editor John Sicher as saying that, "Honest is a very small brand, but has attracted attention due to its organic positioning. Linking up would be a positive for Coke."
Coke's strategy of using acquisitions to fight the decline in soft drink sales appears to be working, with sales expected to increase in the high single digits due to changes in the company's product mix. Look for Coke to continue making acquisitions like this one as it seeks to build stronger competitors for PepsiCo's (NYSE: PEP) Propel Fitness Water and Sobe brands.
Posted Dec 4th 2007 3:44PM by Aaron Katsman (RSS feed)
Filed under: Consumer experience, Coca-Cola (KO), Southwest Airlines (LUV)
Today's news that Southwest Airlines (NYSE: LUV) will slow its planned growth in 2008 marks the second time this year that the low-cost carrier has reined in expansion as it struggles with high fuel costs. "We are concerned about growing evidence of slowing economic growth that would inevitably affect passenger demand, coupled with a surge in energy prices," Chief Executive Gary C. Kelly said in a statement.
Clearly the airline industry is challenged by high fuel costs and the prospect for slower domestic growth that would make it harder for no-frills carriers to fill their planes. As Douglas McIntyre pointed out, the saving grace for Southwest is that it has a long-term hedge on fuel prices and is buying fuel at a crude oil cost of about $51 a barrel.
What can airlines do to get profitable during this expensive fuel, slower-growth period? Well, charging customers a bit more so they can have a soda on the plane is probably not the right answer -- all it really does is make the airlines look incredibly cheap. The price airlines charge makes a drink at Yankee Stadium look cheap. How many of us have been on a plane and everyone is snickering and making comments to the person seated next to them about how they can't believe they need to pay for a Coke (NYSE: KO).
I think that airlines, like any business, need to show consumers that they are valued. Charging for a drink has the opposite effect. For an interesting take on airline improvements, read this post by Steve Towers.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/04/07.
Posted Nov 27th 2007 8:50AM by Steven Halpern (RSS feed)
Filed under: Major movement, Coca-Cola (KO), PepsiCo (PEP), Newsletters, Coca-Cola Enterprises (CCE), Technical Analysis, Tech for the rest of us, S and P 500, DJIA, Stocks to Buy
"Stock prices continue to behave bearishly," caution David Nassar and Larry McMillan, options experts and editors of the industry-leading The MarketWatch Options Trader.
Here, they offer a bearish market overview along with a bullish look at beverage stocks -- along with an options play on PepsiCo (NYSE: PEP).
The advisors explain, "Rallies can't gain footholds, while declines are deeper and more long-lasting than seem possible. As a result, there is an oversold condition in this market -- one which can spur sharp, but short-lived rallies at any time -- but a true intermediate-term buy signal is not at hand, for none of our indicators have turned bullish.
"The Standard & Poor's 500 turned bearish when the index fell through what had been support at 1490. That was the last piece of the bearish puzzle. The market has been under extreme pressure ever since. Any rallies towards 1490 can be sold, as that level now represents resistance.
"Meanwhile, where is support? It was at 1430-1440, but that level gave way and it seems likely now that the averages will test 1410 (the August closing lows) and perhaps 1370 -- which is multiple support from both August and March.
"Should that give way, then a true bear market would be underway. Support levels are somewhat meaningless in a nasty decline like this anyway; it is more important to monitor oversold conditions.
Continue reading MarketWatch experts: Bearish on stocks; bullish on beverages
Posted Nov 13th 2007 9:00AM by Jim Cramer (RSS feed)
Filed under: Bad news, Apple Inc (AAPL), Coca-Cola (KO), Market matters, Merck and Co (MRK), Freep't McMoRan Copper (FCX), Cramer on BloggingStocks
TheStreet.com's Jim Cramer says that this is among the worst markets he remembers, and explains how to live through it.We've just crossed into no man's land with this dramatic selloff of what has been working: agriculture, oil, minerals and defense -- although the latter held up well.
We are now square into 1990, where only a few stocks hold up and things go very awry. It is a time to be defensive and be glad you caught as much as you did, but recognize that we will not go up without emergency Fed relief because there simply is too much stress in the system.
Are we in a bear market? I have long ago recognized the worthlessness of those labels. You say "bear market" and maybe you miss the next six points in
Coke (NYSE:
KO) (
Cramer's Take) that could be had or the next five in
Merck (NYSE:
MRK) (
Cramer's Take). We may have a nice leg up in dividend-oriented stocks. We can catch bounces in commodity stocks, and we might just want to start buying some beat-up stocks with solid rest-of-world exposure.
Continue reading Cramer on BloggingStocks: Take a defensive stance now
Posted Oct 31st 2007 2:16PM by Zac Bissonnette (RSS feed)
Filed under: Coca-Cola (KO), Marketing and advertising, Business of sports
Coca Cola (NYSE:
KO) will pay New England Patriots heartthrob Tom Brady $3 million to $5 million to endorse Smartwater, Vitamin Water's sister brand that was acquired as part of the deal for Glaceau (
which made 50 Cent a very rich man indeed...).
The Glaceau acquisition was part of Coke's strategy to pursue revenue growth as sales of carbonated beverage decline.
According to the
USA Today:
Brady, who dates a supermodel and makes gossip-column headlines as well as sports news, joins Jennifer Aniston in pitching the distilled water with added electrolytes. Replacement of electrolytes depleted in workouts can ease muscle fatigue. Smartwater is the top enhanced water with yoga enthusiasts, and Aniston has lent the brand a sexy, healthy lifestyle image. Brady adds some muscle to the healthy image.
You almost have to wonder about whether these products are a rip-off. If the company can pay Jennifer Aniston and Tom Brady millions of dollars to sell water, the mark-up has got to be pretty high.
But Tom Brady is as big as it gets right now, and this a pretty big coup for Glaceau.
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