Will Coca-Cola make a move into alcohol?

An analyst from financial services company Wells Fargo has speculated that drinks giant Coca-Cola may announce plans to move into the alcoholic beverages market at its investor day on Thursday.

Wells Fargo has announced that it has upgraded Cola-Cola from ‘market perform’ to ‘outperform’ and has raised its 12-month price target for the company from $45 to $51.

Analyst Bonnie Herzog has said that Coca-Cola may announce plans to move into the alcoholic beverage market this Thursday at its investor day in Atlanta.

“We expect management will highlight a lot of this innovation,” said Herzog on Monday, continuing that she expects CEO James Quincey’s commentary to reveal more details on whether the company plans “to expand into other premium segments such as adult craft beverages” and whether this will include alcohol or just mixers.

In 2014, Coca-Cola took a 16.7% stake in energy drinks brand Monster, having also bought Keurig Green Mountain in the same year.

It has a market value of US$199.6 billion, making it the world’s largest non-alcoholic beverage maker. In comparison, AB InBev is the world’s largest brewer and has a market value of US$197.2 billion.

The beer giant has experienced a fall in sales of its flagship beer brands Budweiser and Bud Light and has recently announced a number of executive leadership changes in its North American division.

Herzog added: “We continue to believe Coca-Cola’s best-in-class distribution and strong brand portfolio will allow it to retain its premium valuation and believe that investments in productivity and marketing today will pay off in years to come. We think Coca-Cola can support roughly 5 to 6 percent organic revenue growth over the next several years, ahead of current consensus estimates.”

“With a new reinvigorated management team, and renewed focus on accelerating top-line growth while maintaining discipline around costs, we believe Coca-Cola’s next chapter of growth is around the corner”.

Coca-Cola rose 1.5% to 47.43 in Tuesday’s (14/11/2017) stock market trading.

One Response to “Will Coca-Cola make a move into alcohol?”

  1. Anonymus says:

    Coca Cola already has – they bought a brewery in West Australia.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Events Sales Executive

The Drinks Business
Central London, UK

Sale & Operations Manager

Marussia Beverages
Marylebone, London, UK

Prestige Account Manager – Europe

Jackson Family Wines
London, UK

Sales Executive

MAISON SASSY
London, GB

Head of Supplier Management - Group

Matthew Clark
London and Bristol, UK

Brand Manager – Whisky

ATOM Brands
Tunbridge Wells, UK

Brand Manager - Gin

ATOM Brands
Tunbridge Wells, UK

International Business Development Assistant

iDealwine
Paris, France with frequent trips to London office

Events Assistant

Speciality Drinks
London, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more