Should i buy ko stock
Copyright Scutify Wall Street All-Stars LLC. KO shares traded nearly flat in Leadership changes coming to Coca-Cola could now put an even bigger emphasis on diversifying the company and continuing a pattern of acquisitions both internationally and in the non-carbonated beverage sector.
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DPS both made acquisitions to strengthen their lineups. Coca-Cola has been relatively quiet on the acquisition front of late, with a couple international deals done, but no major U. After 10 years of serving various roles with Coca-Cola, including his current Chief Operating Officer role, Quincey will take over the top role from Muhtar Kent, who is stepping down.
Many investors believe new leadership could lead to an acquisition push by KO stock, and I have to agree with that. The other major pieces were scaling globally and growing the non-carbonated soft drink categories.
Of course, Coca-Cola may continue its route of acquiring successful international brands or private companies in a push to scale the small companies on its own. BUD , a company that has grown through a series of massive acquisitions and usually gets what it wants when it comes to deals.
Coca-Cola sold Monster its NOS and Full Throttle energy drink brands in return for non-energy drink brands like Hansen Juice, Hansen sodas, and Peace Tea.
Rumored for years, Coca-Cola seems at least somewhat interested in Monster Beverage, with its sizable investment and agreement to distribute Monster drinks. An acquisition of the International sales saw an increase of Monster Energy was launched in China and Turkey during the quarter. More international launches are planned for The new product launch of Mutant, a possible rival to Mountain Dew, also happened in the quarter. Pepsi Cola finally passed Diet Coke to slip into the number two spot.
Mutant was launched by Monster Energy in the third quarter, with a rollout to select convenience store chains beginning in September.
You can bet that Coca-Cola will closely be watching the success or failure of Mutant, as it has needed a strong rival to Mountain Dew for years.
Shareowner Services: The Coca-Cola Company
The owner of popular brands like La Croix, Shasta, Clear Fruit, Crystal Bay and Faygo is turning into an impressive stock for its shareholders. One of the biggest positives in the quarter came with continued gains in operating margins. The trailing twelve months saw a rate of National Beverage becomes a big acquisition target as it is diversifying itself and has some strong non-carbonated brands.
The company also makes private-label brands for some stores, serving as a cheaper alternative to Coca-Cola products.
This would give KO stock an increasing share in many stores and the ability to offset any weakness over pricing or economic worries. In , FIZZ launched La Croix TangerEEN, a soft drink alternative with no calories, no sodium and no sweetener.
National Beverage seems to have a good grasp on growing sales aside from carbonated beverages and Coca-Cola could greatly benefit from a deal here. Primo Water made an acquisition recently that will transform the company. The deal will more than double net sales, operating income and customer locations for Primo Water with minimal overlap.
Primo Water reported a record quarter for revenue and profitability, which should get the attention of investors and other beverage companies. The buyout of Glacier will take Primo Water to more than 46, customers.
An annual target is to add 1, to 2, customers a year, taking Primo to what they believe is their long term goal of 50, to 60, locations. Primo Water makes money selling large amounts of water to customers.
The company has some of its own water brands and major deals with businesses and retail companies. A buyout by Coca-Cola could help KO expand some other brands into offices and businesses. Imagine offices being able to buy large water cooler refills and also some bottled drinks for employees.
As of this writing, Chris Katje did not hold a position in any of the aforementioned securities. This article was written by Chris Katje for InvestorPlace on Jan 11, Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover many web sites still default model text.
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