Boston, MA 10/07/2013 (wallstreetpr) – The Coca-Cola Company (NYSE:KO) has been facing a number of critical issues touching on its very existence as a brand. Because of these, investors have been, obviously, deeply concerned about the future of the “Obey Your Thirst” maker. The core issues have been competition among other soda manufacturers and the increasing concern over obesity in some of its major markets like the Mexico, the US, and many other developed nations across the globe.
Something else that has sent some sort of shivers down the spines of Coke-maker investors is the recent drop of the brand to third position in the Interbrand’s Best Global Brand rating. KO fell below Apple and Google for the first time in 13 years.
However, KO is not yet out of the radar of stocks that matter. Perhaps Warren Buffet’s 400 million shares investment in the company should prove this. For the record, KO is a coveted brand and is a strong financial performer in major indices. For decades, the soda maker has posted big earnings per share and strong revenue.
The soda company also has attractive free cash flow, consistent dividend growth and solid buyback policy of its shares.
The company has initiated ambitious approach to bolster its fortunes in the seemingly declining market of carbonated drinks.
The notable approach that KO has taken up is use of celebrity power. The Coke-maker has entered a deal with Mar Jacobs, a fashion designer, in what it hopes would reconnect it to its lost consumers and also improve its appeal among the young generation.
And if obesity is the concern, KO is planning to introduce an all-natural yet zero calorie sweeter called stevia. This will be included in the carbonated soft drinks. If these avenues are pursued with the gas power that they deserve, KO is poised to regain its lost market share and expand more. The company has the financial muscles to launch any sales campaign it deems viable. KO has a market cap of $164.91 billion.
