Beverage king Coca-Cola (NYSE: KO) is on a roll. The biggest win was getting 100% of Subway's beverage business, forcing rival PepsiCo (NYSE: PEP) to the sidelines. Subway trails only Yum! Brands (NYSE: YUM) and McDonald's (NYSE: MCD) in numbers of restaurants worldwide.
Next, according to clinical studies, drinking two 8-fluid-ounce servings a day of Coke's Minute Maid Premium Heart Wise Orange Juice for eight weeks can lower LDL (bad) cholesterol. Heart Wise, which uses plant sterols to stop cholesterol from being absorbed, is already in stores. More than 100 million Americans have cholesterol at borderline-high levels or worse.
As the saying goes, "When the world gives you lemons, make lemonade." Minute Maid Light Lemonade, a new diet fountain drink targeting restaurants, is non-carbonated and uses real lemon juice. With diet and non-carbonated drinks growing in popularity, this product should juice Coke's sales.
Finally, James Robert Kennedy (a.k.a., Radio) is the subject of a $35 million Sony (NYSE: SNE) movie. In this heartwarming story, inspired by a real-life person, Radio chooses Coca-Cola. That particular message is being transmitted now in theaters -- but it will be on DVD, cable and TV soon. Favorable product mentions, especially by lovable characters, can only bolster the company's image and sales.
Put it all together and Coca-Cola shareholders have reason to smile. Coke has stolen a major account from Pepsi. Minute Maid, which has struggled with lackluster sales, has two new interesting products in the marketplace. And the Coca-Cola name keeps popping up in positive ways.
And while the company carries $5.5 billion in total debt, it also sits on $3.8 billion in cash and generates free cash flow of $4.6 billion. As for the stock, it's up 6% so far this year to $46.50 and has moved nicely from its $37.01 low in March 2003.
Think Coke is the real thing? The Motley Fool's active Coca-Cola discussion board will interest investors wanting to discus one of the world's great brands. For a 30-day free trial to the discussion boards, click here.
W.D. Crotty owns stock in PepsiCo and Yum! Brands. You can e-mail W.D. at wdcrotty@fool.com.
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