What happened

Coca-Cola (KO 2.14%) stock is trailing the market this year. Shares have fallen 19% compared to a 4% decline in the S&P 500 through the end of June, according to data provided by S&P Global Market Intelligence.

That drop also put the beverage giant well behind peer PepsiCo (PEP 1.08%), which slumped just 3% through the first half of 2020.

Woman drinking a reddish soda out of a glass bottle via a striped straw

Image source: Getty Images.

So what

Coca-Cola's more beverage-focused portfolio has been a slight liability during the early days of the COVID-19 pandemic. With all types of large gatherings, including sporting events and concerts, canceled, and with restaurants seeing plunging traffic, consumers have far fewer occasions to drink soda.

Volume plummeted 25% through mid-April, the company said. Pepsi's similar slump is being offset by surging demand for consumer packaged food and snack products.

Now what

Investors will get details about the true impact of the pandemic on operating trends when Coke announces its second-quarter results on July 21. But before then, shareholders will be watching Pepsi's report on July 13 for signs of a rebound in the beverage industry.