Drugs associated with weight loss, such as Ozempic and Mounjaro, have taken the world by storm. While these treatments have done wonders for the pharmaceutical industry, they've also taken a toll on the food and beverage sector.

One company that was hit the hard last year was Coca-Cola (KO -1.13%), a staple in Warren Buffett's portfolio. With more consumers tapping into health and wellness, anchored by the rising popularity of weight-loss medications, investor sentiment around Coca-Cola and it's sugary beverages started to sour.

Nevertheless, I think Coca-Cola presents a unique opportunity for investors looking for a bargain buy in 2024.

Ozempic concerns are overblown

Generally speaking, soda is considered to be less healthy than other beverages due to its high sugar content and caffeine. Moreover, consuming too much soda could lead to adverse health conditions including weight gain and elevated cholesterol levels.

Given these risks, a bearish take is that Coca-Cola is facing an existential crisis as more people try to improve their health. One method that's currently popular are treatments intended for diabetics, such as Ozempic or Mounjaro, which have a side effect of causing weight loss. Despite the theory that these medications and others are going to hurt Coca-Cola's business, the only thing that seems to have changed is the company's stock price.

Throughout 2023, Coca-Cola revenue and profit rose, signaling that demand for its beverages remains high. Furthermore, looking at Coca-Cola's top rival PepsiCo can also shed some light on trends in food and beverage consumption. In addition to beverages, PepsiCo is home to snack companies Frito Lay and Quaker Foods -- and both are reporting impressive growth.

Given the high demand for PepsiCo's snacks and Coca-Cola's various drinks, I think concerns over weight-loss treatments are overblown.

Tops of several multicolored soda cans.

Image source: Getty Images.

There's more to Coca-Cola than soda

Coca-Cola is much more than a soda business. The company's portfolio includes sports hydration drinks, water, and even coffee. However, Coca-Cola derives sales from some little-known areas that might pique your interest.

As per the company's filings, Coca-Cola generates a meaningful portion of its sales from selling syrups and other concentrates to bottlers. While this may initially come as a surprise, it shouldn't. Many food and beverage companies have lesser-known operations that help fuel the overall business.

A cheap stock with passive income

Coca-Cola stock fell 7% during 2023, significantly underperforming the 24% return from the S&P 500.

It's hard to fathom that one of the most iconic brands in history fell out of favor with investors, especially in the face of growing sales and profits. I understand that some investors may want higher-growth opportunities for their portfolios. But for those seeking steady income, Coca-Cola might be one of the best choices out there.

The company has raised its dividend consistently for over half a century. Additionally, the stock's price-to-earnings (P/E) multiple of 24 is a steep discount to long-run averages over the past five to 10 years.

I see Coca-Cola as a no-brainer buy in 2024. As time goes on, I think more investors will come to see that the company's business is much more than just selling soda.

Moreover, I wouldn't avoid the stock solely based on long-term concerns about weight-loss treatments. Dividend investors might be eager to scoop up shares of Coca-Cola at its current attractive valuation, while enjoying the benefits of consistent passive income.