The Coca-Cola Company (KO +0.74%) is seemingly on top of the world. Its brand power is indisputable, and its global presence is massive. But, increasingly, fierce competition pops up and threatens the cola titan. I've created a premium report on Coca-Cola to help investors examine the company's future.
Below is an excerpt from the report, which lists an overview the company. It's just a sample of one section, but we hope you find it useful.
Blockbuster brand power
Consultancy firm Interbrand publishes an annual survey bestowing top honors to the best global brands. The report uses a proprietary formula assigning brand names a monetary value. Not surprisingly, Coca-Cola has been labeled Interbrand's Best Global Brand since the ranking's 2001 inception. As the world's largest beverage company, Coke boasts 15 different billion-dollar brands, including Diet Coke, Coca-Cola Zero, and Sprite.
Diverse product portfolio
Noncarbonated (or "still") drinks are growing at a faster rate than carbonated beverages, a trend that's expected to continue for the next several years as consumers become more health-conscious. Even though Coca-Cola is still heavily dependent on carbonated soft drinks, it's commendably grown the depth and breadth of its entire beverage portfolio. Over the past several decades, Coke has transformed itself from solely a carbonated beverage company to one boasting a line of healthier drink offerings. Coca-Cola now sells juices like Minute Maid and Odwalla, ready-to-drink teas such as Honest Tea and Fuze Tea, sports drinks like PowerAde, and bottled waters by glaceau and Dasani.
Continued product innovation
With the increased trend toward beverage customization, Coca-Cola is constantly introducing new products. For example, it plans to roll out Dasani Drops, zero-calorie, artificially sweetened liquid that can be added to water. Rapid growth in still beverages, which experienced 8% volume growth for Coca-Cola last year, has been the impetus behind product innovations and drink alternatives such as these.
Focus on shareholder returns
Coca-Cola consistently generates solid cash flows, which are used to reinvest in business operations or enhance shareholder returns. The company's high-margin business model supports this. Coca-Cola currently pays out 50% of its earnings as a dividend to its shareholders. The company has increased its dividend for 50 consecutive years.
Looking for more help?
That was just a small taste of our new premium report on Coca-Cola. If you're trying to figure out whether the company is a buy or sell, the report is an indispensible resource for investors seeking more information. Also, the report comes with updated quarterly guidance so you'll stay in the know. To get started, simply click here.
