Markets in Focus: Coca-Cola

Investing Strategy
May 29, 2024
Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite-sized pieces.

Sip on this refreshing insight into Coca-Cola, a beverage beloved worldwide.

Let's delve deeper into the iconic brand that's likely a weekly companion for many.

Take a look below or see a short video here: https://youtube.com/shorts/cJGywu3tqc0

What is Coca-Cola

Coca-Cola, the titan of non-alcoholic beverages, boasts an impressive lineup of some of the most recognizable drink brands globally.

A brief history of Coca-Cola

The journey of Coca-Cola traces back to 1886 when John Pemberton crafted its formula. The company's evolution saw pivotal moments like its acquisition by a consortium led by Ernest Woodruff in 1919 for a staggering $25 million. That same year witnessed its debut on the New York Stock Exchange at $40 per share, marking a milestone in its storied history.

Over the years, Coca-Cola has strategically expanded its portfolio through notable acquisitions and majority stakes, including Minute Maid in 1960, Glaceau Vitamin Water in 2007, a 90% ownership of Innocent Drinks in 2013, Monster Beverages in 2015, and Costa Coffee in 2018. This diversification beyond its carbonated roots has fortified its market presence and societal impact.

What is Coca-Cola’s business model

Coca-Cola's business model revolves around the production and distribution of syrup concentrates, which, when combined with carbonated water, yield the beloved Coca-Cola and its kin. Revenue streams flow from concentrate operations, where syrup is supplied to authorized bottlers and franchisees, and from finished product operations, managing the sale and distribution of the final beverages.

Warren Buffet and Coca-Cola

Warren Buffett's long-standing relationship with Coca-Cola is one of the most celebrated partnerships in the business world. Buffett's investment philosophy has always been about backing strong brands with enduring competitive advantages, and Coca-Cola perfectly fits that bill. Currently his Berkshire Hathaway holds ~10% stake in Coca-Cola. 

Quench your thirst for success with Coca-Cola, and why not elevate the experience with some savvy trading? 

Dive into the App, savor a Coca-Cola, and trade this CFD with 5x leverage Monday to Friday between 13:30-20:00 (GMT). 

Here's to your prosperity! Cheers!