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The Coca-Cola Company Message Board

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  • goldenseth@ymail.com goldenseth Jan 15, 2013 4:00 PM Flag

    KO has a problem being a new Competitor

    Wow, nice try with educating the KO following and investor base. We're all investors here, so what is more likely to happen in 2013? Does SODA outperform KO once again or vice versa. SODA is not a fad as is evidenced by the growth rate and every data point one can throw at it. Fads usually touch on one human sensibility and SODA touches on at least 4-5 and is ingested. Most fads are not ingested ie. clothing or technology. SodaStream has been expanding for the last 5 years and is only in the US in mass market channels since 2010. YOY growth was 50% and it will probably start to normalize to a growth rate of 25-35% over 2013 as most expansionary efforts work in such a fashion.

    Is Sodastream a serious threat to Coke, probably not the way most think. But in certain markets, yes, it absolutely is due to the population demographics like in Greece, Norway, Sweden, France, etc which just one of the reasons KO has made such a stink about SodaStream in the past. These shifts in consumer behaviors take time to develop and as such from a KO investor point of view my only concern would be whether or not the company has the foresight to identify these shifts and a game plan in place to address it accordingly.

    In 2004 when the Keurig began its mass market distribution, it didn't gain real traction until 2008. By that time it was too late, ConAir, Sunbeam, Nespresso Mr.Coffee and others hadn't a plan in place for the single-serve market demand shift and as such they lost sales in North America. ConAir was on the brink of bankruptcy. And guess what, everyone was saying the same thing about the Keurig as what is being posted here, too expensive and just a novelty. Nearly 10 years later and it is the leading single serve coffee producer in North America. SodaStream has one thing going for it that Keurig doesn't though. It actually makes $30 on every machine it sells, Keurig makes nothing and on certain machines loses a buck or two.

    Well, that's my 2 cents investors, good luck to all and be well!

 
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