I wonder where all this business is going???? Maybe Sodastream...
Article in WSJ published Friday....
The pace of decline got worse later in the year. Sales, in dollar terms, skidded 2.5% in the 12 weeks ended Dec. 30 from a year earlier, and were down 2.8% when counting just December, according to the market-research firm, after soda makers raised prices, further damping demand. By volume, sales fell 3.55% in the 12-week period and 4.9% for December.
During Winter months, most soda or juice companies will suffer less sales because some people don't drink cold liquid in cold days.
That's normal and we shouldn't be surprised by that.
Relax, sales will increase alot more when warm weather starts.
The only thing I will agree with here is that KO is facing a demand issue as evidenced by the fact the company is trying to offset a demand slow down with increased pricing. Secondly, they are not just fighting demand slowing, but they are also raising prices due to increased taxation in several nations such as the UK, France, Belgium, Hungary and a host of other nations which are raising taxes wherever they can in order to offset budgetary gaps. Sugar sweetened drink taxes in France rose by 17% YOY. It's a two pronged battle the company faces and the best thing for them to do at present is to diversify the business model. In order to do this a broad analysis has to be reviewed concerning the scale of the business, can the company shift its operations to meet the changing consumer climate?