The Coca-Cola Company
), the largest global producer and marketer of beverages,
recently announced the introduction of Caffeine Free Coke Zero
for consumers who like to have a Coke even later in the
day. The new product will be available for sale from mid
July. Caffeine Free Coke Zero will come in packs of 12 cans and 2
Coke Zero is a very successful brand, generating about $1
billion in global revenues. There is an increasing demand
for caffeine free products. The latest addition of caffeine
free products should appeal to health conscious consumers.
Caffeine Free Coke Zero gives consumers the option to enjoy Coke
without being concerned about calories or caffeine intake.
Changing consumer preferences, increasing health consciousness
and rising obesity concerns are affecting the demand for
carbonated beverages from Coca-Cola as well as other soft drink
Dr Pepper Snapple Group Inc.
). Coca Cola is trying to re-invigorate sales of its soft drinks
by introducing new stevia (a non-nutritive sweetener) based
products, innovative packaging and stronger merchandising
solutions to cater to the ever-changing needs of its
Overall, we are encouraged by Coca-Cola's global reach, strong
brand power, expanding international presence, powerful global
bottling network and its solid cash position. Moreover, the
integration of Coca-Cola Enterprises' Bottling business and the
company's productivity initiatives are expected to result in
significant cost savings. However, muted volume trends of
carbonated beverages and soft economic conditions concern us.
Coca-Cola carries a Zacks Rank #3 (Hold).
Another company in the consumer staple sector, which is better
positioned at current levels is
Energizer Holdings Inc.
), carrying a Zacks Rank #2 (Buy).
DR PEPPER SNAPL (DPS): Free Stock Analysis
ENERGIZER HLDGS (ENR): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
To read this article on Zacks.com click here.