The Coco-Cola Company
(
KO
) has launched two new flavors of juice drinks, Minute Maid Fruit
Punch and Strawberry Passion, under its popular brand Minute Maid.
These flavors are the latest additions to Minute Maid's collection
of more than a 100 different flavors. These new products will be
available nationwide from this month in contemporary, recyclable
PET packaging.
The addition of these new flavors is expected to be favorable
for the company as the customers are now being offered with more
choices. Also these fruit juices are excellent sources of vitamin
C, and are expected to appeal to the health conscious
customers.
The Coco-Cola Company commands a leading position in the juices
category, with Minute Maid being one of its flagship brands. The
company believes in innovating new superior quality products in
order to maintain its brand reputation and remain a step ahead of
competition. In 2011, the company introduced a new brand, Pure
Squeezed, a 100% never from concentrate orange juice in three
varieties. Management addresses to the needs of the health
conscious customers by offering healthier products in better
packaging.
We are optimistic about the company's performance with
strong revenue and volume growth in the first quarter of 2012
offsetting the decline in margin. We appreciate the company's
strong brand power, solid cash position and global expansion.
However, the company needs to be aware of the rising costs that are
affecting its margin. The company also needs to increase its
advertising expenses in order to match its competitor
PepsiCo Inc.'s
(
PEP
) increased focus on North American beverages.
The Coca-Cola Company carries a Zacks #3 Rank in the near term
(Hold rating). One of the strongest competitors of the company,
PepsiCo Inc
.
carries a Zacks #3 Rank in the near term (Hold rating).
Headquartered in Atlanta, Georgia, The Coca-Cola Co. is the
largest global producer and marketer of beverages and commands a
portfolio of more than 500 sparkling and still beverage brands,
including Coke, Diet Coke, Fanta, Sprite, Minute Maid and
POWERade.
COCA COLA CO (KO): Free Stock Analysis Report
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