Bloomberg Businessweek recently reported that cola giant
The Coca-Cola Company
) has introduced its first herbal tea drink called Habu, in yet
another effort to expand beyond its traditional soft drinks.
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Launched in Thailand, Habu will be available in 9.5 ounce
bottles, each containing 140 calories. Habu includes a blend of
four herbs with health benefits, namely roselle, licorice, luo
han gou and cogon grass. Roselle is a variety of hibiscus known
for lowering cholesterol. Licorice eases coughs, soothes ulcers
and stomach inflammation and controls blood sugar levels. Luo han
guo is used as a sweetener and Cogon grass is useful for treating
fever and other health conditions. Though the drink has multiple
health benefits, it has been primarily designed as an everyday
The latest addition to Coca Cola's portfolio should appeal to
health conscious consumers. The company already offers
ready-to-drink teas under brands, Gold Peak, Honest Tea and Fuze
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 its top line by
introducing healthier products, innovative packaging and stronger
merchandising solutions to cater to the ever-changing needs of
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. However, muted
volume trends of carbonated beverages and soft economic
conditions concern us.
Coca-Cola carries a Zacks Rank #3 (Hold).Another consumer staples
stock that is currently doing well is
Dole Food Company Inc.
), carrying a Zacks Rank #2 (Buy).