I would argue that CCL's moat is more about the goodwill in, and ubiquity of the brand name. The brand which this year Forbes has valued at $56bn and ranked as the 4th most powerful brand in the world behind Apple, Microsoft and Google.
Think about that for a second and then think about trying to enter the drinks market and compete against Coke. Think about the immense challenge of trying to launch a product against Apple or Microsoft or Google. Im not saying that it can't be done but there is a inherent protection is having such a well known brand behind you and this is one reason why Coke stock tends to trade at a premium.
Coca Cola Amatil gets to enjoy the tailwind of that $56bn brand name and gives up 30% ownership to TCCC in CCL which is only worth $7.2bn in return.
CCL Price at posting:
$9.49 Sentiment: Buy Disclosure: Held
