Interesting diverse thread .. however .. I will have to add recent experience at a club Coke Zero actually outsold red Coke but the teens love V and happily paid twice the price per can for their caffeine hit. So the diabetes issue may be resolved but if you google the physiology of caffeine on the body we can open up an entirely new thread.
Coke lost ground on two key issues. The supermarket wars that erupted in Australia 4 or so years ago dramatically eroded margins. Pepsi still sells for under 50c a can on special at supermarkets.. Coke 66c .. delivered to a retailer this is closer to a $1 per can but sell for $2.50. From what I undertsand volumes have not been eroded .. just margins which is why these Red Bull V and Gatorade etc have become so profitable .. they still sell for $3.50 + at vending machines/shops. However sales at vending machines have fallen by 40% or more at some sites about 2 years ago when talk of family benefit cuts made many people review spending habits so a $2 difference per day for a drink changed behaviours. Coke still sells but the low margin volume through supermarkets increased at the expense of retail/vending sales. Pepsi continues to be aggressive in their push for market share and I have to say I like some of their product but this is healthy competition. CCL have had internal issues with their sales and marketing with staff cuts that may have added further complexity to its overall performance.
Indonesia .. for whatever reason .. CCL have not been able to crack the market there and this has undoubtedly cost the company major management time and capital. With the finalisation of the 29.4% capital investment in the Indonesian operation .. maybe .. just maybe .. there will be some new eyes on the ground and some movement is sales. The references to Muslim youth by AlanXX are simply misguided and inappropriate.
Ok on a brighter note Coke Life .. bought some yesterday and didnt mind it .. bit pricey for me but I'm a value buyer .. but its all green .. hope the kids like it!
CCL Price at posting:
$10.68 Sentiment: Hold Disclosure: Held
