One of the great things about Coca-Cola, as an investment, is that the company manages to sell water at a considerable mark-up. As populations become slightly more aware of the risk of diabetes and obesity, Coca-Cola Amatil looks set to simply change its product mix, but continue to grow sales. To quote Buffett again, “Water’s gone way up.” In a country like Indonesia, where water is sometimes unsafe to drink, and alcohol drinking is frowned upon, I think that sales could grow for many years to come. Furthermore, the move back into distributing beer should bolster profits in Australia.
CCL Price at posting:
$9.82 Sentiment: Buy Disclosure: Held
