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Coca-Cola figures out what energy is good energy

Snacks / Wednesday, July 24, 2019

Some numbers matter more than others... Take Coca-Cola's revenues last quarter. They were expected by Wall Street to be $9.99B — They were actually $10.0B. But that's not why the stock flew up 6% Tuesday. The real reason is Coke upgraded its sales growth expectations for 2019 from 4% to 5%. For a company as huge as Coke, that extra percentage point is big.

Coke's the 5th most valuable brand on earth... But in the US, it needs a brand-aid. Word's gotten out that carbonated water is probably better for you when not mixed with sweet syrup or aspartame. It didn't experience growth in its classic Coca-Cola brand, and the plan to revive it feels desperate: Bring the 80's back with product placements in Stranger Things Season 3.

Coke has now discovered "good energy"... A key company goal is to "expand energy" (the natural kind). Coke acquired Costa Coffee in the UK for $4.9B, and Coca-Cola Energy has been launched in 14 countries (no ETA yet for the US) — its caffeine comes from natural sources. Plus, its Diet Coke spin-off, aka Coca-Cola Zero Sugar, has grown double-digit percentage amounts for 7 straight quarters.

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