This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Coca-Cola Works to Maintain Momentum After Earnings

NEW YORK (TheStreet) -- Coca-Cola (KO - Get Report) may not fall into the category of momentum stock, but that hasn't stopped it from trying as it works to add value for its shareholders. Shares, at around $40.50, are down 2.1% for the year to date.

The soda company reported better-than-expected quarterly revenue on Tuesday thanks to stepped-up advertising and higher sales in emerging markets including China. Global case volumes rose 2% in the quarter, led in part by a 12% increase in China. Coke focused on marketing heavily around the Chinese New Year and it paid off, the company told analysts.

Although Coke does not report sales in China per se, the country's results fall into Coke's Asia-Pacific region, which accounted for 13% of total sales last year. That may not be a staggering percentage, but Coke did say it plans on making China a priority, as it will invest $8 billion in the country during the next five years.

The soda company will also embark on a massive marketing campaign for the World Cup soccer tournament in June in an effort to boost global revenue grwoth. The promotional program will be Coke's largest in history for the World Cup, the company said, as it attempts to gain traction in Latin America and other emerging economies.

Sales in North America and Europe, however, are not as sparkly as the company's soft drinks. North America reported stable growth during an unusually cold winter, while sales in Europe fell 4%, as consumers migrate away from soda toward healthier drinks such as juices.

According to a recent report, total U.S. soda sales declined 3% in 2013, reaching its lowest sales volume since 1995. The trend has spurred Coke to diversify its product portfolio, adding juices, water and sports drinks.

In addition, in February, Coke bought a 10% stake in single-cup coffee brewer Keurig Green Mountain (GMCR), known for its K-cups. The deal is aimed at providing consumers with single servings of Coke through Green Mountain's Keurig Cold beverage system by 2015, an attempt to steal sales away from current market leader SodaStream International (SODA).

Although there are conflicting viewpoints on the future of soda, Coca-Cola as a company is making every effort to succeed as a business. With Coke's move to diversify, the company's success may not always be contingent on the strength of its classic fizzy soda.

KO Chart
KO data by YCharts

At the time of publication the author had no position in any of the stocks mentioned.

Follow @macroinsights

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
KO $40.08 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs