The Coca-Cola Company, which is Monster's largest distributor, is also a competitor with its Full-Throttle energy drink. Coke eventually could seek higher economic rents from Monster.The company's Worx Energy Shot has been unable to gain significant share against the industry-leading 5-Hour Energy
Coke FEMSA's long-term growth prospects are compelling, but its shares appear richly valued.
Coke's revenue base is relatively undiversified compared with PepsiCo's; Pepsi's snack business has proven quite resilient during economic downturns.Despite the popularity of Coke's flagship brand, cola consumption has been declining in the U.S.Soft drink bottling operations are capital-intensive
Dr Pepper Snapple lacks the scale and international presence of its larger competitors. Consequently, it will likely grow more slowly than Coke and PepsiCo.Rising commodity costs for such items as aluminum, oil, and corn (used for sweeteners) could continue to pressure margins for beverage firms.Dr
CCH's profitability could be limited by Coke's power to control its gross margins.
Olympics and Euro soccer championships could provide platform for growth in 2012
Coca-Cola is the established leader in the carbonated soft drink category, and is the clear number-one brand in many international markets.Pepsi's bottler consolidation has increased the company's asset base and reduced the firm's return on invested capital. Additionally, following the
We take a more optimistic view of growth, but Hansen's stock remains overvalued.
Coke is following Pepsi's lead in consolidating its North American bottling operations.
CCE is morphing from a North American company into an exclusively European bottler.