Motley Fool Money Big Soda > Big Beer
Apr 25, 2022
Jason Moser, a Senior Analyst at Motley Fool, discusses Coca-Cola's impressive first-quarter growth and its coffee acquisition's impact on revenue. He highlights potential risks like inflation and geopolitical tensions while comparing the success of soda giants with struggling beer companies. Maria Gallagher, another Senior Analyst, dives into the importance of proxy voting for shareholders, focusing on corporate governance issues such as board diversity and executive pay, and the rising significance of ESG factors in influencing shareholder activism.
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Coca-Cola's Strong Performance
- Coca-Cola's Q1 2023 results show strong organic revenue growth (18%), indicating the company's resilience.
- Despite CEO James Quincey's "storm clouds" warning, Coca-Cola's diversified portfolio and pricing power position it for stability.
Costa Coffee Acquisition Pays Off
- Coca-Cola's 2018 acquisition of Costa Coffee, initially questioned, is now yielding significant returns, with 27% growth in the coffee division.
- This demonstrates the long-term value of strategic acquisitions in diversifying and strengthening a company's portfolio.
Soft Drinks vs. Beer
- Soft drink companies like Coca-Cola and Pepsi are outperforming major beer companies due to their wider product diversification.
- While beer companies face competition from wine and spirits, soft drink companies offer various beverages, catering to a larger market.