Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Coca-Cola Company (The)    KO

My previous session
Most popular
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

Coca Cola : proposes energy drinks in clash with Monster Beverage

share with twitter share with LinkedIn share with facebook
share via e-mail
11/08/2018 | 08:03pm CET
A Coca-Cola truck makes its way through downtown Los Angeles

(Reuters) - Coca-Cola Co is planning to launch a range of energy drinks for the first time on its own brand name as it intensifies efforts to break away from its traditional fizzy sodas and shift to health-focused trends.

The company on Thursday told Reuters it was working on plans to launch new drinks which would be branded "Coca-Cola Energy" and "Coca-Cola Energy No Sugar" and made with naturally-derived caffeine and guarana extract.

Coke has previously taken a cautious approach to energy drinks as they are wrought with controversy in both the United States and international markets after some drinks were linked to deaths in young people.

The company initially took a nearly 17 percent stake in energy drinks maker Monster Beverage Corp in 2015, making Coke the largest shareholder, to sample at a distance the market in which it had a small presence with its NOS and Full throttle brands.

However, the partnership has turned rocky with Coke currently in arbitration with Monster Beverage over the launch of the Coke energy drinks, as it would put it in direct competition with Monster and violate their initial 2015 agreement.

"We have submitted the difference in interpretation to an arbitration panel for resolution, which is the mechanism agreed by the Coca-Cola Co and Monster in the original agreements," a Coca-Cola spokesperson said.

Analysts, however, were skeptical whether consumers would take to Coke's energy drinks under a brand mainly associated with fizzy sodas.

"While Coca-Cola certainly has the distribution muscle to push new offerings, we question the fit of an energy drink under the Coca-Cola trademark," Cowen & Co analyst Vivien Azer said.

Stifel analyst Mark Astrachan said he did not think Coke's new line of beverages would gain meaningful market share as consumers of energy drinks opt for something edgier.

Astrachan said Coca-Cola may be using the launch to enhance the consumption of trademark Coke drinks rather than materially change its relationship with Monster that is currently worth about $6 billion.

Monster shares fell 10 percent on Thursday after it revealed that it was in arbitration with Coke, while Coca-Cola shares were down marginally at $49.27.

(Reporting by Siddharth Cavale, Aishwarya Venugopal and Uday Sampath Kumar in Bengaluru; Editing by Bernard Orr and Shounak Dasgupta)

By Siddharth Cavale and Aishwarya Venugopal

Stocks mentioned in the article
ChangeLast1st jan.
COCA-COLA COMPANY (THE) -0.02% 49.86 Delayed Quote.8.70%
MONSTER BEVERAGE CORP 1.88% 55.78 Delayed Quote.-13.49%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on COCA-COLA COMPANY (THE)
11/13Nike Names Coca-Cola Executive Craig Williams as Jordan Brand President
11/13COCA COLA : Nike hires former Coca-Cola executive as Jordan Brand president
11/13COCA COLA : Africa launches Coke Threds
11/12COCA COLA : Dasani to launch innovation challenge to counter plastic pollution
11/11COCA COLA : FG, Coca-Cola launch N4bn partnership for 15 hospitals
11/10COCA COLA : Dasani to launch innovation challenge for countering plastic polluti..
11/09COCA COLA : Former Chairman of Coca-Cola Company M. Douglas Ivester to Invest in..
11/09COCA COLA : Dasani to Launch Innovation Challenge for Countering Plastic Polluti..
11/09Coke and Monster Battle Over Drinks -- WSJ
11/09COCA COLA : Dasani to launch innovation challenge for countering plastic polluti..
More news
News from SeekingAlpha
11/13The Coca-Cola Co. (KO) Presents at Morgan Stanley Global Consumer & Retail Co.. 
11/13I Am Selling Half Of My Coca Cola Position. 
11/12Has Everyone Become A Trader, FAANG Holder, Or DGI Investor? 
11/12How Long Can 'Big Beverage' Ignore A Company With 92% YoY Domestic Revenue Gr.. 
11/11COCA-COLA : What Happens When You Pay 24 Times Earnings? 
Financials ($)
Sales 2018 31 858 M
EBIT 2018 11 104 M
Net income 2018 8 310 M
Debt 2018 28 650 M
Yield 2018 3,12%
P/E ratio 2018 27,26
P/E ratio 2019 22,66
EV / Sales 2018 7,56x
EV / Sales 2019 7,33x
Capitalization 212 B
Duration : Period :
Coca-Cola Company (The) Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends COCA-COLA COMPANY (THE)
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 51,5 $
Spread / Average Target 3,2%
EPS Revisions
James Quincey President, Chief Executive Officer & Director
Ahmet Muhtar Kent Chairman
Kathy N. Waller CFO, President-Enabling Services & Executive VP
Eddie R. Hays Chief Technical Officer & Senior Vice President
Barry N. Simpson Chief Information Officer & Senior Vice President
Sector and Competitors
1st jan.Capitalization (M$)