Are healthier drinks the key to Coca-Cola's future?
As the demand for sugary soda declines, the world's largest soft-drink maker may need to turn to water and juices.
The company said soft drink volume declined 2% in the quarter, though that was offset by a steady climb in sales for products like Dasani water, Powerade, Honest Tea, and Simply Orange, leading to a 1% bump in overall sales volume.
That dynamic may be Coca-Cola's key to success in the future, as Americans increasingly ditch soft drinks in favor of healthier fare.
According to Duane D. Stanford at Bloomberg:
Coca-Cola is trying keep U.S. sales growing amid criticism that sweetened drinks contribute to the nation’s obesity epidemic. The company last month started airing advertisements to bring attention to the importance of exercise and calories in curbing obesity. [Bloomberg]
Coca-Cola came under some criticism for those ads, with many saying the company was merely performing damage control. But the trends for the company indicate that it should get serious about selling non-sugary drinks -- if only to meet its bottom line. As Alan Rappeport at The Financial Times says, the latest report "should make its executives rethink how they operated the business."
Coca-Cola is also relying heavily on emerging markets for growth. The company's global sales rose by 3%, powered by rising consumption in China, Russia, Latin America, and Africa.
However, that doesn't mean Coca-Cola can resolve all its challenges by working around saturated markets in the U.S. and Europe. As Abram Brown at Forbes notes, North America remains the company's most profitable market.
More from The Week
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The company complains after the son of Florida State's football coach is televised wearing -- gasp -- Under Armour.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.