Core Viewpoint - Coca-Cola has maintained a strong dividend history and is recognized for its resilience in the beverage industry, despite challenges in sales and earnings growth over the past decade [1][2][16]. Group 1: Business Performance - Coca-Cola's fourth-quarter results showed a 2% growth in unit case volume, driven by strong performance in China, Brazil, and the U.S., contributing to the recent rise in stock price [3][6]. - For the full year, Coca-Cola achieved a 12% growth in organic revenue, primarily due to price increases and a favorable product mix, despite facing significant currency impacts from a strong U.S. dollar [6][7]. - In Latin America, unit case volumes increased by 3% in 2024, with pricing and mix up 21%, although currency headwinds were 14% worse than in 2023, resulting in an 11% increase in reported net revenue [7]. Group 2: Brand Development and Market Position - Coca-Cola's competitive edge lies in its brand development capabilities, having created $15 billion brands organically and successfully developed 12 small brands into $1 billion-plus brands [9][10]. - The company leads in various non-alcoholic beverage categories, including being the top player in water, sports drinks, and juice [11]. - Coca-Cola has effectively diversified its product lineup, with significant growth in brands like Fairlife, which increased from $10 million in retail value in 2014 to $4 billion in 2024 [12][14]. Group 3: Future Outlook and Valuation - For 2025, Coca-Cola anticipates organic revenue growth of 5% to 6%, with currency-neutral earnings-per-share (EPS) growth projected at 8% to 10% [15]. - The stock is currently valued at a forward price-to-earnings ratio of 23.7 based on a comparable EPS of $2.95 for 2025, indicating a reasonable valuation despite recent stock price increases [15][16]. - Coca-Cola has a dividend yield of 2.8%, which is higher than the average in the consumer staples sector and the S&P 500, making it a solid source of passive income [17].

Core Viewpoint - The Coca-Cola Company is highlighted as a reliable investment option for consistent dividend income, boasting a forward-looking dividend yield of 2.8% and a remarkable history of 63 consecutive years of annual payout growth [2][3]. Company Overview - The Coca-Cola Company is well-known for its flagship cola product but also owns a diverse range of beverage brands, including Minute Maid, Powerade, Gold Peak, and Dasani, allowing it to cater to a wide array of consumer preferences [3]. Dividend Information - The recent dividend increase to $0.51 per share means an investor would need to hold 1,961 shares to generate $1,000 in quarterly dividends, equating to an annual dividend income of $4,000, which would require an investment of approximately $140,000 at current stock prices [4]. - A historical perspective shows that a $12,500 investment in Coca-Cola stock 30 years ago, with dividends reinvested, would now be worth $141,000, illustrating the potential for growth through reinvestment [5]. Investment Strategy - Investors are encouraged to start with smaller investments and utilize dividend reinvestment to build their positions over time, which can lead to significant long-term gains [5].

Core Viewpoint - Coca-Cola is highlighted as a strong investment opportunity for new investors in 2025, despite its current valuation metrics suggesting it may not be a bargain [3][4]. Valuation and Performance - Coca-Cola's stock has a price-to-earnings (P/E) ratio of 28.5 and a free cash flow multiple of 63.6, indicating it is relatively expensive based on cash profits [4]. - The stock has underperformed the S&P 500 over the past year but is expected to outperform in 2025 [4]. Investment Strategy - Berkshire Hathaway has maintained its Coca-Cola holdings without buying or selling shares for the last decade, focusing instead on collecting dividends [5]. - Coca-Cola is characterized as a reliable dividend stock, making it an attractive option for long-term income generation [6][8]. Dividend History - Coca-Cola's quarterly dividend is currently $0.485 per share, amounting to $1.94 annually, which is 42% higher than the original purchase price of $1.37 per share adjusted for splits [7]. - The company has consistently generated robust cash profits and returned a significant portion to shareholders through dividends [8]. Future Outlook - The potential for Coca-Cola to continue providing stable dividends over the coming decades is emphasized, making it a viable option for investors looking to establish a dividend-generating position [9][10].

Core Viewpoint - Coca-Cola demonstrates strong performance despite inflationary pressures, showcasing its pricing power, profitability, and reliable dividend, making it a solid investment choice for a diversified portfolio [2][10]. Group 1: Pricing Power - Coca-Cola, as the largest beverage company globally, possesses significant pricing power, allowing it to maintain premium pricing for its well-recognized products [3]. - The company has navigated inflation by experimenting with smaller packages and returnable glass bottles, which helps in customer acquisition while managing costs [4]. - Revenue increased by 6% year-over-year in Q4 and 3% for the full year, with organic revenue growth of 14% for the quarter and 12% for the year [5]. Group 2: Profitability - Coca-Cola has a long-standing history of profitability, leveraging its established marketing and distribution strategies to integrate new brands efficiently [7]. - Earnings per share (EPS) rose by 12% year-over-year in Q4 to $0.51, while the full-year EPS slightly declined to $2.46 [8]. - Comparable EPS also increased by 12% to $0.55 for Q4, surpassing Wall Street expectations, with free cash flow of $10.8 billion supporting its dividend payments [9]. Group 3: Dividend Reliability - Coca-Cola is recognized as a Dividend King, having paid and raised its dividend for 62 consecutive years, providing a reliable income stream for investors [10]. - The current dividend yield is approximately 2.8%, which is more than double the S&P 500 average, despite the stock's 11% increase this year [11]. - While Coca-Cola is not a growth stock, it remains a safe and reliable choice for dividend-focused investors in a diversified portfolio [12].

Sales and Market Performance - The Coca-Cola system sold 33.7 billion unit cases in 2024, a slight increase from 33.3 billion in 2023, with sparkling soft drinks representing 69% of the volume in both years[31] - Trademark Coca-Cola accounted for 47% of worldwide unit case volume in both 2024 and 2023, while in the U.S., it represented 42% of the unit case volume[31] - In 2024, the U.S. unit case volume accounted for 16% of the Company's worldwide total, with 61% of that volume being sparkling soft drinks[31] - The largest markets outside the U.S. for unit case volume were Mexico, China, Brazil, and India, which together accounted for 33% of the worldwide total[31] - The second and third quarters historically account for the highest sales volumes, indicating seasonality in beverage sales[46] Operations and Supply Chain - The Company provides marketing support and participates in sales of other beverage brands through licenses and joint ventures, including Monster Energy distribution agreements[28] - The Company makes its products available in over 200 countries, with consumers enjoying 2.2 billion servings daily[30] - The Company has implemented an incidence-based concentrate pricing model to align financial objectives with bottlers and adapt to changing consumer needs[34] - The five largest independent bottling partners represented 44% of total worldwide unit case volume in 2024[32] - The company may acquire or take control of bottling operations in underperforming markets to improve performance and efficiency[44] Competition and Market Environment - The company operates in a highly competitive commercial beverage industry, facing significant competition from major players like PepsiCo, Nestlé, and Anheuser-Busch InBev[47] Raw Materials and Sourcing - Key raw materials include high fructose corn syrup (HFCS) and sucrose, with HFCS prices historically subject to market fluctuations[52] - The company sources orange juice and concentrate primarily from Florida and Brazil, facing challenges from citrus greening disease and adverse weather conditions[54] - The company generates most of its coffee revenues through Costa, which sources certified green coffee from multiple suppliers to mitigate weather-related yield impacts[56] - The company has not experienced significant shortages in obtaining non-nutritive sweeteners, which are critical for its product formulations[53] Environmental and Regulatory Compliance - Compliance with environmental regulations is a priority, with ongoing expenditures aimed at achieving sustainability goals[65] - The company is subject to various cybersecurity and data protection laws, including the California Consumer Privacy Act, which may impact its data practices[66] Human Capital and Workforce - The board of directors oversees talent management and compensation strategies, emphasizing the importance of human capital in business operations[68] - The company recognizes water availability and sustainability as key challenges, given its reliance on water as a primary ingredient in its products[51] - As of December 31, 2024, the company had approximately 69,700 employees, a decrease from 79,100 in 2023, primarily due to refranchising activities[69] - Approximately 400 employees in North America were covered by collective bargaining agreements as of December 31, 2024[70] - The company focuses on providing access to equal opportunities and fostering belonging in workplaces and local communities[71] Financial Performance and Risk Management - The company generated $28.7 billion of net operating revenues from operations outside the United States in 2024[374] - The total notional values of foreign currency derivatives were $18,442 million and $17,505 million as of December 31, 2024 and 2023, respectively[376] - A 10% weakening of the U.S. dollar would have resulted in a $511 million decrease in the fair value of foreign currency derivatives that qualified for hedge accounting[376] - The company estimates that a 1 percentage point increase in interest rates would have increased interest expense by $127 million in 2024[378] - The total notional values of commodity derivatives were $386 million and $379 million as of December 31, 2024 and 2023, respectively[381] - The fair value of commodity derivatives that qualified for hedge accounting resulted in a net unrealized gain of $2 million as of December 31, 2024[381] Employee Benefits - The company aims to provide competitive employee benefits packages, which may include a 401(k) plan, medical and dental insurance, and tuition assistance[78]

Core Viewpoint - Coca-Cola has successfully increased product prices due to strong customer loyalty to its brand [1] Company Summary - Coca-Cola's stock price was noted at a decrease of 0.53% on February 16, 2025 [1] - The company's ability to raise prices indicates a robust brand presence and customer retention [1] Industry Summary - The beverage industry is experiencing price increases as companies leverage brand loyalty to maintain sales [1]

Core Viewpoint - The Coca-Cola Company is successfully advancing its strategy to become a total beverage company, leveraging its strong portfolio and innovative capabilities [1] Product Launch - Coca-Cola is entering the prebiotic soda market with the launch of Simply Pop, which will be available in five fruit flavors aimed at health-conscious consumers [2][5] - Simply Pop will be sold in 12-ounce cans for $2.49 each and will include six grams of prebiotic fiber, zinc, and vitamin C [3] Market Competition - The new Simply Pop beverage is expected to compete with existing brands like Olipop and Poppi, which have gained popularity in the gut-health beverage segment [4] Digital Initiatives - Coca-Cola is enhancing its digital capabilities to support growth, focusing on marketing, sales, and distribution both online and offline [6] - The company is investing in multi-category eB2B platforms with its bottlers to digitize customer interactions and integrate fragmented trade customers [7] Stock Performance - Coca-Cola's shares have increased by 10.4% over the past three months, outperforming the industry average rise of 2.1% [8]

It seems Coca-Cola has grown sick of stomaching Poppi and Olipop’s success with “gut-healthy” sodas – so the legacy brand is launching its own prebiotic drinks.Coca-Cola’s Simply prebiotic sodas will be sold in five fruity flavors: Strawberry, Pineapple Mango, Fruit Punch, Lime and Citrus Punch. The prebiotic drinks — pitched as beneficial to digestive health — will be available later this month at retailers in select regions and via Amazon Fresh. 3 Coca-Cola’s Simply prebiotic sodas will be sold in five ...

Coca-Cola is launching a prebiotic soda brand called Simply Pop, taking on upstarts Olipop and Poppi.Starting in late February, consumers on the West Coast and in the Southeast will be able to try Coke's iteration of the trendy drink.Soda consumption has broadly fallen in the U.S. over the last two decades, hurt by health concerns and an increase in alternatives on the market, from cold brew to energy drinks to water. But in the last five years, sodas containing prebiotics have taken off, thanks to industry ...

On Tuesday, February 11, the Coca-Cola Company (NYSE: KO) released its Q4 and full-year 2024 results, showing 14% organic revenue growth despite currency headwinds and regional market pressures.The company’s all-weather strategy has been effective, with strong performance in both the US and international markets. Moreover, CEO James Quincey highlighted the company’s agility in navigating external challenges and its focus on capturing growth opportunities.For the quarter, net revenues increased 6% to $11.5 b ...