6 Tingling Facts About Coca-Cola: Should You Buy Its Stocks?
Coca-Cola, its name, logo and taste, is one of the best brands in the world. For those thinking to invest in the beverage giant should first take a look at the following facts.
1. Coca-Cola Stocks: Not Always Profitable
Individuals who bought stocks from the company way back in 1998 were not getting high dividends from Coca-Cola. According to BILD, the stockholders are still getting a "rather low" return of investment.
2. Coca-Cola is Making Less Profit with its Syrups and Concentrates Through the Years
Even before the beverage made its mark in different parts of the globe, Coca-Cola, the company, has already making a lot of money from its syrups and concentrates. In 2008, 54 percent of the company's total profit came from their early products. This has declined ever since and by 2012, sales of these products went down to 38 percent.
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3. Coca-Cola Deals Products From Competition
In the U.S., Coca-Cola vending machines also dispense Dr. Pepper and other products from the Snapple Group and the company will continue to do so in the next 17 years. After Coca-Cola Enterprises took over Coca-Cola in 2010, a paragraph in the agreement guaranteed that for the next 20 years, the company will be able to sell beverages other than their own.
4. Warren Buffett is Not One of Coca-Cola's Board of Directors
Despite being the biggest stockholder of Coca-Cola through his investment firm Berkshire Hathaway, Warren Buffett is not sitting as one of the company's board of directors. Instead his son Howard takes his seat.
5. The U.S. is Not the Biggest Market for Coca-Cola
The U.S. takes the 4th spot, according to BILD, clocking in 401 drinks per person in 2012. Its biggest fan is Mexico averaging 745 drinks per head annually, followed by Chile at 486 and Panama at 416.
6. Coca-Cola Still Has Growth Potential
In China, only 39 drinks per person are sold annually while in Nigeria, the company clocked in 26 drinks per head. China is one of the biggest emerging markets of the decade, according to experts. This shows the old brand Coca-Cola has still room for growth.