Stock price when the opinion was issued
Brand strength, pricing power, geographic diversification. Big potential expansion in coffee. Really gets local culture. Chart shows a bit of resistance at this level, and we want to see it get through that. Whole chart is decent. Down less than the market these last few days. Beverage sector is pretty defensive and predictable. Metrics look pretty good. Yield is 2.82%.
(Analysts’ price target is $75.38)Operates in a cola duopoly with PEP. He likes market leaders like these that have little to no direct competition. That being said, it's a lot harder these days with consumer brands to establish a brand and build a moat. Today he could launch a cola company online, using Instagram and FB, with very little cost and effort, and with luck it could even go viral. Brands will have a tough time.
Very strong, well-established brand. He owns FEVR, take a look at that one.
Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that Pepsi has a more established non-beverage business. Coke has not done as well, but has a more established bottling business, with about 15% of business coming from this. It is a low margin high capital business and there are rumours that they will be getting out of this. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.