Home » Bear Case Scenario » Bear Case Scenario Coca-Cola $KO, $PEP, $DPS, $MNST, $STBFY

Bear Case Scenario Coca-Cola $KO, $PEP, $DPS, $MNST, $STBFY

Coca-Cola (NYSE:KO) is about to reveal earnings. A perennial Warren Buffett favourite ponder this Bear Case Scenario

Soft-Drink bottling operations are very capital-intensive. Recent acquisitions of North American bottling will strain margins somewhat before any massive improvements to distribution are realized.

Coke popularity is dropping and Coca-Cola will need to constantly innovate and acquire new brands. The world is more competitive and difficult.

Coca-Cola revenues are relatively undiversified when compared to Pepsi. Coca-Cola is therefore more vulnerable to missteps and miscues.

Sugar drives Diabetes. The rate of Diabetes  is reaching epidemic proportions in the western world. There will be significant political, health and regulatory distractions for senior management in the near future.

George Gutowski writes from a caveat emptor perspective.