Coca-Cola, the parent company of the popular Coca-Cola soft drink, has enjoyed lasting success over the years: it ranked sixth in the Forbes ranking of the world's most valuable brands in 2018, with an impressive value of $ 57.3 billion.
CNBC: Coca-Cola Shares as of February 15, 2019
Shares fell on Thursday and were on track for their worst day since the Great Recession. The stock price of the company fell by 7.5% and its net sales dropped by 6%. (Net sales still exceed expectations.)
Chief Executive James Quincey told analysts that exchange rate fluctuations, rising Federal Reserve interest rates and changing tax rates could be behind the decline in title. "Clearly, this leads to a [earnings per share] growth that is not what we aspire to, "he said.
He expressed similar concerns at the 49th World Economic Forum in Davos: "I think we are in the 2019 phase where we are likely to see a little less growth, the year will be a bit more difficult and macroeconomic. we work our way through it. "
Some analysts see the problems facing the traditional soda ash market. Ivan Feinseth, of Tigress Financial Partners, said in CNBC's "Squawk Box" that "there is no growth in carbonated soda" and that brands such as Coca-Cola and his longtime rival, Pepsi, need to be creative.
Feinseth explains, like sparkling water, flavored seltzers, teas and sports drinks, that they must "continue to develop or acquire other alternatives" because "that's where growth is, in the niche beverage markets ".
Coca-Cola offers products other than soda and continues to diversify its portfolio. The company made six new acquisitions in 2018, including the Costa Coffee coffee chain. They also own the popular drinks brands Dasani, Minute Maid and Powerade.
And Quincey said on CNBC's "Squawk on the Street" that the company will take time to "absorb" the investments it made last year.