Brad Ferris

Will Coke Raise or Lower Prices to Offset Commodities?

I think margins really tell the story here. A drop in demand isn't something new for KO and they've traditionally done a masterful job of protecting both their gross & profit margins during down periods. Sales have even held up rather well and I don't see consumer weakness as a real threat for the company. Commodity prices are now coming down so raw material costs should abate. KO also has holdings in bottling operations so they're not 100% exposed to costs as many believe.