Coca-Cola: Economic Castle Continues To Grow, With $106.1B In Brand Value (Rating Upgrade)

Summary

• Mr. Market has turned pessimistic on the Beverage sector, similarly observed in KO's depressed valuations, trading at its lowest in five years, barring the start of the pandemic.
• As KO attempts to maintain its gross margin through price hikes at a time of rising inflation, the elevated prices also contribute to the decline in its sales volumes.
• However, we are not overly concerned for now, since the inflation has cooled, with the Fed likely to introduce another rate freeze in the upcoming FOMC meeting.
• Coca-Cola has also reclaimed its spot as one of the Top Ten most valuable brands globally "for the first time in seven years," thanks to the intensified marketing efforts.
• Then again, since KO has underperformed its Beverage peers over the past five/ ten years, even after including dividends, anyone who adds here must also temper their expectations.

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There Is A Reason Why Coca-Cola Remains One Of The Most Valuable Brand Globally

We previously covered Coca-Cola Company (NYSE:KO) in January 2023, discussing the management's strategic focus of being the "world's smallest bottler" while also

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