An Investor’s Moral Dilemma: The Coca-Cola Company (KO), SodaStream International Ltd (SODA)

But I’m not certain that balances out what the company’s core product does to most Americans. Consider that the average American drinks 126 regular Cokes per year. That means that they ingest 10.8 pounds of processed sugar each year in the form of Coke alone.

According to guidelines from the American Heart Association, that means that Coke alone accounts for about 40% of the ideal yearly sugar allowance for men and 55% for women.

Source: OnlineNursingPrograms.com.

Add into that equation the fact that elevated levels of sugar consumption have been found to have significant correlations to both heart disease and type 2 diabetes, and you can see why I’m starting to consider replacing this company in my portfolio. Indeed, the very first risk factor the company lists in its annual report is “Obesity and other health concerns may reduce demand for some of our products.”

For me, if a company carries a product that I’m simply unwilling to allow my future child to have, then maybe that’s a good litmus test for whether I should try to profit from the product’s proliferation. When the time comes this summer for me to reasses this portfolio, don’t be surprised to see Coke coming off the list.

If I’d like to stay within the beverage industry, I’d be far more likely to consider SodaStream International Ltd (NASDAQ:SODA), a company that manufactures at-home carbonators with syrup additives. My wife and I have our own, and though we’ve stayed away from the syrups, we’re big fans of adding carbonated water to our juices.

Add to that the fact that the company claims to help significantly reduce landfill waste by eliminating millions of plastic bottles, and I could be looking at a future investment.

The article An Investor’s Moral Dilemma originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of Coca-Cola and Baidu. The Motley Fool recommends Activision Blizzard, Baidu, Coca-Cola, and SodaStream. It owns shares of Activision Blizzard, Baidu, and SodaStream.

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