The Coca-Cola Company (KO)’s strategic move: PepsiCo, Inc. (PEP)

Meanwhile, Innocent has great brand value in the UK as well as in entire Europe. This will provide additional distribution channels for Coca-Cola to push its other beverages into Europe. It is also significant that Innocent has quite a few food offerings in the form of ready meals. This increases the proportion of food products in Coca-Cola’s portfolio.

Value proposition

Coca Cola is a value proposition for investors. The company has recently announced its fourth quarter results where it beat earnings estimates by a penny. Adjusted earnings had come in at $0.45 per share vis-à-vis $.044 per share expected by analysts. The company had increased its organic volumes by 3%. Coca-Cola Company (NYSE:KO) is doing well in emerging markets like Thailand, India, and Russia. These markets are relatively untapped and carry huge growth potential. And so does China. While China volumes were a little soft in the fourth quarter, it still remains a huge opportunity. Coca-Cola will invest $30 billion across the globe through 2017 and China and India will be key focus areas.

At the same time the company is increasing its non-carbonated beverages business significantly to counter the declining soda sales trends in the US and it achieved 10% growth in 2012 in terms of volume. The acquisition of Innocent will further augment this.

And as bonus incentives for investors, the healthy dividends and share buybacks are also on the offer.

The article Coca Cola’s strategic move originally appeared on Fool.com and is written by Eshna De.

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