Coca-Cola Adds New Flavors

The Coca-Cola Company (KO - Analyst Report) has launched two new flavors of juice drinks, Minute Maid Fruit Punch and Strawberry Passion, under its popular brand Minute Maid. These flavors are the latest additions to Minute Maid’s collection of more than a 100 different flavors. These new products will be available nationwide from this month in contemporary, recyclable PET packaging.

The addition of these new flavors is expected to be favorable for the company as the customers are now being offered with more choices. Also these fruit juices are excellent sources of vitamin C, and are expected to appeal to the health conscious customers.

The Coca-Cola Company commands a leading position in the juices category, with Minute Maid being one of its flagship brands. The company believes in innovating new superior quality products in order to maintain its brand reputation and remain a step ahead of competition. In 2011, the company introduced a new brand, Pure Squeezed, a 100% never from concentrate orange juice in three varieties. Management addresses to the needs of the health conscious customers by offering healthier products in better packaging.

We are optimistic about the company’s performance with strong revenue and volume growth in the first quarter of 2012 offsetting the decline in margin. We appreciate the company’s strong brand power, solid cash position and global expansion. However, the company needs to be aware of the rising costs that are affecting its margin. The company also needs to increase its advertising expenses in order to match its competitor PepsiCo Inc.’s (PEP - Analyst Report) increased focus on North American beverages.

The Coca-Cola Company carries a Zacks #3 Rank in the near term (Hold rating). One of the strongest competitors of the company, PepsiCo Inc. carries a Zacks #3 Rank in the near term (Hold rating).

Headquartered in Atlanta, Georgia, The Coca-Cola Co. is the largest global producer and marketer of beverages and commands a portfolio of more than 500 sparkling and still beverage brands, including Coke, Diet Coke, Fanta, Sprite, Minute Maid and POWERade.