1 Big Reason Coca-Cola Is Even Stronger Than You Think
Coca-Cola -- the drink -- is a ubiquitous fast-food presence and a household name. But investors who think buying shares of its maker is all about their favorite cola may not realize that The Coca-Cola Company (NYSE:KO) has a beverage portfolio with over 200 brands. And lest you think the rest are not especially significant, spoiler alert: They are.
Coca-Cola's eponymous brand is its most well-known, but prior to the pandemic, it carried a portfolio of 400 brands. The company restructured under pandemic pressure, whittling down the total to 200. Management cut out small, local brands that weren't adding much to the overall business, contributing 2% of volume and 1% to the top line.
The new brand portfolio is leaner and more efficient. Closing down the underperforming brands frees up resources to devote to core brands as well as invest in new products that could be a better contribution to the whole.
Source Fool.com
