CCL (ASX) is Coca Cola anything special for you?

Originally posted by eight ↑

I used to be optimistic about Coca Cola for its brand, marketing , and of course the taste of Coca Cola. However, all the catalysts have pointed out the future trend is healthier and less sugar. It is reflected in the decline in the overall soft drink in most of the developed countries. Exacerbating the problem, the current tight-budget and economic uncertainty has prompted most of the consumers to be price-conscious and cut off unnecessary spending, while Woolworth and Coles promotes their own brand(low price) of Cola to compete for the market.

From my point of views, the following problems need to be resolved before Coca Cola Amatil can be profitable again, otherwise the value of the company will decrease, until take-over occurs.
1. The flagship product, Coca Cola needs to be healthier. (Possible)
2. The ability to differentiate Coca Cola from cheap competitors. (extremely difficult in economic uncertainty)
3. CCA will "focus hard" on diversification of product lines to reduce its reliance on Cola to at least less than 30%. (feasible! but the Coca Cola parent company still focus on persuading/marketing the customers the rich history of Coke, I dont think marketing an undesirable product will turn into sale. A lot of time, Brand value does not translate into sale)
4. Making Coca Cola cheaper than its private label competitors from Woolworth and Coles (extremely difficult.By selling Cola at discount, there's little profit to be gained and its brand value/premium price advantage is gone, then share price should decrease further)

some thoughts.

eight

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recently someone posted a comment somewhere along the lines of the will be a new generation of coke drinkers. And there always will be. It starts in babies. Sugar laden blackcurrent juice has always been peddled as a baby drink and there the sugar addiction starts. Coke has never been healthy and even if they drop the sugar content it is still never going to be healthy. The healthy options for ccl are the water business and the spc business, but as I have found out don't dare mention them on HC as they are the failing businesses. As far as cheaper products on the market goes, my opinion is that they are just buying for the sake of the sugar hit as the cheaper brands are just sugar and tasteless. I would rather coke stayed as a premium brand. I believe that if people are looking at healthier diets coke will eventually get back on track because they have the diversification for that and people will go back to drinking the odd premium softdrink because it taste good, not just to get the sugar fix. If not then Australia is only going to get fatter and something will have to give.