Coca Cola (KO, Financial) continues to be the leading brand in the beverage industry. In order to adjust to evolving market trends they just announced a new product called Coca Cola Coffee that will soon be released in 25 global markets. Their stake in Monster Energy Drinks and focus on healthier beverage options such as Coke Zero continues to pay off. Despite strong top-line organic revenue growth of 6% in the quarter the company has still trailed Pepsi in the push for healthier drinks. The company is reinvesting heavily in its brands and enjoys significant economies of scale and unit cost advantages over competitors. Over the last 8 years Coke has returned over 90% of their free cash flow to investors through share buybacks and dividends.
From Jeff Auxier (Trades, Portfolio)'s first-quarter 2019 Auxier Focus Fund shareholder letter.
