The Coca-Cola Company (NYSE:KO) has been posting highs in market trading this week as investors run away from the highly volatile stocks to join the company, which is believed to be stable. The company has recently had financial struggles, but that hasn’t put off investors who feel that the stock is a long term stable.
The Coca-Cola Company (NYSE:KO) hit a record high of $44.87 yesterday in New York, the highest posted in more than 16 years. The last time the company hit close to that was in 1998 when the stock hit $44.47.
Chief Executive Officer Muhtar Kent has recently been under fire for failure to act fast in cutting down on management costs, something that is expected to affect the company’s profits. Moreover, many consumers have been abandoning soft drinks over the fear of artificial sweeteners. This has seen the company face a lot of challenges due to reduced sales. The effect has been so bad that the company introduced Coca-Cola Life, a soft drink sweetened using stevia plant. The drink is packaged in a green can and a bottle with green color around the neck.
The move by more investors eyeing the The Coca-Cola Company (NYSE:KO) isn’t just about the strategic move to sway more consumers through Coca-Cola Life, but more about the unpredictability in many other stocks. Even during times of struggles, the company has been able to withstand market pressures to remain afloat.
The soft drink company has been facing growing competition from PepsiCo, Inc. (NYSE:PEP), which also recently introduced a new soft drink called Pepsi True, which is also sweetened using stevia plant and packaged in green cans. PepsiCo, Inc. (NYSE:PEP) too hit record high on Friday, posting a 14% rise. While The Coca-Cola Company (NYSE:KO) has been doing well in established markets, PepsiCo, Inc. (NYSE:PEP) has opted to penetrate more of the emerging markets to ensure growth.
This article has been written by Victor Ochieng.