American flagship brand Coca Cola has announced a disappointing growth forecast for 2019 due to political uncertainty followed by global shutdown and strong dollar. The proclamation led to sharp fall in its share prices that slumped down by 8 % which has been the brand’s worst day at the bourses since depression of 2008. Other global food business firms like McDonalds, KFC and even automobile brands have warned that uncertain Brexit and subsequent chaos could lead to significant loss in their supply chains and businesses. Another problem looming over the horizon is the ongoing trade war between US and China which is set for renegotiations on March failing which there will be another round of tariff increases between both super powers.
Coca Cola CEO James Qunicey has called these projections as reasonable during the conference call with investors about full earnings for 2019 as the year is expected to be worse than 2018 in terms of turbulence and volatility. The firm’s share prices have declined by 6 % for the past three quarters of 2018 while its overall decline across the year was 10 % or $31.9 billion for the year which was blamed by the firm on refranchising the bottling system and powerful dollar.
Coca Cola has started expanding its product line to attract customers averse to sugary drinks by introducing new low-calorie and low sugar drinks. It stated in the report that Coca Cola Zero Sugar has been one of its best-selling products in 2018 encouraging it to buy UK’s coffee brand Costa Coffee. To show its inclination towards healthy products Coke also purchased a stake in energy drink manufacturing firm Body Armour and is also planning to develop and in-house energy brand. Its new Orange Vanilla brand has been cerated to stop consumers from straying towards other brands when seeking a non-coke based drink.