It has been said that you are never far away from a Coca Cola product no matter where in the world, and that is not far from the truth. This is probably one of the most universally recognized companies in the world. You can buy a Coke in just about any country in the world. That speaks to its staying power. People have been buying this product for well over a century and their business model is solid. From an investment perspective, they are a crown jewel. They have paid a consistent dividend for decades and the share value has continually increased throughout that time as well.
The History of Coca Cola
The concept of Coca Cola was launched back in 1886. It was started by a pharmacist who set out to develop a new type of soft drink that tasted great and could be marketed to soda fountains across the Atlanta region. Once he struck upon what he considered to be a great flavor, he had it taste-tested to rave reviews. The first drinks were sold for a whopping 5 cents a glass and the concept caught on quite quickly. It would not take long for the business to expand across America and then globally. Today, it is estimated that just under two billion servings of Coca Cola are sold daily around the world.
Differences Between Coca Cola and Coca Cola Bottling
While it is true that the two names sound alike, there are vast differences between the two. Coca Cola is the brand that you recognize. They own the formulas behind the various soft drinks and juices that they have developed through the years. This includes the syrup that goes into the fountain beverages sold at convenience stores and restaurants throughout the world. Coke stock, or Coca Cola Bottling, actually refers to a separate company. As you can imagine, Coca Cola cannot possibly handle the massive distribution and bottling operation that is required to produce hundreds of millions of beverages across the globe each year. Instead, they allow other companies to do that on their behalf. According to the experts at Money Morning, “COKE makes, sells, and distributes the beverages of Coca-Cola Co. and other partner companies in more than 300 brands and flavors to over 65 million customers.” Coca Cola provides the raw materials in the form of the syrup and other key ingredients while Coca Cola Bottling handles the packaging and distribution in many locations.
Is Coca Cola Bottling Stock a Good Investment?
Most analysts today agree that Coke stock is a solid investment. While it may not offer the dividends that Coca Cola does, the steady rise in valuation is appealing to long term investors. Coke continues to be the best selling drink brand in the world, so one would assume that there will always be a high demand for its bottling operations. Even during brief economic downturns, this sector of the economy tends to fare quite well in the long term.
If you are looking for a stock with solid growth potential to invest in, you can’t do much better than Coca Cola or Coca Cola Bottling. These are two sectors of the industry that continue to grow. They are both well diversified and have operations that support their business plan on a global scale. Take a look at the fundamentals and then decide for yourself.