Coca-Cola Amatil Ltd’s Changing Market

Coca-Cola Amatil Ltd [ASX:CCL] has revealed at their AGM why the company is expecting a flat 2017. Sweet is no longer a big ticket item, as sales of sugar-filled soft drinks continue to fall.

David Gonski, the departing chairman as of Tuesday, affirmed the company’s position in his final speech. He did not mention the flagship brand once. His focus — providing ‘the right drink for every occasion.’

Diversification seems to be the name of the game. You only have to look at the launches of new and spin-off products. While Coke Life failed to boost sales, Barista Bros iced coffee proved to be a hit locally. This validates the company’s constant push for new products. An ongoing price for bottled water is also primarily to blame for a poor outlook. Numerous analysts highlight Mount Franklin’s higher cost as a big drawback.

What does this mean for Coca-Cola Amatil Ltd shareholders?

Investors looking to get out can take advantage of a share buyback program. There are still $268 million worth of shares available under the scheme.

While the news hasn’t impacted the share price yet, investors will clearly be looking for stronger signs of growth in the future. The household brand can tide small dips, but they won’t want to make a habit of it.

If you’re concerned about falling stock prices, I suggest you read up on Vern Gowdie’s report: ‘Sell These Five “Fatal” Stocks Now’. He provides a detailed look at why big name stocks might prove deadly. (Note that CCL is not among these five stocks.)

Vern’s expert, defensive financial plans can help you avoid the fallout of a bursting bubble by getting out before it’s too late.

For the full report, click here.

Ryan Clarkson-Ledward,


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:


Money Morning Australia