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Coca-Cola (KO) Brings Popular "Share a Coke" Program Back

Zacks

This summer, The Coca-Cola Company KO is reintroducing its successful “Share a Coke” program as “Share an ICE COLD Coke.” The program now includes more names and flavors. The company also added brands like Cherry Coke and Coca-Cola Life to the others in the campaign – Coca-Cola, Diet Coke and Coke Zero.

As part of its summer marketing strategy, the company has been selling 20-ounce bottles of Coca-Cola, Diet Coke and Coke Zero with first names. Now, buyers can also find their last names across the entire Coca-Cola portfolio of products. The company also provides personalized iconic 8-ounce glass bottles of Coca-Cola, Diet Coke and Coke Zero.

Notably, sales of the company’s carbonated beverages are suffering due to increasing health consciousness among consumers. The cola segment has been particularly affected by this. The diet drinks are also under pressure due to increasing consumer concern regarding the use of artificial sweeteners.

Accordingly, Coca-Cola is trying to reinvigorate the category by providing increased marketing support through strong integrated campaigns like “Share a Coke”, “Coke with Meals” and “Taste the Feeling”.

The company increased its marketing focus in 2014 and 2015 through incremental media investments to fund brands globally and aggressive marketing campaigns like ‘Share a Coke’ to accelerate top-line growth. The company’s disciplined quality advertising investments led to improved volume growth in 2015 in North America. The trend was maintained in 2016 and is likely to continue in 2017 as well.

Stock Price Movement

Coca-Cola’s shares have gained 4.8% year to date, compared with the Zacks categorized Beverages/Soft Drink industry’s gain of 7.8%. Going forward, weak demand in certain emerging and developing markets along with persistent global macro-economic headwinds and shifting consumer preferences may weigh on the company's performance.



Zacks Rank & Stocks to Consider

Coca-Cola currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in this industry include Coca Cola Femsa S.A.B. de C.V. KOF, Embotelladora Andina S.A. AKO.B and Barfresh Food Group Inc. BRFH.

Embotelladora sports a Zacks Rank #1 (Strong Buy) and is expected to witness 29.4% earnings growth in 2017. You can see the complete list of today’s Zacks #1 Rank stocks here.

Coca Cola Femsa and Barfresh Food carry a Zacks Rank #2 (Buy). Full-year 2017 earnings are expected to increase 22.8% for Coca-Cola Femsa.

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