Can things go better with Coke?

Roger Montgomery

Montgomery Investment Management

Coca Cola Amatil (ASX: CCL) reported its half year results during the week. The company has been under pressure for some time. The consensus view is that a combination of the growing market power of the major supermarkets, combined with a consumer shift away from soft drinks, has resulted in a downward spiral in volumes and earnings over the last 3 to 4 years. While both of these issues have been a factor for the company, it’s not as though these issues are new. The soft market has been underperforming the broader beverages category for over a decade, and the market dominance of the two major supermarkets was arguably greater 5 years ago than it is today due to the emergence of Aldi and to a lesser extent Costco. So why did Amatil go from market darling, and a core part of most fund manager’s portfolios in 2012 to an unloved structural decline story by 2014? READ MORE HERE: (VIEW LINK)


Roger Montgomery
Founder and Chairman
Montgomery Investment Management

Roger Montgomery founded Montgomery Investment Management in 2010. Roger has more than three decades of experience in investing, financial markets and analysis. Roger also authored the best-selling investment book, Value.able.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment