Coca-Cola Stock History and How They Got Were They Are Today

 

Coca-Cola Stock History and How They Got Were They Are Today

Coca cola
Coca-Cola is a brand that has gained an almost cult-like popularity for the period it has been around. Indeed, it is only true that a brand that was born close to a century ago can still claim a huge share of the consumer market if it remains faithful to the growing demands of its consumers. It can be temping to invest in a company like Coca-Cola blindly, but it is important you do your due diligence. Here is a great article on some investing concepts beginners often take way too far.

The history of the brand has been almost colorful throughout the brand’s existence. In order to delve deeply into the history of coca cola stock, we shall try to discuss some important milestones in the company; the very milestones that have seen them maintain an edge of their competitors.

Where Did Coca-Cola Begin?

Coca-Cola traces its roots way back to 1886 in Atlanta when a pharmacist named John S. Pemberton created the signature beverage. Within the first year, the average sale for the beverage stood at about 9 drinks a day and this was indeed a remarkable stock turnover for a brand that was only making its first foray into the beverage industry. It is not clear to point out the sudden surge in the popularity of the brand. However, some attribute the sharp increase in popularity to the secret ingredient- cocaine. However, as cocaine was also legal at that time, we cannot claim with any authority that it was solely responsible for this sudden demand.

Within the first few years of the company’s formation, Coca-Cola also changed names quite a few times. One of the most remarkable of such instances was in 1919 when its control fell in the hands of certain businessmen, among them Ernest Woodruff. This group of entrepreneurs purchased Coca Cola for $25 million and would later conduct its first IPO.

From there, the company’s rigorous marketing campaigns saw it expand to various countries of the world. The first countries to witness its growth outside the US were China, Colombia, Bermuda, Germany, Spain, Mexico, the Netherlands, Belgium, Italy and Haiti. This happened in 1926 and was occasioned by the need for the company to sell the syrup it produces to bottlers in these countries, after separating the syrup from the bottling operations a few years back. By the end of the 1950s, the company had expanded to over 1100 countries worldwide.

What Does The Stock Look Like Today?

It is estimated that some 1.9 billions of Coca-Cola products servings are sold today. The estimates stretch across over 200 countries. Coca-Cola now owns more than 20 brands and it is estimated that the company makes at least $1 billion annually from each of these brands.

One thing that has contributed to the high stock turn over in Coca-Cola is the profile of investors that have shown interest in working with the company. Of notable mention is Warren Buffet who owns the Berkshire Hathaway. This company first showed an interest in Coca-Cola shares back in 1988 and as of now, it controls a whopping 9.3% of Coca-Cola’s shares, thereby becoming the biggest shareholder in the company.

What Keeps Coca-Cola Going?

Coca-Cola operates on a business model where the company simply produces syrups for its different beverages and then sells these ingredients to all its bottling partners.

What follows is an intense brand awareness campaigns done through sports sponsorships, celebrity endorsements etc. As things stand, the company’s operating margins as well as return on equity has always staggered above 20% and in many instances going well over this mark.

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