Coca-Cola's Global Reach No Match for Economy

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July 16 (Bloomberg) -- Coca-Cola said profit fell 4 percent last quarter, the second decline in a row, as sales were sapped by economic weakness in China and Europe, shifting tastes in the U.S. and unseasonable weather in places such as India. Duane Stanford reports on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Stanfords joins us now.

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You right coca cola has long touted its broad reach.

Is that strategy more urgent now than before?

Emerging markets are very important for coca cola, as more development it's begin to move away from full calorie a soft drinks.

As evil age and try to find healthier options, they moved to other drinks.

The youth are drinking lots of different things.

There are so many choices out there.

The emerging markets are really where those products are growing.

That is where coke is looking at.

Is this a health kick?

Is that why the soft drink market is declining?


That is a large part of it.

Coca cola is under attack by various governments, a new york city they're looking to ban certain size soda.

That is under appeal now.

Of 30 states that have tried to impose excise taxes on soft drinks and sugary beverages in the u.s. most efforts have failed.

But it creates this pr storm or coca cola as they try to convince you to buy the brands and the lifetime drinkers.

They opened a beverage plant in marion marr -- myanmar.

They will be racing to try to set up distribution in that country.

Also to produce in that country.

Coco cola and pepsico like to produce in the countries where they sell their drinks their efficiencies are much better.

They are cost efficient.

They can get closer to the market.

You will racing to get plants up and try to be first movers with the consumers.

Coca-cola and pepsi, they are going head to head in china.

What are companies doing to pay low there -- tailor their brands to asian tastes?

One of coca cola's biggest products is a drink called pulpi.

It is basically a dairy and juice hybrids.

It has bits of pulp and it.

Those are huge products for them.

They have expanded from there to other asian countries.

The name of the game there is to appeal to local tastes.

At the same time, they are also trying to move their coca cola full calorie products as well.

What is even today's news, coca cola shares increased 13% this year.

How does that compare with the market overall?

Go is -- coke has still had a good run in the last years.

Since we have moved in that position as ceo, prices continue to rise.

He had a split last year.

Investors will be wondering if today's news of sales lagging and this tsunami with macroeconomics and health issues , whether that is going to be something they can work through over the next few quarters or not.

As one analyst said, the stock is valued at such a place now that the smallest negatives could blow that down.

Could we circle back to health?

Coca cola did roll out a tv ad campaign addressing the issue of obesity.

Coca-cola executives are quick to point out that obesity is a problem that is not just something that is linked to sugary soft drinks.

It is about other kinds of high: -- high caloric foods as well.

The message has been very clear breed they say they offer products you can enjoy when it makes sense.

Calories in, calories out is the name of the game.

Making sure you get exercise.

If the obesity problem comes down to all kinds of foods, they should just be singled out.

If you take in too many calories, you're going to be kobe spray that is the message they're going to be focusing on.

We will see how much consumers latch onto that or not.

Some say they are not realistic of how many exercises you can do to burn off calories of a soda.

This text has been automatically generated. It may not be 100% accurate.


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