A recent story floated in Forbes bring forth the speculation that beverage giant Coca-Cola may eventually venture into the alcohol industry, a notion initially discussed by Wells Fargo analyst Bonnie Herzog.
In the late 1970’s Coca Cola had ventured into the wine industry and tasted brief success before selling their interests five years later. But Herzog, writing in the Wells Fargo equity research newsletter, said that she believes Coke has the potential to incorporate new growth in the coming years and see alcohol as a potential source that can be explored. In the previous year, U.S. domestic wine sales rose by 4 percent and the Senate also proposed reducing taxes on alcohol.
Speaking to CNBC on the Street, Coke CEO James Quincey did spoke about possibility about the idea when asked about Herzog’s prognostication of a future in alcohol for the soda giant. However, given Coke’s strong standing in the present market, he said he doesn’t see reason to make a drastic move any time soon in near future.
In US soda consumption among consumers is declining across the country, according to a story featured in the New York Times. According to a statistics published in the medical journal Obesity, Americans are increasing their water intake, but the majority of adults still derive most of their drink calories from soda and sugary drinks which is one of the major culprits for obesity and health issues.
A recent article published in the Los Angeles Times, bought forth the potential harmful effects of consuming energy drinks. The story involved a detailed study published in Frontiers which concluded that the long-term health complications from using energy drinks are much more than the short-term energy boost.