Soda stock prices...Invest in Coke, Invest in Pepsi

The Cola War is as deeply rooted as the rivalries between Republicans and Democrats, Wrestling Fans and people who hate pro wrestling, Rock Musicians and the PRMC...ok, maybe I digress...

But the Cola Wars seems to have no end in sight. Perhaps you can profit form the profits!

My understanding what is happening, financially, with both product lines you can make an educated opinion.

(The views expressed in this article do not express my personal views. In fact, I dont own stock in either company, but I drink a LOT of their products!)

Read a great, recent article (4/19/2010) evaluating current stock prices here.

Coca Cola's recent stock price and company information on Morningstar here.

Morningstar's review of Pepsi's Q4 performance here.

Morningstar's evaluation of Jones Soda here.
JONES SODA?!?!? Well...yeah! They are a creative little bunch and deserved some finanical press!

Of course, LAST year Motley Fool was down on Jones Soda.
See here.

Well look...we cant base our lives around Coke and Pepsi, people!

The bottom line is that you have a lot of options, but you have to do oyour homework.
The stock market looks like a fun place to gamble, but you can actually beat the house better than any poker player if you research carefully and invest on things you understand.

Like soda.

Seeking Proof that Soda is Good

Gosh I love this blog! I love writing it, I love reading it.
I love when others read it...

Pepsi, Coca-Cola, Mountain Dew, Dr. Pepper and many more...

Of course, we know that Soda is not good 'for' you...but it's GOOD!
It tastes good; and that's good.
We share laughs over a soda or two, and that's good.
It goes great with whatever you are eating; and THAT's good!

So today I went to Google and looked to see what would happen if I sought out 'Soda is Good'.

(Disclaimer - I had to ignore any post that talked about BAKING Soda is good for you. I don't care if BAKING soda is good for you! It doesn't taste good, it doesn't go great with whatever you are eating and it's not exactly a medium for sharing laughs and good times!)

So the top pieces of Google Evidence to prove that Soda is Good:
1) Soda is Good on Hub Pages
2) DIET Soda is NOT good for you. Bummer :(
3) Jones Soda is the coolest, but NOT a great investment per Motley Fool. Another Bummer. Dang...
4) CHEAP Soda is good for you. YAAAAAAAY!!!!
5) New York Times says Soda: It's Good for You.
6) Soda is Good For You on Flickr!
7) VIDEO: Grape Soda is good s--t

Decided to add #7 for TWO reasons.
1 - always leave on a high note.
2 - because my ORIGINAL idea for this post was my periodic update on the Purple Beverage company. (You may think that I am unfairly hard on Purple, but I try to be objective.) Anyway, I nixed the idea, but when I saw a PURPLE Beverage (Grape Soda) I could not resist. It's like Kharma. Really.



For MORE evidence that Soda is Good, visit our friends at www.Squidoo.com/CokevsPepsi

Coke versus Costco - Greed is not so Good!

It's all over the news. Well, the 'Soda' news.
Costco isn't getting the pricing it wants from Coca Cola, so they've decided to no longer carry their products.

Well...they'll sell out what they have and THEN stop carrying it. The quote in the Associated Press article reads like this:

The wholesale club operator, based in Issaquah, Wash., is not removing products like Coke and Diet Coke from store shelves, but it does not plan to restock them "until the matter is resolved,".

The Chicago Tribune, Huffington Post and Walletpop reported the story also...but both sides of the argument are being rather tight lipped about it all so there isn't much for them to share.

Which products? Apparently ALL of them: Coke, Cherry Coke (Jay-Z's favorite!), Classic Coke, Black Cherry Vanilla Coke (yes, really!), Diet Coke, Coke Zero and Sprite. And Disani water! and Vitamin Water! And Energy Drinks!

But who is really being the price bully here? Have you ever bought soda in a price club? I have NEVER seen brand-name soda at a reasonable price at ANY price club. I don't care if it's Costco, Sam's, BJ's...they all have been consistently higher in price than the grocery chain stores.

How big a discount does the #1 soda distributor have to give a retailer? Soda is like soap...people are going to keep buying it no matter WHAT it costs. This is not to say that it's reasonable to 'price gouge'...but my point is that if the national Grocery Chains can sell soda at a given price, then the wholesale stores should be able to sell 'competitively' as well.

These 'price clubs' have made a career of asking the public to pay a membership fee so that they can buy products in bulk. Sure, you get a good price on Mayonaise...it's because you're buying a 2-gallon jug of it! Less plastic, less glass, less paper labels...lower price.

But maybe Joe Blow doesn't WANT to buy 300 cans of Coca Cola in order to get a good price. He wants to go where he buys his chopped meat and chicken and buy everything for dinner in 1 place. If Costco can't make money selling Coca Cola then they should stick to selling no-name brands at a profit.

Costco is a huge chain, but will Coca Cola suffer dramatically from the loss?
I'm inclined to say 'no'.

Sure, you want every sale you can get...but this might open Coca Cola up to finding some markets they have NOT yet exploited...and tell Costco to get back in line with everyone else and pay what everyone else is paying.

And do you think Costco can find enough no-name substitutes for the brands they are discontinuing? How many people are going to say "Oh look! It's Cola Zero! Sure, it's not COKE Zero, but I'll drink it! And LOOK! They have Dish-ani! Sure, it's not Disani..but I'm sure it's similar!"

Almost none.

Much of the feedback I've seen has been based around "glad to see Costco telling Coke to shove it." As a business man and a Costco customer I say "tough noogies, Costco."

Soda Prices Going Up when New Taxes Kick In?

And now for something political...

I'm doin' the Google Search for a clever soda-term today, and in my travels I come across a few (recent) articles that debate and discuss the idea of a surcharge/tax on Soda!

Some claim it will help in the fight against obesity.
Others see it as just another way to fill the political coffers.
Others see it as an infrigement of their rights and freedoms!
(Ok, settle down there Thomas Jefferson...)

San Francisco Mayor Gavin Newsom likens soda to Tobacco, and wants to tax the retailers who sell it! The American Beverage Association seems to share my view on politics and food. They released a statement that read in part, "If our goal is to address obesity, then educating consumers about the importance of balancing calories consumed from all foods and beverages with the calories expended through physical activity is what matters - not demonizing any one particular food."

CollegeNET Forum further discusses the act here.

A New York Times online article discusses taxing soda in an effort to fight obesity and other health-issues here. It's a very thorough article, and the author does a nice job of showing both sides of the equation.

It opens with an interesting quote. It's attributed to Adam Smith, the economist, and dates back to “The Wealth of Nations,” (1776) where he wrote: “Sugar, rum and tobacco are commodities which are nowhere necessaries of life, which are become objects of almost universal consumption, and which are therefore extremely proper subjects of taxation.”

Thanks, Adam. I like Rum AND Soda. In fact, I think it's called a "Captain and Coke" if I'm not mistaken....

Again, I am opposed hurting people who CAN manage their weight by making them pay (no pun intended) for the follies of those who cannot. But maybe that's just me? I'm not so sure. In fact, I found an interesting on-line article in the Delaware Libertarian where the author does a very nice job of showing the flaw in people's thinking when it comes to accepting such a tax. Very clever article here.


Lastly, when you want information quickly and not with all the New York Times stuffiness, there is always USA Today! Here is there on-line article on the subject of taxing sodas. Sorry, no pie charts in this article!

Remember, when it comes to taxes, you are essentially giving money to the government to do with what they will. It's important that no matter how you vote on such a topic, that you 100% understand the issue from all sides. It's equally important that your Senator/Representative is voting with your best interests in mind...regardless of what you weight, what you earn and what you drink.

The Death of Soda, or the Death of Readership

I know I don't post every day, but I try to post once a week.
And luckily enough, there are enough "soda related" things happening in the world that there is always something to share.

Something serious, like Pepsi Prices Going Up or Protests Against Coca Cola

Something silly, like a video called The Death of Pepsi. Or two.

Even Business news, like the profitability of Making Your Own Soda or this new Purple Soda company.

So here is the concern, if you will...
Readership is down. WAAAAY down.

Content issue? I don't think so. I've been posting the same soda-related drivel for almost 2 years now. It's not like my content has 'gotten worse'.

Frequency issue? Again, I posts once a week, try to keep it fresh, and keep it to relevant topics.

In fact, I'd say the 'tools' I use to promote the blog...from Facebook to choosing the right keywords...is BETTER than it was a year ago.

So why the drop?
Maybe it's not ' this blog' related?

Are people drinking less Coca Cola and Pepsi than a year ago?

Are people looking up soda-related terms less frequently than they were a year ago?

Are people reading blogs (in general) less frequently than a year ago?

Believe me, I'm not going to stare to death if readership drops below 10 a day...but I'm INCREDIBLY curious why it would change.

In the meantime, remember...there's always the Dusty Rhodes Mello Yello video!!!

Pepsi and Coca Cola sales Drop Drastically

Pepsi and Coca Cola are in for the fight of their lives!

Soda may be Good, but cola sales are dropping at an alarming rate!

In fact, Beverage Digest looked at the top 10 carbonated soft drink brands and saw that only Diet Mountain Dew and Diet Dr Pepper showed any volume growth in 2008. (Diet Dew volume rose 4 percent, while Diet Dr Pepper volume rose 2.3 percent.)

Gad, I HATE diet sodas! I know they're SUPPOSED to taste just like the originals...but they just don't!

You can read all about the rapid decline of soda sales on the CNBC blog, here.

And while it's your job to read the article, there was 1 line that I thought was un-intentionally humorous - "Consumers are continuing to snub carbonated soft drinks, leading to an acceleration in volume declines seen in recent years."

Heh heh heh...he used 'acceleration' and 'volume' and 'decline' all in the same sentence! If this sentence was a roller coaster, it's would have been one helluva ride!

Will rising Coke and Pepsi prices force alternative sodas?

Soda prices are rising along with everything else in this economy. When you look at your budget, and try to figure out how you will make ends meet this month, will you have to start cutting out some of your 'vices'?

I have friends who crack open a Pepsi as soon as they get out of bed. By the time they are in the office, they are on their third soda.

With soda prices rising, how important is that soda to you?
If it IS important, does it have to be a Pepsi? Do you insist on Coca Cola in your home? Do you look at store brand soda and sneer?

When I was single, I bought store brand often. The rule was 'all flavors OK except their Cola.'
And no root beer. I just didn't like root beer. But it was a low cost way to keep soda in the house, and it worked for me.

Now, there are other low cost ways to keep soda in the house...and these days you even get control over what the soda tastes like. (As I alluded to above, store brand cola just tasted lousy to me.)

See here:

Make fresh seltzer as fizzy as you like it for just 17 cents a liter with a Soda-Club seltzer maker! No more schlepping, storing and recycling cases of bottles from the store. Soda-Club carbonators make 110 liters before exchanging door-to-door.

You control the taste, you control how much you have, and your costs are controlled with this major cost reduction.

Some people simply will not give up soda. Now you don't have to.