There is concern over the quality of the earnings, over how they got there. |
Today's release is a modest positive given strong finish to U.S. volume/pricing and cost controls which helped deliver earnings per share slightly above expectations. |
We believe Coke may lead an effort for further bottler system consolidation around the world. While Coke won't use a 'one size fits all' strategy for each market, there are some markets where Coke might have to take ownership of its bottlers. |
While the amount of damages is still uncertain, the worst case scenario is in the $200 to $300 billion range, given the administration's desire to get a 55-cent per pack excise tax. |