Coca-Cola: Bottle Is Half Full

The Coca-Cola Company (KO), the world largest soft-drink maker, reported its third quarter (3Q) financial results for fiscal year 2013 (FY13) on October 16. The company’s revenues are typically the highest in the summer months – or the second and third quarters – when warm weather acts as a demand driver for soft drink sales.

Overall Results

In the latest quarter ended September 30, 2013, Coca-Cola reported an EPS of $0.54, an 8% Year-over-Year (YoY) increase from the same quarter last year. The EPS figure was in line with analysts’ estimates, signaling strong fiscal management, despite a YoY decline in overall revenues.

Total net revenues for the quarter came in at $12.03 billion, and missed analyst expectations of $12.05 billion by just 0.19%. Reported revenues declined 3% YoY, mainly due to restructuring charges in its Philippines and Brazil operations. After excluding restructuring costs, and accounting currency fluctuations, global revenues actually increased 4%.

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Coca-Cola Vs. PepsiCo: Coke’s Got More Fizz

When considering dividend stocks, investors seek fundamentally strong companies that pay out stable and incremental dividends without cutting corners in times of crisis. The sustainability of dividend payments is measured usually by comparing a few important metrics between different companies.

Coca-Cola (KO) and PepsiCo (PEP), the two largest global beverage companies, have traditionally been considered strong dividend stocks. Both companies are included in the S&P Dividend Aristocrats List, and their stock prices are resilient enough to hold up during a financial downturn.

Even though the two are quite closely matched in terms of dividend yields, debt ratios, and revenue growth, we will be digging deeper to find out which of the two companies is in a better position to pay dividends on a sustained basis.

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Behold: A 'Wine Glass' for Coca-Cola

Coca-Cola (KO) is a drink often sucked up greedily from a giant paper cup, but Georg Riedel is the type of aficionado who believes the right glass can refine the flavor of any drink. Such claims can only be expected from the owner of Riedel, an Austrian company that makes tailored glasses for specific varieties of wines and spirits. Now Mr. Riedel is taking his glassware philosophy to new territory: nonalcoholic beverages. He’s going big, too, starting with the most iconic beverage brand: Coca-Cola.

Whether pinot noir actually tastes better from a pinot noir glass—and merlot, and so on—is debatable (it’s certainly a handy claim for a glassmaker), but there are enough meticulous imbibers in the world that Riedel sells 55 million pieces across its three brands each year. The company recently started dabbling in glasses for specific craft beers, too, but Mr. Riedel says it’s long been his dream to market a Coca-Cola glass. “I would say this is, for me in my career, the most exciting project,” he says.

The new Coca-Cola glass is designed to ensure the right balance, which in Coke means “sweetness, acidity, minerality, and effervescence,” according to Riedel. The bubbles stay longer on the palate. “The finish,” he claims, “is much longer” compared with drinking from a normal glass, and the aroma is more intense. Add that to your tasting notes. The glass is designed and tested for regular Coca-Cola (not diet)—Pepsi (PEP) fans use at your own risk.

Coca-Cola asked the company to make a new glass last February. Riedel now has a licensing deal with the soda company, the first time Riedel has worked with a booze-free brand. With wine glass sales slowing in Europe, Riedel sees glassware for nonalcoholic beverages as an untapped opportunity.

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