Thursday, July 17, 2008

Now I've Gone and Done it - Coke's Profits Drop 23% after I Give up Diet Coke

Yep, I've got my drinking problem fairly under control right now. I had two diet cokes while I was on vacation and haven't had any others since the beginning of the month. Before that I had seriously cut back. And the big financial news on Bloomberg today - Coke's profits are plummeting. 

From the article

"Chief Executive Officer Muhtar Kent, who took over Atlanta- based Coca-Cola this month, said consumers had less money to spend on Diet Coke, Minute Maid juices and Dasani bottled water because of rising food and energy prices."

I have no doubt that the main reason that sales are down is because of rising food and energy prices. But I wonder if they realize that there is a significant portion of the population who are choosing to not buy their products because of the environmental impact of making, bottling, and shipping them, not because they don't have enough money to buy them. 

I know that many of my friends are beginning to shun bottled water. And those who don't are at least thinking about the problems they cause because I get a lot of apologies when people admit they still buy it. As if I'm the one they are hurting. I go easy on them, though. I figure if they are thinking about it, it won't be long until they make the right decision. No green preaching here.

I'd like to see this as one of those problems that actually has some positive results. The fact that less of these products are being bought is good for the environment. The fact that people are drinking less of the soda and Minute Maid juices is good for their health. Hopefully people are drinking more tap water and fresh brewed iced tea. 

So if you've got stock in Coke, please don't be angry at me, but I see this as good news. And proud to have contributed to it just a teensy, tiny, bit.

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Allison said...

I actually do have stock in Coke. A long time ago when buying stock online first began I started to buy Coca-Cola stock. I haven't put any money into it in years but the dividends get reinvested so it was earning a little. Thanks Robin for crashing on my stock parade.
I'm messin' with you. I wonder if I should sell?

Robin Shreeves said...

Sorry to put a damper on your portfolio. But now that you're growing all that food, you don't need as much many anyway, right?!