By Andrew Leckey

About The Coca Cola Enterprises, the Western European soft-drink distributor and marketer, for $12.3 billion, including assumption of $8.8 billion in debt.

-- The deal is expected to bring savings of $350 million over the next four years, while also giving direct control over 90 percent of its North American sales volume and a closer relationship with retailers.

-- In return, the European company received Coca-Cola Co.'s bottling operations in Norway and Sweden for $822 million.

Odwalla and Minute Maid, which is where much of its future growth will be.

The consensus Wall Street analyst rating of Coca-Cola is "buy," according to Thomson Reuters, consisting of five "strong buys," eight "buys" and two "holds."

Almost three-fourths of revenues are generated outside the U.S. For example, the firm most recently said its sales in Peru will hit $1 billion within five years.

However, its business can be affected by commodity price increases for raw materials, plus currency and political risks for its overseas businesses. There's also potential negative publicity regarding health risks of those drinks that are high in sugar content. The firm remains in excellent financial shape even though the purchase of the North American bottling business was costly.

Earnings are expected to increase 13 percent this year versus the 69 percent growth rate expected for the beverage industry. Next year's projected 9 percent rise compared to 12 percent industry-wide. The five-year annualized return forecast is 9 percent versus 14 percent for its peers.

Coke introduced its PlantBottle plastic bottles made partially from plants a year ago and has a goal of producing 2 billion of the bottles by the end of this year. The bottles are 100 percent recyclable.

Available at Amazon.com:

The Seven Deadly Sins of Investing: How to Conquer Your Worst Impulses and Save Your Financial Future

Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back

 

Investing - Coca-Cola's Prospects Bubbling | Coca-Cola NYSE:KO

© Andrew Leckey

Wealth & Finance ...

CAREERS | INVESTING | PERSONAL FINANCE | REAL ESTATE