After dropping market share to rivals over the previous few years, Coca-Cola is taking again the reins. Whereas most shares are down this yr, KO inventory is up 2% as the corporate builds momentum.

Coca-Cola (NYSE: KO) is the most important nonalcoholic drink marker on the planet. Coke has over 200 manufacturers bought in additional than 200 international locations. A number of of Coke’s common manufacturers embody:

• Fanta
• Sprite
• Coca-Cola
• Powerade
• Vitamin Water

The drink maker struggled in the course of the pandemic as locations like film theaters and eating places shut down. However after strategically specializing in greater potential areas, Coca-Cola is driving development once more.

Coke is firing on all cylinders regardless of surging inflation and provide chain points. But after hitting a brand new all-time excessive (ATH) of over 67$ per share, KO inventory is down 12%.

Is now the time to purchase KO inventory whereas the market is down? Under are seven causes to contemplate Coca-Cola inventory in 2022.

7 Causes to Take into account KO Inventory

No. 7 Coke Can Elevate Costs

Although many companies are combating inflation hitting a 40-year excessive, Coke has been right here earlier than. With over 125 years of expertise, Coca-Cola is aware of a factor or two about navigating runaway inflation. For one factor, KO inventory is the definition of an organization with pricing energy.

In different phrases, Coke can elevate costs and nonetheless promote its merchandise. In the meantime, the corporate acknowledges inflation’s results on customers. So, the corporate is making smaller parts whereas working with suppliers to maintain prices low.

No. 6 New Merchandise Driving Development

One of many main causes behind Coke’s current success is the corporate’s give attention to high-potential classes. For instance, the corporate is shifting in the direction of on a regular basis drink choices reminiscent of espresso and low sugar.

• BODYARMOR: Coke acquired full possession over BODYARMOR final yr, an rising sports activities efficiency drink. Although the merge is dear, it’s additionally considered one of Coke’s fastest-growing manufacturers.
• Fairlife: After gaining important market share final yr, Fairlife surpassed $1 billion in U.S. gross sales. The vitamin shake leads its class, up 12% within the first quarter.

In the meantime, KO inventory is profiting from the rising demand for espresso. For one factor, Coke purchased the second-largest espresso chain on the planet final yr, Costa Espresso.

The espresso model is a favourite within the U.Ok. Not solely that, however you will discover Costa in 40 markets. Coke’s espresso class grew 27% in Q1, with Costa main the way in which.

No. 5 Coke’s Dominant Market Share

Beginning in downtown Atlanta, Coca-Cola merchandise are at present present in over 200 international locations and territories. The corporate works with sellers worldwide, accounting for about 2.1 billion servings globally between its drinks.

Not solely that, however KO inventory owns and markets 5 of the highest six nonalcoholic glowing comfortable drinks worldwide. The checklist contains Coca-Cola, Sprite, Fanta, Eating regimen Coke and Coca-Cola Zero Sugar.

The corporate is mastering the artwork of matching shopper developments. For example, as folks transfer away from sugary drinks, Coca-Cola Zero Sugar helps the model develop by double digits. The product’s new components is ramping development, up 80%.

Lastly, Coke’s largest markets exterior of the U.S. embody Mexico, China, Brazil and India. A few of the fastest-growing economies on the planet.

No. 4 A Drink Possibility for Everybody

Coca-Cola is thought for its legendary Trademark Coke merchandise. However the firm is increasing to satisfy folks’s on a regular basis wants.

The drink maker presents manufacturers in 5 classes…

1. Trademark Coca-Cola
2. Glowing Flavors
3. Hydration, Sports activities, Espresso & Tea
4. Vitamin, Juice, Dairy, & Plant-Based mostly
5. Rising Drinks

Moreover, KO inventory has strategic partnerships and licenses to promote different manufacturers, reminiscent of Monster Vitality (Nasdaq: MNST).

No. 3 Gross sales in Each Nook of the World

With partnerships and suppliers worldwide, Coca-Cola is likely one of the most acknowledged manufacturers. With this in thoughts, Coke does enterprise within the following segments.

• Europe, Center East, and Africa
• Latin America
• North America
• Asia Pacific
• International Ventures
• Bottling Investments

Coca-Cola sells two major merchandise, concentrates (beverage base) and completed merchandise. The corporate will make beverage bases, promoting them to bottling companions to mix with nonetheless or glowing water.

Whereas many see Coke as a U.S. product, final yr, solely 17% of whole unit case quantity got here from the USA. The corporate continues increasing into markets with regional model favorites.

Hold studying and uncover the highest two causes KO inventory is price watching in 2022.

Is KO Inventory a Good Funding?

Formulated in a pharmacy in downtown Atlanta, GA, Coca-Cola serves over 2.1 billion drinks day by day throughout all corners of the globe.  After seeing gross sales slip the previous few years, Coca-Cola seems to be to be again on observe. Through the pandemic, the drink maker aligned its give attention to excessive potential markets. In consequence, Coca-Cola is again on observe for development.

In the meantime, KO inventory is outperforming its friends. KO inventory is up 2% this yr, whereas Pepsi (NYSE: PEP) and Keurig Dr. Pepper (Nasdaq: KDP) are down over 5%. Moreover, this isn’t the primary time Coke has been by means of inflation, rising rates of interest, or political pressure.

The corporate continues investing within the enterprise to satisfy shopper calls for and create shareholder worth. With 136 years of expertise, Coca-Cola can navigate the subsequent few months with value raises and a superior product combine. At an virtually 3% dividend yield, KO inventory seems to be to be a stable anchor for any portfolio in 2022.