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Stock Prices First Half
1999: Coke, Pepsi, Cadbury Down. At mid-year, three top soft drink franchise companies suffer stock price declines from start of year. Dow Jones Industrial Average up +19.5% in first half. But Coke, Pepsico, and Cadbury all post stock market losses, as do CCE and Whitman. Triarc posts huge gain, up +33.9%. Overall, eight of 17 tracked soft drink stocks register declines during first half; nine stocks up. Fourteen of 17 stocks under-perform Dow. Two Latin American bottlers post strong gains; Coke Femsa up +46.2%; Coke Andina up +37.9%.
Coke. On June 4, company's stock closed at $69¾. During month, stock slides, as company grapples with European product scare. Coke's stock falls -11% during June. On June 30, company issues second quarter volume estimates; predicts: 1) worldwide volume down 1-2%. 2) North America and US flat. 3) greater Europe down 6-7%. Ahead. In statement, CEO Doug Ivester states: "From an economic standpoint, we believe that the worst is behind us." Expresses optimism for second half 1999 plus 2000. Plus. Whitman -- owner of Pepsi General -- and Cadbury post steepest declines in first half. Whitman stock falls in first quarter after announcement of deal with PepsiCo and loss of Pepsi General president Bob Cushing. Cadbury's stock falls as deal with Coke runs into regulatory snags and gets scaled back. PBG note. Percentage change in Pepsi Bottling Group computed from March 31 IPO price of $23.
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