Shares in Coca-Cola Amatil Ltd (ASX: CCL) are down slightly to $9.29 today after a trend upwards for the stock since late 2017.
But will intense pricing pressure from competitors and overall competition across the grocery sector, coupled with a health-directed move away from fizzy drinks, start to hit the margins of Coca-Cola soon?
Morgan Stanley have this month upheld its underweight rating on the stock with an $8.00 price target, noting concerns about competition from the Indonesian beverages market with diversification key to overcoming softening in its fizzy drink segment.
Coca-Cola's annual result reported underlying NPAT of $416.2 million in line with guidances, but trading revenue was down 2.8% to $4.93 billion while capital expenditure increased to $312.2 million from $295.7 million in FY16.
The company's $10 million investment in start-ups could open up new opportunities as Coca-Cola inevitably searches for a new flagship product as demand for sugary drinks sours.
Also in the global beverage space Treasury Wine Estates Ltd (ASX: TWE) appear to be kicking goals, with today's share price of $18.67 up 53% on its $12.17 price at this time last year.
Freedom Foods Group Ltd (ASX: FNP) is also going great guns with its share price up 30% in the last 12 months.
