Despite the poor performance of the stock, Coca Cola announced the expansion of distribution on one of its headquarters to reach upstate New York and most of New England.
Coca-Cola of Northern New England signed a letter of intent to buy facilities in Hartford, Conn and Needham Heights, Mass as it aimed to expand the scope of its distribution. The majority of its production facility and distribution center lies in Londonderry, the expansion will give the company the access to some of the biggest urban centers.
Mike Elmer, director of capabilities at Coca-Cola Northern New England, admitted that it would be a great opportunity for the company. Mr. Elmer believed that it (the agreement) allows them to focus on their core competency of building great brands and marketing them, and lets the bottlers focus on the operational competencies and efficiencies that they can gain from an increased scale.
Given that the expansion will be granted, the agreement will probably be completed before the end of 2017. It will be a good chance for the beverage company to restart the stability of its distribution and its production.
Although there are uncertainties before the completion of the plan, Coca Cola was expected to keep its employees across the area with a little change on their positions. Further, the company seeks to provide what the market wants, which is a smaller size and healthful beverage.
Coca Cola North New England has shown competence for the past few years. And just recently, it has received the award of quality for the 9th time already, beating the seventy bottlers nationwide. Adding to this, the company was able to deliver approximately 28 million cases of products yearly. That covers about 18,000 vendors in New Hampshire, Maine and other states.
Mr. Elmer explained that they just really like to think of the business in the long-term, and that usually serves both their business and the community in which they do business.
With over 500 non alcoholic beverage brands all over the world, Coca Cola has kept on expanding its bottling and distribution operations. The number of its distributors, retailers, wholesalers and bottling partners have increased over the past successful years. However, the biggest beverage distributor went relatively low on the trading session these days.
Previously, the shares of the Coca-Cola Corporation traded 1.15 percent lower to $44.79 after opening at $45.17. The beverage juggernaut has a market capitalization of 191.55 billion and a price earnings ratio of 27.07. It has a dividend yield of 13 percent and an average volume of 12,862,000.
For the last month, the stock has declined by 26.1 percent and lost 2.8 percent the last week. The company has under performed the S&P 500 by 26.77 percent in the past successive weeks. It has a 50-day moving average price of $46.85 and a 200-day moving average price of $48.72.
Moreover, the beverage firm had a total net flow of $144.03 million with an up/down ratio of 3.17 during the trading session. The 52-week high of the stock stands at $47.13 and its 52-week low is $36.56.
1. Here’s the best financial news platform. FSM News provides the latest market news. Subscribe Now and get newsletter daily.