Coca-Cola

Research evidence excerpt

Coca-Cola

most powerful global brand-building platforms, given its ability to activate across

~200 markets and connect the brand with consumer passion points. While

management acknowledged the event could provide a modest volume tailwind, it

emphasized that the greater benefit is around LT brand engagement/equity rather

than a localized NT sales boost. From a comping perspective, management noted

that the company is always cycling major global events, such as the Olympics,

Cricket world cup, Rugby world cup, or other large-scale campaigns, which should

help reduce the risk of an unusually difficult comparison next year.

Shipment Timing Dynamics: As it relates to the gap between concentrate

shipments and underlying case-volume growth, management suggested investors

should view the dynamic largely through the lens of timing and activation related

factors rather than a meaningful change in underlying demand. With that they

noted that events such as the world cup, America's 250 celebration, July 4th, and

the Easter timing shift can create quarterly noise in shipments and consumptions

patterns.

Fairlife Capacity: Management noted that fairlife demand continues to outpace

supply, and that the new Webster facility in upstate New York came online in late

April and is expected to help improve product availability as production ramps

through the balance of the year. The company also highlighted its planned $650M

Michigan expansion, expected to come online around 2028, which should provide

the next leg of capacity as Webster scales. Overall, management suggested that

capacity remains the primary constraint for Fairlife today, with the NT focus

primarily centered on maintaining product availability.

Innovation Becoming More Functional and Data-Driven: Management sees the