Coca-Cola, American multinational beverage corporation, will never close its doors when it comes to producing alcoholic beverages, but according to CEO James Quincey on Thursday, it doesn’t seem currently logical.
There had been speculations from analysts that, in an effort to drive growth, the company would plan to expand its portfolio to consider including cocktail mixers and alcoholic drinks. Innovation will continue to play a part with Coke’s strategy, said Quincey, where some consumer goods corporation has acquired innovation by buying small, on-trend brands.
“Philosophically, I never say never about most things, but the way I look at it, there’s just so much more we already have strength and capability in, it just doesn’t make sense to do that next. It makes more sense to do things that are more synergistic with your consumers and your capabilities as a company and a system,” Quincey shared in an interview.
Quincey declined to comment on rumors when specifically asked whether Coke would obtain Monster, an energy drink company which Coke has already a 16.7 percent stake in.
“Whether it’s a bolt-on or it’s anything transformational, it’s always got to obey three criteria: there’s a strategic fit, there’s logic strategically, and the numbers financially add up, and there’s opportunity,” he explained. “It takes two to tango.”
In regards to overcoming doubts about the possible decision, another issue would be the company confronting soda taxes, which have been surfacing in more jurisdictions to increase revenue and attract consumers to healthier drinks.
Late-night Liquor Provisions
The late-night revision that made it into the congressional battle over taxes may be something Coca-Cola will be tackling if ever the company changes its decision.
The recent changes that were made with the Senate Republican tax plan that was released on Tuesday, includes cuts for beer, wine, and liquor producers.
A reduction within the taxes on American-made beer and distilled spirits has been a long sought change by the industry. The liquor provision would also add a tax credit currently accessible to small wine producers, creating that break in availability to all wine producers and importers.
A follow-up in the changes would mean an increase in the alcohol content at which excise taxes on wine take effect. The lowest federal excise taxes currently sits at $1.07 per gallon which applies to wine that contains up to 14% alcohol and a rate of $1.57 that applies to wines with 14% to 21% alcohol.
The lowest $1.07 rate would be applicable to wines with up to 16% alcohol, under the proposal.
The changes in the liquor provisions would expire after two years, and according to the Joint Committee on Taxation, cost the treasury $4.2 billion.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings on the market.