The Coca-Cola Cos drinks stable contains more grams of sugar per dollar of EBIT than any other major soft drinks company

The Coca-Cola Co's drinks stable contains more grams of sugar per dollar of EBIT than any other major soft drinks company

The Coca-Cola Co is worst-placed among soft drinks companies to deal with consumers' and regulators' concerns about sugared drinks globally, an analyst has warned.

In a note to clients late last week, CLSA calculated the grams of sugar per US Dollar of total EBIT of five of the largest soft drinks groups. While Monster Beverage Corp, in which Coca-Cola holds a minority stake, came bottom with 119g, Coca-Cola Enterprises was fourth with 383g. PepsiCo came in third with 413g, with Dr Pepper Snapple Group holding the runner-up position with 615g. Coca-Cola, however, almost doubled second-placed DPSG, coming in at 1,192g of sugar per $1 of group EBIT.

"Per Euromonitor," CLSA says, "42% of PepsiCo's worldwide off-premise beverage sales are from non-carbonates, versus only 32% for Coca-Cola. Both companies are more diversified in the US versus worldwide, due to Coca-Cola's investment in Monster (80% of sales in US) and PepsiCo's strong market shares in sports drinks, RTD tea (JV with Lipton), and RTD coffee (JV with Starbucks)."

The analysts noted that DPSG was highly exposed in the US, which accounts for 90% of its sales. "Over 80% of Dr Pepper's US sales in the off-premise channel are CSDs," the note continues.

On sugar tax, which is set to be introduced in the UK in 2016, CLSA noted that San Francisco and Philadelphia are considering the measure, as are Asian countries including India, Indonesia and the Philippines. "Our view is that the US is relatively unlikely to implement such a measure at the federal level, due in large part to the political clout of the industry," the analysts concluded.