Focus - CAGNY 2011: North America still attractive market for Coca-Cola Co
Coca-Cola Co has reiterated its optimism about the North American market
The Coca-Cola Co has said that it remains optimistic about the North American soft drinks market, during a presentation to analysts at the CAGNY conference.
Addressing investors at yesterday's (23 February) CAGNY conference in Florida, Coca-Cola's chairman and CEO, Muhtar Kent, said the company's drinks can still "earn" good pricing across an array of pack sizes, consumption occasions and purchasing venues in North America.
Kent also reiterated the group's synergy targets for the recent purchase of Coca-Cola Enterprise's North American operations.
Stifel Nicolaus analysts, Mark Swartzberg and Aashiv Shah, said in a note that they expect "another year of positive volume growth" in North America for Coca-Cola.
"We come away with continued confidence in our estimates and the company's ability to meet or exceed its earnings targets in 2011 and long-term, in spite of increasing pressures such as commodity inflation's impact on costs and demand in certain geographies," the analysts said.
Follwing Coca-Cola's full-year results earlier this month, several analysts noted that, while Coca-Cola has said it expects to achieve $110m to $140m in operating cost synergies from the CCE acquisition in 2011, "the firm's exposure to commodity costs will provide a headwind in the second half of the year".
At CAGNY, the company said that it is working to "leverage its global scale" in order to manage rising input costs.
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