The soda giant diversifies its portfolio with dairy-free holdings to offset falling profits from sugar slump.
Soda giant The Coca-Cola Company recently made several investments in international dairy-free companies. According to Nasdaq, the company—which owns 500 brands—has experienced a downturn in sales due to changing consumer preferences. To diversify away from sugar-laden products, Coca-Cola acquired Chinese plant-based protein beverage company China Green Culiangwang Beverages Holdings late last year. Last June, Coca-Cola also purchased soy-based beverage company AdeS—based in Latin America—for $575 million from global corporation Unilever. Stock market analytics firm Zacks Equity Research said these acquisitions are a “major portfolio diversification step that most shareholders should appreciate.” Coca-Cola isn’t the only corporation looking to the plant-based industry for growth opportunities. Last year, chicken producer Tyson Foods made an undisclosed investment in vegan company Beyond Meat, drawing from a $150 million investment fund the meat giant set up to be used exclusively for the purpose of investing in meat alternatives.
Written by Anna Starostinetskaya