Tomahawk, WI 04/17/2014 (Basicsmedia) – In a world that is increasingly health conscious, selling cigarettes or sparkling beverages are both a challenge. However, The Coca-Cola Company (NYSE:KO) is doing all it can to ensure that it continues to be one of the world’s most recognized brands and touch the lives of billions of people.

Quarterly Results

The 1Q2014 results were in line with analysts’ expectations and revenues declined by 4% from 1Q2013 to reach $10.58 billion. Net income was down by 8% at $1.6 billion resulting in an EPS of $0.36.

Coca-Cola is a Global Company

The global reach of the beverage giant is a key factor for Coca-Cola’s enduring strength. At a time when sales in the U.S. are suffering because of a change in consumer preference towards healthier alternatives, Coke’s Chinese sales growth helped the company post a worldwide volume growth of 2%. China volume growth was 12% while in Europe, the volume decline was 4%. The sparkling beverage market in Russia grew by 9% for the first quarter on the back of vigorous advertising for the Sochi Winter Olympics.

Challenges and Outlook for Coca-Cola

As urbanization continues apace across the developing world, carbonated beverages such as Coke will remain an aspirational product for many young people around the world. The health consciousness that has spread across America and Europe and hurt Coca Cola’s soft drinks sales will take a while to spread around the world.

The Coca-Cola Company (NYSE:KO) should learn a lesson from its great rival PepsiCo, Inc. (NYSE:PEP) and change its product mix to include more non-beverage items such as energy drinks and snacks, ready-to-serve tea and coffee and even bottled water.

PepsiCo’s stock has risen by 27.7% compared to Coca-Cola’s rise of only 11.1% since the beginning of 2012. PepsiCo has benefited from generating more than half of its revenue from its snacks business.

Venezuelan Currency Devaluation

The devaluation of the Venezuelan currency bolivar from 6.3 bolivars to one U.S. dollar to 10.8 bolivars to one U.S. dollar cost Coca-Cola $247 million during the first quarter.

Brazil Focus

With the 2014 FIFA Football World Cup and 2016 Summer Olympics which are both going to take place in Brazil, The Coca-Cola Company (NYSE:KO) expects its soft drinks sales in the country to grow on the back of intensive advertising. Even Coke’s energy drinks sales are expected to rise in Brazil.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.