The Coca-Cola Co (NYSE:KO) remains one of Warren Buffett’s favorite things, but even he acknowledges that the times are a changing. During an appearance on CNBC, Buffett called attention to changing consumer preferences having an impact on sales of some of the nation’s most famous brands.
CNBC has the details on what Buffett had to say about Coca-Cola.
Coca-Cola and Kraft Heinz are good businesses, but they don’t look as good as they did 10 years ago, billionaire investor Warren Buffett told CNBC on Monday.
“There are two reasons for that,” the chairman and CEO of Berkshire Hathaway said in a “Squawk Box” interview. “One is people seem a little bit more willing to experiment with different diets and food than they were five or 10 years ago.”
Sales of sugary drinks have been on the decline, and Coke and rival companies such as Pepsi are certainly feeling the impact of that. As Buffett explains, there’s plenty of folks out there that still like a Coke and a smile – just not as many as there used to be.
“There’s a huge loyalty factor, but it’s not as strong as it was,” Buffett said.
The Coca-Cola Co shares were trading at $42.12 per share on Monday afternoon, down $0.24 (-0.57%). Year-to-date, KO has declined -7.38%, versus a 0.52% rise in the benchmark S&P 500 index during the same period.