VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, December 31, 2025
The Coca-Cola Company
KO · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
The Coca-Cola Company is a global nonalcoholic beverage brand owner and system leader, selling concentrates and syrups and, in some markets, finished beverages through a worldwide network of bottling partners and distributors. The primary moat is demand-side (brand trust and habitual consumer choice) reinforced by system-level distribution control via bottler agreements and long-lived route-to-market relationships. Legal and IP protection (trademarks and trade-secret formulas) supports brand integrity and limits direct imitation, though it does not prevent competing beverages. Across regions, competitive intensity and the bargaining power of large retailers can constrain pricing, and health and regulatory trends (sugar, packaging, water) are ongoing risks.
Primary segment
North America
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
6 segments · 5 tags
Updated 2025-12-30
Segments
Europe, Middle East & Africa
Nonalcoholic ready-to-drink beverages
Revenue
15.8%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Latin America
Nonalcoholic ready-to-drink beverages
Revenue
13.7%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
North America
Nonalcoholic ready-to-drink beverages
Revenue
39.6%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Asia Pacific
Nonalcoholic ready-to-drink beverages
Revenue
10.8%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Global Ventures
Nonalcoholic beverages beyond core sparkling (coffee, dairy, juice, sports, energy, etc.)
Revenue
6.6%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Bottling Investments
Beverage bottling, distribution, and route-to-market execution
Revenue
13.2%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Europe, Middle East & Africa
Nonalcoholic ready-to-drink beverages
Revenue share computed from FY2024 third-party net operating revenues ($7.442B of $47.061B) reported in the FY2024 Form 10-K segment table.
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Global brands with high recognition and loyalty support repeat purchases and resilience across channels.
Erosion risks
- Consumer shift to lower-sugar or functional beverages
- Reputational events or brand dilution
- Retailer or private-label promotion and shelf-space pressure
Leading indicators
- Price/mix and unit case volume trend in the segment
- Brand health tracking (preference and consideration)
- Share stability in core sparkling categories
Counterarguments
- Beverage markets are highly competitive with strong global and local rivals.
- Large retailers can promote competing brands and private label, pressuring pricing and shelf space.
Distribution Control
Supply
Distribution Control
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
A dense bottler and distributor network plus territorial authorizations underpin availability and execution at point of sale.
Erosion risks
- Bottler misalignment or underinvestment in execution
- Channel shifts to e-commerce or DTC reducing traditional distribution advantage
- Refranchising and territory changes disrupting execution
Leading indicators
- In-stock rates and distribution points (where available)
- Bottler performance (volume and profitability)
- Franchise disputes or major refranchising events
Counterarguments
- Retailer power can still dictate assortment and promotions.
- Competitors with scale can replicate many route-to-market capabilities.
Latin America
Nonalcoholic ready-to-drink beverages
Revenue share computed from FY2024 third-party net operating revenues ($6.459B of $47.061B) reported in the FY2024 Form 10-K segment table.
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
High brand recognition and loyalty support consumer pull and merchandising leverage in modern and traditional trade.
Erosion risks
- Downtrading to value brands in inflationary periods
- Sugar and health regulation (taxes, labeling) reducing category demand
- Increased competition from local brands and microbrands
Leading indicators
- Segment price/mix vs unit case volume trend
- Affordability metrics (pack and price architecture)
- Promotion intensity and share movements
Counterarguments
- Consumers can switch between brands with low friction if relative pricing diverges.
- Retailers and distributors can favor competitors if trade terms are better.
Distribution Control
Supply
Distribution Control
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Bottling partner system and territorial authorizations support widespread availability and cold-drink execution.
Erosion risks
- Execution slippage at bottlers (availability, affordability, pack mix)
- Political or macro volatility affecting distribution and demand
- Increased informal competition and gray market
Leading indicators
- Outlet coverage and cold availability (where tracked)
- Bottler financial health and capex levels
- Changes in bottler ownership and control in key markets
Counterarguments
- Competitors can build comparable distribution with sufficient investment.
- Exclusive territory for Coca-Cola brands does not prevent shelf competition from other beverage categories.
North America
Nonalcoholic ready-to-drink beverages
Revenue share computed from FY2024 third-party net operating revenues ($18.640B of $47.061B) reported in the FY2024 Form 10-K segment table.
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Flagship brands and broad portfolio support consumer pull across retail and on-premise channels.
Erosion risks
- Health and regulatory pressure on sweetened beverages
- Shifts in channel mix (for example, away from on-premise/fountain)
- Private-label growth in key retail accounts
Leading indicators
- Unit case volume trend in North America
- Price/mix vs promotional intensity
- Brand share in sparkling and key still categories
Counterarguments
- Retail and foodservice customers can renegotiate promotions and pricing due to size and alternatives.
- Low switching costs for consumers between major soda brands.
Long Term Contracts
Demand
Long Term Contracts
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Long-duration U.S. Comprehensive Beverage Agreements (CBAs) and related arrangements stabilize system roles and route-to-market over time.
Erosion risks
- Bottler consolidation increasing counterparty bargaining power
- Regulatory or antitrust scrutiny of exclusivity or trade practices
- Disputes over pricing, governance, or performance requirements
Leading indicators
- Changes in CBA or EPB governance or renewal terms
- Bottler profitability and capital investment levels
- Material litigation or arbitration with bottlers
Counterarguments
- Even with contractual flexibility, the company notes concentrate pricing is constrained by competitive market conditions.
- Retailers control shelf space and promotions; contracts do not guarantee consumer preference.
Asia Pacific
Nonalcoholic ready-to-drink beverages
Revenue share computed from FY2024 third-party net operating revenues ($5.079B of $47.061B) reported in the FY2024 Form 10-K segment table.
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Global trademarks and consistent marketing support consumer pull and shelf priority across key markets.
Erosion risks
- Rapid taste shifts toward functional and local brands
- Regulatory constraints on marketing or sugar
- Execution gaps in emerging-market cold availability
Leading indicators
- Segment unit case volume trend
- Growth of still and functional categories vs sparkling
- Innovation cadence and hit-rate in local markets
Counterarguments
- Local competitors can be highly relevant and agile in specific countries.
- In modern trade, large buyers can demand promotions and trade spend.
Distribution Control
Supply
Distribution Control
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
System distribution network and franchised bottling partners provide broad reach and execution in both urban and rural channels.
Erosion risks
- Bottler fragmentation or inconsistent execution quality
- Supply chain disruptions impacting availability
- E-commerce platform concentration shifting bargaining power
Leading indicators
- Distribution expansion in high-growth markets (for example, India)
- Fill-rate and on-shelf availability (where tracked)
- Bottler capex and system productivity initiatives
Counterarguments
- Distribution advantages can be competed away in modern trade with sufficient spending.
- Category substitution (tea, energy, functional) reduces reliance on traditional soda routes.
Global Ventures
Nonalcoholic beverages beyond core sparkling (coffee, dairy, juice, sports, energy, etc.)
Revenue share computed from FY2024 third-party net operating revenues ($3.129B of $47.061B) reported in the FY2024 Form 10-K segment table.
Scope Economies
Supply
Scope Economies
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
The company can leverage its marketing capabilities and global system reach to scale multiple brands and categories.
Erosion risks
- Specialist competitors outperform in niche categories (energy, coffee, functional)
- Direct-to-consumer and e-commerce brands reduce scale advantages
- Portfolio complexity dilutes management focus
Leading indicators
- Organic revenue and volume growth in Global Ventures
- Successful new product launches and distribution expansion
- Profitability trend vs category benchmarks
Counterarguments
- In many categories, brand loyalty is weaker and switching costs are low.
- Scale and marketing do not guarantee product-market fit; niche brands can grow rapidly.
IP Choke Point
Legal
IP Choke Point
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Trademarks and trade-secret formulas protect brand identity and product consistency, supporting premium positioning and licensing across the system.
Erosion risks
- Brand value erosion from quality issues or mispositioning
- Trademark disputes or dilution in some markets
- Counterfeiting in certain geographies or channels
Leading indicators
- Trademark enforcement actions and outcomes
- Brand quality incidents and recalls
- Growth in licensed or partnered brand extensions
Counterarguments
- IP does not prevent substitutes; competitors can build different brands in the same categories.
- Trade secrets protect formulas, but consumer preference can still shift.
Bottling Investments
Beverage bottling, distribution, and route-to-market execution
Revenue share computed from FY2024 third-party net operating revenues ($6.215B of $47.061B) reported in the FY2024 Form 10-K segment table.
Service Field Network
Supply
Service Field Network
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Installed dispensing equipment and service and repair support in fountain and retail can improve placement stickiness and execution quality.
Erosion risks
- Shift away from fountain in some channels
- Competitors matching equipment and service offers
- Labor and logistics cost inflation
Leading indicators
- Fountain placement counts and mix (where disclosed)
- Service cost per placement and uptime metrics
- On-premise volume trends
Counterarguments
- Service and equipment programs can be replicated by well-funded rivals.
- Retailers may prefer flexibility and can switch beverage contracts at renewal.
Operational Excellence
Supply
Operational Excellence
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
The company uses ownership or control of bottlers to apply resources and expertise to improve underperforming operations, then may refranchise for system efficiency.
Erosion risks
- Execution risk in turnarounds and integrations
- Capital intensity and working-capital needs
- Input cost volatility (packaging, sweeteners, fuel)
Leading indicators
- Bottling Investments operating income trend
- Productivity improvements (cost per case, route efficiency)
- Refranchising and divestiture activity and terms
Counterarguments
- Bottling is structurally less differentiated than brand ownership; margins can revert under competition.
- Operational gains may be cyclical and sensitive to macro conditions.
Evidence
Our competitive strengths include leading brands with high levels of consumer recognition and loyalty.
Management explicitly cites consumer recognition and loyalty as a core strength.
We make our branded beverage products available ... through our network of independent bottling partners, distributors, wholesalers and retailers.
Describes the global system route-to-market used to reach consumers.
The bottler is obligated to purchase its entire requirement of concentrates or syrups from the Company or Company-authorized suppliers.
Contractual structure reinforces system alignment and concentrate demand.
Participating bottler CBAs have a term of 10 years and are renewable by the bottler indefinitely for successive additional terms of 10 years.
Long contract duration and renewability reduce churn in the bottling and distribution layer.
Our competitive strengths include a worldwide network of bottlers and distributors and sophisticated marketing capabilities.
System reach and marketing are core capabilities redeployed across brands and categories.
Showing 5 of 10 sources.
Risks & Indicators
Erosion risks
- Consumer shift to lower-sugar or functional beverages
- Reputational events or brand dilution
- Retailer or private-label promotion and shelf-space pressure
- Bottler misalignment or underinvestment in execution
- Channel shifts to e-commerce or DTC reducing traditional distribution advantage
- Refranchising and territory changes disrupting execution
Leading indicators
- Price/mix and unit case volume trend in the segment
- Brand health tracking (preference and consideration)
- Share stability in core sparkling categories
- In-stock rates and distribution points (where available)
- Bottler performance (volume and profitability)
- Franchise disputes or major refranchising events
Curation & Accuracy
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