Coca-Cola Shifts Strategy Away from Bottling to Boost Margins
Coca-Cola (KO) is accelerating its transition to an asset-light model by outsourcing 80% of its bottling operations. The MOVE follows recent plant closures, including a Napa County facility that eliminated 135 jobs, as the company focuses on its high-margin syrup business.
Analysts view the strategy favorably, with Morgan Stanley maintaining a Buy rating and $81 price target. The shift from 12% margin bottling to 68% margin syrup production could create significant value for shareholders.