Chapter 1808： Transforming Coke

As for the real estate issue, I think we should consider it carefully~"

After Yang Cheng thought about it for a long time, he said such a sentence, which surprised Uncle Ou. Your family is a real estate company. As the heir, you actually feel that real estate has concerns. Can you pass it on?

After scanning the employees, Uncle Ou decided to tell the truth, "Are you not optimistic about real estate investment?"

Yang Orange shook his head, "No, no, I just don't think it is a good time to invest in real estate."

Uncle Ou's face was serious, and he straightened up, "Can you explain it?"

"If you are planning to invest in real estate in the UK or other overseas countries, then I would suggest that you invest in it after investigating. But for American real estate, I think there is no need to investigate.

At this point, I agree with the old stock gods that buying a house in the United States is only suitable for long-term holding, not for short-term speculation.

Whether it is the rental rate of return or the potential for appreciation, the US real estate market has already touched the ceiling, and it is difficult to have any amazing performance. As for the stable value preservation properties, I just think that American real estate is the most insecure one.

This is also the reason why our family has seldom developed projects by ourselves since we built our own house at the beginning, and now we play capital operation. "

Uncle Ou understood what Yang Cheng meant, and opened his hand, "Since you are not optimistic about US real estate, then go to other countries to find opportunities? In addition, do you think US national debt can be invested?"

Yang Cheng smiled, "I will tell you all the jokes. Buffett advises retail investors not to invest in US Treasury bonds, and he is now the largest trader of US short-term Treasury bonds."

"You mean you can invest in short-term government bonds?"

"Yes, the long-term national debt is still forgotten. I would rather buy 10 billion gold and put it in the vault. As long as people do not die, the value of gold will still exist."

Uncle Ou said with a smile, "According to what you said, we don't have to think about anything else. Let's just buy gold. Of course, we must find a safe storage place for this gold!"

Lin Jian waved his hand, "This is a question you should consider. It is your job to rationalize asset allocation. You will ultimately have to make a plan on how to allocate assets. However, my suggestion is to ensure that the shares of several major stocks remain unchanged and appropriate. If you increase your holdings, you can disperse the funds for the rest. Gold, real estate, and national debt can all be invested in part, but not too much."

Uncle Ou sighed, "Well, I'll think about this again~"

After a pause, "In addition..."

Looking at the employees of the foundation again, it was obvious that there was something private to say.

Yang Cheng said, "I'll talk about personal matters later, is there anything else I want to know?"

"Recently, Coca-Cola's stock is very unstable. There have been several single-day biggest drops before. Although there was a correction after only one day, this has caused investors' suspicion."

"What's the reason for the big drop?" Yang Cheng asked.

"Because of the financial report, although Coca-Cola is still profitable and has a high profit margin, the decline in revenue is an indisputable fact."

"Revenues are declining?" Yang Cheng was surprised. He did not pay attention to Coca-Cola's news recently.

"Yes, the annual revenue is expected to drop by about 10%~"

"What about the profit?"

"Net profit is still close to US$2 billion~"

Yang Cheng was surprised, "The revenue is down, but the net profit is still rising?"

"It's really weird~"

"This is not the first time, right?" Yang Cheng asked again.

"Yes, a similar phenomenon occurred in the past few years, but because their profits are very stable, they are not reflected in the stock price."

"what happened?"

"There are rumors that Coca-Cola is preparing to transform~"

Yang Orange was dumbfounded, "What? Transformation? They are crazy? Besides, how can the Coke thing be transformed? Is it possible that they also have to learn from entertainment companies and become a Coca-Cola theme park?"

Uncle Ou waved his hand, "No, no, it's not a business transformation. In fact, since 2012, the sales of carbonated soda, which accounts for more than 70% of Coca-Cola's beverage sales, have begun to decline in European and American markets.

The sales of carbonated beverages in the Asia-Pacific market, which has always performed well this year, also stopped growing. Faced with such a situation, Coca-Cola could not remain indifferent.

It is not realistic to expect the growth of the carbonated beverage market. Increasing profits may only rely on lowering costs, so this strange phenomenon will appear. Revenue is declining, but profits are growing inversely. "

An employee answered, "Indeed, we have received news that Coca-Cola has already started to spin off its bottled business, and the sale and transfer of related assets are proceeding in secret."

Why did revenue decline while net profit rose? The answer is simple, it is related to the production chain of carbonated beverages.

Coke and other carbonated beverages are generally produced in accordance with this process: carbonated beverage companies such as Coke are responsible for the production of Coke puree with a mysterious formula, and then sell the Coke puree to bottling companies, which are then filled into finished cola by the bottling plant and distributed to each channel.

In comparison, the cost of plant and equipment in the second half of the bottling business is higher, and the gross profit margin is relatively low. If you only focus on the production and sales of cola puree, which has a much higher gross profit margin, the overall profit margin will increase accordingly.

As a result, the Coca-Cola Company began to license its controlled filling business to some uncontrolled filling plants, which is equivalent to reducing the shipments of self-produced whole bottles of beverages.

The direct impact of terminal products from independent production to cooperative production is the reduction of income.

To put it bluntly, it used to be a direct store and now you can join it, just like joining K and M, except that when you join Coca-Cola, you invest in a bottling plant, and you cannot sell Coke directly to customers. It is distributed to dealers to buy.

In short, the bottling plant is the link with the largest workload and the smallest profit in the entire Coke production chain. It is not a pity to cut it. There is no need to worry about fraudulent use of its products on the Coke side. After all, this brand is too loud, other brands The only result of counterfeiting is death.

However, this is only a symptom, not a permanent solution. To reduce costs and increase profits can only delay the arrival of the crisis. It is like the sunset before the sunset, which looks beautiful, but after the sunset is a long and endless night.

Therefore, if Coca-Cola wants to completely solve the crisis, it must make more responses. Just like capitalists like to diversify investment and rationalize asset allocation, consumer goods and even technology companies are facing the problem of how to diversify their products.

In this regard, Pepsi, Coke’s old rival, has done a good job. Although like Coca-Cola, Pepsi’s beverage business has also experienced a decline in recent years, Pepsi’s snack foods such as Lay, Cheetos and Doritos have helped Pepsi stabilize. Live performance, this is a relatively stable income, just like the beverage business, it has become a two-day thick leg that supports Pepsi!

txt download address:

phone-reading: