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Has Coke lost its fizz?
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Coca Cola releases its Q4 results later today and the market is expecting negative news from the fizzy drink giant. The growing consumer trend for healthier drinks plus a strong USD have combined to take some of the sparkle out of the company's performance. Analysts expect sales to be down by around 2.5% and profits to drop almost 9%.
Pepsi also releases earnings this week and again the firm faces the twin challenges of a strong dollar and changing consumer tastes but Pepsi Co has diversified into healthier foods; owning the brands Quaker Oats and Tropicana fruit juices for example.
Peter Garnry, Saxo Bank's Head of Equity Strategy, explains why he's picking Pepsi and canning Coke.