Cola pesticide storm proves damp squib for investors
Investors have remained unruffled by the pesticide storm brewing in cola bottles, as the share prices of the two global giants -- Coca-Cola and PepsiCo -- in the US stock markets remained largely unscathed.
By PTI |
NEW DELHI Investors have remained unruffled by the pesticide storm brewing in cola bottles, as the share prices of the two global giants -- Coca-Cola and PepsiCo -- in the US stock markets remained largely unscathed, notwithstanding all the allegations and bans here in India.
Shares of Coca-Cola and PepsiCo, the world's two largest soft drink makers, have been trading in a narrow range on the New York Stock Exchange since August 2, the day "pesticide-in-cola" report was released by NGO Centre for Science and Environment.
While PepsiCo's share price gained 0.25 per cent over the past eight trading sessions, that of Coca-Cola dropped 1.24 per cent in the same period. PepsiCo's shares price moved higher on five days out of the total eight trading sessions.
While reports have been continuously flowing in about a drastic fall in the India sales on the back of bans in select parts of the country and a public outcry over health-related issues, the data suggests only a marginal deviation from the northward trend in their share prices.
However, Pepsi India Chairman Rajeev Bakshee, while talking to PTI, categorically denied any fall in the company's cold drink sales due to the pesticide controversy.
PepsiCo's share closed at 63.33 dollars on the NYSE last week, as against 63.17 dollars before the pesticide report from Delhi-based Centre for Science and Environment was published, while that of Coca-Cola closed at 43.76 dollars on Friday compared to 44.31 dollars on August 1.
On August 2, the first day after the CSE report was published, share price of Coca-Cola had closed unchanged at 44.31 dollars, while that of PepsiCo closed with a marginal gain.
A similar trend has been witnessed in the trading volumes of the two stocks since August 2, which have been remained mostly range-bound without any major fall except on Friday. The volumes dropped on August 11 from their daily average over the past one week in line with the fall in overall market volumes.
While some of the state governments in India have banned the sale at educational institutions and hospitals, Kerala has announced a blanket ban on both the production and distribution of the cola drinks in the state.
However, popular restaurant chains like McDonalds, Pizza Hut are continuing to serve the cold drinks to their customers across various parts of the country.
Shares of Coca-Cola and PepsiCo, the world's two largest soft drink makers, have been trading in a narrow range on the New York Stock Exchange since August 2, the day "pesticide-in-cola" report was released by NGO Centre for Science and Environment.
While PepsiCo's share price gained 0.25 per cent over the past eight trading sessions, that of Coca-Cola dropped 1.24 per cent in the same period. PepsiCo's shares price moved higher on five days out of the total eight trading sessions.
While reports have been continuously flowing in about a drastic fall in the India sales on the back of bans in select parts of the country and a public outcry over health-related issues, the data suggests only a marginal deviation from the northward trend in their share prices.
However, Pepsi India Chairman Rajeev Bakshee, while talking to PTI, categorically denied any fall in the company's cold drink sales due to the pesticide controversy.
PepsiCo's share closed at 63.33 dollars on the NYSE last week, as against 63.17 dollars before the pesticide report from Delhi-based Centre for Science and Environment was published, while that of Coca-Cola closed at 43.76 dollars on Friday compared to 44.31 dollars on August 1.
ADVERTISEMENT
On August 2, the first day after the CSE report was published, share price of Coca-Cola had closed unchanged at 44.31 dollars, while that of PepsiCo closed with a marginal gain.
A similar trend has been witnessed in the trading volumes of the two stocks since August 2, which have been remained mostly range-bound without any major fall except on Friday. The volumes dropped on August 11 from their daily average over the past one week in line with the fall in overall market volumes.
While some of the state governments in India have banned the sale at educational institutions and hospitals, Kerala has announced a blanket ban on both the production and distribution of the cola drinks in the state.
However, popular restaurant chains like McDonalds, Pizza Hut are continuing to serve the cold drinks to their customers across various parts of the country.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
