SOURCE: Paragon Financial Limited

Paragon Financial Limited

June 05, 2012 08:20 ET

Coca-Cola and PepsiCo Face New Headwinds as New York Bans Sale of Oversized Sodas and Sugary Drinks

The Paragon Report Provides Stock Research on Coca-Cola and PepsiCo

NEW YORK, NY--(Marketwire - Jun 5, 2012) - Shares of restaurant and beverage companies fell across the board Friday as jobs slowdown in the U.S. added to global fears. Numbers showed that the U.S. added only 69,000 jobs in May and the unemployment rate rose for the first time since last summer from 8.1 percent to 8.2 percent. Restaurant and beverage companies will soon face a new hurdle in New York as Mayor Michael Bloomberg is proposing a ban on the sale of large sodas and other high sugar drinks. The Paragon Report examines investing opportunities in Beverages Industry and provides equity research on The Coca-Cola Company (NYSE: KO) and PepsiCo, Inc. (NYSE: PEP).

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In an attempt to fight back against the U.S. obesity problem the Mayor Bloomberg has proposed a ban on the sale of oversized sugary drinks in the city's restaurants, delis, and movie theatres. The ban would implement a 16-ounce limit on drink that contains in excess of 25 calories per 8 ounces. If other cities begin to follow suit the ban could become hazardous for the fast-food industry as soft drinks carry high margins.

"The people of New York City are much smarter than the New York City Health Department believes," Coca-Cola said in a statement. "New Yorkers expect and deserve better than this. They can make their own choices about the beverages they purchase. We hope New Yorkers loudly voice their disapproval about this arbitrary mandate."

Paragon Report releases regular market updates on the Beverages Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

The Coca-Cola Company is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy their beverages at a rate of 1.8 billion servings a day. The Coca-Cola Company will release second quarter and year-to-date 2012 financial results on Tuesday, July 17, 2012, before the stock market opens.

PepsiCo is a world leader in convenient snacks, foods and beverages. For the first quarter of 2012 the company reported net revenue growth of 4 percent and constant currency net revenue growth of 5 percent. Reported EPS was $0.71 and core EPS was $0.69, in line with management's expectations.

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