SOURCE: Rothman Research

Rothman Research

March 22, 2010 09:06 ET

Consumer Goods -- Though Concerns Remain, Pockets of Growth Shouldn't Be Ignored

JOHANNESBURG, SOUTH AFRICA--(Marketwire - March 22, 2010) -   - - Consumer-related businesses have been one of the worst hit in the recession and notably so given the unprecedented adverse effects of the recession on consumer spending and employment. Though various economic variables have shown considerable signs of improvement post-recession, unemployment continues to be at elevated levels, thereby leaving the consumer-related sectors with a sword over their head. However, consumer non-discretionary segment is an anti-recession play given their counter cyclicality nature of business which stems out from a relatively inelastic demand curve they face. On the cost side, deflationary pressures on agri-commodities also pan out in favor of the companies operating in the sector.

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"Overall, though consumer goods are still not out of the woods, non-discretionary segment offers a sound downside protection. Moreover, robust consumer activity across emerging economies is one of the strong levers of growth that the sector holds at this point in time. So, it will be interesting to see how companies like The Coca-Cola Company (NYSE: KO) and Dr Pepper Snapple Group Inc. (NYSE: DPS) are thriving," stated Mathew Collier, senior analyst at Direct & free downloadable reports of the intensive research are available by signing up now at or

KO's sturdy top line and bottom line performance strengthen the balance sheet and financial position of the company. It gained volume and value share globally in nonalcoholic ready-to-drink beverages for the tenth consecutive quarter with share gains across most key categories. From several years company made volumes and value in leaps and bounds in the total beverages and the sparkling still beverage categories.

Brand Coca-Cola unit case volume inclining a solid 4 percent in the quarter, with strong growth across global markets, including 22 percent in India, 13 percent in China, 12 percent in France, 5 percent in Mexico and 4 percent in Germany. Total still beverage unit case volume increased 9 percent in the quarter, led by growth across the portfolio, including juices and fruit stills, teas and water brands.

The Eurasia and Africa units of the company's have witnessed inclination in volumes by 5 percent in the quarter, with 7 percent growth in the previous quarter. Coca-Cola is one of the stable large cap food companies available on the bourses for investors to cash in. Register now at to view the full report on this company.

Dr Pepper Snapple Group Inc., Even though company's year-over-year results continue to be hampered by the slow economy and decline in the demand for the Sunkist sodas, among other things, but remain encouraged by the growth in its sales pipeline, new product roadmap, and it's recent wins in the business-to-business beverage market.

Dr Pepper witnessed a 2% growth in its volumes. In the beverage segment Squirt declined by single-numbers with a reduction in 3rd party stock of bottling. Crush in the beverage segment gained by adding 48 million in 2009. By geography, U.S. and Canada volume increased 4% and in Mexico and the Caribbean, volume increased 3%.

The Company has planned to invest in the brands, infrastructure and people to get the full caliber out of this business.

Given the company's brand value and global presence, it remains one of the highly competitive and stable growth stories in the consumer goods space. Sign up today at to access the full report on this company.

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