Home » alcohol sin stocks » Is Coca-Cola ($KO) The Next Sin Stock?!?

At Sin Stocks Report, we try to focus on sin stocks that are traditionally considered “sinful”…

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… and we’ve briefly flirted with the idea that Coca-Cola, along with other sugary soft drinks, could be considered sin stocks if the obesity epidemic becomes a bigger political play. (Maybe a prohibition on sugar?)

But recent news coming out of Coca-Cola ($KO) itself suggests that Coca-Cola might be becoming a sin stock even if politicians never get around to outlawing sugar!

In an article published on Coca-Cola’s website on February 22, Coca-Cola is looking at joining the ranks of alcohol sin stocks by experimenting with the creation of an alcoholic beverage in the Japanese market.

The drink itself is a well-known drink in Japan, called “shochu“—it’s a distilled drink that combines sparkling water and flavoring. Coca-Cola is playing it fairly safe by creating their version of this well-known drink (although what the flavor will be is still unknown at the time of this writing).

This makes sense for Coca-Cola for a lot of reasons:

  • As a recognized global leader in beverages, Coca-Cola has a massive market share and needs to find ways to get more in order to make investors happy.
  • Japan is a hotbed of innovation and Coca-Cola has a research group in that country that churns out test products.
  • Even though Coca-Cola has traditionally stuck with non-alcoholic beverages, it’s not a huge stretch to move into alcoholic ones, since the rest of the infrastructure and sales funnels are already in place.

That said, don’t expect to be able to go to your own favorite pub next year to buy a boozified Coke. It seems like the plan is to keep it mainly in Japan for now, due to Japan’s thirst for new and exciting experimental products.

(However, if this REALLY takes off, I think we may see Coca-Cola adding additional country-specific alcoholic beverages to their brands, or even getting into the acquisition game by purchasing drinks that they think fit their market plan. Until that happens, we won’t add them to our big list of sin stocks just yet… but watch for more news as this story develops.)

For more information on this, check out CNN’s coverage of the story.


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