It’s common knowledge that many large companies suffered when the global pandemic hit. Stock prices plummeted around the board as national lockdowns closed businesses around the world. While many larger companies have been able to adapt over the last year and their market prices have more or less rallied to pre-pandemic levels, one notable exception stands out. 

Shares in Coca-Cola’s European bottling company Coca-Cola HBC (CCH.L) still remain 15% lower than they were last year. Given they are extensively a non-alcoholic beverage producer, there were inherent limits on how much they could adapt. National lockdowns brought the mass closure of the restaurant and bar industries, which constitute a major section of Coke’s customer base. While they have still been able to make sales to general retailers, the loss of sales to the restaurant industry has clearly hurt them.

However, being part of the biggest drink company in the world means CCH.L will almost certainly recover. It is not a question of if? But when? With vaccine rollouts underway across the UK and Europe, the time when restaurants and bars can reopen is on the horizon, and with them, Coca-Cola sales will see a resurgence.

Broker Consensus (05/02/21)

Analysts who cover this security

BofA Global Research – Stephanie D’Ath
Deutsche Bank – Chris Collett
Jefferies – Edward Mundy, ACA
Credit Suisse North America – Sanjeet Aujla
Citi – Andrea Pistacchi
Investec Bank (UK) Plc – Alicia Forry, CFA
Goldman Sachs Research – Richard Felton
UBS Equities – Nik Oliver
Alpha Finance SA – Nikos Katsenos
Eurobank Equities SA – Natalia Svyrou-Svyriadi
Societe Generale – Jonathan Leinster
JPMorgan – Fintan Ryan
Wood & Company – Jakub Mician
Barclays – Ewan Mitchell
VTB Capital – Nikolay Kovalev
Piraeus Securities – George Doukas
EVERCORE ISI – Robert Ottenstein