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Amid a strong vaccination drive, which is facilitating increasing foot traffic at restaurants and tourist places, the demand for fresh and healthy beverages is very high this summer. This, along with rising consumer spending, is driving the sales of non-alcoholic beverage companies. These companies’ efforts to develop healthy consumables, to keep pace with the changing consumer tastes, are also driving their growth. The non-alcoholic beverages market is expected to grow at an 8.2% CAGR to $1.73 trillion by 2028. And due to the very high barriers to entry in the beverage industry, both KO and SBUX should benefit from the industry tailwinds based on their widespread distribution networks.
While KO gained 5.4% over the past month, SBUX has surged 11.5%. SBUX is a clear winner with 64.8% gains versus KO’s 18.1% in terms of the past year’s performance. But, which of these stocks is a better pick now? Let’s find out.
