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URL:  https://boards.fool.com/there-are-financial-interactions-between-the-11136988.aspx

Subject:  Re: A KO w/o CCE? Date:  8/10/1999  2:35 PM
Author:  mclaus Number:  12916 of 36626

...there are financial interactions between the "head" and the "body" of the Coke business model to consider. Are these really (2) separate companies, or did Ivestor palm off non performing assets to the public? Can these assets remain "unlinked" or are we beginning to see serious disruptures in the relationship?

Will CCE force KO to lower product costs? Will governments demand more of a hands off relationship between these (2) generating KO price power erosion?



These are all really great questions. It's interesting that PEP has recently done exacly the same thing with it's bottling Co's - presumably because they viewed KO's business model as better and could not find a better way to compete with it. If KO's bottlers start to puch back hard on KO, it won't be long before the same happens to PEP.

- mclaus
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