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As you surely know, a couple of days ago Coca-Cola received a setback from soccer player Cristiano Ronaldo, who despised the drink in front of several journalists during a press conference. Immediately afterward, the soda company had a $ 4 billion drop in market value., so they all came to the conclusion: “This was Ronaldo’s fault.”
But is this really true? The reality is that the company already had problems before.
Cristiano Ronaldo simply moving Coca Cola out of the way and saying “drink water” caused Coca Cola to lose $4 billion in value today… pic.twitter.com/pOsOsXiXGy
– Jomboy Media (@JomboyMedia) June 15, 2021
The rejection of Coca-Cola
First, it must be said that Coca-Cola had performed well in recent months, since the company was resuming its profits thanks to the reopening of the businesss in the countries with the highest consumption.
However, with Ronaldo’s share, the shares fell 1.6% in its US operations, although it recovered some ground ending the day with a value of $ 55.41 per share.
When Ronaldo hid the Coca-Cola bottles and held up a bottle of water, suggesting that this is a better drink, the company’s shares fell in a matter of minutes from $ 56.10 to $ 55.20, which caused him to lose the aforementioned amount of $ 4 billion, as reported in Finder.
Faced with this fact, Coca-Cola was forced to issue a response, saying that everyone has the right to prefer the drink they want and that everyone has different tastes.
While there is no question that Ronaldo’s disapproval hampers the soda company’s efforts to recover, the truth is that the company has been losing market share globally in the non-alcoholic ready-to-drink beverage industry since the inception of the COVID-19 pandemic.
That had started to change as key markets in the US and Europe began to reopen after the vaccines were launched and allowed restaurants and movie theaters, which have the highest consumption of soft drinks, to resume operations. .
That had also been reflected in the company’s share price, which, until now, have risen almost 15% since the beginning of February.
Therefore, although Ronaldo was not the only culprit for the fall that Coca-Cola has suffered in recent times, since the pandemic has been the main reason for this, the athlete’s action represents another obstacle that the company has to overcome.
–You may also be interested: Coca-Cola will be giving FREE soft drinks and you just have to register on their website
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.