Coca-Cola lost $4 billion in market value after soccer star Cristiano Ronaldo suggested people drink water instead
- Coca-Cola's market value dropped by $4 billion on Monday after Cristiano
Ronaldosnubbed its drinks.
- The Portugal captain shifted two bottles of Coke away from him at a
Euro 2020press conference.
- He held up a bottle of water and appeared to indicate he preferred it to the soft drink.
Ronaldo, sat beside Portugal manager Fernando Santos ahead of his team's match against Hungary, irritably set aside two bottles of Coke, then picked up a bottle of water and said, "Água!" - the Portuguese word for water.
Coca-Cola's shares, which had opened at about $56.17, had fallen by 1.6%, to $55.22, by the end of the press conference. Its market value dropped by $4 billion, to $238 billion from $242 billion. The soft-drink manufacturer's shares continued to slide on Tuesday, falling by 0.3%.
The company's decline in market value was an outlier compared to the entire S&P 500, which rose 0.4% on Monday. The broad-based stock market index is up 13% so far this year, compared to
Shares in one of the largest bottlers of the drink, Coca-Cola Bottling, fell by 4% on Monday. It's down by 8% in the past week.
"The coincidental drop in Coca-Cola's stock could very well be a spurious correlation to the comment made by Cristiano Ronaldo," Nicholas Johnson, equity analyst at Morningstar, said in a note to Insider. "Celebrities do play a role in the positioning of brands in consumers' minds, but the extent of this is much more limited for an iconic brand like Coca-Cola."
All carbonated soft drink brands are facing some form of "secular pressure" from greater awareness around health and wellness, according to Johnson. But he thinks even the most loyal Ronaldo fan won't stop drinking the beverage because of the incident.
"It's also worth noting the breadth of Coca-Cola's portfolio, which spans healthier options, like zero sugar, all the way to water brands like Dasani and SmartWater," he said.
Coca-Cola, an official sponsor of the UEFA Euro 2020 tournament, reportedly said in a statement that "everyone is entitled to their drink preferences" and has differing "tastes and needs."
A Euro 2020 spokesperson said: "Players are offered water, alongside Coca-Cola and Coca-Cola Zero Sugar, on arrival at our press conference."
Ronaldo has previously expressed disapproval of Coca-Cola and other unhealthy foods and beverages. His fitness routine is said to involve eating six meals and taking five naps in a typical day.
He has said he gets irritated with his son Cristiano Jr., who likes to drink the soda.
Read more: Growth-fund manager Gerry Sparrow has beaten 96% of his peers over the past 5 years. He shares 6 stocks he thinks have undeservingly suffered from the rotation out of growth this year - and says they have an average upside of 50%.
- MindTickle is the third SaaS firm from India to enter the unicorn club in 2021
- Indian Penal Code and other laws have provision to protect investors against cryptocurrency fraud, according to Indian Finance Ministry official
- Mozilla slams Facebook for terminating the accounts of NYU researchers, says the claims 'simply do not hold water'
- Bitcoin does not make payments anonymous — just really hard to trace
- While most Indian organizations use a blend of first party & third party data for marketing, most marketers are building first party data: MMA EY survey