Coca-Cola's feat of continuously increasing dividend payments for 60 years has been one of the most popular stories among U.S. stock investors, and its strong profit margins and large cash flow have made investors including Warren Buffett favor it, and Coca-Cola has been one of Buffett's top five holdings for many years.

However, the company, known as the "evergreen" of the beverage industry, has suffered a rare setback this year.
Coca-Cola shares fell 2.03 percent to $49.75 as of Friday's close, a low for the year. The stock has fallen 18.2% this year, its worst performance since 2008.
Part of the recent decline in the company's share price is the heavy bearish sentiment in the U.S. stock market. The stock market had suffered several days of losses on concerns that the Federal Reserve could raise interest rates again this year.
On the other hand, Walmart recently reported that weight-loss drugs such as Wekovy and Ozempic had a material impact on food demand, and the food and beverage industry, especially products with higher calories, was particularly hard hit.
headwind
Soft drinks, an important part of grocery spending, have seen a marked decline in demand this year. Many consumers have cut back on consumer staples to save money. The popularity of diet pills has made soft drinks even worse.
Not only Coca-Cola, Pepsi, Monster Beverage and other soft drinks companies have also seen similar declines this week. On Friday, PepsiCo closed down 2.74 percent and Monster Beverage closed down 0.24 percent.
More broadly, the Consumer Staples Select Sector SPDR fund, which was a popular bet for investors last year, is down just 3.3%, significantly outperforming funds tracking the S&P 500 (-19%). So far this year, however, the consumer staples fund is down more than 8%, while the broader market fund is up 12.7%.
The slowdown in the US economy coupled with slower retail inflation has left food companies such as Coca-Cola without pricing power, which is also reflected in sales volumes.
In Q2 results, Coca-Cola achieved a net profit of $2.547 billion, which was significantly lower than the market expectation of $3.22 billion. Its revenues, while still growing strongly, were almost entirely helped by higher prices, and its volumes were almost flat quarter-on-quarter.
Coca-Cola CEO James Quincey also acknowledged on the earnings call that there is an industry-wide recognition that U.S. consumers are more cost-conscious, are looking for better value and are stocking up on discounted items. In some categories, he said, he is already seeing a shift to cheaper private label brands.
Still, analysts agree on Coke's value as a long-term return, especially given the stock's discounted valuation. At present, investors can hold Coca-Cola for 5.4 times annual sales, which is the lowest price since the pandemic.
On the other hand, Coke's position looks safer than Pepsi's 5% decline, which continues to prove Coke's unshakable position in the beverage industry, even in the face of headwinds.