Coca-Cola may be looking to add Cadbury-Schweppes’s Snapple business to its non-carbonated beverage line. Matthew Reilly, beverage analyst at Morningstar, joined “Closing Bell” to discuss the advantages to Coca-Cola -- and the drawbacks for Cadbury -- if the sale were to take place.
“Coke’s always had a disadvantaged position in iced tea,” said Reilly. “It’s been a very dynamically growing category in the U.S. and they really missed out on a lot of market share growth.”
The overall beverage business in the U.S. is growing at about 2.5% while carbonated soft drinks are declining. Reilly said that in order for Coca-Cola to prevent losing market share, it should have a strong iced-tea brand.