Daily Management Review

Coca Cola Loses $4bn In Market Value After Cristiano Ronaldo's Snub


Coca Cola Loses $4bn In Market Value After Cristiano Ronaldo's Snub
A gesture by the global soccer superstar and captain of the Portugal national football team Cristiano Ronaldo, at a pre-match press conference at the Euro 2020 on Monday resulted in a loss of $4 billion for the market value of the beverages giant Coca Cola.
Sitting beside Portugal manager Fernando Santos prior to a match with Hungary, Ronaldo visibly irritably set aside two bottles of Coke and instead while picking up a bottle of water said "Água!", which is the Portuguese word for water. According to analysts, the gesture appeared to be aimed at encouraging people to drink water rather than consuming aerated drinks. The video of the whole episode was shared widely on social media and went viral.
By the end of the press conference the stocks of Coca Cola dropped by 1.6 per cent $55.22 after having opened the day at about $56.17a share. As a consequence the market value of the company fell by $4 billion – from $242 billion prior to the press conference to $238 billion afterwards. The slide in the stocks of the soft drink manufacturer also continued on the next trading day.
The drop in the stock price of Coca Cola was far higher than the wider entire S&P 500 which rose by 0.4 per cent on the same day. So far this year, there has been a 13 per cent rise in the broad-based stock market index and in comparison there has only been a 0.6 per cent growth in the stocks of Coca Cola in the same period.
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.
"Everyone is entitled to their drink preferences" and has differing "tastes and needs", Coca Cola reportedly said in a statement. The company is an official sponsor of the UEFA Euro 2020 tournament and therefore its bottles were placed for marketing on the table.
"Players are offered water, alongside Coca-Cola and Coca-Cola Zero Sugar, on arrival at our press conference," said a Euro 2020 spokesperson about the incident.
There were previous occasions when disapproval of Coca-Cola and other unhealthy foods and beverages have been expressed publicly by Ronaldo. His fitness routine is said to involve eating six meals and taking five naps in a typical day and is known for as an avid fitness enthusiast.
Ronaldo has almost 300 million followers on the social media platform Instagram.
On Tuesday, he scored twice in Portugal's 3-0 win over Hungary setting a record at the European Championship finals with 11 goals.
(Source:www.ndtv.com & www.businessinsider.com)