CCHBF - Coca-Cola is poised for strong sales in Europe based on reports from key bottlers

Evercore ISI is constructive on Coca-Cola (KO -0.5%) after talking in depth with bottlers Coca-Cola Europacific Partners PLC (CCEP -3.5%) and Coca-Cola HBC AG (CCH). Of note, CCEP reported on a strong recovery across all markets in Q2 and CCH pointed to a better package and price mix in key markets. Analyst Robert Ottenstein says the KO system momentum in Europe looks strong, with broad-based share gains, and volume and revenue/UC recovery as on-premise recovers. "While surging raw material costs will be headwind in 2H21 and into 2022 as hedges rolloff, CCEP and CCH both have pricing, productivity, and cost levers to mitigate the impact. We view CCH as an attractive holding and a good way to play on-premise recovery and KO’s initiatives in coffee and hard seltzers, as well as growth of Monster. We prefer CCEP, however, due to upside from the Amatil transaction, and KO given its better

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Coca-Cola is poised for strong sales in Europe based on reports from key bottlers