- The soccer superstar Cristiano Ronaldo’s gesture at a Euro 2020 press conference on Monday wiped $4 billion off Coca-Cola’s market value.
- The soccer star pushed aside two bottles of Coke, then picked up a bottle of water and said, “Água!” – the Portuguese word for water at the press conference.
- Coca-Cola’s market value dropped by $4 billion, to $238 billion from $242 billion after the press conference.
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 Coca-Cola’s 0.6% rise in 2021.
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…”
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