Will Latest Scandal Harm Coca-Cola? - 7 December 2014

By: Stephanie Brown

Sexism allegations forced The Coca-Cola Co (NYSE:KO)’s milk brand Fairlife to ditch its ad campaign following an uproar on social media. The ad featured scantily dressed women wearing revealing dresses that did not go well with the audience. An outrage on social media seems to have forced the giant beverage company to discard the ad waiting to see its next move. Some Twitter Inc. (NYSE:TWTR) users had criticized Coca-Cola for demining women, with some questioning, which part of the advert rhymed with milk.

The criticized ads were created last year by London conceptual photography company Aurum Light Studio, claiming they wanted to approach the beverage market in a more fun and relaxed way. The ad campaign follows on the heels of Coca-Cola confirming that it will roll out lactate-free milk by the end of the month.

Fairlife has already confirmed that it did carry out two market tests in June in Denver and Minneapolis whereby it gathered enough information for a nationwide launch next year. The company plans to initiate new packaging and new advertising for the nationwide launch. Coca-Cola believes Fairlife has the potential to become popular and make it ‘rain money.’

Technical Analysis

Coca-Cola has been in a strong uptrend which commenced during the end of October near $38. The stock has experienced a fair amount of profit booking over the last few trading sessions, with it closing flat in Friday’s trading session at $43.53. It is currently trading below its 8-Day EMA of $43.88 has support near $42 and $40.5.

Actionable Insight

Sell The Coca-Cola Co (NYSE:KO) below $42.9 for target of $42.5, $42 with a stop-loss of $43.3.

coca cola 12714

Since graduating from Erasmus University Rotterdam, Stephanie has become a prominent authority in binary options trading, providing first hand market insights and actionable analysis, whilst developing highly profitable customized trading strategies for YesOption clients.