To me, their outlook looks very good, but to hedge or not to hedge is the question. I think the uncertainty about what the euro will do probably has some people worries about the revenue potential.
Coke will just continue doing what they are doing but they are just not as happy.
Coke will be planning to do what it had planned to do before all the Quaker action started.
But Dr Pepper is an important brand for CCE. Dr Pepper is the largest of the non-colas. It has a tremendous degree of brand loyalty.
It's a perfect fit because Pepsi has a hole in its product line. In the noncarbonated segment, Pepsi is pretty well set in fruit drinks and water and many other things, but they don't have a sports drink that counts.
This means that Vanilla Coke has been doing badly and it is not working and not having the visibility that there is a decent chance that it will work longer term.
This puts Pepsi in a class by themselves and that's why Coke is not happy.
Daft is truly a long-term Coke employee with a stellar track record. There is a good relationship and high regard there with the board, otherwise he wouldn't have become chairman.
