Stable Outlook for Global Beverage Industry

Research Recap submits: Most beverage companies will be able to sustain current cash-flow levels by continuing to cut costs and by increasing retail prices over the next year, despite the economic downturn, says Moody’s Investors Service . Constraining the industry’s outlook is commodity-price inflation which Moody’s expects will remain above historical levels and hurt profitability. “However, packaged beverages are affordable to most people around the world, making the business relatively resistant to economic slowdowns. Companies that sell brand-name beverages and that have operations in fast-growing emerging markets will have the strongest pricing power.” Complete Story »