[jjeaff]

But maybe they do for Odwalla, Smart water, Dasani, Minute Maid, Vitamin Water, Zico Coconut Water, Nestea, Poweraid... The list goes on.

They are wealthy and have unprecedented massive distribution. They can buy up any new upstarts before they even think about becoming a real competitor. And physical drink distribution is much, much more expensive to scale than something like an software competitor. It took Coca Cola 100 years to build their current network.

[paganel]

Originally Buffet was saying that he believes and invests in trusted brands, I was just saying that Coca-Cola the trusted brand is not regarded as highly as 15-20 years ago. And I’ve personally only heard about Nestea from your list of brands (I’m not an American) and as such I have a really bad opinion of the product behind said brand (I see it as sugary water masquerading as “tea”). Otherwise I agree, building a logistics holding company is hard, but Buffet said he invested in companies like Coca-Cola for their brand value not for their logistics know-how.

[hisnameismanuel]

Yes, you're right - one can dominate the cola industry, but if the cola industry itself goes away, one has serious problems.

To your other point, Buffett doesn't always have the time to elaborate on each answer, so perhaps you missed it in this context. In general, a supreme distribution network is something that he values highly. It's known as having a 'moat' and is one of his most cited investing principles.

[lotsofpulp]

Who would have serious problems if the cola industry goes away, except for the owners of the cola companies? It would be greatly beneficial to society, at least with a substantial decrease in healthcare costs.

[jjeaff]

Not even the cola companies would care. They would probably just sell more juice and bottled water. And the bottled water has much higher margins.

[hisnameismanuel]

Sorry - I think there's perhaps a disconnect in how I use English v others.

I was referring to the cola companies having problems.

[hopler]

European brands: www.ccep.com/pages/brands

And anyway Europe isn't the whole commercial universe.