Coke adding coffee drink to its carbonated lineup
Atlanta – The Coca-Cola Co. said Wednesday it would add a new coffee-infused Coke drink to its portfolio next year.
Coca-Cola Blak will be launched in January in France. Other countries, including the United States, are also expected to offer the new drink next year. The lightly carbonated, mid-calorie beverage is designed to appeal to adult consumers. The drink includes real coffee and has a coffee-like froth when poured, Coke said.
Chief executive Neville Isdell also announced Wednesday that he has made progress over the last year improving employee morale, which has helped boost sales and profits.
During an investor conference in New York, the Atlanta-based company said its long-term goal is to increase operating income 6 percent to 8 percent annually and Isdell said his goal to get employees to work better together is working.
“This is an absolutely crucial piece in moving a big ship like the Coca-Cola Co. around,” Isdell said.
A year ago, Isdell said Coke was having problems with morale and execution amid the rapid exodus of several top executives.
DENVER
$92 million raised for Frontier’s expansion
Frontier Airlines said Wednesday that it has sold $92 million worth of convertible debt to help pay for aircraft and expanded operations.
The total includes $12 million of debentures sold to the underwriters under an option included in the offering, the Denver-based company said.
Frontier said the debt will be convertible into common stock at a price yet to be determined and will be due in 2025. It plans to use the net proceeds, estimated at $88.7 million, for operations and capital expenditures such as those related to the purchase and financing of aircraft.
STEAMBOAT SPRINGS
Auction set to sell resort units, condos
Grand Summit Resort Properties Inc., a subsidiary of Park City, Utah-based American Skiing Co., announced Wednesday that it will hold an auction on March 18 to sell the remaining developer inventory left at the Steamboat Grand Resort Hotel & Condominiums.
More than 200 fractional units and 30 wholly owned condominiums will be put up for sale. Keenan Auction Co. will facilitate the auction. Opened in 2000, the Steamboat Grand is Steamboat’s only AAA Four Diamond resort.
DENVER
Restaurants expect sales boost next year
Restaurant sales in Colorado are expected to grow 6.8 percent in 2006, according to a forecast issued Wednesday by the Colorado Restaurant Association. Nationally, restaurant sales are expected to increase 5.4 percent.
Total restaurant sales in the state are expected to reach $7.56 billion in 2006, up from an anticipated $7.08 billion this year.
BOULDER
Horizon will assist grazing, farm growth
Horizon Organic, the first nationally distributed certified organic milk company, announced Wednesday a $13 million land stewardship initiative.
The multitiered program will fund grazing and agricultural land expansion with environmental integrity for its two original farms and its growing national network of family farmers.
DENVER
Samsonite reports $6.8 million loss
Samsonite Corp. reported a net loss Wednesday of $6.8 million, or 3 cents per share, for the third quarter that ended Oct. 31. That compared with a profit of $2.7 million, 1 cent, for the comparable period of 2004. Net sales in the quarter were $248.7 million, up from $234.1 million last year.
DETROIT
UAW suggests strike of Delphi possible
A key United Auto Workers negotiator has told local union leaders that a strike against auto supplier Delphi Corp. “appears more likely than not,” a UAW spokesman said Wednesday.
Delphi has been operating under bankruptcy protection and is seeking steep wage cuts from its hourly workers. UAW spokesman Paul Krell said the union’s vice president, Richard Shoemaker, discussed the possibility of a strike with around 250 union leaders Tuesday at a closed- door meeting in Detroit.
NEW YORK
PepsiCo market value may pass Coca-Cola’s
PepsiCo Inc., the world’s second-largest soft-drink maker, may surpass Coca-Cola Co. in market value for the first time after beating its competitor in sales growth and diversifying beyond soda.
PepsiCo’s stock has climbed 14 percent this year through Tuesday, pushing its value to $99.1 billion. Coca-Cola shares have risen 2.2 percent, and it’s now worth $101.2 billion.
NEW YORK
Newspapers predict modest growth in ’06
Newspaper publishers predicted modest growth for next year at a pair of investor conferences Wednesday, as rising costs and a volatile advertising environment continue to cloud their prospects.
However, companies such as Gannett Co. and Belo Corp. that also own television stations said they expected to see benefits from the Winter Olympics and the elections next fall.
WASHINGTON
Borrowing plunges
as car loans drop
Consumer borrowing plunged at a record annual rate of $7.2 billion in October, reflecting a big drop in auto loans.
The Federal Reserve reported Wednesday that the decline was the biggest amount ever in dollar terms, and included a record drop of $5.6 billion in the category that includes car loans.
NEW YORK
Yahoo Messenger to include phone service
Yahoo Inc. is entering a suddenly crowded field, offering Skype-like capabilities through its instant-messaging service that will let people dial regular phone numbers using their computers or receive calls from conventional phones.
The company has not set a firm date for the availability of the new paid features to the mostly free Yahoo Messenger service but indicated the launch was imminent.
MOSCOW
German bank to gain stake in Russian firm
The banking arm of Russian natural-gas monopoly Gazprom said Wednesday that Germany’s Dresdner Bank AG will acquire 33 percent of its stock in a deal worth no less than $803 million ahead of a planned initial public offering in 2006.
Gazprombank said its board would ask shareholders to approve the issue of an additional 6.67 million shares.
