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A gesture by Cristiano Ronaldo costs Coca-Cola almost 4,000 million dollars of value on the stock market

2021-06-18T10:24:11.094Z

The footballer set aside some bottles of the popular drink during a press conference and asked for more water. The firm's price fell more than 1%



Cristiano Ronaldo, this Monday in Budapest during the press conference prior to Portugal's first match in the Eurocup.HANDOUT / AFP

There are things that take years to achieve, even decades.

For example, a good brand image.

However, there are unforeseen events that in a matter of seconds can damage the work done.

Something like this happened this Monday to Coca-Cola, one of the main sponsors of the European Football Championship that takes place these weeks.

Barely 20 seconds, those that elapsed between the entry of Cristiano Ronaldo to the press room and his gesture, which have cost him 3,967 million dollars (3,272 million euros) of market capitalization to the firm.

More information

  • The Iberian Peninsula drags Coca-Cola Europe: its sales fall by 20% in the first quarter

  • Coca-Cola and the unions agree an ERE for 360 people in Spain

The scene was as follows: the footballer sits down, looking askance at the two bottles. He approaches the table, leans back in his chair as if gathering momentum, and then makes up his mind. He takes the two sodas with some disdain and removes them from the foreground. Next he shows a bottle of water (without a label, that is, without a brand) and finishes off: "Water, not Coca-Cola ...". What might seem anecdotal has had a notable economic impact.

The scene occurred on Monday afternoon, shortly after the opening of the session on Wall Street, where the company is listed. And the impact on the value of the securities was instantaneous. In a matter of minutes, it went from a value similar to that of Friday's closing ($ 56.16 per share) to a value of $ 55.24, a decrease of 1.6%. At the end of the day, the firm raised the flight somewhat and closed the day with a value of $ 55.55. Although this Tuesday it has returned to a downward trend and two hours after the close it was trading at $ 55.35. Thus, it goes from having a market value of 242,144 million dollars on Friday to 238,651 million.

This event occurred in one of the official press conferences of the Eurocup, with two bottles of the drink presiding over the table - it is one of the advantages of being a

sponsor

of the tournament. There are those who could rub their hands with the image: the Portuguese player next to the brand's star product. Although the dream has turned into a nightmare that has cost the company almost 4,000 million dollars and incalculable reputational damage. Coca-Cola, at least for the moment, has not made any statement in this regard and refers any question to Uefa.

In the case of Cristiano Ronaldo, it rains when it is wet, since it is not the first time that the Portuguese player has made a public comment against drinking. He already made a similar one in an interview when he spoke of the healthy and healthy diet that children should eat, without consuming sugary or high-fat products. “I am tough on my son. Sometimes he drinks Coca-Cola and Fanta, and eats French fries. He knows I don't like it, "he said then. However, this time the blow for the company has been more than notorious. And what was an investment in advertising during the tournament has turned against him.

Source: elparis

All business articles on 2021-06-18

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