KO has been expanding into the growing non-CSD market by speeding up internal development of new products and acquiring companies that produce non-CSD. KO’s efforts to bolster its non-CSD offerings should prove to be profitable, given increased consumer demand for healthier beverage options. Coca-Cola (KO) has responded with alternative beverages, like the mid-calorie soda. The Atlanta-based company has been on an acquisition tear to boost holdings in this segment of the market: in 2008 the company acquired a 40% ownership of Honest Tea, following buyouts of NutriJoy, Fuze, and Glacéau. Two things we’re excited about: sell thru data of Vitamin Water looks promising and the weak dollar is helping Coke offset some of the pressure it’s seeing in the states; growth coming from the international business is ripping at ~9% and the addition of high-margin non-carbonated soft drinks into Coke’s portfolio is reinvigorating growth in the flagging North American market.