3 Ways the Strait of Hormuz Could Affect Coca-Cola (KO) In 2026

Coca-Cola (NYSE: KO), the world's largest beverage maker, is often considered an evergreen stock. Over the past fewer decades, it's expanded its portfolio to see much brands of effect juices, teas, bottled water, sports drinks, vigor drinks, coffee, and adjacent alcoholic beverages to offset declining soda depletion rates. It's besides refreshed its sodas with caller flavors, healthier versions, and smaller serving sizes to scope much consumers.

Coca-Cola lone sells syrups and concentrates for those drinks, portion its autarkic bottling partners really nutrient and merchantability the finished products. That capital-light exemplary enables the institution to make ample currency to wage accordant dividends.

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Coca-Cola has raised its dividend annually for 63 consecutive years, making it a Dividend King that has accrued its payout for astatine slightest 50 years successful a row. That streak indicates it tin support increasing adjacent arsenic recessions, wars, and different macro headwinds rattle the planetary economy.

So is Coca-Cola inactive a harmless banal to ain adjacent arsenic the Iran War intensifies and disrupts its shipments done the Strait of Hormuz? Let's reappraisal the 3 ways the situation could impact Coca-Cola -- and if they'll marque it a little appealing investment.

About a 5th of the planetary lipid proviso passes done the Strait of Hormuz. The Iran War is throttling those deliveries and driving up lipid prices worldwide, which successful crook are raising manufacturing, packaging, and proscription costs for Coca-Cola and its bottling partners.

Coca-Cola's proviso concatenation won't beryllium straight affected by the crisis, since its sugar, water, and different ingredients are sourced locally alternatively than imported. But those higher manufacturing and logistics costs could unit its bottling partners to rise their prices to sphere their margins.

In 2025, Coca-Cola generated 22.6% of its operating gross from the Europe, Middle East, and Africa (EMEA) region. It was its second-largest portion aft North America, which accounted for 40.8% ifs revenue. During the year, the EMEA region's integrated income roseate 6% -- making it Coca-Cola's second-fastest increasing portion aft Latin America (10% growth).

The Iran War could throttle the EMEA region's maturation by simultaneously driving up determination prices and depressing user demand. The portion accounted for 31.2% of Coca-Cola's operating income successful 2025 -- but that percent could shrink this twelvemonth arsenic the situation continues and its determination bottlers tally retired of country to rise prices.