Is KO (The Coca-Cola Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, KO is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. The Coca-Cola Company's core business activity was found to be non-compliant.

The Coca-Cola Company is the world's largest non-alcoholic beverage enterprise, owning iconic brands like Coca-Cola , Sprite, Fanta, and Dasani. Beyond sparkling soft drinks, its portfolio spans hydration, sports, coffee, and tea categories, including ownership of Costa Coffee and BodyArmor. The company operates a massive global distribution network, supplying concentrates and syrups to bottling partners worldwide. For Muslim investors using HalalStocks.co.uk, Coca-Cola currently presents a compliance issue, resulting in a 'Not Halal' status. Although the company comfortably passes the financial screens—with low interest-bearing debt and minimal interest income—it fails the Business Activity screen. This failure stems from the company's recent strategic pivot into the alcohol sector, including the launch of Topo Chico Hard Seltzer and ready-to-drink collaborations with spirits manufacturers like Brown-Forman (Jack Daniel's). Financially, the company is robust from a Shariah perspective, boasting a Debt-to-Market Cap ratio of 13.2%, well below the 3 3% threshold. Similarly, its cash holdings and interest income are well within permissible limits, indicating that the capital structure itself is not the problem. However, the strict prohibition against producing or selling intoxicants overrides these positive financial metrics in standard Shariah screening methodologies. Investors should monitor this stock closely, as the classification depends heavily on how strict the screening methodology is regarding 'mixed' business lines. While the vast majority of revenue comes from halal soft drinks, the intentional expansion into alcohol makes it impermissible under strict AAOIFI standards until they potentially divest from these specific product lines. The Coca-Cola Company operates in the Consumer Defensive sector under the Beverages - Non-Alcoholic industry and is headquartered in Atlanta, GA, US. The company is led by CEO James Robert Quincey and employs approximately 69,700 people.

KO was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. KO passed 3 of these 4 screens.

KO was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.