“Studies suggest that an average coffee drinker’s consumption of coffee increases with age, from age 10 through age 60. Even after age 60, coffee consumption remains high. The average cola drinker’s consumption of cola, however, declines with increasing age. Both of these trends have remained stable for the past 40 years. Given that the number of older adults will significantly increase as the population ages over the next 20 years, it follows that the demand for coffee will increase and the demand for cola will decrease during this period. We should, therefore, consider transferring our investments from Cola Loca to Early Bird Coffee."Essay:The argument claims that it will be a good strategy to transfer investments from Cola Loca to Early Bird Coffee. In order to support the conclusion, the author has cited a study and has further stated that over the next 20 years, the demand for coffee will increase and demand for cola will decrease. The conclusion of the argument relies on the assumption for which there is no clear evidence. Hence, the argument is unconvincing and has several flaws.
First, the argument has taken into consideration a study that states that with age the coffee consumption of the adult increases and cola consumption decreases. However, the argument has not given any further information related to this study. The argument has not at all given any information related to the methods used to conduct survey or the demographics of the survey. It is quite possible that these survey results are only true for one region and opposite of these results is applicable in some other region. If this is the case then with time the popularity of the coffee will increase in these other regions. So, in order to properly conclude the information, more data is needed.
Second, the argument has said that population will age over the next 20 years. However, the argument has not considered the fact that more and more children will also born. Also, it could be possible that the number of young adults will exceed the number of older adults within next 20 years. In such an instance, it would be a bad strategy to divert the investments from Cola Loca to Early Bird Coffee and hence, more research should be conducted to strengthen the argument.
Finally, the argument has made a fraudulent assumption that these two drinks will always remain popular among the adults. It is true that new products are consisently being launched on daily basis. Some other beverage might replace coffee in the future; whereas, the popularity of cola could remain the same . If such a thing were to happen, then transfering investments from Cola Loca to Early Bird Coffee will prove to be disaster.
In conclusion, the argument is flawed for above mentioned reasons and is thus unconvincing. Based on the given premises, it can't be concluded that transferring investments from Cola Loca to Earky Bird Coffee will be a good investment move. Without any further knowledge and data, the argument remains unsubstantiated and open for debate.