Coca-Cola saw stronger U.S. demand in the fourth quarter despite higher prices.
Global unit case volumes grew one per cent for the October-December period, led by the U.S., Japan and Brazil, the Atlanta beverage giant said Tuesday. Unit case volumes also rose by one per cent in North America, reversing several quarters of flat or declining sales.
Coke said it hiked prices four per cent in North America and one per cent globally during the quarter. Coca-Cola Zero Sugar was a strong performer, with sales up 13 per cent for the October-December period. Water, sports drinks, coffee and tea also saw stronger demand, while juices and dairy products faltered.
The company said last fall that it’s seeing a divergence among consumers in North America and Europe, with higher-income buyers opting for its more expensive brands like Smartwater, Topo Chico and Fairlife while middle- and lower-income consumers are under more pressure.
Last month, the company introduced 7.5-ounce mini cans for the first time at North American convenience stores to help make its soft drinks more affordable.
Revenue rose two per cent to $11.8 billion in the October-December period, falling short of Wall Street’s expectations. Analysts polled by FactSet expected quarterly revenue of $12.05 billion.
Net income rose three per cent to US$2.3 billion. Adjusted for one-time items, the company earned 58 cents per share, or 2 cents better then Wall Street had expected.
Coke said it expects its organic revenue to rise four per cent to five per cent in 2026. The company’s organic revenue grew five per cent last year, and analysts were expecting close to that this year.
Shares fell almost four per cent before the opening bell.
Coca-Cola announced in December that Henrique Braun, the company’s current chief operating officer and a 30-year veteran of the company, will become its CEO on March 31. Coke’s current Chairman and CEO, James Quincey, will become executive chairman.
Dee-ann Durbin, The Associated Press
