In the United States, the rise of weight loss medications and non-alcoholic alternatives is leading consumers to reconsider their soda purchases. Despite this trend, Coca-Cola reported strong earnings for the second quarter, citing high global demand for its beverages, which has encouraged the company to raise its full-year forecast.
Coca-Cola’s CEO, James Quincey, expressed optimism about the company’s performance, stating that the results reflect solid growth in revenue and operating income amidst a shifting market. However, the company experienced a 1% decline in volume sales in North America during the quarter. Quincey attributed this drop to lower sales in away-from-home channels, including water, sports drinks, coffee, tea, and sodas.
To mitigate the decline, Coca-Cola has focused on marketing its Fairlife milk products and its flagship soda, which performed well in retail sales rankings. Furthermore, Quincey announced that the company is collaborating with fast food chains like McDonald’s to include its sodas in combo meals, aiming to rejuvenate consumer interest.
Coca-Cola’s second-quarter revenue reached $12.4 billion, exceeding analysts’ expectations of $11.76 billion. The company also revised its forecast for organic revenue growth, now estimating an increase of 9% to 10%, up from previous projections of 8% to 9%.
In a similar vein, Pepsi is facing challenges in attracting U.S. consumers who are increasingly focused on healthier choices. In July, the company attributed its weaker second-quarter performance to several product recalls.