Coca-Cola has reported strong second-quarter earnings despite challenges in the U.S. market. The beverage company attributed its robust results to a surge in global demand for its products, prompting an increase in its full-year guidance.
Coca-Cola’s CEO, James Quincey, expressed optimism about the company’s performance, which demonstrated significant revenue and operating income growth amid shifting consumer preferences.
However, the company faced a 1% decline in volume sales in North America during the quarter. Quincey noted that the drop was primarily due to lower sales in away-from-home channels that encompass a variety of beverages, including water and soda.
Despite the decline, sales of Fairlife milk and the Coke brand itself showed notable growth, ranking first and second in retail sales growth, respectively. To combat the sales drop, Coca-Cola is collaborating with food chains to incorporate its sodas into combo meals, including working with McDonald’s on enhancing their $5 meal deal which features a soft drink.
Coca-Cola’s second-quarter revenue reached $12.4 billion, exceeding analysts’ expectations, who had forecasted about $11.76 billion. Consequently, the company has adjusted its organic revenue growth forecasts to between 9% and 10%, up from its prior estimate of 8% to 9%.
Similarly, Pepsi is facing difficulties in engaging U.S. consumers, who are increasingly opting for healthier products and prioritizing weight loss. Pepsi recently attributed a lackluster second quarter to product recalls.