In the face of rising weight loss medications and non-alcoholic alternatives, U.S. soda sales have slowed. However, Coca-Cola has reported strong second-quarter earnings, fueled by global demand that has led the company to increase its full-year forecast.
Coca-Cola CEO James Quincey expressed optimism about the company’s financial performance, noting “solid topline and operating income growth in an ever-changing landscape.” Despite this success, the North American division saw a 1% decline in volume sales, attributed to reduced activity in away-from-home settings such as restaurants and cafes.
To mitigate this downturn, Coca-Cola highlighted the positive impact of its Fairlife milk product and the enduring popularity of its flagship Coca-Cola soda, which ranked first and second in retail sales growth during the quarter. To further enhance sales, the company is collaborating with food chains like McDonald’s to integrate soda into meal deals, such as their $5 meal offering.
Coca-Cola’s second-quarter revenue reached $12.4 billion, surpassing Wall Street predictions of $11.76 billion. Following this performance, the company raised its forecast for organic revenue growth from an earlier estimate of 8%-9% to 9%-10%.
Meanwhile, Pepsi is facing challenges in gaining traction with U.S. consumers who are increasingly inclined toward healthier lifestyles and weight management products. The company recently attributed its lackluster second-quarter results to a series of product recalls.