In the United States, consumers are increasingly delaying soda purchases due to the rising popularity of weight loss medications and non-alcoholic alternatives. Despite this trend, Coca-Cola reported strong earnings for the second quarter, with robust global demand for its beverages contributing to a positive outlook that led to an increase in full-year guidance.
Coca-Cola’s CEO, James Quincey, expressed optimism regarding the company’s second-quarter results, highlighting significant growth in revenue and operating income amidst a shifting market landscape. However, in North America, volume sales saw a 1% decline, which Quincey attributed to lower sales in away-from-home channels, affecting products ranging from water to soda.
The decline in soda sales was somewhat counterbalanced by strong performances from products like Fairlife milk and Coca-Cola itself, which ranked first and second in retail sales growth during the quarter. To combat the downturn in sodas, Coca-Cola is partnering with food chains, including McDonald’s, to integrate its beverages into meal deals, such as the popular $5 meal offer.
Coca-Cola’s second-quarter revenue reached $12.4 billion, exceeding analysts’ expectations of $11.76 billion. The company now anticipates organic revenue growth of 9% to 10%, up from its previous estimate of 8% to 9%.
Pepsi, similarly, is facing challenges in capturing U.S. consumers’ attention as they opt for healthier and weight-loss-focused products. The company reported a subdued second quarter, partly attributed to a number of product recalls.