In the United States, consumers are delaying soda purchases due to the popularity of weight loss medications and non-alcoholic alternatives. Despite this trend, Coca-Cola reported strong second-quarter earnings, enhancing its full-year outlook thanks to robust global demand for its beverage selections.
Coca-Cola’s CEO, James Quincey, expressed optimism about the company’s solid revenue and operating income growth amid a shifting market environment. However, the company faced a 1% drop in volume sales in North America. Quincey attributed this decline to weakness in away-from-home channels, which encompass water, sports drinks, coffee, tea, and soda products.
This decrease was partially balanced by growth in Coca-Cola’s Fairlife milk brand and its flagship soda, Coke, which ranked first and second in retail sales growth, respectively, in the quarter. To counteract volume losses, Coca-Cola is collaborating with food chains to integrate its sodas into combo meal offerings. Reports indicate that the company is working with McDonald’s to enhance its $5 meal deal that includes a soft drink.
In financial terms, Coca-Cola exceeded Wall Street projections in the second quarter, generating $12.4 billion in revenue, translating to approximately $0.84 per share. Analysts had anticipated revenue of $11.76 billion, or about $0.81 per share.
Looking ahead, Coca-Cola has revised its forecast for organic revenue growth to a range of 9% to 10%, up from its previous estimate of 8% to 9%. Similarly, Pepsi has faced challenges in attracting U.S. consumers who are increasingly focused on weight management and healthier habits. Earlier in July, Pepsi attributed its lackluster second-quarter performance to a series of product recalls.