Consumers in the U.S. are becoming more cautious about purchasing sodas, influenced by the rise of weight loss drugs and non-alcoholic beverages.
In a recent poll by Coinbase, it was revealed that Donald Trump and Kamala Harris are closely competing for the support of crypto voters.
Despite the trend among consumers, Coca-Cola reported strong earnings for the second quarter of the year, spurred by solid global demand. This success led the beverage giant to elevate its full-year guidance. CEO James Quincey expressed optimism about the company’s performance, noting the solid growth in both revenue and operating income amid a shifting market.
However, the North American sector faced a 1% decline in volume sales during the quarter. Quincey attributed this downturn to decreased demand in away-from-home channels, which encompasses water, sports drinks, coffee, tea, and sodas. This decline was partially balanced by the popularity of Fairlife milk and Coca-Cola itself, which were ranked first and second in retail sales growth during the quarter.
To combat the volume drop, Coca-Cola is collaborating with food chains to integrate its sodas into combo meals. Reports suggest efforts are underway with McDonald’s to enhance the fast food chain’s $5 meal deal, which includes a soft drink.
Coca-Cola’s earnings exceeded Wall Street expectations, with revenue reaching $12.4 billion, translating to about $0.84 per share. Analysts had predicted revenues of $11.76 billion, or roughly $0.81 per share.
Looking ahead, the company has raised its forecast for organic revenue growth to between 9% and 10%, up from the previous estimate of 8% to 9%.
Similarly, Pepsi has encountered challenges in capturing interest from U.S. consumers, who are increasingly favoring products associated with weight loss and healthier lifestyles. A Gallup poll highlights a significant decline in alcohol consumption among young adults in the U.S. Earlier this month, Pepsi attributed a lackluster second quarter to a series of product recalls.