Coca-Cola reported strong second-quarter earnings, benefiting from robust global demand for its beverages, despite a 1% decline in volume sales in North America. CEO James Quincey noted that the decrease was attributed to softer sales in away-from-home channels, which include products such as water, tea, coffee, and soda. However, the company’s Fairlife milk and its flagship Coke brand helped mitigate this decline, with Coke achieving impressive retail sales growth.
To address the drop in sales, Coca-Cola is collaborating with food chains, including McDonald’s, to integrate its soda into combo meals, enhancing its visibility and appeal. The beverage giant surpassed Wall Street expectations with a reported revenue of $12.4 billion, equating to earnings of approximately $0.84 per share, exceeding analysts’ forecasts of $11.76 billion in revenue and $0.81 per share earnings.
Coca-Cola has adjusted its annual growth forecast, now anticipating organic revenue growth between 9% and 10%, an increase from its previous estimate of 8% to 9%.
Similarly, Pepsi is facing challenges in attracting U.S. consumers, many of whom are shifting towards products that support weight loss and healthier lifestyles. Recent trends indicate that young adults are consuming significantly less alcohol, further impacting traditional beverage choices. In early July, Pepsi attributed its weaker second-quarter performance to a series of product recalls.