In the U.S., the rise of weight loss medications and non-alcoholic alternatives has led to a decrease in soda purchases. Despite this trend, Coca-Cola reported strong second-quarter earnings, bolstered by high global demand for its beverage products. This performance has prompted the company to raise its full-year revenue forecast.
Coca-Cola’s CEO, James Quincey, expressed optimism about the company’s results, highlighting the growth in both top-line and operating income amid a changing market landscape. However, the company experienced a 1% decline in volume sales in North America, attributed to reduced sales in “away-from-home channels,” which encompass water, sports drinks, coffee, tea, and sodas.
To mitigate the drop in soda sales, Coca-Cola is collaborating with restaurant chains to include its beverages in combo meals. Reports indicate that the company is working with McDonald’s to enhance the fast-food chain’s meal deals, which feature soft drinks.
Despite the challenges, Coca-Cola surpassed Wall Street expectations, reporting $12.4 billion in revenue for the second quarter, or approximately $0.84 per share, outperforming the anticipated revenue of $11.76 billion. The company has increased its forecast for organic revenue growth to between 9% and 10%, revising its earlier guidance of 8% to 9%.
Similarly, Pepsi has faced difficulties in attracting U.S. consumers, who are increasingly opting for products that support weight loss and healthier lifestyles. Earlier this month, Pepsi cited product recalls as a factor contributing to its lackluster second-quarter performance.