Coca-Cola has observed strong global demand for its products, resulting in impressive second-quarter earnings that have led the company to increase its full-year guidance. CEO James Quincey expressed optimism about the company’s performance, highlighting solid growth in both revenue and operating income against a changing market.
Despite this success, Coca-Cola’s volume sales in North America experienced a 1% decline during the quarter. Quincey noted this was largely due to reduced sales in “away-from-home channels,” which include water, sports drinks, coffee, tea, and soda. This decline was somewhat balanced by the success of Fairlife milk and Coca-Cola’s namesake soda, which ranked highest and second in retail sales growth, respectively.
To combat the dip in sales, Coca-Cola is collaborating with fast-food chains to include its sodas in combo meal deals. Reports indicate that the company is partnering with McDonald’s to enhance its $5 meal deal, which features a soft drink.
In the second quarter, Coca-Cola reported revenue of $12.4 billion, approximately $0.84 per share, exceeding Wall Street’s expectations of $11.76 billion and $0.81 per share. As a result, the company has adjusted its forecast for organic revenue growth to between 9% and 10%, up from an earlier estimate of 8% to 9%.
Similarly, Pepsi is facing challenges in the U.S. market, where consumers are increasingly opting for products that focus on weight loss and healthier choices. In July, Pepsi attributed its disappointing second-quarter results to a series of product recalls.