The Coca-Cola Company recorded third quarter net revenues of $9.51 billion in results published last week. This is a growth of 8.3% higher from same period last year, which was largely driven by its Coke Zero Sugar line and by smaller can sizes.
While earnings were largely in line with analyst estimates, revenue exceeded expectations, which can be attributed to strong demand for zero-sugar sodas and Coca-Cola Plus Coffee, as well as a boost from core sparkling soft drink brands, which enabled new innovations and investments across the portfolio.
James Quincey, chairman and CEO of The Coca-Cola Company said: “Our performance gives us confidence that our strategies are taking hold with our consumers, customers and system.
“We are positioning the company to create a better shared future for all of our stakeholders by delivering on our vision and growing sustainably.”
Geographically, the quarter results included 3% organic sales growth in North America and Asia Pacific, as well as a 4% increase for the Europe, Middle East and Africa (EMEA) region. Latin America, which was up 14% on an organic basis, had the best sales performance out of the regions.
In the US, Coca-Cola has driven sales by focusing on drinks with less sugar and smaller packaging, in fitting with health trends. Coke Zero Sugar also performed well, with an eighth consecutive quarter of double-digit volume growth globally. Strong growth in smaller packages was seen across the board, for example the 7.5-ounce mini cans of soda.
Elsewhere, the launch of Coca-Cola Plus Coffee in more than 20 markets boosted the corporation’s performance, as did the introduction of Coca-Cola’s first energy drink. Coke Energy is available in at least 25 countries with its US launch set for January.
Products within juice, dairy and plant-based beverages grew, led by strong performance within the Minute Main and Simply portfolio in North America, and Minute Maid Pulpy in China.
Global Ventures, Coca-Cola’s acquisitions and investments division, reported that net revenues benefitted from acquiring UK coffee chain Costa for £3.9 billion last year.
Coca-Cola has forecast “at least 5% growth in organic revenues,” for the full year 2019.
© FoodBev Media Ltd 2019