Sales of Regular Coke Fall Flat for Coca-Cola as Profits Drop Five Percent
21 Apr 2016 --- Coca-Cola has reported a five percent decline in profits to $1.48 billion in the first quarter, as sales of its flagship regular Coke fell flat in Europe, North America, the Middle East and Africa.
Coca-Cola is facing the challenge of growing its portfolio of healthier drinks, bottled water and sports drinks to help offset deep-seated declining sales of carbonated soft drinks
Revenues at the world’s biggest soft drinks maker fell 3.7 percent to $10.3 billion in the quarter, as the company was also hurt by the strong dollar impacting sales.
But global sales volumes jumped two percent in the quarter.
Muhtar Kent, chief executive, said: “Our operating results are driven by our commitment to sustainable growth, and we are confident that we have the right strategies in place to achieve our full-year outlook and drive long-term value for our system and shareholders.”
In North America, growth in Sprite, Fanta and energy drinks was offset by a fall in sales of regular Coke.
Still beverage volume growth in the quarter was driven by juices, ready-to-drink tea and packaged water.
Overall in North America, sales were up two percent to $2.36 billion in the quarter.
Sales in Latin America were down 12 percent in the quarter to $935 million while down 14 percent across Eurasia and Africa to $546 million.
Across Europe sales were down one percent to $1.2 billion and down four percent to $1.2 billion in Asia Pacific.
Coke reported 2 percent growth in unit case volume but sales across sparkling beverages came in at level.
Coca-Cola is hoping that new marketing initiatives, such as its “One Brand” program will help boost sales going forwards.
The initiative will see all Coca-Cola branded drinks prominently feature the red hue synonymous with regular Coke, but with a distinctive band representing the colour of the individual brands such as Coke Zero.
