The Coca-Cola Company Reports 2010 Third Quarter and Year-to-Date Results
Strong worldwide volume growth of 5% in the quarter, ahead of our long-term target, with balanced quality growth around the world, including 2% North America growth and 6% international growth.
Oct 20 2010 --- The Coca-Cola Company reports strong third quarter operating results, with volume increasing 5% in both the quarter and year-to-date, ahead of our long-term growth target and cycling 2% volume growth in the prior year quarter. Importantly, North America volume grew 2% in the quarter, building on our momentum in this key market as we continue to evolve our franchise system and integrate the acquisition of CCE's North American business.
International volume increased 6% in the quarter. Eurasia and Africa volume grew 12% in the quarter, with broad-based growth across all business units and beverage categories, including 30% volume growth in Russia and double-digit growth in Turkey, Southern Eurasia and East and Central Africa. India achieved its 17th consecutive quarter of volume growth despite record rainfall in the quarter and cycling very strong 37% growth in the prior year quarter. Pacific volume grew 11% in the quarter, cycling 6% growth in the prior year quarter. These results were supported by 12% growth in China, as well as growth of 11% in Japan, 19% in the Philippines and 13% in Korea. Latin America volume grew 4% in the quarter, cycling 7% growth in the prior year quarter, with Brazil volume up 13%. Mexico posted even volume results despite adverse weather and cycling 9% growth in the prior year quarter. Europe volume was slightly positive in the quarter, rounding to even, a sequential improvement supported by mid single-digit volume growth in France and the Nordic Region as well as volume growth in Great Britain, Germany and Northern Central Europe. These positive results were partially offset by continuing macro-economic pressures in South and Eastern Europe and the Adriatic Region.
Strong growth continued in countries with per capita consumption of Company brands less than 150 eight-ounce servings per year, with volume up 10% in the quarter and year-to-date in those countries.
We gained value share and maintained volume share in total NARTD beverages driven by volume and value share gains across core sparkling beverages, still beverages, juices and juice drinks, sports drinks and packaged water. We also gained volume share in energy drinks. Internationally, we gained volume and value share in total NARTD beverages.
Incremental volume was evenly balanced between sparkling and still beverages. Total sparkling beverage volume increased 3% in the quarter with international sparkling volume increasing 4%. Brand Coca-Cola grew 4% in the quarter and year-to-date, with growth across many markets in the quarter, including Russia (+34%), Brazil (+14%), the Philippines (+12%), Japan (+9%), South Africa (+5%), France (+3%) and Germany (+2%). Total still beverage volume increased 11% in the quarter, led by continued growth in sports drinks, juices and juice drinks, teas and water brands. Still beverage volume increased 13% internationally.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, "We are very pleased with our third quarter performance. We successfully completed our acquisition of CCE's North American business and the sale of our Norway and Sweden bottling operations to CCE, on plan and in line with our commitment. And we closed this transaction on the heels of a strong quarter. We continue to build on our momentum, delivering solid volume, revenue and profit growth this quarter, with our results exceeding all of our long-term targets and generating sustainable value for our shareowners. This quarter, once again, underscores how we are advancing our 2020 Vision from a position of strength as we enter a new era of growth for The Coca-Cola Company. Together, in close alignment with our global bottling partners, we are executing with excellence around the world. Our strategies, our brands, our marketing, our innovation, our partnerships and our people are defining new growth opportunities today and shaping our system’s vision for this decade.
"We are now intensely focused on driving a fast and seamless integration effort in our North America operations. This evolution of our franchise system is an important milestone in realizing our 2020 Vision, strengthening our commitment to best serve our customers and consumers and facilitating our ability to achieve sustainable and profitable growth in this, our flagship market.
"We see a world where today's consumers are valuing companies and brands as much on the quality of their ideals as the quality of the products and services they provide. Ideals like community, fun, happiness and the hope for a better tomorrow. This is what inspires our Company and our system and the long-term value we can create for our consumers and shareowners."
