Weak Europe Hits Coca-Cola Q2 Performance
Volume performance was soft in regions of Europe such as Central and Southern Europe and Northwest Europe and Nordics, both down 5% in the quarter, as a result of the ongoing economic slowdown and unfavorable weather.
18 Jul 2012 --- The Coca-Cola Company reported solid second quarter and year-to-date 2012 results, with continued strong volume and revenue growth, as well as further volume and value share gains in total nonalcoholic ready-to-drink (NARTD) beverages.
Volume performance was soft in regions of Europe such as Central and Southern Europe and Northwest Europe and Nordics, both down 5% in the quarter, as a result of the ongoing economic slowdown and unfavorable weather.
Overall growth in global volumes in the second quarter was 4%, putting average growth for the year at 5%.
Volume growth in the quarter was well-balanced around the world, with solid growth in key developed markets, including Japan (+4%), North America (+1%) and Germany (+1%), as well as strong growth in key emerging markets such as India (+20%), Russia (+9%), China (+7%) and Brazil (+6%).
Ready-to-drink tea volume grew 13% in the quarter, with continued strong performance of key brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in Japan and Fuze Tea, which was launched in Latin America during the quarter. Packaged water volume grew 10% in the quarter and energy drinks volume grew 21% in the quarter driven by growth across our global portfolio of energy brands.
Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, "We are pleased with our second quarter and year-to-date results. We are delivering consistent quality performance in line with our 2020 Vision growth targets, despite a very challenging and increasingly unpredictable global economy. Notably, we continue to gain global volume and value share by giving our consumers what they are looking for - meaningful brand connections, wide-ranging product and package choices, greater information about our brands, and significant investments in programs that support healthy and active lifestyles, all at the heart of our brand values.
"As we complete the 10 th quarter of our 2020 Vision, we remain passionately focused on offering a portfolio of brands that refresh and hydrate our consumers while bringing them simple moments of happiness. Together with our system bottling partners, our long-term growth plans remain on track and our commitment to enhance the well-being of the consumers, customers and communities we serve around the world is as strong as ever."
