The multi-billionaire company, Coca-Cola has recently seen profits drop sharply as a result of sales of bottling facilities as it moved to expand new offerings of low-sugar and non-carbonated beverages amid flagging demand for sweet sodas, the company said on Wednesday.
Net income for the United States soft drinks big plunged 60 % in the second quarter to $1.4 billion, whereas revenues fell 16 % to $9.7 billion. both were hit by the company’s move to offload bottling assets in North America.
Sales volume grew for 3 of 4 beverage categories: juice, dairy and plant-based beverages; water, enhanced water and sports drinks; and tea and coffee. however volumes were flat in sparkling drinks.
Chief executive James Quincey on Wednesday said Coca-Cola’s efforts to satisfy consumer demand for non-sweet and healthier offerings were still on course.
Coca-Cola Zero Sugar grew strongly in Europe, middle east, Africa and Latin America. the company launched new fruit juice products in China and expanded its “Innocent” brand of smoothies and premium juices in Western Europe and Asia at large.
“Our performance provides U.S. confidence that we are going to achieve our full year financial objectives even in the face of challenging conditions, and additionally demonstrates further success in evolving our portfolio to satisfy changing consumer tastes and preferences,” – Quincey.