Coca-Cola released its Q2 & H1 results yesterday

Coca-Cola released its Q2 & H1 results yesterday

The head of Coca-Cola Co has defended his company's performance in Brazil after a major World Cup sponsorship investment failed to lift Q2 volumes.

Coca-Cola released its Q2 results yesterday (22 July), with Brazil posting flat volumes growth despite a high-profile World Cup campaign that included a trophy tour and a number of television adverts. However, CEO & President Muhtar Kent suggested to analysts in a conference call later yesterday that Coca-Cola's performance would have been worse if not for the tournament campaign.

Emphasising that Coca-Cola was under “tremendous duress” in Brazil for the first half of the year, Kent said: “Think of it this way. Had (the campaign) not been, the result would have been perhaps not what it was.”

The second quarter period covered the three months to 27 June. The five-and-a-half week FIFA World Cup concluded on 22 July.  

No financial details of the World Cup sponsorship have been disclosed but companies reportedly pay about US$25-50m a year to tournament organisers FIFA.

Kent added: “The macro environment in Brazil has been very challenging and so given that backdrop, I think our results were content with where we are and we believe that what we've done will benefit us in the second half and going forward.”

Meanwhile, Kent said the company “still has more work to do” after first half results showed a fall in global sales and profits. But he added: “In spite of continued sluggish global economic growth, the beverage industry remains vibrant.”