• Q2 organic sales up 5%
  • Increase driven by concentrate sales and price/mix
  • Unit case volumes rise 2%
  • Continued success for Coca-Cola Zero Sugar and Fuze Tea
The Coca-Cola Co saw continued success for Coca-Cola Zero Sugar and Fuze Tea

The Coca-Cola Co saw continued success for Coca-Cola Zero Sugar and Fuze Tea

A balance between expanding volumes and increasing price/mix helped the Coca-Cola Co to record a 5% rise in organic revenues during the second quarter of 2018.

On a reported basis, net revenues fell 8% to US$8.9bn, but this was impacted by a 15% drop caused by the refranchising of company-owned bottling operations, Coca-Cola said. The 5% organic sales increase was driven by concentrate sales growth and price/mix growth, both of which topped 2%, it added.

Unit case volumes were up 2% in the period, thanks largely to the Coca-Cola brand, with continued double-digit growth for Coca-Cola Zero Sugar, plus another strong performance from Fuze Tea.

The company's comparable operating margin expanded by more than 300 basis points, driven by divesting lower-margin bottling operations and increased productivity.

President & CEO James Quincey: "We're encouraged with our performance year-to-date as we continue our evolution as a consumer-centric, total beverage company. We have the right strategies in place and remain focused on achieving our full-year guidance."

Europe, Middle East & Africa

  • Price/mix up 4%, partially offset by negative geographic mix as growth in emerging and developing markets outpaced developed markets
  • Unit case volumes up 1%

Latin America

  • Price/mix rose 12%, boosted by Mexico, Brazil and the South Latin business unit
  • Unit case volumes flat

North America

  • Price/mix dipped 3% in the three months, owing to increased freight costs as well as business mix as the concentrates business, notably sparkling soft drinks, outpaced the finished goods businesses, which includes juice and tea
  • Unit case volumes lifted 1%, driven by Coca-cola Zero Sugar, while juice, dairy and plant-based beverages declined

Asia Pacific

  • Price/mix came in even as growth in China and India outpaced developed markets, specifically Japan and Australia
  • Unit case volumes up 5%

Japan's "summer of clear" tests the conventional wisdom on beverage colours - NPD trends

Expert analysis

Alcoholic Drinks in the US

Alcoholic Drinks in the US

2017 witnessed spirits and wine continue to drive growth of overall alcoholic drinks. Strong performances by these two categories were enough to offset a sharpening decline in the biggest category of ...read more