Coca-Cola wants to halve its brand portfolio. Some two hundred brands will go out, as sales continue to fall in all regions due to the corona pandemic. Nevertheless, it was a better-than-expected third quarter.
Coconut water goes out
Coca-Cola pulls the plug on about half of its brands: less popular products, such as Zico coconut water, face an extinction scenario. And the corona pandemic has a lot to do with that: normally, the soft drink maker generates half of its turnover from outdoor sales but it is precisely this sector that suffers most from the measures.
CEO James Quincey continues to take a gloomy view of the situation: the top executive is preparing for even more local lockdowns and closures. That is why he does not dare to make any financial predictions for the rest of the year. The company does say it is on the right track with its current transformation plans.
The past third quarter did provide a bright spot: turnover ‘only’ fell by 9% this summer, to reach 8.7 billion dollar (7.35 billion euro). Although sales in all regions dropped compared to last year, this was a better performance than analysts had expected. In the second quarter, Coca-Cola still sold 28% less. Also positive was the increase in sales for home consumption. Net profit nevertheless fell by 33% to around 1.7 billion dollar (1.4 billion euro).
