Coca-Cola has had a strong second quarter, thanks to a growing focus on healthier soft drinks. Its new ice tea brand Fuze Tea is catching on and Coca-Cola Zero is doing well too.
Better than expected
Although sales declined by 8 % due to the re-franchising of the bottling plants, sales of The Coca-Cola Company increased organically by 5 %. The soft drink group outperformed analysts’ predictions of a 8.54 billion dollar turnover (7.3 billion euro) as sales reached 8.9 billion dollar (7.6 billion euro).
Net profit even increased from 1.37 billion dollar last year to 2.32 billion dollar (2 billion euro) now. “Our annual performance encourages us in our evolution towards a consumer-oriented, complete beverage group,” says CEO James Quincey, who believes the results confirm the group has implemented the right strategies.
New, healthier varieties
Coca-Cola gained market share all over the globe, mainly due to growth for Coca-Cola Zero and increasing sales in the category of waters and sports drinks. The soft drink giant therefore focuses on expanding the portfolio, with a focus on beverages that contain less or no sugar.
For example, Coca-Cola launches new cola flavours, but also other drinks such as Fuze Tea and AdeZ’s vegetable milk. These products should be available in nineteen European markets by the end of 2018.
