Coca-Cola continues growth despite 20 % price hikes

Coca-Cola had a strong first quarter of 2023, with growth ahead of expectations. Prices have 20 % this year, but that does not put off consumers.

Growing portfolio

Coca-Cola’s quarterly sales increased by 5 % to 11 billion dollars (10 billion euros). This was above analysts’ expectations, as were profits and even volume. Profits rose to 3.11 billion dollars (2.8 billion euros), almost 12 % higher than a year ago.

Although prices globally rose by an average of 10 % in the first quarter, volumes still grew by 3 %. The loss of the Russian market was offset by strong volume growth in China and India. In Europe, on the other hand, pricing went up by more than 20 %. According to Coca-Cola, inflation has led to higher transport and raw material costs.

CEO James Quincey is confident about the rest of the year: Coca-Cola expects organic sales growth of 7 to 8% this year, with earnings per share increasing by 7 to 9 %. In mature markets, the soft drinks giant is no longer targeting volume growth, but is looking to expand its portfolio. For example, the company is building on the Costa coffee chain and recently launched the new premium lemonade Royal Bliss.