Coca-Cola is selling fewer soft drinks, as economic uncertainty weighs on consumer confidence. Strong demand in Europe compensate declines elsewhere. The manufacturer also admitted it will reintroduce a cane sugar version to the United States.
Shrinking volumes
Coca-Cola’s global sales rose 1 % to 12.62 billion dollars (11 billion euros) in the second quarter of the current financial year, but its volumes fell in every region except EMEA (Europe, the Middle East and Africa). Economic uncertainty and geopolitical tensions weighed on consumer confidence, which hurt sales in some markets, the company admitted. Net profit did rise from 2.41 billion to 3.81 billion dollars (3.2 billion euros).
Soft drinks volume dropped by 1%, while the juices, dairy and vegetable beverages division saw volume fall by 4 %. The water, sports, coffee and tea segment reported flat volume, as growth in coffee offset a decline in sports drinks. For the full year, the multinational expects organic sales growth of 5 to 6 %.
Following Trump’s demand
Coca-Cola has also admitted it is looking to (re)introduce a version of its cola made with cane sugar to the United States this autumn. The company has been using (cheaper) corn syrup to sweeten its soft drinks in the US since the 1980s, but it says it now wants to complement its portfolio and offer more choices for different occasions and preferences.
That news comes after US President Donald Trump insisted that Coca-Cola revert to using cane sugar in the US as well. Health Secretary Robert F. Kennedy Jr had also spoken out against the use of corn syrup, which he said is responsible for obesity and chronic diseases.
