New Flavors Help Diet Coke Return to Growth -- Update
April 24 2018 - 8:10AM
Dow Jones News
By Cara Lombardo
Coca-Cola Co.'s (KO) Diet Coke returned to volume growth in the
first quarter after the drinks company added four new flavors in
skinny, brightly colored cans.
Analysts have been skeptical that adding flavors like Zesty
Blood Orange and Twisted Mango, which are still artificially
sweetened, can win back lapsed soda drinkers and keep them around.
Diet Coke's sales volume in the U.S. has declined every year since
2006, according to industry-publication Beverage Digest.
The new drinks launched during the quarter, so the results
reflect only the first several weeks of sales.
Across its portfolio, Coca-Cola's drink volume grew 3% in the
first quarter, the company said Tuesday, including a 4% rise in
soda volume and a 5% rise in coffee and tea volumes.
The drinks company's first-quarter organic revenue, which
excludes currency swings, acquisitions and divestitures, increased
5% from a year ago. Overall, revenue fell 16% to $7.6 billion, due
to the divestiture of bottling operations. Analysts polled by
Thomson Reuters had expected $7.34 billion in revenue.
The Atlanta-based company reported a profit of $1.37 billion,
compared with $1.2 billion a year ago.
On an adjusted basis, the company earned 47 cents a share, just
above the 46 cents analysts expected.
Coke shares, up 2.1% in the past year, rose 0.8% in premarket
trading.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
April 24, 2018 07:55 ET (11:55 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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