Coca-Cola Earnings Boosted by New Diet Flavors
April 24 2018 - 10:05AM
Dow Jones News
By Cara Lombardo
Coca-Cola Co.'s Diet Coke returned to volume growth in North
America for the first time since 2010 after the drinks company
added four new flavors in skinny, colorful cans.
Analysts have been skeptical that adding flavors like Zesty
Blood Orange and Twisted Mango, which are still artificially
sweetened, will bring back soda drinkers who have moved on to more
natural-seeming options like sparkling water and tea. The last time
Diet Coke's quarterly volumes increased in North America, its
largest region by sales, was the fourth quarter of 2010, a company
spokesman said. Diet Coke's sales volume in the U.S. has declined
every year since 2006, according to industry-publication Beverage
Digest.
The launch appeared to be "bold enough and interesting enough"
to not just engage lapsed Diet Coke drinkers but also millennials
and fans of sparkling water, Chief Executive James Quincey told
analysts on an earnings call.
The new drinks hit shelves in January, so the results reflect
only the first several weeks of sales. Mr. Quincey warned sales
could soften.
Across its portfolio, Coca-Cola's drink volume grew 3% in its
first quarter, 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.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
April 24, 2018 09:50 ET (13:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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