Tuesday, September 30th13.2°C
22738
23430

Coca-Cola sells more drinks but soda dips; first global soda decline since 1999

NEW YORK, N.Y. - Coca-Cola, the world's biggest beverage maker, said Tuesday that the amount of soda it sold globally fell for first time in 15 years.

The drop in the first quarter was offset by stronger sales of its noncarbonated drinks that include Minute Maid, Powerade and Dasani bottled water. Overall volume rose 2 per cent, an improvement from the 1 per cent increase the previous quarter.

But the 1 per cent decline in global soda volume is notable for Coca-Cola: The last time the figure fell was in 1999, according to the company.

Gary Fayard, the company's outgoing chief financial officer, attributed the drop partly to the timing of Easter, which falls in the second quarter this year instead of the first.

"It's not as concerning to us as it would look at first pass," he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

The decline in global soda volume comes as Coca-Cola increasingly is relying on non-carbonated beverages to boost sales as sodas continue to face pressure, both at home and abroad. In developed nations like the U.S., soda has been under fire for years over concerns that it fuels weight gain. More recently, executives have blamed declines in diet sodas on concerns about artificial sweeteners.

For the quarter, Coca-Cola's soda volume slipped 1 per cent in North America and 5 per cent in Europe. It also took a hit in Mexico as the country instituted a tax on the sugary drinks, although the company didn't specify the severity of the decline.

For now, sodas still account for 75 per cent of the company's case volume outside the U.S. Overall, 81 per cent of the company's case volume comes from overseas.

Going forward, CEO Muhtar Kent stressed during a call with reporters that the company would pursue "balanced growth between stills and sparkling," as well as different regions of the world.

Coca-Cola isn't alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they're scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million to "north of $4 billion," Kent said. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter that ended March 28, unfavourable currency exchange rates contributed to an 8 per cent decline in profit.

Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations and Coca-Cola shares rose 3 per cent to $40.09.

Net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share.

Revenue fell 4 per cent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

____

AP Business Writer Mae Anderson contributed to this report.

___

Follow Candice Choi at www.twitter.com/candicechoi

The Canadian Press


Read more Business News

23359


Recent Trending




Today's Market
S&P TSX14989.72+12.80
S&P CDNX906.80-5.96
DJIA17078.797.57
Nasdaq4500.311-5.542
S&P 5001975.98-1.82
CDN Dollar0.8929-0.0029
Gold1208.90-9.90
Oil89.81-2.97
Lumber333.70+4.80
Natural Gas4.126-0.028

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.25+0.02
Cantex0.07-0.02
Anavex Life Sciences0.1825-0.0025
Metalex Ventures0.0550.00
Russel Metals34.68+0.19
Copper Mountain Mining2.43-0.09
Colorado Resources0.165+0.015
ReliaBrand Inc0.0157-0.0043
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 



22970

FEATURED Property
2023895Immaculate Home in popular Rose Valley new Mar Jok and Rose Valley schools!
$419,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_



23499




Member of BC Press Council


22755